March 24, 2026
What's the Maximum Interest Rate a Licensed Money Lender Can Charge in Singapore? (2026)
The Short Answer: 4% Per Month
Under the Moneylenders Rules 2009 (amended 2023), licensed money lenders in Singapore cannot charge more than 4% interest per month on the outstanding principal. This cap applies regardless of your income or whether the loan is secured or unsecured.
But interest is only one part of the total cost. Here's everything a licensed lender is legally permitted to charge:
Complete Fee Structure (2026)
| Fee Type | Maximum Allowed | How It's Calculated |
|---|---|---|
| Interest Rate | 4% per month | On the remaining outstanding principal after each repayment — not on the original loan amount. Example: S$5,000 loan = S$200 interest in Month 1 (reduces as you repay) |
| Late Interest | 4% per month | On the overdue instalment amount only — not the full outstanding balance |
| Administrative Fee | 10% of principal (one-time at disbursement) | Charged once upfront. Example: S$5,000 loan = maximum S$500 admin fee |
| Late Payment Fee | S$60 per month | Per overdue instalment — cannot be compounded or stacked across multiple missed payments |
What Lenders Cannot Charge
Licensed money lenders are explicitly prohibited from charging:
- Early repayment penalties
- Rollover or renewal fees beyond the caps above
- Any fee not listed in the signed loan contract
- Commission to any third party for referring borrowers (they cannot pay or receive kickbacks)
How to Calculate Your Total Repayment
Use this formula for a rough estimate of total cost for a 6-month S$5,000 loan at 4% monthly:
- Admin fee: S$500 (one-time)
- Monthly interest (reducing): approximately S$680 total over 6 months
- Estimated total repayment: ~S$6,180
Always request a full repayment schedule in writing before signing. Licensed lenders are legally required to provide one.
Why the Rate Cap Matters
Before 2015, there was no universal interest rate cap in Singapore. Borrowers regularly paid 10–20% monthly. The 4% cap introduced by MinLaw was a significant consumer protection measure — and one that Lendly SG enforces strictly across every lender in our matching network.
Get a Rate Comparison in 60 Seconds
Different licensed lenders charge different rates within the legal cap. Lendly SG matches you to lenders offering the best rate for your profile — privately, with no Singpass required.
