Notices for Applying Loans
from Moneylenders

What should I consider before applying a loan?

a. Before turning to a money lender, consider other alternatives, such as the various financial assistance programmes offered by various Government agencies. You can contact the agencies to find out more about their programmes.

b. You are obliged to fulfill any loan contract you enter into with a licensed money lender.

c. Consider whether you are able to abide by the contractual terms, keeping your income and financial obligations in mind. Borrow only what you need and are able to repay. Do consider whether you are able to meet the contractual terms or not, the late payment fees and interest payment will be a financial strain not just on yourself but also on your family.

d. The law requires money lenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, particularly, the repayment schedule, the interest rate charged and the fees applicable.

e. Think twice before agreeing to any contractual term which allows a money lender to lodge a caveat on the sale proceeds of your real estate property upon default of the loan repayment. When a caveat is lodged against your property, you will not be able to sell it without first repaying the money lender in full. If the repayment is taken from the net proceeds from the sale of the property, it can wipe out all or a substantial portion of the proceeds.

f. You should shop around different money lenders for the most favorable terms. No matter how badly or how quickly you need the money, you had better not rush into and commit yourself to a loan until you are satisfied with the terms and conditions.

How much can I borrow?

For secured loans, you can apply for a loan of any amount. For unsecured loans, you can obtain:
a. Up to $3,000, if your annual income is less than $20,000;

b. Up to 2 months’ income, if your annual income is $20,000 or more but less than $30,000;

c. Up to 4 months’ income, if your annual income is $30,000 or more but less than $120,000;

d. Any amount, if your annual income is $120,000 or more.