What If You’re Unable To Pay Your Money Lender In Singapore?

Woman looking at mounting bills and debts, worried about being unable to pay her money lender in Singapore
checking blog post using mobile

What If You’re Unable To Pay Your Money Lender In Singapore?

checking blog post using mobile
Woman looking at mounting bills and debts, worried about being unable to pay her money lender in Singapore



Nobody wants to be in a position where they are unable to pay their money lenders what they owe. After all, things pertaining to licensed money lenders’ late payments such as late interest charges and late fees can make it that much more difficult for anyone to pay down their debts.

Can money lenders file a case in court? Do money lenders offer debt repayment plans? What can happen if I’m unable to repay my licensed money lender in Singapore? These questions will inevitably conjure up in your head if you’re in or nearing that situation.

Find out the answers to your burning questions below.

What happens if you’re unable to pay your money lender?

1. Late interest and compound interest will start accruing on the balances owed

If you’re unable to pay your licensed money lender, be aware that they can and will charge the late interest on the amount that’s repaid late. Any late or missed repayment will accrue late interest that compounds.

The longer you take to repay any balance that’s already due, the more interest you’ll be liable for at the end of the day.

2. Late payment fees will start accruing for every late repayment

Licensed money lenders can legally charge a late fee of up to $60 for every month of late repayment made.

3. Things money lenders can do to get you to return what you owe

While there are certain prohibited things that money lenders aren’t supposed to do such as harassing their debtors, there are many legal things that licensed money lenders can do in a bid to get you to make repayments for your loans.

They can:

  • Send a letter of demand to you by post or email
  • Visit your home or place of employment
  • Send debt collectors to collect debt on their behalf
  • Take you to court
  • Bill you all legal costs ordered by the court for a successful claim by the money lender for the recovery of the loan

How can you settle licensed money lender disputes?

1. Negotiate and work out new repayment plans

Can a money lender file a case in court? Yes, they can. A money lender can file a case in court. But of course, knowing full well you have difficulty making repayments, most money lenders would negotiate with you and draw up a debt repayment plan that aims to help you restructure your debt and better manage it before taking more drastic measures.

2. Reach out to social service organisations

Even though it’s never pleasant to be running away from your debt obligations, sometimes it pays to swallow your pride and seek help from trusted sources for various licensed money lender debt counselling services as well as tips on how to settle licensed money lender disputes.

Apart from offering credit counselling to debtors in need of support, social service agencies can also provide general credit management information and assistance regarding debt repayment plan negotiations with creditors.

Here are the social service agencies you can reach out to:

Adullam Life Counselling
Address: 151 Chin Swee Road #08-04 Manhattan House Singapore 169876
Tel no.: 9423 8832
E-mail: [email protected]

Association of Muslim Professionals (AMP)
Address: 1 Pasir Ris Drive 4 #05-11 Singapore 519457
Tel no.: 6416 3960
E-mail: [email protected]

Arise2Care Community Services
Address: No. 5 Harper Road #02-01A Singapore 369673
Tel no.: 6909 0628
Email: [email protected]

Blessed Grace Social Services
Address: 16 Arumugam Road, #04-02B Block D, LTC Building Singapore 409961
Tel no.: 8428 6377
Email: [email protected]

Credit Counselling Singapore*
Address: 51 Cuppage Road #07-06, Singapore 229469
Tel no.: 6225 5227 / 6338 2663
Email: [email protected]

One Hope Centre
Address: 8 New Industrial Road #04-04B LHK 3 Building Singapore 536200
Tel no.: 6547 1011
Email: [email protected]

Silver Lining Community Services
Address: (East) 11 Playfair Road Singapore, (West) Jurong Spring CC, 8 Jurong West St 52 Singapore 649296
Tel no.: 6749 0400
E-mail: [email protected]

*Take note that Credit Counselling Singapore only deals with cases that involve debts with banks in Singapore.

3. File for bankruptcy

Any individual or company that’s unable to repay outstanding debt of at least $15,000 can be declared bankrupt through the legal process. Here are the steps to file for bankruptcy in Singapore.

Bankruptcy is meant to protect the debtor in various ways. Once filed and approved, it prevents your creditors, such as licensed money lenders, from suing you for your debts. Additionally, the alternative payment plan crafted to suit your existing situation should help encourage more manageable debt repayments.

That being said, filing for bankruptcy should never be done in a haste — there are consequences and restrictions you have to contend with. Think of bankruptcy filing as a last resort!

What can you do if you experience licensed money lender harassment?

“What if a money lender keeps threatening me despite pleas to stop?”

Well, you can lodge a complaint against your licensed money lender. It’s one of the most straightforward, legal things you can do to settle licensed money lender harassment issues.

In case you didn’t already know, licensed money lenders are not allowed to harass, use threatening tactics, or use abusive language to get you to pay up.

What would happen if you lodge a complaint against a licensed money lender?

The Registry of Moneylenders will investigate your complaint thoroughly. To facilitate their investigation, you may be required to attend an interview with their officers. You’ll also have to provide them with (i) all relevant information and documents related to your loan transactions, and (ii) the circumstances of your dealings with the money lender.

Worried about potential licensed money lender harassment? Fret not, the Registry will not disclose your details to the licensed money lender without your consent.

You may contact the Registry at 1800-2255-529 or through their online form. All errant licensed money lenders will be taken to task.

Is there any alternative way to air your grievances without lodging complaints?

You might want to consider writing an honest, unbiased Google review of your experience with the licensed money lender. Potential borrowers will likely blacklist this particular licensed money lender and avoid any dealings with them, especially if other similar reviews also contain complaints against this licensed money lender.

Where can you find reliable licensed money lenders in Singapore?

There are plenty of licensed money lenders in Singapore for you to choose from. However, narrowing down the top money lenders doesn’t have to be a stressful or difficult task.

Simply use CompareSing to gather loan quotes from reliable licensed money lenders in Singapore quickly and easily — all you need to do is fill out the online form, sit back and wait for our top money lenders to contact you.


We assume no responsibility or liability for any errors or omissions in the content on this website. The information contained on this website is provided with no guarantees of completeness, accuracy, usefulness, timeliness, or any warranties of any kind whatsoever. The content on this website is for informational purposes only and should not be construed as professional advice.

Read next