4 Reasons You Shouldn’t be Afraid of Online Lenders

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Online moneylenders have been increasing in number and popularity these days. You can find a lot of them as mobile apps, and many people are fond of how convenient they are. Some established private money lenders are even launching online versions of their services.

If you’re a bit concerned that online lenders are scammy, don’t worry. Here are four reasons to trust online moneylenders.

They are government-regulated

Many online moneylenders today are legitimate. As such, they are registered with MinLaw and you can find them on their database. The MinLaw sets rules for lenders under the Moneylenders Act. This law sets the rules on what is acceptable behaviour. These are the main rules under the Act:

  1. Lenders can charge only up to 4% interest monthly on the remaining principal
  2. Late payment interest can only be up to 4% monthly of the amount due for every month of late payment
  3. Late payment fees can be a maximum of S$60 for every month of late payment
  4. Administrative fees can only be up to 10% of the principal amount upon loan approval

If your online lender violates any of these rules and they are registered, you can report them to the MinLaw. This way, online lenders are accountable to their borrowers and the Singapore government to perform their business ethically.

It’s easier to take out loans

Online moneylenders are quite convenient. All you need is your phone or computer, decent internet access, and you can apply for a loan. If documents are needed, you can even upload everything online. You may scan the documents with your mobile device and send them to the lender through their app or website.

Approvals are generally easier and faster with online lenders as well. They still perform background checks, but they are not as stringent as banks and bigger lending institutions.

You can do everything online

From loan application to repayment, you can do everything online with these lenders. Anywhere you are in Singapore – and even if you’re overseas – you can track the status of your loan. The best part is you can pay online every month. No need to visit moneylender’s physical office. If your lender and bank supports it, you can even set automatic monthly payments so you never miss any payments. If you are having problems, you can also talk to your lender’s support personnel online. 

They are not allowed to call, text, or DM you

If your online moneylender is legit, they will never advertise via call, text, or DM on social media. This is part of the rules set by the Moneylenders Act.

The same rules apply when asking for payment in case you have missed anything. They can only email or contact you through the loan app you used. Also, the law states that lenders are not allowed to use abusive or threatening language when communicating with you. If they do so, you can report them to the MinLaw.


Online moneylenders, like Soon Seng Credit, can be excellent choices when taking out loans. They offer convenient application, processing of documents, and payment. for your borrowing needs. As long as you know they are legitimate, you’re in good hands.

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