On 15 September 2026, borrowers in Singapore gained a new right: three business days to cancel an unsecured loan from a licensed moneylender.
It was an addition, not an overhaul. Anyone borrowing from a licensed moneylender already held a set of protections, and most borrowers do not know what is on that list. This page sets out the whole thing — the new right, and the ones that were already yours.
The right that was added
From 15 September 2026, if you take an unsecured loan from a licensed moneylender, you have three business days to cancel it. Saturdays, Sundays and public holidays do not count towards that window.
Cancel inside it and no interest is charged. Your lender may keep only a capped portion of the loan approval fee — up to S$50 on loans of S$5,000 or less, or up to 3.5% of the principal on larger loans, and never more than the fee they actually charged you. You cannot be made to repay more than the principal you borrowed.
Business loans are excluded from this right.
The rights you already had
To deal only with a licensed lender. Every licensed moneylender in Singapore appears on the Ministry of Law’s public register. Checking that list before you borrow is the single most useful thing you can do, because every right below exists only inside the licensed system. Outside it, none of them apply.
Not to be approached. A licensed moneylender cannot solicit you by text message, phone call or social media. This one is worth committing to memory, because it is the clearest test there is. A message offering you a loan is not from a licensed lender, whatever it claims.
To be seen in person. Before granting a loan, a licensed moneylender must meet you at their approved place of business and verify your identity face to face. There is no legitimate arrangement where a licensed loan is completed entirely at a distance.
To know what you are being charged, and to be charged no more than the law allows. Every charge a licensed moneylender can apply is capped:
| Charge | Maximum |
|---|---|
| Interest | 4% per month, on the reducing balance |
| Late interest | 4% per month on the amount repaid late |
| Upfront administrative fee | 10% of the loan principal |
| Late repayment fee | S$60 per month |
| All of the above combined | Cannot exceed the loan principal |
Two of those deserve a second look, because they are the ones borrowers most often miss.
“On the reducing balance” means interest is charged on what you still owe, not on the original sum. As you repay, the interest falls. A lender quoting interest on the full principal throughout the term is not applying the rule correctly.
The combined cap is the strongest single protection on this list. Interest, late interest, the administrative fee and late fees, added together, can never exceed the amount you borrowed. Borrow S$5,000 and the total charges cannot pass S$5,000, however long the loan runs or how badly it goes. Unlicensed lenders are bound by none of this, which is the practical difference between the two.
To raise a complaint. The Registry of Moneylenders under the Ministry of Law oversees licensed moneylenders. If you believe one has breached the rules, that is where the complaint goes.
A right you do not use is not much of a right
The cooling-off period is the clearest example. Three business days is short, and it expires silently. Nobody reminds you.
The same is true of the others. Being entitled to know your charges does not help if you do not ask. Being able to complain to the Registry does not help if you have kept no record of what happened.
Three habits make the difference:
- Ask for things in writing. Your cooling-off deadline, your settlement figure, confirmation your loan is closed. A dated message costs nothing and settles any later dispute.
- Keep what you are given. Your agreement, your payment records, any correspondence.
- Ask before you sign, not after. Every question is easier to answer while the loan is still a proposal.
Before you borrow: two checks
Check the register. Find your lender on MinLaw’s list of licensed moneylenders. Match the company name and licence number, not just the trading name.
Check how they contacted you. If a loan offer reached you by SMS, WhatsApp, a social media message or a cold call, stop there. That alone tells you the sender is not licensed, regardless of what the message says or which company name it uses.
If something goes wrong
If you are in difficulty with a loan you already hold, say so early. The Registry of Moneylenders updated its Professional Service Handbook in April 2026, encouraging licensed lenders to restructure repayments where a borrower’s circumstances have changed, and to refer people to a Social Service Agency where the problem runs wider than one loan. These are encouraged practices rather than legal duties, so they vary between lenders — but they cost nothing to ask about, and a lender who knows early has more room to help than one who finds out after a payment is missed.
Borrowing with Jefflee Credit
Our loan approval fee is 10% of the principal, which is the maximum permitted. If you cancel during the cooling-off period, the retained portion is the capped amount — S$50 on loans of S$5,000 or less, or 3.5% on larger loans — with no interest, and never more than you borrowed.
Cancellation is confirmed in person at our Jurong Gateway office. Call first so we can put your request on record and prepare your settlement figure, then come in with the same documents you provided when you applied, along with your loan agreement. Settlement is completed within 24 hours of the cancellation being confirmed. That 24 hours is not your deadline to decide — your deadline is the end of the three business days.
If you want to ask something before you sign anything, call. That is what the phone number is for.
Jefflee Credit Pte Ltd · Licence No. 112/2026 131 Jurong Gateway Road, #01-261, Singapore 600131 Phone: 6515 5611
| Day | Hours |
|---|---|
| Monday to Friday | 11.00am – 7.00pm |
| Saturday | 11.00am – 6.00pm |
| Sunday and public holidays | Closed |
Sources: Ministry of Law press release, 31 August 2026 · Registry of Moneylenders