Considering a legal personal loan, but concerned about your CBS credit score? A loan from a licensed moneylender is an alternative to consider.
Licensed moneylender loans are recorded with the Moneylenders Credit Bureau (MLCB), separately from your Credit Bureau Singapore (CBS) report. Your CBS report covers credit payment history from banks and major financial institutions; your MLCB report covers your loans and repayment status with licensed moneylenders.[1][3]
PickMeALoan helps you explore this alternative and compare available licensed-lender offers before deciding which one to accept.[5]
Request my licensed-lender offersFree to request and compare, with no obligation to accept. PickMeALoan is a comparison platform; the lender approves and provides the loan.[5]
What does a licensed moneylender do?
A licensed moneylender lends money legally under Singapore’s moneylending framework. It assesses your application, offers loan terms and collects repayments under the agreement you sign. Licensed moneylending is different from unlicensed lending: you can check a lender against the Registry of Moneylenders’ official list.[4]
The lender must explain the loan terms in a language you understand and give you a copy of the loan contract. That includes the repayment schedule, interest rate and applicable fees.[4]
You do not need to wait for a bank rejection to understand this option. If your concern is how borrowing is recorded, start by understanding the difference between CBS and MLCB.
Are licensed moneylender loans shown in your CBS report?
No. Licensed moneylender loans and repayments are recorded with MLCB, not as bank-loan accounts in your CBS report. MLCB records include your loan amounts, outstanding balances and repayment status with licensed moneylenders.[1]
Credit Bureau Singapore (CBS) report
Credit payment history from banks and major financial institutions. New bank-loan application enquiries can also appear here.[3]
Moneylenders Credit Bureau (MLCB) report
Loan amounts, outstanding balances and repayment status submitted by licensed moneylenders. This is the report relevant to your licensed moneylender borrowing.[1]
This gives you a legal borrowing option with a separate credit report. Your loan still has a repayment record, and licensed moneylenders use MLCB information to assess creditworthiness.[2]
Why consider a licensed moneylender loan?
1. Not shown in your CBS report
If you have been treating every personal loan as another bank-loan account on your CBS report, the MLCB distinction matters. Licensed moneylender borrowing has its own loan information report, including the status of your repayments.[1]
You can therefore consider a licensed moneylender loan as a different borrowing route, rather than making another bank application simply because you did not know the alternative existed.
2. Avoid unnecessary bank applications
Repeated bank loan or credit card applications can add new-application enquiries to your Credit Bureau Singapore (CBS) report. Too many within a short period may affect your chances of loan approval.[3]
CBS explains that a bank or financial institution’s credit-report enquiry in response to a new loan application is recorded on your file. It advises consumers to limit unnecessary applications for loan facilities and credit cards.[3]
Understand which route you want before applying repeatedly. If you want licensed-lender offers, start that comparison through PMAL instead of submitting more bank applications.
3. Usually approved on the same day
Loan approval is usually completed on the same day, subject to the lender’s assessment and required documents. PMAL’s published comparison also identifies same-day processing for licensed-lender loans.[6]
Prepare the information the lender needs and confirm its appointment and disbursement timing. An approval decision and the money reaching you are separate steps, so ask about both if you need the funds by a particular time.
4. Repay early. Save interest. No penalty.
Repaying your loan early can help you save on interest, with no early repayment penalty. No one-month advance notice is required.
Interest on a licensed moneylender loan is calculated on the outstanding principal. Paying down what you owe sooner can therefore reduce the interest you pay.[4]
Ask the lender for a settlement amount for your intended repayment date. This lets you see the remaining principal, accrued interest and any outstanding permitted charges before you close the loan.
When does this borrowing option make sense?
Think short-term and plan your repayments. Interest rates from licensed moneylenders are generally higher than bank loan rates, so consider this option primarily for short-term financing needs that you can comfortably repay.[6]
A separate credit report is a reason to understand the alternative, not a reason to ignore its cost. Before accepting an offer, check:
- How much money you will receive after any upfront fee.
- The instalment amount and payment dates.
- The total repayment and what early settlement would cost.
Use the actual offer to make that decision. The Registry of Moneylenders also advises borrowers to compare lenders and understand the terms before committing.[4]
Why request licensed-lender offers through PickMeALoan?
Knowing about the alternative is useful. Seeing what lenders can offer you is the next step.
PMAL publishes licensed-lender rates from 0.82% per month. This is a starting interest rate, not a guaranteed personal offer; your eligibility, lender assessment and fees determine the terms available to you.[6]
Our AI-managed matching uses your profile and loan requirements to check participating lenders’ criteria. You can review available offers through WhatsApp and compare the rate, fees and repayments before choosing whether to proceed.[5]
- Tell PMAL what you need. Start with Singpass and provide your loan requirements.
- Review your available offers. Compare the costs and repayment terms, rather than accepting the first offer you see.
- Choose whether to proceed. The lender completes its checks and confirms the final loan terms.[5]
PMAL does not charge you to request or compare offers, and you do not have to accept one. The loan itself carries the lender’s interest and applicable fees.[5]
Request my licensed-lender offersQuestions about licensed moneylender loans and CBS
Will a licensed moneylender loan appear in my CBS report?
No. Licensed moneylender loan amounts and repayment records are recorded with MLCB, separately from the CBS report used for bank and major financial-institution credit history. The loan still has a record in MLCB.[1][3]
Are CBS and MLCB the same thing?
They are different credit-reporting services. Credit Bureau (Singapore) Pte Ltd operates MLCB, but the MLCB loan information report concerns licensed moneylender borrowing. The shared operator does not make the two reports the same.[1][2][3]
Does checking licensed-lender offers through PMAL affect my CBS score?
No. Checking alternative-lender offers through PMAL does not affect your CBS score or leave a CBS enquiry record. If you specifically request bank loans, the bank-loan process may involve a CBS check. The lender still assesses your application before granting a loan.
How quickly can a licensed moneylender approve my loan?
Approval is usually completed on the same day, subject to the lender’s assessment and required documents. Confirm the lender’s disbursement timing as well if you need the money by a particular time.[6]
Can I repay early without a penalty or one month’s notice?
Yes. You can repay early without an early repayment penalty, and no one-month advance notice is required. Ask the lender for your settlement amount, including any accrued interest and outstanding permitted charges. Early repayment can help you save on interest.
Is PickMeALoan free to use, and must I accept an offer?
PMAL is free for borrowers to request and compare offers. There is no obligation to accept. We earn a referral commission from lenders when a loan is approved. If you take a loan, the lender’s interest and applicable fees still apply.[5]
