Top 5 Ways on How to Solve Loan Shark Problems in Singapore

Top 5 Ways on How to Solve Loan Shark Problems in Singapore
Top 5 Ways on How to Solve Loan Shark Problems in Singapore

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Loan sharks have a bad reputation in Singapore, and for a good reason. Although they don’t always look as menacing as those famously portrayed in local movies like Money No Enough, it is best not to seek services from loan sharks. However, if you happen to have been in urgent need of fast cash loans and have borrowed from loan sharks, don’t panic.

The five methods below will guide you through on how to solve loan shark problems in Singapore.

How to solve loan shark problems in Singapore

1. Check if they are registered with the Registry of Moneylenders as money lenders

Other than friends or family, only borrow money from legalised money lenders in Singapore or banks. This is why you should immediately confirm if your creditors are registered with the Registry of Moneylenders in Singapore. If they’re not, then they’re unlicensed money lenders, otherwise known as loan sharks.

The Registry of Moneylenders has an official list of licensed lenders anyone can access. This list is updated regularly and it contains businesses whose money lending licence has been suspended, if any. As of time of writing, there are no suspended licensed lenders you should know about.

That being said, there are currently many illegal money lenders who are pretending to be legal lenders. Even if you find out that your creditor is in fact registered, familiarise yourself with what they are allowed and not allowed to do. The Registry of Moneylenders has a handy FAQ page on its website that you can refer to if you need information in a pinch.

Ways to know you’re dealing with a licensed lender

Firstly, licensed lenders are strictly not allowed to canvas loans through any form of texting, phone calls, or social media platforms like Facebook.

Secondly, never trust a loan process that is completed purely online because this is illegal as well. One telltale sign of a legitimate money lender is that they require you to head down to their approved place of business in person.

This lets them verify your identity physically before approving your loan application and disbursing the funds.

Furthermore, licensed lenders are not allowed to harass, threaten, or intimidate you for repayment, according to the Protection from Harassment Act (POHA). They are also not allowed to stalk or injure you, nor vandalise or seize your assets. The latter even requires the creditor to obtain a Writ of Seizure and Sale (WSS) as part of a civil court case.

2. Report the loan sharks to the authorities

Should you be facing intimidation tactics from loan sharks, do not panic and there’s no need to feel powerless. Contact the police immediately even if you are unsure if your creditors have performed any illegal acts. If you’re genuinely feeling harassed, trust your instincts. The police will then be able to answer your questions and inform you of what else you need to do.

Another hotline you can call is the X-Ah Long hotline at 1800-924-5664. Despite the amusing name, it is a legitimate hotline run by the Singapore Police Force. If you have detailed descriptions regarding how you have been harassed by loan sharks, they’ll go a long way in solving your case.

The sooner you contact the authorities about this, the sooner the legal process and required recordings can begin. If you delay contacting the police, some evidence may be lost or even compromised, which can affect legal proceedings down the line.

3. Stop paying the loan sharks

A simple solution would be to just stop paying the loan sharks. Remember, loan sharks aim to keep you trapped in debt by attaching ludicrous interest rates to your principal loan amount. There’s no need to be a victim of this.

However, because they are experts at intimidation through threats and harassment, not paying them can be a difficult challenge. Other than cruder means of harassment like spraying paint around your corridor or locking your gates, they may also resort to humiliation techniques like insulting you or your family. Don’t give in. What’s more, they might harass your neighbours as well.

Additionally, don’t make the mistake of continuing to pay loan sharks when you’ve already filed a police report. You have to remember what they are doing is illegal, and you have the law on your side to not give in and fork out a single cent to them.

4. Change your personal information

Person changing personal information to avoid loan sharks

A popular tactic that loan sharks employ to make people pay back their loans is capitalising on your personal information like phone number, home address, Singpass login details, and office address.

For instance, they may make multiple calls to your mobile phone while you are at work, or even threaten to visit your workplace in a bid to embarrass you and thus, pressure you into repaying the loan.

If they have your Singpass login details, they may even wreak havoc by signing legal documents or transferring certain assets without you realising.

Hence, it is paramount that you immediately change as much personal information as you can once you know they’ve been compromised. Don’t forget to make a police report, too.

5. Get help from the community and social service agencies

Remember that you are never alone. As mentioned above, turning to the police is the first thing you should do. You can seek help from your friends and family during this period as well.

Additionally, your neighbours can assist you. Ask them to inform you immediately and call the police should there be any suspicious activity near your house.

Many social service agencies can help you recover from serious debt problems by providing general credit management information, credit counselling, and where possible, negotiation services. These social service agencies have had experience working with clients who are in your situation, so they’re well-equipped to help you during this time.

Here is a list of helplines you can reach out to if you are wondering how to solve loan shark problems in Singapore:

Rather than working with loan sharks, the legal, safer, and fairer alternatives are legal money lenders or banks. If you need access to cash quickly, consider 24-hours money lenders in Singapore.

One reputable and experienced licensed lender you can consider is MM Credit. We’re a Bedok money lender, hence are an ultra convenient legal loan provider for east-siders looking for a loan. MM Credit was established in Singapore in 2013 and has been part of the Registry of Moneylenders ever since.

Getting a loan with us is easy and secure altogether. Simply apply for a loan on our website and our loan officers will get back to you right away with a personalised quote.


The information contained on this website is not intended as a substitute for advice from a licensed professional. We do not guarantee the accuracy, completeness, suitability, or validity of any information provided on this website. We will not be responsible for any errors or omissions on the site nor will we be liable for any loss or damage caused by reliance on any information obtained through this website.

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