Key Takeaways
- Late interest on a missed moneylender payment is capped at 4% per month, charged only on the overdue amount — not your entire remaining loan balance.
- The maximum late fee a licensed moneylender can charge is S$60 per month of late repayment, regardless of your loan size.
- Total charges across interest, late interest, admin fee, and late fees cannot legally exceed 100% of your original principal. If you borrowed S$5,000, the most you will ever owe in fees and interest combined is S$5,000.
- Licensed moneylenders are prohibited by law from threatening, harassing, or intimidating borrowers — this applies even during default.
- A licensed moneylender cannot retain your NRIC, passport, or Singpass credentials at any point.
- Communicating with your lender before the due date is your single most effective move — it keeps restructuring options open.
- Late payment records are reported to the Moneylenders Credit Bureau (MLCB) — this does not affect your CBS bank credit score or HDB eligibility.
It is 11pm on a Tuesday. Your installment is due tomorrow. The past two weeks on Grab were the slowest you have seen all year. School term ended, rain hit four days straight, and your weekly payout came in at almost half your usual figure. You have done the calculation three times. You are S$400 short.
You are not sleeping.
This is the moment most borrowers make their worst decision: they go silent. They do not call. They avoid the lender’s number. They hope the problem disappears. It does not. And the silence is what turns a manageable shortfall into a months-long spiral.
Here is what actually happens when you miss a licensed moneylender payment in Singapore. The legal facts, your rights, and the exact move that keeps you in control.
What a Licensed Moneylender Can Legally Charge If You Miss a Payment
Singapore’s Moneylenders Act sets a hard ceiling on every charge a licensed moneylender can impose. These are not guidelines. They are law. The Registry of Moneylenders enforces them.
Late interest: maximum 4% per month on the overdue amount only
This is the number most borrowers get wrong. The 4% late interest applies only to the portion of the loan that is overdue — not to your entire remaining balance.
Here is what that means in practice. Say you have a S$3,000 loan and your monthly installment is S$600. You miss one payment. The late interest applies to S$600 — the overdue amount — not to the remaining S$2,400 that is not yet due.
At 4% per month, the late interest on a missed S$600 installment is S$24 for that month. That is a manageable number.
Late fee: maximum S$60 per month
On top of the late interest, a licensed moneylender can charge a flat late fee. The cap is S$60 for each month the repayment is overdue. This is the maximum. It does not compound beyond that.
The total cap that protects you most
This is the rule most borrowers do not know exists. Under the Moneylenders Act, the total charges across all interest, late interest, admin fees, and late fees combined cannot exceed 100% of the original loan principal.
If you borrowed S$5,000, the absolute maximum total in fees and interest across the entire life of the loan is S$5,000. Your debt cannot balloon indefinitely. The law puts a ceiling on it.
What a Licensed Moneylender Cannot Do
Knowing what a licensed moneylender cannot do is as important as knowing what they can charge.
A licensed moneylender operating under MinLaw regulations cannot threaten you, intimidate you, or harass you. This includes threatening messages, showing up at your home outside agreed hours, contacting your employer, or using abusive language. These acts are prohibited under both the Moneylenders Act and Singapore’s Protection from Harassment Act.
A licensed moneylender cannot retain your NRIC, passport, ATM card, or Singpass credentials. If any lender has asked for these items as security, that is an immediate red flag and should be reported to the Registry of Moneylenders.
A licensed moneylender cannot charge fees beyond the legal caps listed above. Any additional charges — “admin surcharges,” “processing penalties,” or charges that push your total above the 100% principal cap — are illegal.
If a lender claiming to be licensed is doing any of the above, they are either acting illegally or they are not licensed. Check the MinLaw Registry at rom.mlaw.gov.sg before your next interaction with any lender.
Power Credit Enterprise Pte Ltd is on that list. License 137/2025.
The One Move That Changes Everything: Contact Before the Due Date
This is the part that costs borrowers the most when they get it wrong.
A licensed moneylender has more flexibility in the early stages of a repayment difficulty than most borrowers realise. Restructuring a repayment schedule — extending the term, reducing the monthly installment temporarily — is a conversation that can happen. But only if you initiate it before the situation escalates.
Once you miss a payment without contact, the lender has two legal options: continue charging the capped late fees and interest, or pursue a court judgment. Neither outcome is better for you than a direct conversation before the due date.
The earlier you call, the more options stay open.
This is not a promise that Power Credit will restructure every loan in every situation. Each case is assessed individually, based on your repayment history, your income, and the circumstances you explain. What is true is that communication is the only thing that creates the possibility of a different outcome. Silence creates no possibilities at all.
If you need to contact Power Credit: call +65 6443 2940 during Mon-Fri 11am-7pm or Sat 11am-6pm. Or walk in to 1 Tras Link, #01-11 Orchid Hotel — 100m from Tanjong Pagar MRT Exit A.
If You Drive for Grab or Gojek, Read This Section
PHV and taxi drivers face a repayment risk that salaried borrowers do not: income that fluctuates by design.
Platform income from Grab and Gojek is not irregular in the negative sense. It is cyclical. March school holidays reduce surge pricing. Wet season increases ride volume. Post-festive weeks are consistently slower than peak weeks. These are structural patterns, not financial failures.
The problem is that loan installments do not adjust to platform cycles. Your installment is the same in a slow week as it is in a peak week.
Power Credit has been approving loans for PHV and taxi drivers since 2007 — before Grab existed in Singapore. That history means we understand driver income in a way that most lenders do not. When a driver calls to say the past two weeks were slow and the installment is at risk, that is a familiar situation. It is not a surprise.
If you are a Grab, Gojek, Tada, or taxi driver with a loan at Power Credit and you are looking at a difficult month, call before the due date. Explain the platform cycle. That context matters to how the conversation goes.
Frequently Asked Questions
What happens if I miss one moneylender payment in Singapore?
Your lender will charge a late fee of up to S$60 for that month and late interest of up to 4% per month on the overdue repayment amount only — not on your full remaining balance. Your record is updated in the MLCB (Moneylenders Credit Bureau). This does not affect your CBS bank credit score. The best action is to contact your lender before or immediately after the missed payment to discuss your options.
Can a licensed moneylender take me to court?
Yes. A licensed moneylender can pursue a court judgment after prolonged non-payment. This is typically a last resort after other recovery attempts. A court judgment can lead to wage garnishment or asset seizure, but only after the judgment is obtained. This outcome is avoidable through early communication with your lender.
Will missing a moneylender payment affect my bank credit score?
No. Licensed moneylenders report to the Moneylenders Credit Bureau (MLCB), which is a separate system from the Credit Bureau Singapore (CBS) that banks use. A late payment or default with a licensed moneylender does not appear on your CBS record and does not affect your eligibility for bank loans or HDB financing.
Can I negotiate a repayment restructure with my moneylender?
This depends on your lender and your individual circumstances. Licensed moneylenders are not legally required to restructure, but many will consider revised payment arrangements when borrowers communicate early. The earlier you make contact, the more flexibility typically exists. Waiting until after multiple missed payments significantly reduces your options.
What if I genuinely cannot repay the full loan at all?
If your financial situation has changed significantly and you cannot service the loan under any restructured terms, Credit Counselling Singapore (CCS) offers free debt management counselling. The Moneylenders Credit Bureau also provides resources on the MLCB self-exclusion framework. These options exist before bankruptcy or legal action becomes relevant. Seeking structured help early is always better than waiting.
What to Do Right Now
If your next installment is at risk, do not wait.
Apply online via Singpass MyInfo in 2 minutes. If you are an existing Power Credit borrower with a repayment concern, call us directly.
We are at 1 Tras Link, #01-11 Orchid Hotel — 100m from Tanjong Pagar MRT Exit A.
Call +65 6443 2940. Mon-Fri 11am-7pm. Sat 11am-6pm.
If you do not qualify for what you need, we will tell you before you make the trip. That is how we have operated since 2007.
