When you took the loan, the monthly instalment made sense at the time. But now — after a job change, a medical bill, a rent increase, or just the quiet accumulation of expenses — the same number that seemed manageable has started to hurt.
This is one of the most common financial positions Singaporeans find themselves in. And it is one that most people handle by doing nothing and hoping it works itself out. It rarely does.
The good news is: if your loan repayment is with a licensed moneylender in Singapore, you have more room to negotiate than you probably think — especially if you act before any payments are missed. This guide explains exactly what your options are, what to say when you call, and what realistic outcomes look like.
Key Takeaways
|
First: You Have To Understand Why the Repayment Feels Too High
Before calling your lender, it helps to be precise about what the problem actually is. The answer changes what you ask for.
Scenario A — Your income dropped. A job change, reduced hours, or a disruption to freelance income means your monthly cash flow is lower than when you borrowed. The instalment is the same number, but it now represents a larger share of what you bring in.
Scenario B — Your expenses increased. Your income is unchanged, but rent went up, a family obligation appeared, or another recurring cost entered the picture. The loan competes for budget space with more things on your plate now.
Scenario C — You have multiple loans. No single instalment is catastrophic, but two or three of them running simultaneously puts combined pressure on your monthly outflow. Which you didn’t fully anticipate when each was taken individually.
Scenario D — The loan was structured too short. A 3-month repayment period felt aggressive but achievable at the time. It now doesn’t feel achievable.
Each scenario has a natural corresponding solution. Knowing which one you are in before the conversation helps to save time and makes the request more concrete.
What You Can Actually Ask For
Licensed moneylenders in Singapore are not banks. They have more flexibility in how they structure each individual loan term — and they generally prefer a modified arrangement that gets repaid over a default that doesn’t.
Here are the three realistic adjustments you can request:
1. Extend the Loan Tenure
This is the most common request from lenders and the most commonly granted. Extending the repayment period — let’s say, from 6 months to 12 months — directly reduces your monthly installment, sometimes by 30 – 40%.
The mathematical trade-off is real: you pay more total interest over the longer period. But if the choice is between a sustainable repayment over 12 months and a missed payment this month, the extended tenure is the better outcome for both parties.
Example: A SGD 5,000 loan at 4% monthly interest, currently structured over 6 months at approximately SGD 1,050/month, extended to 12 months becomes approximately SGD 620/month. You pay more total interest, but your monthly exposure drops significantly.
2. Reduce Monthly Instalments Temporarily
If the difficulty is short-term — a gap between jobs, an unexpected expense that’s been dealt with, a one-off cost — you can request a temporary reduction in the installment with a catch-up structure later. This is less standard approach than tenure extension but worth asking for if you have a clear timeline for when your cash flow recovers.
Be specific when making this request. “I can manage SGD 400 for the next three months and return to the full instalment in July” this is a request a lender can say yes to. While saying “I just can’t pay right now” is not.
3. Consolidate Multiple Loans Into One
If Scenario C describes your situation — multiple loans running simultaneously — a debt consolidation loan replaces all of them with a single monthly payment, typically at a lower combined rate.
The immediate effect is that your monthly outflow drops. You are no longer paying three separate installments on three separate schedules. You have one payment, one due date, and a clear single horizon.
This is particularly relevant if the loans are with different lenders at different rates. A consolidation loan negotiated at Magnus Credit Pte Ltd’s rates — from 1% – 4% per month — may well cost you less monthly than what you are currently paying across all loans combined if you miss your payment.
How To Make The Call: What To Say
Most borrowers avoid calling their lender because they do not know how to frame the conversation. Here is a direct template you can use.
“Hi, I’m calling about my loan account [reference number]. I wanted to speak to someone before any payments are affected, because my financial situation has changed recently and I want to work out a revised arrangement rather than let anything slip.
Specifically, I’m finding the current monthly installment difficult to sustain. I’d like to discuss whether my repayment term can be extended, or whether there’s a revised structure that would work. I have [one/two/etc.] loans and my current combined monthly commitment is SGD [amount]. I can realistically manage around SGD [amount] per month.
Can I schedule a time to come in and go through this with someone, or is there a process for submitting this request?”
That is the whole call. You are not asking for a favour. You are proposing a modification that is in both parties’ interests — and you are doing it before any payment is missed, which is the strongest possible position to be calling from.
What Lenders Look At When Reviewing a Request
Understanding what your lender is assessing makes it easier to prepare the right information.
Your MLCB repayment record. If you have a clean history of on-time payments, this works in your favour. Lenders treat restructuring requests from good-history borrowers differently from those coming after sustained missed payments.
Your current income situation. You do not need pay slips for the conversation, but being able to state your approximate monthly income and expenses clearly gives the lender what they need to make a decision.
The outstanding principal. How much of the loan is left to repay? The more of the original principal you have already cleared, the less the remaining exposure is — which also works in your favour.
Whether the request is plausible. A proposed revised payment that is genuinely higher than what you can actually sustain will not help you. Go into the conversation with a realistic number — one you are confident you can maintain — and present it as such.
The Cost of Doing Nothing
It bears saying clearly, because the instinct when financial pressure hits is often to delay the uncomfortable conversation.
If the current installment continues and you start missing payments:
- A late fee of up to SGD 60 per month applies on the overdue amount
- Interest continues accruing on the outstanding principal
- Your MLCB record reflects missed payments — visible to every licensed moneylender in Singapore the next time you apply
- If the situation remains unresolved, formal legal recovery becomes the lender’s only remaining option
None of this is inevitable. Every single one of these outcomes requires you to take action first. The conversation — uncomfortable as it feels — is how you prevent all of them.
If The Repayment Difficulty Is More Serious
If your situation is beyond a single loan adjustment — multiple lenders, sustained income shortfall, debts you cannot see a path through — there is formal support available.
The Moneylender Debt Management Programme (MDMP), facilitated by Credit Counselling Singapore (CCS), is a structured arrangement for borrowers with multiple licensed moneylender debts who cannot manage repayments independently. CCS acts as an intermediary, negotiates a consolidated repayment plan on your behalf, and monitors it until complete.
Initial CCS counselling sessions are free. The MDMP is not a public record on your MLCB, though it does appear on CBS while active. It is worth knowing about, even if your situation has not yet reached that point.
Frequently Asked Questions
Can I request a lower monthly installment from Magnus Credit Pte Ltd? Yes. Contact us at +65 6338 9891 or visit our office at 301 Ubi Ave 1, #01-279 to discuss your situation. We review restructuring requests individually. If you have a genuine income constraint and approach us early, we can usually find a workable adjustment.
Will extending my loan tenure cost more overall? Yes — a longer repayment period means more months of interest. The monthly payment is lower, but the total amount paid increases. For most borrowers in temporary difficulty, the lower monthly payment is the more important number. This is a trade-off, not a trick.
Can I consolidate loans from different lenders into one Magnus Credit Pte Ltd loan? Potentially, yes. Our debt consolidation loan can cover obligations from multiple lenders. Eligibility depends on your income, your total outstanding balances, and your MLCB repayment history. Speak to our team for a direct assessment.
What if my lender refuses to adjust the repayment terms? If direct negotiation does not produce a result and the repayment is genuinely unmanageable, contact Credit Counselling Singapore about the MDMP. CCS can approach your lenders on your behalf as part of a formal restructuring arrangement.
Will asking for a repayment adjustment affect my MLCB record? No. Requesting a restructuring is a private conversation between you and your lender. Only actual missed payments or defaults are reflected on your MLCB record. Proactively renegotiating before anything is missed protects your record entirely.
My repayment is with another moneylender, not Magnus Credit Pte Ltd. Can I still contact you? Yes. If you are looking to consolidate debts from other licensed moneylenders, or if you need advice on your situation, our team can walk you through what is available. Apply with Singpass or call us at +65 6338 9891 to get started.
How do I check what’s on my MLCB record? You can request your personal credit report directly from mlcb.com.sg. It shows all your licensed moneylender accounts, balances, and repayment history. Knowing where you stand before any conversation with a lender is always a good starting point.
Is Magnus Credit a legitimate licensed moneylender? Yes. Magnus Credit Pte Ltd is registered under the Ministry of Law with License No. 13/2026. You can verify any licensed moneylender in Singapore at rom.mlaw.gov.sg.
Speak to Us Before Anything Is Missed
The best time to have this conversation is before a payment is late. If you are finding your current monthly loan repayment difficult to sustain — for any reason — reach out to us now.
Magnus Credit Pte Ltd has been a licensed moneylender in Singapore since 2009. Our team is here to find a repayment structure that works for your actual situation, not one that works on paper.
📞 +65 6338 9891 ✉️ info@magnuscredit.com.sg 📍 301 Ubi Ave 1, #01-279, Singapore 400301 🕐 Mon–Fri: 11am–7pm | Sat: 11am–6pm
View loan options → Debt consolidation → Apply with Singpass →
