Lending money can become a source of additional income, but you have to take Licensed Money Lender into account and some recommendations not to end up in trouble with the law.
"I do what I want with my money" is a phrase that applies to many contexts and making loans with your money, is one of them. In Singapore, it is legal for anyone to give credit to another. There are only two conditions: that is not usurer and that the money you lend is yours.
You can lend your savings to family, friends, and acquaintances in exchange for interest, as a bank would. At the time you do so, you assume the risk that your money will not be returned but in return, you receive a return, that is, in addition to what you lent you will have additional money. Of course, the limit for that profitability is the usury rate.
In this regard, every three months the Financial Superintendency certifies the maximum legal interest rate. Basically, the entity measures how conventional banks and credit institutions are lending and multiplies it by 1.5 times: this is how the usury rate is obtained.
Currently, that usury rate is at 33.50% for consumer loans and at 55.10% for microcredit. These rates are annual, not monthly and much less daily.
In other words, if you charge someone an interest above 33.50% for a normal loan or 55.10% for a micro-loan, you can report it to the prosecution. Usury is a crime that is punishable by jail and fine.
That happened to José Germán Arango in 2015. Arango was a drop-drop lender. He was sentenced to four years in prison and a penalty of $ 45 million when a person denounced him for charging him a 10% monthly interest on a loan of one million pesos.

The supports

One of the ways in which a lender is "safeguarded" in that they will really pay that borrowed money, is through tools such as letters or promissory notes. So if you fail to pay the loan and want to make the claim by showing those respective supports, you can only receive legal interest. The second condition is that the silver is yours and here the risk is called an illegal collection. You can lend or trust as much as you want as long as you are not committing money from other people.
There are many companies that extend huge lines of credit to their customers. In fact, some department stores sell "a lot" or in installments a good part of their merchandise. Nobody tells them anything because it is their money and if they lose it they will not affect other people than themselves.
Government surveillance goes off when some people take money to lend it to others. That is what a bank does and to become one, you need huge capital and the permits of the authorities. If you are not a bank and are caught lending money from others, problems will come.
According to a World Bank survey, 12% of Colombians have used bank loans while 5% reported that they turn to informal rotating savings entities such as chains, threads, and custards. On the other hand, 6% use informal credit entities, such as pawn shops.