What Are foreigner loans?
Foreigner loans are a type of personal financing that non-citizens can apply for in Singapore. You can qualify for one so long as you are not a citizen or a permanent resident.
You might be working on a work permit or as an expatriate. Were you to run out of money during a job hunt or while studying, what to do? You can always get personal loans for foreign borrowers.
Several banks and other lenders are licensed to grant foreigners such loans. Applying a foreigner loan to a moneylender can bring you immediate funds in your time of need. Such personal financing is not all that easy to arrange, though. You will have to follow set criteria before any loan can be approved.
Why Foreigner Loans Can Be Useful
Foreigners in Singapore need access to cash just like any citizen. You be might far away from family and home and with no one else to turn to for some helpful cash. Or you might be paying burdensome rent on a flat and must also to pay for costly utilities. If you are here as a foreign student, many financial obligations would need to be met.
It could be that your passport or certain visas require renewal, or maybe there is family elsewhere relying on you. And dining out will also eat into your budget. So unless you‘re earning near S$12,000 monthly, you might rely on foreigner loans to sort out all these stressful issues.
In Singapore, personal loans can help you meet any sudden financial obligations that you‘re not ready to grapple with. That foreigner can secure personal loans makes Singapore among the better countries in which to live and work.
Common Needs That Personal Loans Can Help With
- Rental deposits
- Big-ticket purchases that help you to settle down, such as furniture, household appliances
- Applications and tuition fees for your children’s education or your own
- Down payments for new cars
- Cash sent back home for family emergencies
- Airline tickets for returning home
- Things To Consider Before Taking Up Foreigner Loans In Singapore
There are a number of issues that foreigners must consider before they can apply for personal loans in Singapore. Such would include:
Are you individually eligible for foreigner loans in Singapore? A credit check will apply. If you do not have a credit history, you will need to meet further criteria for eligibility. Lending services, including banking facilities, all have requirements for granting personal loans. Ask about these financing conditions. Study them to see if you can fulfill the loan criteria before applying for one.
Loan Terms and Conditions
These will include any charges and fees imposed by the moneylenders. Check their websites and ask others as well about the costs involved in securing a personal loan. You could even call to learn about the fees each moneylender imposes on borrowers.
It is vital for you to know all loan terms and conditions beforehand, for this information will be the basis for determining whether your regular earnings are sufficient for repaying loans. Seek clarification about the available credit services from financial experts. Once you sign the loan agreement, you shall be bound by all its terms and conditions.
Short Loan Tenures
Personal loans will come with short tenures when offered to foreigners. And the pressure from lenders to make payments can get overwhelming at times. Be aware of where you stand regarding any proposed loan tenures, before signing an agreement.
Interest Rate Fees
Personal loan interest rates can be high, so you should verify these fees before applying. Certain lending websites indicate rates that can be well below their real interest rates. Contact them for their real rates, before applying for foreigner loans.
How high are your regular earnings? Are they enough for you to take up a personal loan then repay it within the agreed period? The amount of a foreigner loan must be below the level of your annual earnings in Singapore. The borrowing should be sufficiently small for fast and full repayment. You should be able to live comfortably on any money you have left after the loan has been repaid.
Taking Up Foreigner Loans From Licensed Moneylenders
In Singapore, licensed moneylenders would be your best source for personal loans for foreigners, for their loan approval processes can be fast. Their interest rates are also less than those charged by banks. And you could even receive the needed funds within an hour or so of applying for them.
The criteria for securing foreigner loans from licensed moneylenders aren’t as strict as those of conventional banks. Their verification processes aren’t nearly as long, and you usually receive the loan funds immediately upon approval. This makes moneylenders a reliable source of instant funds for emergencies.
Qualified moneylenders typically do not require collateral to grant a loan. However, you must present documents that show proof of residency and further details.
The Singaporean Registry of Moneylenders sets the interest rates that moneylenders charge, which are far below those of most banks. There will be certain terms and conditions which must be followed as well; otherwise, you will wind up paying added fees. These charges will be on an official list or else stated in the loan contract. Late repayments normally draw S$60 fee, while defaults result in a larger penalty.
Requirements For Securing Foreigner Loans From Licensed Moneylenders
Licensed moneylenders operating in Singapore pursue their own set of requirements. As with the banks, borrowers will have to meet with them to secure such personal loans.
Such would include:
- Annual income – Your annual earnings determine the loan amount. With an income that ranges from S$20,000 up until S$30,000 you could be eligible for S$3000 in borrowings. If your annual income ranges from S$30,000 up to S$120,000, you likely could borrow S$30,000 (as much as four months of salary).
- Current passport
- Letter of employment or contract of employment
- Any payslip from your employer that is no more than three months old
- Your work permit or Employment Pass, or else any valid license or pass that allows you to work regularly in Singapore
- Proof of Residency or Tenancy Agreement document, or else some letter addressed to your name at your flat.
- Bank statements for any account that your salary gets paid into, which is no more than three months old