What to consider before getting a foreigner loan in singapore

What to Consider Before Getting a Foreigner Loan in Singapore Singapore is one of the few countries in Southeast Asia, where foreigners are quite attracted to work or start a new life in. Statistics show that 3 out of 10 individuals working in Singapore are expats. The main reason why foreigners love to come and work in Singapore is the benefits that the Government gives to them. Apart from accommodations and healthcare facilities, these foreign residents also have access to foreigner loans.

A foreigner loan in Singapore is like a personal loan that will help you with your financial needs.

Traditional banks may refuse to lend to a foreigner, depending on your income level and employment permit. However, licensed moneylenders in Singapore offer foreigner loans and personal loans to foreign residents. There are several factors to consider before applying for a foreigner loan in Singapore.

Some of these include: Why do you need a loan?

When you are living in another country, you must keep a check on your expenses to avoid borrowing money from lending institutions. However, you may need a loan at some point to get through a financial crisis. It could be for medical services, visa issues or house rentals. If you need cash quickly for any kind of emergency and have no other options for borrowing money, then applying for a personal loan for foreigners from a licensed money lender may be your only option.

What are the loan requirements?

As a foreigner, you must have a valid Singapore Work Pass to qualify for a personal loan. You must be at least 21-55 years of age and employed on a full-time basis. You will have to submit a residence tenancy agreement and an employment letter from your company. The lender will review these documents to determine if you are eligible for the loan.

What are the interest rate and terms and conditions?

While bank rates tend to range from 5-7% (and 25% for credit card debt) per year, licensed moneylenders interest rates were changed to 4% monthly with no income caps since October 2015. A reliable money lender will also offer flexible repayment options to make the loan more affordable for foreigners. However, you must ask your lender what other fees might be applicable to you with the interest rate charged by the lender. Know the terms and conditions of the loan beforehand. You will need this information to calculate if you can repay the loan. Remember, once you accept the terms and conditions of the loan contract, you will be bound by them.

Can you repay the loan amount on time?

The repayment period for a personal loan in Singapore is shorter than standard loans provided to Singaporean citizens. This is usually foreigner loans are taken by expats and they must repay it before leaving the country. Avoiding your loan payments can result in penalties. Moneylenders have their terms and conditions that you must adhere to. All the fees are stated in the contract. Based on your

monthly income, determine how much you can repay. You must be comfortable enough with the repayment terms and fees charged by the lender.

The criteria for borrowing a foreigner loan in Singapore from a licensed moneylender are not as stringent as those of the traditional banks and financial institutions. You can get your personal loan in Singaporeinstantly as their verification procedure is not long and they also do not ask for collaterals. This makes a licensed money lender a good source of instant cash in emergency situations.