Both the government and citizens have established Singapore as an attractive place for foreigners to work and make an income. As such, many have settled down within Singapore to work and send money back to one’s own country.
However, at times the income alone may not be sufficient enough to cover the cost of house rentals, visa problems, medicals. And this requires foreigners to seek for a solution to resolve such financial issues; hence, why foreigner loans are one of the considerations due to its flexibility offered towards expats.
As a result, foreigners have the convenience of applying and getting easy cash loans from the relevant financial institutions.
What is a foreigner loan?
There is no significant difference between personal loans and foreigner loans. However, foreigner loans involve extra guidelines as well as requirements for all foreigners. Singapore presented reasonable requirements that are easy to understand because of its few legal limitations in the law to streamline foreigners.
In brief, a foreigner is a personal loan, similar in amount for Singaporeans to borrow. However, it requires a high minimum income to be eligible. It also requires extra documentation and more background checks on credit and income history from the person’s home country.
The usual requirements for a foreigner loan in Singapore
Typically, it is necessary for a foreigner to provide relevant documents to prove that they are working legally in Singapore. On the other hand, if applicants do not have a credit score – they will need to get a guarantor.
Similarly, the duration of stay is one other factor that impacts the eligibility of the loan. Applications have to be in Singapore for the entire period of the loan tenure until it’s completely repaid. Similarly, moneylenders or banks usually assess your ability and intention to stay within the country during the loan tenure. In the event that they aren’t able to ascertain the reasoning, or you’re unable to fulfil this requirement – the loan may not still remain unapproved even with a guarantor involved.
But if your loan application is submitted and successful, it will be reviewed by the respective loan officers, and they will discuss which is the best loan scheme for you.
On the other hand, non-Singaporeans have loan requirements that they should fulfil before they are eligible to submit the loan applications. They include the following:
- Be 21 years of age
- Be employed on a full-time basis
- Working Singapore permit/E-Pass/S-Pass of 1-year validity
- Bank statement
- Not less than three months working payslips with an annual income of $40,000 to $60,000
- Tenancy Agreement
- Billing statement or any statement as proof of residential address of the foreigner
Foreigner loans are able to help plenty when expats come face to face with financial matters that cannot be resolved with their current financial situation. Hence, it’s important to understand what it takes to apply for a foreigner loan to secure sufficient funds.