Loans For Foreigners: 3 Key Facts To Know Before Applying

Singapore Foreigner Loan

Owing to the country’s appeal to business-conscious individuals, Singapore suffers no shortage of foreigners looking to do business, study, or simply live within the country. This is due to the countless opportunities available, getting a steady source of income is hardly difficult for foreigners staying within the island.

However, despite that, the odds of being short on cash from time to time is not as uncommon as one may think. Thankfully, foreigner loans are widely available for non-natives looking to secure additional funds for their needs.

Below, we go over three key facts to know before submitting your application for a foreigner loan.

Eligibility for foreigner loans

Unlike personal loans, which only require applicants to be of age and be a Singaporean citizen or a permanent resident in the country, foreigner loans have stricter eligibility requirements to ensure that these types of loans are guaranteed to be paid off before or on the last day of the contract’s term.

As stated previously, each licensed moneylender will have slightly different requirements from the next. Therefore, it is recommended to ask for the specific eligibility requirements from your list of choices and ascertain exactly what their policies are when it comes to their foreigner loan service.

How does a foreigner loan differ from a regular loan?

In terms of the loans themselves, foreigner and personal loans are typically classified as unsecured loans, i.e. they do not require collateral for approval and rarely have significant differences between them.

The main differences arise when it comes to their eligibility and minimum salary requirements, which, as mentioned, are much more stringent and higher, respectively, for foreigner loans. Moreover, the process and documents necessary to support the application for a foreigner loan can also vary for foreign applicants.

Requirements when applying

After selecting the moneylending agency that fits your requirements, such as loan amount, interest rate, loan tenure, and being eligible for their foreigner loan service, the next step is to submit your application.

Here are a few things to remember before and during the application process:

1. Double check your required documents

Despite sounding redundant, it is still important to always double-check your requirements and ensure they are all correct and good to go. Any minor discrepancies can potentially result in the rejection of your application and prolong the period before you can secure your funds.

2. Make your credit report as presentable as possible

Moneylending agencies primarily rely on credit reports as one of their primary tools in determining an applicant’s creditworthiness no matter their citizenship or what loan they may be applying for, whether it be a foreigner loan or a debt consolidation loan.

Making your credit report presentable shows how financially responsible you are and that you will be more than capable of paying off what you owe.

3. Don’t be afraid to negotiate with the terms

Before finalising the loan contract, keep in mind that all applicants have some leeway for negotiations. As such, if you think that your loan could be better for you with some slight adjustments in either the monthly instalment amount, interest rate, or loan amount – don’t be afraid to raise your suggestions.

Bonus: Update to supply cap on foreigner loans

All foreign borrowers (S Pass or E Pass) earning an annual income of at least $50,000 (at the time of granting of loan) applying to foreign borrowers who had earlier on gotten a loan, regardless if the loan is subsisting, will not be caught under the supply caps.

This new change will take place from 30th September 2021 onwards.


With a high living standard resulting from its booming economy, life in Singapore can often be unpredictable at times. However, with the readily available foreigner loans, financial security is something that expatriates will not have to worry much about.