As one of Asia’s leading financial hubs, Singapore has attracted many foreign investors and companies over the years. The ease of incorporating a company and the government’s establishment of supporting financial infrastructure for foreign workers has made it all the more appealing to do business in the country.
However, despite all that, there’s a significant issue that all these foreign expatriates face – the high cost of living. With this cost continuing to rise each year, foreigners are beginning to find it more difficult to survive unless they have a high income. Thankfully, reputable agencies such as licensed moneylenders in Singapore offer foreigner loans to make things easier for them.
Read on below to know more about foreigner loans and the steps to applying for one.
Foreigner loans explained
Due to one intrinsic requirement of other loans in Singapore, which requires an applicant to be a Singapore citizen or a Permanent Resident (PR), foreigner loans in Singapore were created to help expatriates and similar individuals. These loans can vary depending on several key factors, such as the category of your work permit, income, expected length of stay, and loan amount.
Steps to apply for a foreigner loan
1. Prepare the necessary documents
Just like any other loan application, you’ll need to bring the appropriate documentation first. For foreigners, they typically require the following:
- Photocopy of your working permit
- Photocopy of your passport
- Proof of income, preferably from the last three months
- Letter of employment
- Bank statements that reflect your activity during the previous six months
These documents aid in verifying your identity as well as serve as proof of your financial capabilities. Bringing these and any other extra requirements in full will tremendously help towards your approval.
2. Make your credit report as presentable as possible
Credit reports are one of the primary tools that financial agencies in Singapore use to gauge an applicant’s creditworthiness, no matter their citizenship.
As such, it’s crucial to make your credit report presentable to show that you’re financially responsible and more than capable of repaying the loan that you’re applying for. A few ways of maintaining the good standing of your report are by paying off any outstanding debts and refraining from submitting multiple loan applications at once.
3. Try to negotiate the terms
Keep in mind that you have some leeway to negotiate the terms before signing off on the loan contract. Generally, foreigner loans have a shorter loan tenure compared to other local loans, but it boasts the advantage of having a higher loan ceiling.
If you deem that your choice of foreigner loan in Singapore could be better with a slight adjustment, be it in the monthly instalment, interest rate, or loan amount, don’t hesitate to bring it up. Reliable moneylenders in Singapore may be more accommodating in this regard if documents prove your trustworthiness.
Singapore has one of the highest living standards in the world, and it shows in its equally high cost. However, with the help of readily available foreigner loans, life for expatriates in Singapore becomes a lot less difficult.