Foreigner loans are loans offered to foreigners who study, work, and/or live in Singapore. Without any friends or family around to borrow money from, foreigners may from time to time, find themselves in situations where they need to borrow money to meet their needs.
Foreigner loans are almost similar to loans offered to Singaporeans on;y that they differ on the criteria used to determine whether one qualifies for a certain loan type and amount or not. Here are the things you need to know about a foreigner loan to guide you in getting one.
How Do Foreigner Loans Work?
The process of getting a foreigner loan, and the corresponding interest rates differ from one lender to another. However, you must produce documents to prove that you are working in Singapore. Some lenders will require that you to have a guarantor in case you do not have a credit score. All lenders are keen to confirm whether you intend to stay in Singapore till the end of the loan tenor. To qualify for a foreigner loan, you must be working in Singapore and be of 21 years and above.
Requirements for The Loan Application
To qualify for a foreigner loan, you must be working in Singapore and prove this by having a valid Singapore Work Pass. One must also be aged between 21 to 55 years. Lenders who do not lend to non-resident foreigners may require that you provide them with a residential tenancy agreement. Other documents you might be required to provide your bank statement, letter of employment from your current employer, recent payslip, proof of billing, and a valid passport.
Where to Get a Foreigner Loan
For the sake of protection, the best foreigner loans are from banks and other licensed credit companies. Look for reputable ones to avoid being harassed or being scammed. Unlicensed lenders are likely to take advantage of you being a foreigner and trick or manipulate you. Working with a licensed lender ensures that you get the loan at reasonable interest rates and the terms of the loan are also tailored to meet your individual needs.
You should also choose a lender who charges you a reasonable interest rate and whose installments are suitable for your income and personal needs. Even so, foreigner loans are considered to be high-risk, and the corresponding interest rate usually is slightly higher than that of Singaporeans.
When to Expect the Money after Application
Once you have chosen the lender you need to work with, go to the company and carry with you the requested documents. Ask any questions you may have regarding the lender and the loan. Once satisfied, submit your loan application. The lenders will review your records and do a credit analysis to gauge whether you are eligible for the loan. Different lenders have different turnaround time. Choose a lender whose turnaround time is under a week.
When applying for the loan, ensure that you understand how the money will be credited into your account and how you will be making the repayments.