The government of Singapore has made it possible for the foreigners to apply for loans from local financial institutions. As long as you have a proof of residence; with citizens’ license, a letter of employment, pay slips and a valid passport. This is a fantastic opportunity for you as a foreigner when faced with a financial challenge that needs a quick fix. You can now purchase property, pay for emergencies like medical bills, or even boost your cash flow. This opportunity makes it easy for the person living in a foreign country and therefore you can live a stress-free life.
Requirements for a foreigner’s loan
For you to qualify for a loan in Singapore as an expat, you need a valid Singapore work pass- the document that legally allows you to work in the country. Again, you must be between 21 to 55 years of age and employed on a permanent basis. You will also need a bank statement, a residential tenancy agreement and an employment letter from the employer. With these documents, the lender can appraise you and assess whether you have the ability to pay up the exposure.
The ‘big names’ banks are more stringent with their terms and could ask for more details- they even take their sweet time to advance the loan. Therefore, it is advisable for foreigners to get such loan facilities from legal loan institutions and licensed lenders in Singapore who would approve the loans faster.
The interest rate of a foreigner loan
The interests differ from one foreigner loan Singapore lender to another and could range from (4-10) % or more. The reason for the high interest is that a foreigner’s loan is considered high risk due to their temporary nature of stay. However, your credit and employment history will add weight to your credit score.
How long does it take to get the money?
Once you’ve submitted your employment information, bank statements, and all other requirements, they will be reviewed for approval. If the credit team is satisfied, the application is approved and the lender will call you to sign a contract. Different institutions have different appraisal terms and therefore, ask the assisting officer the time you expect the money.
How do you identify a scammer?
Many scammers take advantage of the big financial institutions to fleece unsuspecting persons- especially foreigners, using sophisticated systems. Some of these unscrupulous companies will send you an email through a generic email address that looks promotional. Watch out for the companies purporting to give loans at unbelievably low interests.
The ability to borrow a loan in Singapore is a great development in the country’s financial sector. It is a great relief to many foreigners who have suffered financially for a long time. However, as highlighted, one must watch out for scammers.