What You Need To Know About Loans For Foreigners In SG

Foreigners in Singapore face a particular challenge when faced with financial constraints. On top of the already high costs of living, unexpected circumstances like medical emergencies, emergency needs back home, or a rise in rental fees can put foreigners here in a tight spot. It doesn’t help that the loan application process for foreigner loans at banks can be quite stringent and tedious.

An alternative credit source for immigrants in Singapore is foreigner loans from licensed moneylenders. As compared to bank loans, registered moneylenders typically have faster processing times and fewer eligibility requirements. For situations where time is of the essence, these loans are often the far better choice.

How does a foreigner loan benefit you?

Emergencies can happen to anyone, including people residing in a foreign land. For foreigners who have a limited support system in the country, they appreciate any help they can get.

Foreigner loans are a lifeline for non-citizens who are facing financial struggles in Singapore. You can use a foreigner loan to pay for things like rent, medical bills, daily necessities, or to remit back to your family. With this avenue of help, you can then find relief from your financial burdens and have more time to find your footing again.

Many foreigners prefer taking out a loan from a licensed moneylender due to the speedy processing times and high approval rates. It’s important to only borrow from moneylenders registered with the Ministry of Law, as these are regulated for interest rates and good business practices.

How can you apply for a foreigner loan?

Applying for a foreigner loan is easy. First, do some research to choose a licensed moneylender of your choice. You can rely on the list of moneylenders with the Registry of Moneylenders to look for licensed moneylenders. Take into account the interest rates and repayment plans across various companies and pick the one that best suits your needs.

At most moneylenders, the application process is pretty similar. You’ll have to send in your documents along with your loan application (whether online or in person). Once the loan is processed and approved, you can then head down to the moneylender’s office to receive the cash.

Usually, the moneylender will require applicants to provide a copy of their employment pass, recent payslips, and proof of residence in Singapore. Some moneylenders may also want to speak to you to understand more about your situation before approving the loan.

Other things to note about foreigner loans

The interest rates for foreigner loans are typically higher than that for citizens, due to the higher risks to the lender. Asking for your payslips and employment status are the institution’s way of assessing if you have the ability to repay the loan, and ascertain that you have plans to remain in Singapore until the loan is fully repaid.

Some moneylenders will also require applicants to have a guarantor if they don’t have a credit score.

To protect yourself from errant moneylenders, it is a good idea to familiarise yourself with the Ministry of Law’s Moneylender’s Act and Moneylender’s Rules in Singapore before you make any applications.

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