Did you know that you can easily obtain a loan as a foreigner working in Singapore? Are you cash strapped and need to settle your bills in Singapore? If you have been searching for information about how foreigners can obtain loans in Singapore, then this article meant specifically for you. The cost of living in Singapore is generally high compared to other similar cities in the world. Many foreigners do not have basic information about how they can apply for loans in Singapore. Most banks in Singapore deny most foreigners’ loans based on their incomes and work permits. This leaves the foreigner with only one option, to borrow from licensed money lenders. This article will provide all the details about Singapore loans for foreigners that you need to know.
Basic Requirements for Foreigners to obtain loan in Singapore
There are certain requirements that money lenders ask for before approving any loan for foreigners. Firstly, foreigners must possess a valid work permit which legally allows you to work in Singapore. You must have attained a minimum age of 21 years and a maximum of 55 years. Thirdly, you may be asked to submit a recent bank statement plus your employment letter from your employer.
Interest rates for foreigner loans in Singapore
Most foreigners are only allowed short-term loans depending on salary and the remaining working tenure. The risk involved in lending money to foreigners is high because of the temporary nature of their stay. Generally, most money lenders will charge an interest rate between 5-10% per year.
The loan application process for Singapore foreigners
There are two ways foreigners can use to apply for a loan in Singapore namely; online application or by personally visiting the licensed money lender. Under the online application, you are required to fill an online form together with all the required documents and then wait for approval. If you live near the money lender, you can pay a visit and manually fill the loan form and then wait for approval.
This is a must-read for many foreigners in Singapore who are looking forward to applying for loans.