Singapore landed on the 6th place of HSBC’s list of best countries for expats. The survey highly considered the career progression, employment benefits, work-life balance and other factors.
According to the interviewed working foreigners in Singapore, they had progressions in their careers, but 30% had declined living standards.
Surely, living in another country takes various adjustments and this includes your finances. Getting a loan as a foreigner can be confusing and hard.
Fortunately, when banks usually turn their backs, there are personal loans offered by licensed moneylenders.
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What is a Foreigner Loan?
Foreigner loans are offered to foreigners working in Singapore. It is a personal loan especially for foreigners who are having short-term financial difficulties. It is important to note that there are a lot of lenders with this type of loan, however, you must make sure you are getting it from a licensed moneylender.
Where to Get a Personal Loan for Foreigners?
Most banks do not offer short term foreigner loans because expats can easily go back home. This makes them high default risk. And though there may be a few banks with foreigner loans, the qualifications are hard to pass for many.
Good thing moneylenders have various schemes which you can consider depending on your need. Avoid unlicensed and illegal lenders who take advantage on the fact that you are not familiar with the lending guidelines of Singapore.
Before you apply for a loan, research on the company’s background, reviews, and registrations. MAS registered moneylenders usually have a physical office which you can visit. They must not threaten or pressure you in any way.
Foreigner Loan Requirements
The list of requirements for a foreigner loan varies depending on the moneylender’s preference. Basically, you need to prove that you are working legally in the country. You must have proper working permits, a valid Singapore Work Pass, a passport, employment letter, bank statements, and a residence tenancy agreement.
There may be a required minimum income amount and age limit, but it will be based on the moneylenders’ discretion.
Foreigner Loan’s Interest Rate
Just like the list of qualification and requirements, the interest rates differ from every financial institution. Since foreigners are high default risk, the interest rate may be higher than the usual personal loan rates. It is best to compare the loans and not just settle with the first offered loan.
Some financial institutions base their interest rate in the credit score, while others depend on the employment history in Singapore. Most moneylenders do not consider the credit history of the foreigner in his or her home country.
When you apply for a loan, feel free to ask questions and clarify details which you do not understand. A licensed moneylender will be willing to help you out. It is best to feel comfortable first before finally getting the loan.
Purpose for Foreigner Loan
Foreigner loans are flexible loans which you can use in any way you want. Most expats use the loan to take care of some visa issues, house rentals, and medical bills not covered by insurance.
A lot of foreigners work in Singapore for their families in their home countries. There are times when they suddenly need to send money bank home.
Foreigner Loan Processing Period
Banks usually take a week or more to process a loan. This is because they have a long list of requirements and they want to be sure of your creditworthiness. If you need the loan for an emergency need, then banks may not be the best option.
Licensed moneylenders usually take a day to process a loan. It is best to provide complete documents for a faster loan process.
How to Get a Foreigner Loan
To get a foreigner loan, it is best to check first the eligibility list of the moneylender. This saves your time as you can easily see if you can possibly qualify or not. Do not forget to check if the money lender is registered in the Monetary Authority of Singapore (MAS).
Prepare the required documents as listed on the website of the moneylender. Take note that licensed moneylenders in Singapore can only post their loan details on their own website. They never advertise in any place other than their office and the website.
Do not entertain lenders sending SMS and emails to offer quick cash loans. These are loan sharks preying on unsuspecting foreigners.
Getting a personal loan for foreigners in Singapore has been made simple by Cash Mart.
Step 1. Fill up the simple enquiry form found in https://cashmart.sg/expat-loan/.
Step 2. Keep your phone line open and wait for the loan executive‘s call for loan verification.
Step 3. Visit Cash Mart’s office at 277 Balestier Road, Singapore to sign the loan contract and get your cash.
If you want to ask questions, feel free to drop by Cash Mart’s office or give their loan experts a call at +65 6397 4111.
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