Ever wonder how your foreign friends handle their finances? It’s all thanks to the personal loan for foreigners in Singapore.
Singapore landed in 6th place on HSBC’s list of best countries for expats. The survey highly considered 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 declining living standards.
Indeed, living in another country takes various adjustments. It includes your finances. Getting a loan as a foreigner can be confusing and complicated.
Fortunately, when banks usually turn their backs, there are personal loans offered by licensed moneylenders.
Foreigner loans are offered to foreigners working in Singapore. It is a personal loan, especially for foreigners with 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 get it from a licensed moneylender.
Most banks do not offer short term a personal loan for foreigners because expats can easily go back home. In addition, it makes them a 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. However, avoid unlicensed and illegal lenders. They take advantage of the fact that you are not familiar with the lending guidelines of Singapore.
Before applying for a personal loan for foreigners, research the company’s background, reviews, and registrations. MAS registered moneylenders usually have a physical office that you can visit. They must not threaten or pressure you in any way.
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 residential tenancy agreement.
There may be a required minimum income and age limit, but it will be based on the moneylenders’ discretion.
Like the list of qualifications and requirements, the interest rates differ for every financial institution. Since foreigners are at high default risk, the interest rate may be higher than the usual personal loan rates. Therefore, it is best to compare the loans and not just settle with the first offered loan.
Some financial institutions base their interest rate on credit scores. Others depend on the employment history in Singapore. However, 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 you do not understand. A licensed moneylender will be willing to help you out. However, it is best to feel comfortable before finally getting the loan.
A personal loan for foreigners is a flexible loan. You can use it in any way you want. Most expats use the loan to cover 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 back home.
Banks usually take a week or more to process a loan. They have a long list of requirements. Also, they want to be sure of your creditworthiness. Banks may not be the best option if you need a loan for an emergency need.
Licensed moneylenders usually take a day to process a loan. Therefore, it is best to provide complete documents for a faster loan process.
Do you want to get a foreigner loan? It is best to check the moneylender’s eligibility list. It saves your time as you can easily see if you can possibly qualify or not. Also, 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 websites. 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.
1. Fill up the simple enquiry form found at https://cashmart.sg/expat-loan/.
2. Keep your phone line open and wait for the loan executive’s call for loan verification.
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.