As the world becomes increasingly interconnected, people from all over the globe are moving around to pursue opportunities. Many of them come to Singapore and take on employment, mainly in the service industry. This often requires that they relocate from their homes and start living in a new country with different culture and language. While working abroad offers exciting career progression and work-life balance, it can also bring about financial challenges. This is why a loan for foreigners singapore may be helpful to help them manage their expenses and stay on top of things.
Luckily, it’s not as hard as it might seem to get personal loans for foreigners in Singapore. While there are some differences between personal loans for foreigners and those offered to citizens and permanent residents, most of these largely relate to the eligibility requirements. For instance, there are likely to be stricter minimum salary requirements in place for foreign applicants and some lenders might require them to present a guarantor for their application. In addition, interest rates and processing fee costs may differ slightly between foreigner loans and standard personal loans, so it’s advisable to always compare these factors carefully before applying.
To be eligible for a foreigner loan, borrowers must be at least 21 years old and have an active employment pass. They must also provide proof of address and income. This could include bank statements, PUB bills, utility bills or any other official documents. In addition, a credit report is usually required to assess a borrower’s creditworthiness and determine the maximum loan amount they can be approved for.
Most of the major banks in Singapore will accept personal loan applications from foreigners, and there are also several licensed moneylenders that offer foreigner loans. HSBC, for example, has one of the most competitive personal loan rates for expats in Singapore and offers a loan tenure of up to seven years. Other banks, however, tend to have higher interest rate charges and minimum monthly income requirements than HSBC.
While it’s good to consider bank and licensed moneylender loan options for foreigners in Singapore, it’s also important not to overstretch your budget. Be sure to calculate the total cost of your loan – including interest rates, processing fees and other miscellaneous costs – and only apply for what you can afford to pay back in time. This will help you to avoid accumulating excessive debt and potentially hurting your credit score. If you’re looking for a personal loan that fits your budget, check out our list of foreigner loans in Singapore here. Or head down to our Orange Credit office – located conveniently close to Paya Lebar MRT station – for a non-obligatory discussion with our friendly and experienced loan officers.