Everything You Need to Know About A Foreigner Loan

foreigner loan singapore

A Foreigner Loan, also called the Personal Loans for Work Permit Holders, is provided to the non-citizens of Singapore. 

Who Can Access This? 

To be qualified for a foreigner loan, you should be neither a permanent resident nor a native citizen. It is intended for those individuals who are employed in Singapore. Your country of origin and the employment type doesn't matter. 

What Is It? 

Foreigner loans in Singapore are typically like personal cash loans, which could be used in emergencies. Any foreign individual working in Singapore is eligible to procure it. In respect of the laid rules and regulations, Banks usually deter from furnishing such loans; it is primarily governed by their employment status, salary quotient, and the permit type. A licensed lending company stands out to be a viable and reasonable alternative in such cases where the bank often turns them down. 

Why Do You Need This Foreigner Loan? 

Financial crisis is some of those unforeseen circumstances that can dawn on anyone, be it, foreigners or native citizens. Keeping in view the full scenario, it might not be wrong to state that foreigners need money just as the citizens do or perhaps more. Staying in a foreign country with no one to look forward to in case of difficulty hastens the need for such loans. Ranging from minor bills to paying rentals, foreigners need a loan for their daily chores. 

Common Reasons Cited For Foreigner Loans: 

1. To pay rent 
2. To look for a residence 
3. For job hunt 
4. To enroll into a deemed Singapore University 
5. For medical issues 
6. To purchase items for the setting of the home like furniture and other appliances 
7. Education fee 
8. To buy an emergency air ticket 
9. For renewal of passport and Visa 
10. For paying down - payment of a newly purchased car 

List Of Licensed And Legal Money Lenders: 

1. Fortune Credit 
2. 365 Credit Solutions 
3. Bugis Credit 
4. Advance Planners Credit 
5. GM Creditz 
6. Raffles Credit 
7. A1 Credit 
8. Motorway 
9. Ethos 
10. GS Credit 
11. Money plus Capital Pte Ltd 
12. Lian Fong Credit & Trading (Pte) Ltd 

These Licensed Money Lenders are bound under the 'Moneylenders Act.' Therefore, they will never attempt to make a deceptive move. This stands in contrast to the unlicensed moneylenders who are not answerable to anyone. 

What Is The difference Between Licensed Money Lenders And Banks? 

These licensed and legal moneylenders well understand the importance of time and money under emergencies. Their modus operandi is hassle-free and fast. They seek only the required documents at the moment. There's no need for assigning collateral for completion of loan formalities. Owing to this and the other hustle-bustle free advantages they confer, their interest rate could climb as high as that of banks or be more precise, even more than what is set by the Banks. 

This stands in contrast to Banks, who seek extensive documentation and the subsequent verification process. Not only this, but they also demand you to have good credit records. Furthermore, your income should meet the stringent criteria set by the bank. Interest rates offered by banks in the case of these foreigner loans are also high because of the absence of collateral. 

Advantages Of Borrowing From Accredited Money Lenders Over Banks: 

1. Ease to procure 
2. Less time lag 
3. No need for sundry paperwork 
4. They offer small short - term loan amount at a time 
5. Easy repaying, depending on the plan you choose. 
6. Instant Loan approval 

Choosing The Right Money Lender: 

Indeed, this is the most tedious yet the most crucial step to ponder upon. 

1. Check if the lender holds a valid license. 
2. Evaluate the reviews regarding the moneylenders 
3. Look for the loan options offered by him 
4. Check their official website 
5. Don't settle before comparing your chosen legal money lender with others. 
6. Look for the following: 

    •  Amount to be borrowed 
    •  Interest Rate 
    •  Terms of repayment 
    •  Process of the loan application 

Bear in mind that delineating the process to be a complicated one doesn't make a money lender licit. Do not fall into the hoax mentioning your eligibility for 'promotional' low-interest rate loans. Be extra careful when you are being offered more than what you demand. 

Always visit the office for submission of documents, filing an application, and completing the transaction process. 

Foreigner Loan From Banks And Their Requirements: 

As mentioned earlier, banks work in a highly specific manner that might not fit in your desired time framework and financial status. 

For those who wish to seek this loan from a bank, below mentioned are the required entities. 

1. The prerequisite to apply for this loan is your annual income of S $42,000. Think of rendering time only when you are capable of providing details regarding this. 

2. You must be a holder of a full-time employment service; Part-time jobs aren't considered here 

3. Letter of employment from your workplace 

4. Photocopies of authentic Singapore work pass 

5. Photocopies of passport 

6. Tenancy Agreement of your place of current residence in Singapore. 

7. Original Payslips 

8. You should be in the age group of 21-55 years. 

9. Copy of Income Tax Notice of Assessment 

10. Bank statements of the Account in which you receive your salary. 

The interest rate goes in accord with the loan amount requested. In matters of Foreigner loans, banks should be looked forward only when you hold the capability of meeting their strict criteria and, most importantly, the repayment in the defined period. 

Conclusion

Foreigner Loans are essential entities in the economy of Singapore. The government of Singapore is making constant efforts to make it's procurement easy, safe, and secure. After ascertaining your need and assessing your capability of repayment, you can search through the numerous available options.

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