Planning a trip to Singapore and staying there for months or maybe a year? Then this article might be a help to you especially if you’re planning to get a loan. Living in Singapore could be quite expensive so you need to get a stable job because this is one of the most needed requirements if you want to get a foreigner loan.
Daily expenses such as food for a living could be one of the highest consumables of either an individual or a family. However if you’re a foreigner in a state then you’ll definitely need to rent some space for you to stay. Food, rent, utility bills, and emergency medical expenses can totally zero out your monthly income and even your current balance in your bank account.
To apply for the best foreigner loan in Singapore, you need to have a good credit score so that lenders could offer you a wide range of options to choose from. You can start by building a good bank statement and look for loan that will suit your monthly income.One of the trusted financial institutions you can apply into are banks and private lenders who are registered as legal lenders in Singapore.
How do foreigner loans work in Singapore?
Personal foreigner loans are offered to those who are currently working in Singapore, for students, and other foreigners who have more reason to stay longer in the state. However, one of the most important requirements needed for a foreigner loan is to submit a proof that you have a stable job in Singapore and a permanent residency.
Things you need to be aware of before getting a foreigner loan in Singapore
It is important to know all the details about the loan you’re going to apply for. In this way, you can already make an estimation of your repayments and if you can afford it. The right lender should be straightforward and honest with the loan details and will tell you right away if there are other fees. So technically, when you start repaying your loan, there shouldn’t be any hidden charges.
Also, it is recommended if you make a debt-to-income ratio and make sure you only get a foreigner loan with a practical purpose. Make sure that you’ll be able to settle all your debts including your foreigner loan before you leave Singapore. So it is better if you get a foreigner loan with terms based on how long you’re going to stay in the country.
Here’s a quick guide you can get about how much you can borrow from a foreigner loan. For foreigners residing in Singapore with annual income that is less than $10,000 can borrow up to $500. While for those foreigners who are earning at least $10,000 up to $20,000 annually, can loan up to $3,000. And this type of loan is applicable only for unsecured loans. The maximum interest rate that a direct lender can charge a borrower is up to 4% per month. So make sure that you make your repayments on time because some lenders may charge you a bit high or if you can’t handle your repayments well then you will only put yourself into deeper debt.
You have to be aware also of lenders that are abusive and ask for your private information such as your Singpass ID or password. Lenders that don’t give the full details of the loan and don’t give you a copy of the loan contract. Make sure that the lender is registered as licensed to operate a lending company. The right lender will be transparent with the interest rates and other charges of the loan. Clearly, there shouldn’t be any hidden fees with the loan. The lender should also explain the loan contract in the language you will understand since you’re a foreigner in Singapore. So if you notice something suspicious act or such practices that are not fair with the borrower’s side, then you may report them to the “Registry of Monetary Lenders” by providing the information of the lender’s company name, contact numbers, and license.
List of requirements that need to be complied with in order to get a foreigner loan in Singapore.
If you’re a foreigner in Singapore and planning to get a loan, then these are some of the requirements needed that most of the lenders ask to a borrower:
- You must have your working permit or S-Pass
- Your passport
- You must be at a legal age or 18 years old and above
- You must have an active checking account for at least 6 months
- Your payslip on your current job for 3 months period
- Your proof of residency such as your rent contract or any utility bills.
It is very difficult to find the right lender that offer the best interest rates and repayment terms, especially if you’re a foreigner. But, it would be much easier for those who have credit history and a good credit score.
If you’re a foreigner in Singapore and planning to get a loan then make sure that you’ve got all the usual requirements needed in order to get a foreigner loan. Also, if you don’t have credit history, you can still apply for a loan with direct lenders that offers payday loans or non-traditional loans. Just be aware of the higher rates they may offer.
You may visit GM Creditz if you’re looking for the best foreigner loan which offers convenience to borrowers.To be eligible for the loan, you must be at least 18 years old and with a minimum salary of $2,000. You should also provide the following that was mentioned above. You can check their website to know the easy steps to apply for the foreigner loan.