More and more foreigners are moving to Singapore for various reasons. Some wish to find employment while others choose Singapore to relocate and settle down with their family.
From time to time, a financial emergency can come up. It is often challenging to deal with money issues, especially when you are working in a foreign country. Plus, it may not be as easy as compared to locals to get approved for personal loans.
Today, legal money lenders in Singapore provide foreigner loans which allow people to access a quick source of emergency cash and take control of their financial responsibilities. The criteria set by the money lender will determine the eligibility of the borrower to get their loan approved. These loans provide foreigners with the best financial solutions available to cover their expenses while also remaining affordable in comparison to other alternatives.
So, how easy it is to get a foreigner loan in Singapore? What are the steps to consider? We’ll explore more below.
Finding the right moneylender
It is understandable to be hesitant in turning to lenders to borrow a sum of money – after all, it is a financial commitment you are making to incur debt. The key is to finding licensed moneylenders who are recognized by the Ministry of Law in Singapore to be a viable solution for borrowers. Lenders are expected to be compliant to the regulations put in place and adhere to the Moneylenders Act. You can also browse the website of the Ministry of Law for the list of legal money lenders in Singapore.
Check your eligibility
While your credit history may not be considered for a foreigner loan, there are some documents that are necessary for your loan application. These can vary from one moneylender to the next, so discuss with the loan officer on what is required. In general, the required documents are:
• Valid E-pass, S-Pass, work permit or passport
• Employment letter
• Bank statements
• Tenancy agreement to prove your current address
Consult with the lender
A lender who has your best interests in mind will offer you the appropriate financial advice. This ensures you are borrowing within the limits of the law and based on the income you are making. Your financial situation will be assessed for your benefit, so the lender is able to know whether you will have trouble paying it back as your repayments should be agreed at an amount that you can comfortably pay.
Consider the terms and conditions
The agreement you have with your moneylender will list the terms and conditions regarding the loan. It will clearly state the amount taken, interest rate, fees of the money lender and the payment plan. Ensure you are getting the best terms possible when consulting with your lender, and you understand everything in the agreement before agreeing and signing it.
Designed for foreigners working and living in Singapore, a foreigner loan can come in handy to deal with short-term and urgent emergencies. The eligibility criterion is less stringent, and the approval process takes a short time so you can access fast cash while making flexible repayments easily.