What you need to know about foreigner loan in Singapore

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What you need to know about foreigner loan in Singapore

As of 2016, the total number of foreigners working in Singapore stands at 1,404,700, according to Ministry of Manpower. It is only usual for some of them to face financial emergency from time to time. If you are one of them, you may wonder how to deal with a sudden cash crunch in an unknown land. Don’t worry, because licensed moneylenders in Singapore offer quick and hassle-free personal loans to foreign nationals working in this country. Here are some important things you should know about foreigner loans in Singapore.

Who can apply for this loan?

Any foreign national with a valid employment pass in Singapore can apply for this loan. It does not matter which country you are from and which industry you are working for, you can apply for a foreigner loan.

Do banks offer foreigner loan?

Yes, some banks in Singapore offer this loan, but they usually have stringent criteria for loan approval. Only people with a high monthly income are eligible for a bank loan. Typically, if your annual income is less than S$50,000, you have a little chance of getting approval from banks.

What if you do not earn a high income?

Well, you may still get a foreigner loan from licensed moneylenders. All you need is a steady source of income and a valid employment pass. In most cases, you can apply online. If approved, instant cash will be disbursed upon completion of loan agreement. Acclaimed money lending companies appoint bilingual staff to help foreigners interact with the lender easily. If you choose to apply online, you simply need to fill out an application form and submit it online. You can also call and talk their customer care representative directly.

Reasons to take foreigner loan from a licensed moneylender

Licensed lenders are bound by the Moneylenders Act, hence they are less likely to even try and deceive you. On the contrary, unlicensed dealers are not answerable to anyone. Also, getting a loan from licensed lenders is quick and hassle free. Unlike banks, they seek only the necessary documents and know the value of your time. While banks offer loans only to foreigners with good credit scores, some moneylenders offer loans to even people with bad credit. The interest rate they charge on a loan varies depending on the credit score of the borrower. One benefit of borrowing from licensed lenders is that they usually offer a small amount of loan at a time for a short period time. This makes it easy for the borrower to repay the loan. Depending on your preferences, you can choose to repay weekly, fortnightly, or monthly.

How to choose the right lender

First things first, check whether your lender is licensed. Also, you should compare loan options of different lenders before finalising one. When comparing, do not only choose based on interest rates. Consider some other factors, such as, repayment terms, how much you can borrow at a time, and how easy or difficult the application process is.