Foreigner Loans in Singapore | Loans for Foreigners in Singapore
Loansby Priyadarshini 24 March 2023
Foreigner loans are loans made available to foreigners who work and/or live in Singapore. The process of applying for a loan differs little between a foreigner and a Singaporean or Permanent Resident; the main distinction is in the qualifying criteria. Foreigners will generally need to meet a higher income requirement or provide proof of legal residence in Singapore. In this blog, we tell you about foreigner loans in Singapore.
Foreigner Loans in Singapore
From exorbitant medical costs to sky-high rents, this little red dot is one of the most expensive cities for expats to live in. It can be difficult to obtain emergency cash when one’s friends and family are not available to provide financial assistance. But all is not lost. Personal loans for foreigners are available in Singapore from banks and licensed credit companies and can help you get through tough times.
How do Foreigner Loans Function?
The process and interest rates are determined by the lender and loan type you select. Foreigners must generally submit documents as legal proof that they are working in Singapore. If you do not have a credit score, you may be required to apply with a guarantor. One important factor that banks and other credit providers consider is whether you intend to (or are able to) stay in Singapore for the duration of your loan term. Be aware that some lenders may refuse to work with non-residents, even if a guarantor is provided.
Eligibility Criteria for Foreigner Loans in Singapore:
The specific requirements will vary depending on which bank or credit company you approach, but you should generally:
- You must have a valid Singapore Work Pass (PEP, E Pass, or S Pass)
- You must be at least 21 years old.
- Be a full-time employee
- Have a residential tenancy agreement in place (proof of your residential address in Singapore, in the form of your tenancy agreement, PUB bills, phone bills, or other utility bills).
- Make a bank statement (reflecting account activities for the past six months)
- Have a letter of employment from your company.
- Display pay stubs for the last three months.
The lack of a credit score is the most difficult obstacle for many foreigners when applying for a personal loan in Singapore. See if you can obtain alternative documents or references for a non-traditional credit check from your bank or credit company. This could assist you in obtaining a loan without a credit score.
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