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Best Foreigner Loan: Guide To Getting A Personal Loan in Singapore

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The high standard of living in Singapore can make living in the beautiful city-state quite difficult. The huge income gap between the rich and the low-income class makes this glaringly obvious. Those who can afford to buy houses and cars without getting loans are few. The majority of the population needs loans to get through life in Singapore.

Foreigners in Singapore are people who aren’t permanent residents or indigenes. You are a foreigner if you are in Singapore from your own country for whatever reason. The main reason is usually for work. You could be visiting friends as well. Education too is a reason for you to be in Singapore. Or maybe you are planning to move permanently to the city-state. Before you become a permanent resident, though, you may need some money.

You may have a financial emergency where you will need some instant cash. It could be that your rent is up, and you didn’t plan for it. Perhaps your car broke down, or you decide that you need a car. Maybe it is a sudden medical situation. You could be a student, and you need money for books. With no family or friends nearby to borrow from, there is only one option open to you. You have to get a loan. But you may wonder how a foreigner can get a loan in Singapore. Don’t worry about that. You can get a personal loan for foreigners in Singapore.

Summary of Top Legal Money Lenders in 2024

Fortune Credit

Offers : Personal loan, Payday loan, Business loan, Foreigner loan 

A1 Credit

Offers : Personal loan, Payday loan, Business loan, Foreigner loan, Bridging loan 

365 Credit Solutions

Offers : Personal loan, Payday loan, Business loan, Foreigner loan, Bridging loan

Raffles Credit

Offers : Personal loan, Payday loan, Business loan, Foreigner loan, Bridging loan 

1 Fullerton Credit

Offers : Personal loan, Payday loan, Business loan, Foreigner loan 

Bugis Credit

Offers : Personal loan, Payday loan, Business loan, Foreigner loan 

What Is A Foreigner Loan?

As the name implies, a foreigner loan is a type of loan that is granted to non-citizens of a country. In Singapore, you qualify for a foreigner loan when you are neither a permanent resident nor a citizen.

As has been mentioned before, you could be in Singapore as an expatriate or on a work permit. If you run out of cash as you job hunt or during your studies, you can get a personal loan for foreigners in Singapore. There are banks and other money lending institutions that grant foreigner loans. Making out a foreigner loan application to any one of them can get you the funds you desperately need. Foreigner loans don’t come easily, however. You must meet the set criteria before your loan application will be approved.

Why Do You Need A Foreigner Loan?

Foreigners need money just as citizens do. Perhaps even more than citizens do. You are far away from home, with no one to turn to for cash. You are paying rent on your flat and need money for your phone service. Perhaps you need to renew your visa or passport. Then there is your family back home depending on you. Also, you need to eat. Unless you are earning upwards of S$12,000 every month, you will need a foreigner loan to take care of all these things.

Personal foreigner loans in Singapore take care of all financial issues that you are not equipped to handle. The fact that you can get loans as a foreigner just makes Singapore one of the best places to be.

These Are The Common Reasons That You Might Need A Loan To Tide You Over:

  1. Rental Deposit
  2. Purchases Of Big Ticket Items To Assist You To Settle Down i.e. Furniture, Household Appliances
  3. Application And Tuition Fee For You Or Your Children’s Education
  4. Downpayment For A New Car
  5. Cash To Remit Back Home Due To Emergencies
  6. Air Ticket Back Home

What To Consider Before Getting A Foreigner Loan In Singapore

There are several issues to take note of before applying for a personal loan for foreigners in Singapore. Some of these include:

  • Your Eligibility

    Are you eligible for a foreigner loan? There will be a credit check. If you have no credit history available, then you must meet the eligibility criteria. All lending facilities, including banks, have requirements for personal loans. Ask us for these conditions. Look at them, and make sure you will be able to meet them before applying for a loan.

  • Terms and Conditions

    These include charges and fees. There will be bank charges as well as charges from money lenders. Read their websites and ask around for the fees that you may need to pay to get a loan. You can even call the money lender to get information on the fees they charge. Knowing the terms and conditions of the loan beforehand is important. You will need this knowledge to calculate if your income is enough to repay the loan. Seek for clarification from the bank representatives. Talk to the loan officers of the credit facilities. Once you accept the terms and conditions, you will be bound by them.

  • Loan Tenure

    Foreigner loans have short tenures. The pressure from banks to repay may be more than you can bear. How sure are you of your ability to repay S$5000 in three months? Know where you stand on the possible loan tenures before you pen down your signature.

  • The Interest Rates

    The interest rates may be high. As such, you should seek to verify them before applying for a loan. Some lending websites publish interest rates that are lower than the actual interest rates. Call them to find out the actual interest rates before going further with your foreigner loan application.

  • Your Income

    How much do you earn? Is it enough to secure a loan and repay it in the stipulated time? The personal loan for foreigners in Singapore should be less than your annual income. It should be small enough to repay quickly and in full. You should be comfortable enough with what you have left over after repaying your loan.

Where Can You Get Foreigner Loans?

As a foreigner in a foreign land, you should approach valid loan sources before applying for a foreigner loan. To safeguard yourself, you should visit licensed money lenders and banks in Singapore for personal foreigner loans. Loan sharks and unlicensed money lenders should be avoided completely. They will rob you blind and leave you stranded. Banks and licensed moneylenders have specific interest rates and terms that you can be sure of. Always research before settling on a loan facility for your foreigner loan. These banks and credit facilities all have different terms and conditions. Check them out to be sure you can meet them before applying. If not, you may get into trouble for late repayments.

You can get a personal loan for foreigners in Singapore in banks. However, banks have a rather lengthy verification process. You will have to meet all their criteria before getting a loan. Their requirements are quite stringent. They will review your financial history. This is to ensure that you can repay the loan. They also need to go through your documents to ascertain that you qualify for the loan. Banks don’t grant instant loan approvals. This makes them unsuitable for instant loan purposes like small amount to cover emergencies.

The interest rate on personal loan for foreigners in Singapore is high. Banks charge high interests on foreigner loans because of the lack of collateral. As a foreigner, you don’t have collateral required for the loan. The bank is at a risk here, so they charge you high interest. The time for you to repay the loan is also very short. This is usually because your stay in Singapore may not be long. Be certain that you can repay the loan in the stipulated time before applying for it.

You can also get a foreigner loan from licensed moneylenders in Singapore. There are many moneylenders to approach for personal foreigner loans in Singapore. They also have their own requirements. Read on and we’ll tell you more.

Getting A Foreigner Loan From A Licensed Moneylender

Licensed money lenders are your best option for personal foreigner loans in Singapore. They have fast loan approval rates. Their interest rates are not as high as those of the banks. And you can get your money in an hour of contacting them.
Moneylenders in Singapore have had a bad rep for being loan sharks. While there is now a prevalence of licensed moneylenders, you can still get cheated by an illegal moneylender. There are ways you can use to identify a licensed moneylender, which you will see as you read on.

The criteria for borrowing a foreigner loan from moneylenders in Singapore are not as stringent as those of the banks. Their verification process isn’t as long either. You can get your loan instantly. This makes them a great source of instant cash for emergency situations.
Usually, licensed money lenders do not need collateral to give loans. You still need to provide some documents to show them your proof of residency and such.

The Registry of Moneylenders in Singapore cap the interest rate charged by the moneylenders. Their rates will be much higher than that of the banks. They also have their terms and conditions that you must adhere to or you will pay additional fees. All the fees are on a list or stated in the contract. Late repayment attracts a S$60 fee. Defaulting attracts a penalty.

What Are The Requirements For A Foreigner Loan From A Bank?

Banks have set criteria that you have to meet to qualify for a foreigner loan.

These requirements include:

  • You must have an annual income of S$42,000
  • Produce photocopies of your passport (front and back)
  • Produce photocopies of your Employment Pass (front and back). It must be an authentic Singapore work pass that gives you permission to work in Singapore.
  • A recent copy of your Income Tax Notice of Assessment
  • Your most recent original and computerized pay slip
  • You must be 21 years and older, and no older than 55 years of age.
  • You must have full-time employment, not just part-time employment
  • You must have a Tenancy Agreement for where you are living, and a letter that has been mailed to you at that address
  • You must produce a bank statement of the account that your salary is paid into. Should be as recent as three months.
  • You must produce a letter of employment from your place of work.

These requirements are quite stringent. Meeting all of them could be a challenge. Also, the bigger the loan you require; the stricter the terms for getting them. Added to that is the high chance of getting charged high interest rates. It is very possible that some banks may have lesser interest rates compared to others. However, that doesn’t mean less is lower than 20%. If you are very sure of your ability to repay a personal foreigner loan from a bank in Singapore, go ahead and apply. If you aren’t certain, you should look at other options.

What Are The Requirements For A Foreigner Loan From A Licensed Moneylender?

Licensed moneylenders in Singapore have their own requirements. Just as it is with banks, you need to meet them before getting a personal foreigner loan from them.

These include:

  • Your annual income. What you earn annually is what determines the loan amount.
  • A valid passport
  • Your contract of employment/ letter of employment
  • A pay slip that is at most three months old
  • Your Employment Pass/work permit, or any valid pass or permit that permits you to work in Singapore
  • Your Tenancy Agreement/Proof of Residency, or a letter addressed to you at that address
  • A bank statement, at most three months old, for the account your salary is paid into.

Is It Safe To Borrow From Moneylenders In Singapore?

Only approach licensed moneylenders for loans. This cannot be stressed enough. Despite the efforts of the government to curtail illegal money lending activities, they still persist. It is up to you now to stay safe and steer clear of unlicensed and unregistered moneylenders in Singapore.

The government has made it a law that all money lenders should be licensed. They have to if they want to operate as lending institutions. There is a test they have to pass. They also have to be trained so that they can meet the standards the government has set for moneylenders in Singapore.

Before you approach a moneylender in Singapore, ensure that they are legal and licensed.

You can do this by:

  • Getting Money Lender Reviews

    You have been in Singapore for a while now. You must have made some friends, either at work or at school. As to them about licensed moneylenders in Singapore. Some of them may have gone to borrow money from a moneylender in the past. Also, you can read our recommendation on top moneylenders.

  • Check the Registry

    The Registry for Moneylenders in Singapore has a list of licensed moneylenders. This list gets updated almost every month. All licensed moneylenders in Singapore are on that list.

  • Check Their License And Certificate

    All licensed moneylenders in Singapore receive a license number when they have passed the mandatory test. They also get registered with the Association of Moneylenders in Singapore. This license has a number. Ask to see that license number. Compare it to the number on the certificate. Cross-check it with the license number in the Registry. 

  • Visit Their Website

    A legal moneylender has to own a website. Look at their website and make sure that the information there tallies with what you have heard.

These checks can give you peace of mind about your loan status. Licensed moneylenders are a safe bet for personal foreign loans in Singapore.

You should also note that:

  • A licensed moneylender will not send you an SMS: people have fallen prey to this prank. Too many people who should know better. If someone sends you a text about being a moneylender, call them. If they offer loans that sound too good to be true, do not proceed with them. One way to know is if what they offer you is more than your income. Do not accept their offers. Licensed moneylenders are only allowed to advertise their business in three ways, which are:
  • On the shop of their operations
  • On their website
  • In directories. No moneylender should call you, text you, or even send you an email. Licensed moneylenders do not solicit for business from customers. Beware if they do.

Foreigner Loan Interest Rates

The interest rates for banks vary from one bank to the next. Nevertheless, the rates are high. You could get your interest calculated at a compound rate. Or they may use the Effective Interest Rate. You could be charged more than 10% interest on your foreigner loan.

As said earlier, banks charge high interest because collateral is not feasible for this type of loan. The bank is in a high-risk situation because of that. Also, personal foreigner loans in Singapore are high-risk because foreigners are not permanent residents.

For licensed moneylenders, you can get interests as low as 4%. Since it is a foreigner loan, other terms and conditions may apply. Talk with the moneylenders and compare their rates. After that, you can choose what rate you are most comfortable with and go from there.

Foreigner Loan Approval Rate

As stated earlier, you will need some documentation to be eligible for a foreigner loan in Singapore. For some lending institutions, you will need to gather those documents and go to them. These documents should include your employment letter, work permit, residential proof, and so on. Once there, submit these items. You may be asked to check back in a period of time.

If your loan application is approved after the review, you will get a contract to sign. Signing that contract means you are eligible for the loan. Also, you have accepted the loan’s terms and conditions.

For other institutions, like moneylenders, you have to go there in person. You can go to their website and fill out the online form. After they have reviewed it, they will approve your loan application, and disburse the cash in their office. For moneylenders, this sometimes takes two hours or less. For other institutions, ask them when you can expect disbursement. They will give you a time frame.
While moneylenders are a fast cash option, banks are slower, taking up to a month to approve your loan application.

Must You Get The Loan In Person?

There are loan sharks and frauds that are lying in wait for unsuspecting foreigners. The art of scamming has evolved to new levels. You can visit a website that looks perfectly legitimate and it would be a front for fraudsters. You may get a random email congratulating you on winning a foreigner loan that comes with very low interest. These could all be scams. You could get into serious trouble that will threaten your peace of mind. You might even get physically threatened by them.
Therefore, yes, you should go for the loan in person. Whatever facility you have decided to use, go to their office. Meet the loan officers at the bank and hand them your documents. The same goes for the credit company or the moneylender. In that way, you see for yourself that they are who they say they are.

Personal foreigner loans in Singapore may be a bit difficult to get, but they aren’t impossible. The percentage of foreigners in Singapore is quite high (29%). All of them contribute to the economy in one way or other. Whether you are a professional, in healthcare, or a manufacturer, you are working towards the development of Singapore’s economy. As such, loans can be provided to you.
However, offering loans without collateral is a tricky thing to do. Because of that, banks have inflexible conditions that you have to meet to be eligible. Also, they do not hand out cash loans instantly.

Moneylenders, on the other hand, are less rigid. They can meet you half-way and work-out a loan approval and repayment plan that benefits all parties.
You can go online and checkout where to get foreigner loans in Singapore. Make your selections and verify them. Relocation to Singapore need not be a daunting experience as long as you know where to turn to when you need assistance.

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