For many foreigners looking for work, Singapore is a worker paradise because the country has job openings for almost all the industries in the world today. When you move to the country, you can be assured that you will be able to experience high living standards, a stable yet growing economy and political system, and a great investment opportunity.
As a result of this favorable and fulfilling environment, many expats who move to Singapore to look for a better shot of life end up staying longer and even staying for good.
However, with the global economy currently experiencing a slow downturn, foreigners living in the country do experience the same economic constraints as that of Singaporean residents. Unfortunately, if they do end up experiencing a financial bind, applying for a personal loan can be difficult due to the strict rules imposed by banks on prospect borrowers and the rates which are added to every loan.
So? How can foreigners bypass this problem?
Foreigner Loan: Definition
A foreigner loan basically is a personal loan that is offered only to foreigners and expatriates of a country where they currently reside. The foreigner or expatriate must be in the country doing either one of the following – visiting, studying, living or working – before they can avail this loan.
What Risks Are Present in Foreigner Loans?
Foreigners are not usually permitted to apply for any type of personal loan because of the risks they present to lenders.
The number one risk they present is the fact foreigners who apply for such loans are the ones who no longer have a regular source of income while in the country and may be unable to pay off their loan. It is also possible that the borrower in question runs off to their home country if they are unable to pay off their loans on time.
If this happens, loan companies, banks, and other credit providers may find it difficult to hold the borrower in place and collect their repayments.
However, it is undeniable nowadays that foreigners and expatriates living in Singapore also need financial assistance one way or the other to help them continue living in the country without problems. If they would try to seek help from banks and other financial institutions, it may take a while for them to get the help they need.
In response to this problem, foreigner loans were introduced.
Take Extra Caution
In Singapore, getting a loan from moneylenders is the most preferred choice of many who need quick cash for any reason. Those with bad financial records or those with no banking history also prefer moneylenders because of their relaxed rules on applications.
However, since they are the go-to people for those who need to borrow money, there are moneylenders out there who are not recognized by the government.
In order to help you choose the moneylender you can approach with your loan application, you can begin by checking out the list of approved moneylenders in Singapore. The list is carefully updated by the Ministry of Law and it can be viewed through their website.
Once you have a short-list with you, you should start researching about their offerings and check if they offer straightforward and helpful foreigner loans for you to apply for. You should also look into the interest rates and fees applied by the moneylenders you are looking for and pick the one that would match your requirements.
When you have picked one to sign up with, make sure that the details of the loan should be clearly defined on their terms and conditions. The loan should also be tailored to your current financial situation to help you pay the loans better. Of course, be wary about moneylenders and financial institutions who would suddenly urge you to borrow more than what you can afford and pay.
Characteristics of Foreign Loans
Aside from being offered to foreigners and expatriates, foreign loans vary greatly from the usual personal loans that are offered to Singaporean citizens. Foreigner loans have a larger interest rate as compared to the standard interest rates on personal loans. However, these interest rates are added to ensure that the borrower and the credit company create a binding contract between each other since the borrower does not have a collateral available.
Foreign loans are also shorter than the usual payment tenure for personal loans and this ensures that the borrower will be able to pay their loans immediately.
How to Get a Foreign Loan Fast and Easy?
For anyone interested to get a foreign loan, here are the things you should have or submit to get your applications approved fast and get a low-interest rate:
- You must be living and working in Singapore
- You must have a valid Singaporean visa and work permit.
- You must have a certificate of employment
- Your passport must not be expired
- You should have your income/salary documentation
- You must present your bank statements and other important documents that would show your status in the country.
If you have more concerns or questions about the loan, you can contact your selected moneylender for more details. You can also take the time to ask your moneylender if they allow restructuring of the loan program to match your needs or if they have other suggestions to make the loan application smoother.
It is important to remember that there are no obligations given to borrowers if the loan package the moneylender is offering is not good.
It is very expensive to live in a foreign land, especially if you are just starting to make a new life and job in the country. You may find some financial trouble along the way and it would be great if there is a way for you to get by financially in the meantime while you wait for your paycheck.
By getting a foreigner loan, you will be able to get the money you need to make your life easier in the country and not worry about borrowing from your family and friends overseas.