While the city of Singapore is immensely attractive and a great place to work and live in, the higher costs of living here can make it difficult for the foreigners staying here. Everything from rentals, utilities, medical bills and education can put a strain on the wallet, sometimes to an excessive extent. Whether you are a student or a worker in Singapore, it is good to know the choices you have concerning financial loans, which can help you when you are cash-strapped.
What is a Foreigner Loan?
As the name suggests, a foreigner loan in Singapore is a kind of loan that is given out to the non-citizens who are working and residing in the nation. Foreigners need to have a valid work pass, be employed full-time, and be at least 21 years of age to be eligible for a foreigner loan.
These loans are designed to help foreigners tide through financial difficulty during their stay in Singapore. While there are other avenues of financial help available, foreigner loans often emerge as the preferred choice as it is easier to obtain a foreigner loan than a bank loan, for example.
Reasons to Apply for a Foreigner Loan
Whether you are in the country as an employee or a student, there are several instances in which you may need a large amount of money at once, thus requiring instant cash for extra support. Some of the common reasons for foreigner loan application in Singapore are:
- Making a rental deposit
- Making the down payment for a car
- Purchasing big-ticket items such as furniture and household appliances
- Emergency needs back home
- Medical emergency
- Tuition fees
Things to Consider Before Applying for a Foreigner Loan in Singapore
When you wish to apply for a foreigner loan in Singapore, here are some of the essential points to consider:
- Eligibility Criteria: The first thing to analyze is whether or not you are eligible to apply for the foreigner loan. Different banks and moneylenders may have varying requirements, but most require that you provide proof of employment, income, and residence.
- Terms & Conditions: Usually, including fees and loan charges, you should be aware of the terms & conditions before applying for the personal loan as a foreigner in Singapore. Compare the interest rates of different moneylenders as well as their payment plans to find one that is within your ability to repay.
A final word of caution: Do ensure that the moneylender you go to is a licensed moneylender, as other non-registered moneylenders are illegal businesses in Singapore. Furthermore, loans can only be issued in person, so do make time to go down personally to your preferred licensed moneylender to check through the terms and conditions before you sign the contract.