An Ultimate Guide About Foreigner's Loans and Its Benefits

Singapore ranks among the top 25 countries for expats. It has a stable economy, and its people are known for their discipline and hardworking nature. If you are a foreigner looking to get a loan in Singapore, there are some things you need to know.

What Is a Foreigner Loan?

Most money lenders like A1 Credit offer foreigner loans. It is a type of personal loan offered to foreigners. The terms and conditions of traditional personal loans and foreigner loans are slightly different.

Besides terms and conditions, the interest rates may vary with the lender. Hence, it is important to shop around to get a good deal.

What Are the Eligibility Criteria?

The eligibility criteria can vary from one lender to another. However, some general requirements are common among most lenders.

• You must be a permanent resident or a citizen of Singapore. For example, you must have an employment pass, S-Pass or Work Permit.
• You must be at least 18 years of age.
• You need to have a steady income and a good credit history. For example, A1 Credit requires the borrower to have a minimum salary of SGD 2,000.

What Are the Benefits of a Foreigner Loan?

There are many benefits of taking a foreigner loan in Singapore. It helps you meet your financial needs and can prove helpful in improving your credit score.

Another benefit of a foreigner loan is that it helps you build a good relationship with the lender. This is because when you make timely repayments, it shows that you are a responsible borrower.

What Documents Do You Need While Applying for a Foreigner Loan?

To qualify for a foreigner loan, you need the following documents

• Passport
• Work Permit / S-Pass / Employment Pass
• Proof of residence (utility bill or tenancy agreement)
• Proof of employment (certificate of employment or recent three months payslip)
• Proof of income (bank or account statement)
• Singpass

What Is the Maximum Loan Amount You Can Get in a Foreigner Loan?

The maximum loan amount depends on your monthly income. Lenders may have their pre-defined loan limits for a certain income range. Here is some general information about the income range and maximum loan amount you can get:

• If your annual income is less than $10,000, the maximum loan amount is $500.
• If your annual income is greater than $10,000 but less than $20,000, you can get a $3,000 loan.
• If your annual income is more than $20,000 a year, the money lender can offer you a loan amount six times greater than your monthly salary.

How Can You Apply for a Foreigner Loan?

You can apply for a foreigner loan online through the money lender's website or visit their office. If applying online, you need to fill in the required information, upload the required documents, and submit the loan application. The money lender will verify your details and then approve your loan. If everything is in order and you fulfill all eligibility requirements, your loan could be approved in an hour or less.

What Should You Do After Your Foreigner Loan Is Approved?

When your foreigner loan is approved, you need to do the following things:

• Check the principal amount of the loan. The money lender can deduct a maximum of 10% from the principal amount as loan processing fees.
• Make sure you make the repayments on time.

Now that you have important information about foreigner loans, you can get a foreigner loan for emergency financial needs like rental deposits.