Getting personal loans as a foreigner in Singapore can be difficult, particularly for those who don’t have an established credit score. Luckily, many licensed money lenders offer loans for foreigners to help them with financial difficulties. However, there are a few differences between these types of loans and standard personal loan offerings for Singapore citizens. Generally speaking, loans for foreigners have stricter eligibility requirements, higher income requirements and higher interest rates. It’s important to shop around to find a loan that fits your financial needs and budget.
What Documents Do I Need for a Foreigner Loan?
Licensed money lenders who offer foreigner loans typically require proof of identity and address. This can include a copy of your passport and employment pass, utility bills with your name on them, or any official document that confirms your residence in Singapore. Borrowers also need to provide proof of income. Depending on the lender, this could include your Central Provident Fund contribution history statement or the latest Income Tax Notice of Assessment. In addition, borrowers may need to have their salary credited into their bank account in order to qualify for a loan.
How Much Can I Borrow with a Foreigner Loan?
The amount you can borrow with a foreigner loan depends on your income and how long you’ve been living in Singapore. Licensed money lenders may offer loans of up to 4x your monthly income, although it is important to note that the maximum loan size can vary amongst lenders. Some moneylenders might also have minimum income and age limits.
While it is possible to get a loan without an established credit score, you’ll likely need to provide a guarantor who has a good credit record and will be willing to sign for the debt in case of default. Additionally, banks usually have stricter eligibility requirements for personal loans for foreigners, and will only lend if you can prove that you will be living in Singapore for the entire duration of your loan tenor.
A foreigner loan can be a lifesaver when you’re struggling to make ends meet. But it’s important to remember that any loans you take should be repaid in full and on time to avoid high interest rates and other costs. It’s also worth shopping around to find a loan with competitive interest rates and fees, so that you can minimize your financial stress.
If you’re in need of a foreigner loan, don’t hesitate to speak with Wise! Our team of financial experts can provide you with the advice and assistance you need to find a suitable loan. Whether you’re looking to buy a car, pay for home renovations or send money back to family in your home country, we can help! With low international transfer fees and competitive interest rates, we can save you both time and money. Get in touch with us today to learn more! foreigner loan singapore