Singapore is perhaps one of the few countries in the world whose treatment to foreign workers and residents are most ideal. More specifically in terms of borrowing money, foreigner loans are one of the easiest to avail of in this country. Today there are many licensed and legal money lenders other than banks that offer foreigner any type of loans. Even those that have just recently established themselves in Singapore are never turned away when applying for any type of bank loan or personal loan as long as they can show proof of their legal stay and that they have a steady and reasonable income from their employment.
If you are a foreign resident or legal worker in Singapore, there will always be a problem in establishing yourself. For instance, medical expense in Singapore is quite expensive for foreigners because in many instances, employers of expats here only provide minimal subsidy on foreign worker’s medical expenditures. There are also expense issues on the foreigner’s visa requirement and other legal fees that need to be resolved in order for aliens to document and legalize their stay. This is not to mention the high cost of rents. Although in Singapore, a foreigner loan can also be used as a mortgage loan for property purchases.
For a foreigner to avail of financial assistance from licensed money lenders, he needs to present his passport, work permit, valid Employment Pass or E-Pass or a Skilled Worker Pass or S-Pass; he should show proof of employment from the company that recruited him; have an existing residential tenancy agreement; has a bank statement for the last six months; a full time worker certification as endorsed by the employer and should be able to show PUB bills and other utility bills. Most lenders in Singapore would allow foreigners to repay back their loan through monthly amortization and they usually offer flexible loans to make management of the financial assistance easier. The structured repayment terms are usually easy to understand and comply with and the loan process is usually short. Also, many of these lending institutions have linguists to interpret discussions between the lender and the foreign borrower.
A foreigner needs to be aged 21 to be able to apply for a foreigner loan and the most important thing for the foreigner to remember is to be sure of the type of loan he would need. However, there are a few things that the foreign borrower should be wary of. First, he or she should never fill up a loan application unless he or she is sure of the rates that would be charged for the personal loan for foreigners in Singapore.
Filling up a loan application without knowing the rates may put the borrower in very compromising position because as soon as they sign they are already agreeable to the terms and condition of the pay day loan. Second, make sure that checks issued to the lenders will not bounce because this will definitely incur high surcharges and penalties. Finally, as a foreigner always second think your action before filing for the loan because like it or not, any type of loan would put you in a position that you would have to pay a lot of money to pay back the financial assistance.