Personal loans enable borrowers to take out a specific amount of money to cover the purchase of various commodities.
In most cases, borrowers have to comply with the rules and regulations of potentially borrowing money in the country where they live.
Prospective borrowers who live abroad, however, might assume they have no options to borrow money.
Foreigners in Singapore do have the option to borrow money. Foreigner loans, much like domestic personal loans, allow foreigners to borrow a certain amount of money, as long as they can provide a valid work permit or other valid permits while living in Singapore.
This type of loan allows foreigners living in Singapore to borrow money when they need funds. So, how can a foreigner take out funds from licensed money lenders while in Singapore? Let’s review how various licensed money lenders in Singapore allow foreigners to take out personal loans.
Applying for a Foreigner Loan in Singapore
As mentioned, various licensed money lenders in Singapore allow foreigners to take out personal loans. The following information provides examples of what foreigners can expect if they choose to take out a personal loan in Singapore.
How can foreigners apply for a personal loan?
Most financial institutions allow foreigners to apply for a personal loan in person. An increasing number of financial lenders in Singapore are allowing eligible borrowers apply for their loan online.
Many applications request that applicants provide details, including their financing requirements, employment/employer details and their personal/contact details. Many also ask valid copies of important personal documents, such as valid permits and personal identification cards.
How much can a foreigner borrow?
The amount that a foreigner can borrow if they’re eligible for a personal loan depends on various factors, including their financial history.
Larger loans, such as home loans, tend to allow foreigners to borrow as much as 80 percent of the purchase price of the property they want. Refinancing as a foreigner works the same, though the percentage they’re allowed to take varies. Do remember that these figures tend to vary across lenders.
Personal foreigner loans, on the other hand, are handled in a similar way to domestic personal loans. Prospective borrowers should expect to take out as much funds as their lender allows, which is determined by the information they can provide.
What requirements does a foreigner need to be eligible for Singapore personal loans? What about any fees?
As implied, foreigners interested in taking out a loan in Singapore need to meet certain requirements to be considered for the loan. Most eligibility requirements ask for foreigners to meet the following criteria:
- Be at least 21 to 65 years of age.
- Have an annual income of at least S$40,000.
- Have an employment/pass or proof of employment for at least one year.
Prospective applicants should also expect to pay fees if they plan to apply. Most money lenders charge processing fees, amendment fees and fees for early repayments and late repayments. Both application requirements and fees do vary across different financial lenders in Singapore, so it’s recommended to contact them for more information if needed.