Foreigners constitute of 30% of the entire population in Singapore. Out of these, there are 11% of people involving in professionals make up while the other 12% work as retailers, manufacturers, health care providers and other business sectors. Currently, there are around 1,600,000 foreigners residing in Singapore.
Life in Singapore is tough, as it is considered as one of the highest cost of living country in the world. It is very challenging to cope with daily expenses and it often causes stress for foreigners. Some expats get paid in their home or local country currency and survival becomes a big issue for them. It is, therefore, important for all foreigners to learn about short term personal loans as it is an opportunity for them to settle emergency matters when the time arises.
One of the main reason why foreigners did not approach banks for personal loan is because of the imposition of a requirement of high minimum income levels. Some of the banks have set the minimum income limit as S$40,000 per annum and they also expect at least one year validity of employment pass.
Foreigners who reside and work in Singapore have several opportunities of accessing personal loans. Regardless of whether a foreigner is an entrepreneur or an employed worker in a company, there are options available when he or she fails to manage his or her finances and succumb to the high living cost in Singapore. When financial issues become a burden for foreigners in Singapore, personal loans could serve the role of life savers.
Singapore’s licensed moneylenders could be at the hand of help for foreigners when in need. A foreigner can still be qualified for personal loans even if he or she does not possess any properties or assets. On the other hand, there is also no need to wait for lengthy periods as in the case of conventional bank loans. They have the process of accessing foreigners with every knowledge they should know before starting with their personal loan applications. However, it is also important that moneylender they choose is licensed to provide a standard quality service.
Process of applying for a personal loan as a foreigner in Singapore
To begin with, foreigners have to fill up application forms that are available on the websites of licensed moneylenders. They have to make sure that they provide all the necessary details accurately so that problems are avoided when they apply. Additionally, they will also be required to submit documents in support of the details that they provide in the application form.
These documents include:
Proof of identity with valid passport and work pass
Proof of income in existing company by latest monthly pay slip or bank statement
Proof of Singapore residential address by mean of owned or rented property
The Personal Loan Application Process
Once the personal loan applications and all relevant documents are submitted to the licensed moneylenders, foreigners will receive notification informing them of the status of their applications. Upon approval, they will need to go through the agreement and sign the contract. The entire process is simple, stress free and fast.
A personal loan is the best way for foreigners who are looking to get extra cash to fund their purchases in Singapore. It is wiser to avoid payday loans for their high installment sums. Therefore, it is better to seek counsel from debt counselors to get financial advice and they may help in the enrollment in a plan of debt management that will end up reducing the finance charges.