What is a foreigner loan?
A foreigner loan in Singapore is only granted to non-citizens. It is slightly different compared to other loans given to Singaporeans or permanent residents. This is because the banks and the moneylenders who are granting these loans are taking a bigger risk.
What’s the main difference of obtaining a foreigner loan compared to other loans?
Some of the key differences are the interest rates and the duration in which the total amount must be repayed. Most of the time, banks and moneylenders will require you to repay the debt within a short period of time. Depending on the total amount borrowed, you could be required to repay the loan within months. In some cases, you are required to repay the loan as soon as you receive your next pay check.
What are the requirements for obtaining a foreigner loan from a licensed moneylender?
Just like any other loan you apply for at the bank of with a licensed moneylender, you will need to provide some documentation. These include:
1. Work permit.
2. Pay slips
3. Personal information as well as your identification card.
4. Annual income of S$45,000 or more.
Some moneylenders will try to squeeze a higher interest rate out of you if they know you are desperate for the loan and do not have sufficient knowledge. Do not borrow from the first moneylender you know, you can save a lot on interest by being more selective and reading the fine prints.
What about banks?
Most banks will also require you to have at least:
1. An annual income of S$45,000 and more.
2. Holders of the P1, P2 or Q type Singapore Employment Passes.
3. Personal documentation including NRIC, pay slips and tax documentation.
4. At least 18 years old.
Some banks allow up to 4 times your monthly income from as low as S$3,000 to S$60,000 for up to 2 year loan.
For UOB bank, you can set up a monthly repayment plan with UOB CashPlush over a period of 12 to 60 months. As one of the lowest intrest rates claimed in Singapore, you can borrow any amount you require at 5.88% interest rate per annum and a one time processing fee.
What about other options?
If you find it rather difficult to apply from banks, there are more options out there. There are many private lenders would be willing to help you. You will need to provide them still with good documentation about your work and credit history as well as your current income and bank balance. They are less strict compared to the banks.