What is a Foreigner Loan?
Foreigner loan is another type of loan offered to non-citizens of the country. This is available to expatriates or with a working permit. In Singapore, most foreigners apply for a loan because of the following reasons:
- Rental Deposits
- Flight Ticket Back Home
- Tuition fee for their Children
What are the Things to Consider When Getting a Foreigner Loan?
Eligibility Requirements. Each moneylender has varying requirements, you have to check them over to see if you can meet their qualifications.
Terms and Conditions. You have to make sure that you fully understand their terms and conditions. And they have able to follow the standards as required by the law. This is vital also since you need to check if you can able to afford the repayment terms.
Interest Rates. Interest rates can vary on each moneylender, you have to talk to them to know their actual interest rates.
Income. Another major consideration is your income. Although most of the money lenders welcome even with an annual income less than $10,000, you still need to consider your capacity to pay. Get a loan that you can afford to repay. It is recommended that it must be below your salary.
Why get a Foreigner from a Licensed Moneylender?
If you are a foreigner in Singapore, you can have a hard time when taking a loan from banks. The ideal option is to get it from a licensed moneylender because of the following reasons:
- They have competitive loan offers
- It is easy to apply with their online application form
- They quickly approve your loans
- Their interest rates are not so high unlike with the banks
- You can quickly claim your loan
- You can safely transact since they are regulated by the Registry of Moneylenders under Ministry of Law
- They follow the rules and regulations set by the Government
- They have easier eligibility requirements
- Their verification process is not too long
What are the requirements when applying for Foreigner Loan?
Among the common requirements for a foreigner loan by a licensed moneylender are the following:
- Your Annual Income
- Latest 3 months payslips
- Tenancy Agreement for rented property
- Bank statement showing salary transactions
- Employment Contract/ Appointment Letter
- Work Pass (S-Pass or Employment Pass)
How to Avoid Scams and Unfair Money Lending Practices?
Recently, there are reported illegal money lending activities in Singapore. It is important that you can able to identify a legal licensed moneylender than an illegal one.
A Valid Licensed Moneylender:
- Listed in the Ministry of Law – Registry of Moneylenders website
- Can only charge an interest rate of 4% per month and a late interest of 4% on each month of late repayment
- Will only charge up to $60 for late repayment fee and up to 10% of the principal loan for an administrative fee
- The total charges must not exceed the total amount of your principal loan
- They explain well the Note of Contract
- They will provide you a copy of the contract
- Can only advertise on three channels: online and in print consumer or business directories, their website and within their business premises
- Required to meet the borrower on their business address as a condition for granting the loan
An Illegal Moneylender:
- Will send unsolicited messages via SMS, Facebook, and WhatsApp and even do cold calling
- They will not fully explain the terms and conditions of the contract
- Higher interest rates or does not follow the standards
- They use harassment/violence when chasing for repayments
- They will hold any part of your principal loan without any reason
- Will hold your personal documents
- Can grant a loan even without meeting the borrower in person or at their business address
For scams and unfair practices, please report them on the following:
- X-Ah Long hotline at 1800-924-5664 or using the Registry of Moneylenders’ website
- Police hotline at 1800-255-000 or you may submit the information at www.police.gov.sg/iwitness
- Anti-scam helpline at 1800-722-6688 for verification of unsolicited messages and cold calls
Important Note: As much as we want to extend our help, most of the moneylenders have achieved their quota for this year for foreigner loans. Our loan matching platform will only cater to Singaporeans and PR for personal loans, payday loans and business loans at the moment. We will update this page as soon as there are existing foreigner loan offers.