When a foreigner is in need of cash to meet an urgent expense, meet educational expenses or even cover basic living costs, they may have no other recourse but to look for loans for non-citizens. However, it’s important to weigh the options carefully, as it can be tricky finding the best personal loan for foreigners in Singapore. Besides the obvious differences of interest rates, fees and documentation requirements, it’s also important to take into account other factors such as repayment schedule and minimum salary requirement.
For some lenders, extending credit to visa holders is a risky endeavor since they are in the country for a short period of time. This is because they can’t be sure whether they will stay and continue to repay the loan. Lenders thus tend to require more documentation for non-citizens, such as a copy of their visa, green card and proof of income. In some cases, a lender might even want to see their credit score and Social Security or Individual Taxpayer Number.
The good news is that there are still reputable banks and money lenders who offer personal loans for foreigners in Singapore. These entities have been reviewed by a reputable consumer watchdog and are licensed to operate in the financial industry. Unlike some unlicensed moneylenders, these companies charge fair and reasonable rates, and provide a range of services that can help foreigners in need of extra cash. Moreover, they are transparent with their loan terms and requirements, and do not hide fees or penalties in fine print. In addition, they only lend up to 12 times the borrower’s monthly income for unsecured debt, in line with MAS’ regulations.