Life always has those expenses which creep up on us, whether is a vital car repair, or an unexpectedly high phone bill that we receive through the mail. Sadly though, many of us do not receive the income to budget for circumstances like this, and in some situations we may need to take out a loan in order to help us through.
The problem with being a foreigner in Singapore is that you are going to find it incredibly difficult to borrow money, through traditional means at least. This is because banks look at your credit history to see whether you have the potential and the ability to pay back the money that you are asking to borrow. As a foreigner you would not have built up the required credit history to get approved for these loans. However, don’t fret, you can still obtain the money you need, and that is through a ‘foreigner loan’.
A foreigner loan does exactly what it says on the tin, it is designed for people who are not nationals of Singapore. Whilst it doesn’t mean you can head to the country and pick up a loan, it does mean that those who have yet to gain their nationality, or are simply working in the country for extended periods of time, are able to gain a loan.
A foreigner loan requires absolutely no credit check, which of course is important as you don’t have any credit history. What this does mean however is that you are probably going to end up with a much shorter repayment period and higher interest rates. This shouldn’t be too much of a problem though, after all, the charges that you are going to be absorbing are going to be much higher if you miss a payment.
Whilst the loan application will require no credit check, there are still a few criteria that you need to meet if you wish to be accepted for the loan. This includes:
- At least 21 Years of Age
- In Full Time Employment and working in Singapore
- Holds either an E-Pass or an S-Pass
- Bank Statements from the past 6 months
- Existing Residence Agreement
Your Foreigner Loan can be used for anything that you want. All you need to do is to remember to pay it back on time. The main reason why people take out a loan like this is to cover bills that they would be otherwise be unable to meet, this helps avoid bad notches on credit history or even ‘late payment’ fees. A few other people use this type of loan to carry out essential repairs with they otherwise would not be able to afford as they have not budgeted for it. It doesn’t matter what you are borrowing the money for though, the lender won’t ask, all they will be concerned with is that you have the ability to pay it back on time.
Are you a foreigner in Singapore that needs money now? If you are, then please don’t hesitate to take out a foreigner loan, it could potentially be one of the most sensible decisions about your finances that you have ever made.