What You Should Know Before Getting a Foreigner Loan

Couple from abroad applying for foreigner loan in Singapore

Today, Singapore is one of the world’s leading financial hubs, attracting a vast amount of foreign talent from around the world. However, despite the creation of financial infrastructure to provide financial support to foreign workers and expatriates, the cost of living in Singapore continues to rise each year. In 2020, a survey by the Economist Intelligence Unit named Singapore the most expensive city in the world for expatriates for the 7th year running.

Hence, many foreigners are finding it increasingly difficult to survive without high income or assets. In such cases, foreigner loans are a good option to help foreigners in Singapore cope with the cost of living, which can include items like rent and car payments. In this article, we will explore what exactly a foreigner loan is, how you can get one and the benefits of applying for a foreigner loan over other types of loans.

What Is a Foreigner Loan?

Simply put, a foreigner loan is any loan that is granted to a person who is not a Singapore Citizen or Permanent Resident (PR), but who resides in Singapore either for living or working. There are many different types of foreigner loans, which are available to holders of a variety of work passes and permits.

The types of foreigner loans that will be open to you will vary depending on factors like your category of work pass or permit, your monthly household income, your expected length of stay in Singapore and the amount you are looking to borrow. Here are a few steps you can take to increase the likelihood of having your application for a foreigner loan be approved.

How to Get a Foreigner Loan

It is generally easier to get a foreigner loan from a private moneylender than a local bank or financial institution. At JD Credit, we offer no-hassle foreigner loans to applicants of all backgrounds. However, to increase your chances of successfully securing a foreigner loan, you should also make sure that your application is as thorough and clean as possible.

Man filling out application form for foreigner loan

Step 1: Gather documents

Any loan application will require you to submit a set of documents to prove your financial capability, and foreigner loans are no exception. To apply for a foreigner loan in Singapore, you are usually required to be 21 years old and above. You should also bring along the following documents to submit together with your application:

  • A photocopy of your valid passport
  • A copy of your valid working pass or permit
  • A valid letter of employment
  • Proof of income (e.g. pay slips for your last 3 months of work)
  • Proof of billing to your residential address (e.g. a utility, broadband or phone bill)
  • Bank statement reflecting account activities for the last 6 months
  • Tax payment receipts


These documents will show that you are in good financial standing and are capable of paying back the loan in full. This can help to increase your chances of being approved for a foreigner loan.

Step 2: Clean up your credit report

In Singapore, use of the credit report as a financial instrument is not as prevalent as it is in countries like the United States. However, it is still widely used among banks, financial institutions and moneylenders to determine whether an applicant has a good credit history. Your credit history lists all previous loans, lines of credit and credit card charges that you have taken out, and whether you repaid them on time and in full.

It is much easier to get approved for a foreigner loan if you have a good, clean credit history. To achieve this, you should pay off as many outstanding debts as possible before applying for the loan. This will demonstrate to any potential moneylenders that you are a responsible borrower and are capable of paying back the amount they will loan you.

Man using credit card to pay off outstanding debts

Step 3: Choose a financing company to borrow from

When applying for any type of loan, it is better to submit only one application to one financing company rather than submit multiple applications to several different institutions. This is because your applications for new credit will show up in your credit report, and applying to too many institutions at once may give the impression that you are too desperate for a loan.

Hence, it is important to choose one financing company that you feel has the highest chance of granting you a loan on the most favourable terms. With our low interest rates, flexible repayment modes and online application process, JD Credit provides foreigner loan services that are unparalleled in terms of speed and convenience.

Step 4: Negotiate the terms of the loan

Finally, before inking a loan agreement, it is important to understand and negotiate the terms of the loan to ensure they are as favourable as possible to both parties. For foreigner loans in particular, the time horizon for repayment tends to be lower than local loans. This is to reduce the amount of risk to the moneylender and avoid the possibility of borrowers leaving Singapore before fully repaying the loan.

However, you also have significant flexibility over the amount you would like to borrow and the interest rate. Generally, the maximum amount of a loan ranges from 4 to 8 times your monthly salary, while annual interest rates range from 3–5%. It is up to you to shop around for the best payday loan in Singapore for your chosen loan amount.

Man discussing terms of loan to find the best payday loan in Singapore

Benefits of Foreigner Loans

Because it is generally more difficult for foreigners to get local banks, foreigner loans from private moneylenders are a quick, easy alternative to increase your cashflow in the short term. Often, they also have better terms such as low interest rates and longer loan periods. With a foreigner loan from JD Credit, you will be able to support your family overseas or settle urgent financial obligations without having to wait for your local salary to clear.

Trust JD Credit for Your Foreigner Loan

JD Credit is a licensed moneylender in Singapore with many years of experience in the industry. We are committed to achieving excellence by providing the best information and finest customer service. Our vision is to be a leader in the moneylending industry in Singapore. Contact us to apply for the best foreigner loan in Singapore today!