The Singapore Economic Development Board (SEDB) has worked over the years to create a financial hub capable of attracting talent from around the world. As part of this goal, supportive financial infrastructure has been implemented, providing vital support to new expats. This is crucial as the cost of living in Singapore can be relatively high in certain aspects, thus making it difficult for non-high net worth individuals.
As part of this infrastructure, a foreigner loan in Singapore is an available option to help purchase large cost items. While the foreigner loan is largely similar to loans extended to locals, it does differ in terms of prerequisites and length. In this article, we give a brief overview of this type of loan.
Are You Eligible?
For starters, your background will be screened by the moneylenders to determine if you have any red flags. As a foreigner, expect the checks to be more stringent and tedious, requiring you to submit relatively more documents. In fact, you should prepare all documents ahead of time, including those that originate from your homeland.
The length of any foreigner loan granted tends to be shorter as compared to their local counterparts. This helps the moneylender reduce the level of risk in the loan as there is a possibility that the applicant attempts to skip town with the loan. As such, you should take note of the length of your stay in Singapore, and determine if the loan period fits your needs.
What Are The Documents Needed?
These are some of the basic documents that must be submitted to your chosen moneylending firm:
Take note that the items listed above are only the basic requirements. The moneylender may require additional papers to be submitted, depending on the circumstances of each case.
What Do You Need to Do?
Before applying for the loan, make sure that you take necessary steps to ensure that your application will be granted. The first step is to pay off all your outstanding debts or obligations. Be sure that your credit information does not reveal any deficits. There is a high possibility that the loan will be approved if you have a good credit history.
At the same time, it is also necessary for you to choose only one financing company in Singapore. Avoid submitting several applications to different institutions. When you do this, it will only send a message to the moneylenders that you are too desperate for a loan. The best thing to do is to select only one financial institution and wait for the feedback before sending submitting other applications.
Always remember that when it comes to money lending, your credit record is very important. You need to take every precaution to ensure that you have limited obligations. Lastly, do not neglect the importance of selecting a reliable moneylender in Singapore. Look at the rates first before agreeing on obtaining the loan. Read all the provisions in the contract before signing the loan documents. This is for your own protection.