Having been employed in Singapore as a foreigner, the starting part might be a bit challenging. You might be coming with some cash in hand or waiting for your first paycheck but in whatever situation, the financial situation can be difficult to deal with.
Hard to start without cash
When you are uprooting from your country to settle in Singapore (at least for a few years), you will have to pay for several commitments. Some companies will settle accommodation and such but you will still need to buy some essentials or register for your child’s education. Thus, certain loans are offered to help you get on your feet and start moving.
Loan options offered by many firms
For foreigners, the process and options are more limited as compared to the citizens and PRs of Singapore. Your biggest challenge perhaps is at the start of your time in the country. This is a time when you have yet to establish a financial record (as you have not started working). Hence, acquiring a loan might be difficult. There are loan products offered by banks and licensed moneylenders and you have to be mindful of who you are borrowing from
Reasons to get a foreigner loan
In most cases, you will need money to start your life in Singapore. As you are away from your home country, everything you do will require payment. In another case, you could have been working in Singapore for a little while now and there is an urgent need of cash perhaps to send back home, for a medical situation or even a vacation.
Terms in Foreigner loans
Most foreigner loans offered by banks have shorter terms as compared to the conventional personal loans. This is usually based on your term of employment in your current company. Interest rates are also slightly higher. It is very important to check and confirm the interest rate prior to signing any agreement. The reason for this is because you lack the collateral the bank needs. Other requirements for foreigner loans include:
- Most banks require an annual income of S$42,000
- Copies of ID and employment pass (work visa)
- Proof of employment in a full-time position and letter of employment. Payslip will be required as well.
- Proof of residential address
- Any other documents that are related and could support the application.