According to BBC, Singapore is considered a ‘utopia’ by foreigners living in Singapore because of the work-life balance and employment opportunities.
But this city-state is also known to be one of the most expensive cities to stay in. If you are a foreigner in Singapore, you may be in a situation when you’ll need immediate cash for an unforeseen expense. This is where a personal loan can be useful for you.
Here are the foreigner loans in Singapore from top banks with interest rates
|Loan||Interest Rates||Processing Fee||Tenure||More Info.|
|OCBC Cash-on-Instalments||5.80% p.a.||2% of the approved loan amount||Up to 5 years|
|HSBC Personal Loan||3.7% p.a.||Waived||Up to 7 years|
|OCBC ExtraCash Loan||8.18% p.a.||2% of the approved loan amount or up to S$200||Up to 5 years|
|Standard Chartered CashOne Personal Loan||6.88% p.a.||NA||Up to 5 years|
|Citi Personal Loan||4.55% p.a.||NA||Up to 5 years|
|Maybank CreditAble Term Loan||6% p.a.||2% of the approved loan amount||Up to 5 years|
There are several occasions where you, as a foreigner, might need a personal loan. Say you are studying in a university and you need instant funds to buy a laptop for the course. What is the solution? You go ahead and take a personal loan to buy it.
The need for cash can arise at any point of time, maybe within the first few months of moving to Singapore. You may need a loan to pay the security deposit for your rented apartment or to furnish your new flat.
A personal loan can also be useful for covering your medical and relocation expenses, sending cash home, or even repairing your car. If you want to settle in the country permanently, you can use the loan amount to pay for the Permanent Resident application fee.
A loan like this can also be used to fund your education. The amount you receive from the bank can be used to cover your college hostel accommodation expenses as well. You can even pay for the books and accessories you will need for your course using this.
In order to qualify for a personal loan in Singapore, you must submit a valid work pass or permit. Additionally, you must be between the ages of 21 and 55 years and have a full-time job. The banks might also ask you to submit a tenancy agreement, account statements, and an employment letter from the company you work for.
The banks will, then, review, all the relevant documents and decide whether or not to approve the application.
Several banks approve personal loans to foreigners in Singapore only if they have a valid employment pass with at least a one-year validity and a work permit. However, banks impose a high annual income requirement for foreigner personal loans in Singapore. For instance, Maybank has the highest minimum income criterion and require you to be a full-time employee.
In case you don’t meet the eligibility criteria, you can lend cash from registered and legit moneylenders in Singapore. These moneylenders offer short-term loans and are known to process and approve the applications faster.
However, licensed moneylenders charge very high interest rates in comparison to banks, in spite of the cap of 4% on monthly rates imposed by the Ministry of Law in the country. For example, they are allowed to charge up to 10% of the approved loan amount as an administration fee. This is due to the fact that moneylenders have to handle the jeopardies involved with granting small unsecured loans and the risk profile of the applicant.
Furthermore, moneylenders allow you to borrow 6 times your monthly income if your annual income in Singapore is at least S$20,000.
In any case, keep in mind that you don’t buy from moneylenders who are not licensed. This can only lead to heavy interest charges and these lenders may resort to unscrupulous tactics of getting the money back from you if you delay payments.
Now that you know the list of banks that offer personal loan for foreigners, you can check their individual pages for more details. Make sure to read the fine print very carefully for any extra costs and interest rates.