Foreigners Seeking Loans In Singapore Must Be Prepared

Singapore sits at the crossroads of Asia. Its history has seen the coming and going of people of

all nationalities. The republic’s business continues to attract foreigners and some of them stay

for long periods of time. Now and then, these nonresidents wish to take out a loan for various

expenses. Singapore’s lending institutions are willing to allow that to happen but will insist on

certain requirements. Nonresidents will quickly discover that some things must be available

before applying.

The major problem a foreigner faces is not having a local credit history. Moreover, foreigners

simply don’t have some of the paperwork that a resident has and this can make things a bit

difficult. The lending institutions are willing to work with outsiders but have to be assured the

transaction will not result in a loss. The guidelines of a typical lender may be fairly strict but are

reasonable given the number of foreigners who work in Singapore. Loans for foreigners are

available but certain paper work is necessary. A nonresident must demonstrate that he or she

has the income necessary to pay the loan installments. Pay slips for a period of time, ordinarily

the past full calendar year, should be provided upon request. Most importantly, that potential

borrower must produce an employment pass. It lets the lending institution know the applicant

will be in Singapore for the duration of the loan, and not be leaving in a short while. Depending

on the lender, a Letter of Appointment may be necessary and a borrower should have this

ready for inspection.

A foreigner is basically a stranger living in a strange land. That person, too, has concerns about

the loan process. No one wants to be taken advantage of, and the fear may surface that the

nearby moneylender is a loan shark. An easy way to calm such a worry is to contact the Registry

of Moneylenders. This public board keeps the records of licensed money lenders in Singapore.

Loans for foreigners are possible and a nonresident should have no problem at all seeking a

reputable moneylender.

It's perfectly understandable from a business point of view why foreigners are treated

differently. Singapore has been a port city for all its existence and seen strangers come and go

all the time. A dishonest borrower can easily board ship or plane and depart from Singapore,

leaving the creditor in the lurch and without the loan being fully repaid. Singapore protects its

consumers and businesses alike. Asking foreigners to adhere to certain guidelines is only fair.