The Ultimate Guide To Loan For Foreigners
What is the Purpose of a Foreigner Loan?
A foreigner loan is a loan facilitated to a foreigner working in another country. It should be noted that there are a number of factors that lenders look before lending foreigners and some of them include employment permit/pass type and salary. Licensed money lending companies are normally the viable alternatives for foreigners seeking for loans. When in need of a loan, one should at a loaning scheme that meets one’s budget and needs.
Where can one get a Foreigner Loan?
Licensed credit companies and banks are most recommended to those seeking for foreigner loans in Singapore. Such lending institutions charge reasonable interest rates and those in need of loans can easily find loans that meet their needs. Before one can select a credit institution, doing a thorough research is encouraged. So as to avoid delayed loan repayments and penalties, it is essential to know all the terms and conditions of the loan.
What do lenders normally look at?
There are a number of documents that lenders normally review before they can loan a foreigner. The applicant may be requested to submit his/her letter of employment, a bank statement, a residential tenancy agreement, a valid working permit and some even look at the age of the applicant. Some banks may also employ other stringent requirement when lending foreigners.
What interest rate should one expect?
Different institutions have varying interest rates when facilitating foreigner loans. For instance, in a country like Singapore, interest rates range from 4.48% – 10% per annum and it can be more in some cases. Given that a foreigner is likely to stay in a given country on a temporary basis, lenders consider them as high-risk consumers. Borrowers are advised to ask a number of questions before taking up the loan.
Factors to consider before applying for the loan
Once you have found a licensed and reputable lending company there are things to consider when applying for the loan. By looking at your needs and income you will be able to select reasonable installment plans and interest rates. Also look at your duration of stay so that you avoid unpaid loans in the long run.