Whether you’re an expat with a work permit or a citizen of Singapore, personal loans are a great way to borrow money. You can use them for a wide variety of reasons – from consolidating debt to financing a home renovation or covering unexpected expenses.
Getting a personal loan as a foreigner in Singapore isn’t always easy though! Banks and licensed money lenders have strict eligibility requirements for foreigners. These include higher minimum annual income and higher interest rates because of the risk involved.
For this reason, it’s important to compare and evaluate the different loan options available. It’s also a good idea to take the time to calculate your total costs, including interest rates, processing fees and miscellaneous fees, so you can get the best deal for your needs.
A Personal Loan as a Foreigner in Singapore is an Unsecured Loan
In most cases, foreigners are able to get unsecured personal loans without putting up any property or collateral to secure their loan. These loans typically come with a lower interest rate than traditional secured loans, but they may have higher minimum monthly payment amounts and a shorter loan tenure.
Foreigners with a Work Permit are a Specialty in the Personal Loan Market
Many banks view work permit holders as high-risk borrowers. This is why they often require a 5% higher minimum yearly income and charge higher interest rates for these customers. Today, however, some banks have adapted to the needs of these customers and offer specialized personal loans for work permit holders. personal loan for foreigners singapore