Can Foreigners Loan Money in Singapore?

As a foreigner, you can’t seem to resist the charms of Singapore, and it is easy to see why. The quality of life accessible in the country is incomparable to others. But if monetary problems happen, can foreigners loan money in Singapore?

At a glance, Singapore is the smallest country in Southeast Asia. Yet the country focuses on the main factors leading to its success in attracting investors and foreigners to live and work in Singapore. 

In this article, discover the factors foreigners find irresistible in Singapore, whether you, as a foreigner, can borrow money. Uncover the requirements and regulations you should comply with when loaning money in the country. 

Foreigners Singapore Irresistible

What key factors do most foreigners find in Singapore to guarantee a favourable future for their endeavour? 

The country boasts political, social, educational, recreational, natural, and economic environments.

All of these elevate Singapore’s quality of life further. But at times, immigrants who cannot keep up with the fast-paced developments and lifestyle could eventually face financial problems. 

Troubles with finances are nothing new; regardless of nationality, it is a common occurrence everyone faces in their lifetime. As such, for those currently living and working in Singapore, there are several financing assistance options in the country.

Can Foreigners Loan Money in Singapore?

In 2021, Singapore had a total population count of 5.454 million. The Ministry of Manpower has since shared its total foreign workforce in Singapore, which is 1.3 million. 

As a result, Singapore made it a point to assist foreign nationals with their needs through the Singapore Parliament laws. Foreigners may be subject to genuine financial requirements. Thus, Singapore does allow its expatriates to loan money in the country.

Foreigners must fulfil specific proceedings, qualifications, and documents upon requesting and granting the loan. Nonetheless, loans are available for you as a foreigner in Singapore when you must have them.

Apart from the factors above that you, as a foreigner, must comply with to acquire the loan, you must also choose appropriate loan providers in the country.  

Lenders Offering a Foreigners Loan Money in Singapore

Singapore is famous for its banking and financing industry. It is a sector that puts the country on the map. Because of its splendid financing and banking reputation, it upholds many regulations associated with these particular industries. 

Foreigners can loan money in Singapore. The financial companies that you may apply for loans are banks, financial institutions, and licensed moneylenders.

Banks and Financial Companies

The Banking Act in Singapore oversees and regulates its policies for more than 100 banks. Numerous banking classifications exist, but most may grant foreigners loan money in Singapore.

Financial companies are eligible sectors where foreign work pass holders may seek financial assistance.

The most common type of loan foreigners residing in Singapore could send an application for is a personal loan. It is an unsecured loan. 

Why is it called an unsecured loan? 

It’s because it does not require the foreign work pass holder to supply any forms of collateral along with their loan request.

Banks and financial companies in Singapore will require the foreigner to provide their employment pass that has at least a year’s validity. Furthermore, the foreigner’s annual income has to meet the expected range. 

Licensed Moneylenders in Singapore

Licensed moneylenders are viable options for foreigners to loan money in Singapore.  These are individuals or groups that proffer moneylending privileges, expressly granting cash loans, goods, and other services. Under the Moneylenders Act, anyone operating a moneylending business can loan a small amount. 

Licensed moneylenders abide by the Moneylenders Act, wherein the provisions state they are permitted to demand a higher interest rate because of the risky nature of their industry. 

A person or group who has since established their moneylending business in Singapore can let foreigners loan money in Singapore who resides and work here. However, similar to banks, and financial companies, some loan capping does apply. 

Requirements for Foreigners Loan Money in Singapore

For a foreigner like you residing in the country who wants to loan money in Singapore, it is crucial that you have to meet all the requirements demanded from them.

Whether the borrower is a Singaporean Citizen, Permanent Resident, or foreign with a valid work pass, you must bring about the prerequisites when appealing for a loan. 

It is essential to consider that requirements for foreigners may differ from Singaporean Citizens and Permanent Residents. 

The standard requirements foreigners must supply upon their loan request are:

  • Passport
  • Current address
  • One-year validity employment pass
  • Up to three months of proof of income showing annual income of either less than $10,000 to at least $20,000
  • Of legal age from 21 years old and up

Additionally, a foreigner’s duration in the country is a considerable qualification for a loan. Those in Singapore for short-period visits are not eligible to apply for or borrow money.

Best Foreigner Loan Money in Singapore Option

Banks, financial institutions, and licensed moneylenders in Singapore are happy to serve their borrowers whenever possible. But, due to some restrictions, expatriates could need help to fulfil their loan requests. 

There have been cases wherein banks and specific financial institutions decline a foreign work pass holder due to collateral requirements. As it’s possible that foreign nationals solely rely on their work for finances, it will be a challenge to supply suitable collateral. 

As a result, a foreigner has a higher chance of getting loan money in Singapore from licensed moneylenders. 

Licensed Moneylenders for Foreigners Loan Money in Singapore

Moneylending in Singapore is an industry which started many years ago. Today, it is considered a sustainable and steadfast financing industry and a key sector in improving and strengthening Singapore’s economy.

From these companies serving moneylending in Singapore, moneylenders assist all borrowers with loan applications. It includes foreigners who wish to loan money in Singapore. 

Licensed moneylenders are under the legislation of the Moneylenders Act, which permits foreigners residing in the country to loan money. Thus, these groups and individuals have the integrity and service capacity to loan a foreigner the funds you sincerely need.

Assistance for Foreigner Loan Money in Singapore 

Singapore’s rich cultural heritage and its scope of ethnicities are unique and distinct. More than 40% of its population comprises Asian and non-Asian foreign workforce. The language barrier in Singapore isn’t a massive problem, though, as the country mainly uses English.

Even when English is widely used in Singapore, some Asian foreigners may struggle understanding loans and contract conditions.

Eradicating language barriers to explain loan terms and contracts.

By the Moneylenders Act, a licensed moneylender in Singapore should explain all the terms within the loan contract in any language that foreign work pass holders understand best. 

In this manner, you can feel comfortable discussing your options as you request to loan money in Singapore. 

Hand in the loan contract, terms, and cautionary statement.

Loan contracts are crucial to every loan transaction. Licensed moneylenders must ensure foreigners residing in the country get a contract copy. It has to be signed accordingly with the inclusion of terms in writing.

Furthermore, the cautionary statement that entails the borrower information on abusive conduct presented by moneylenders must also be given to them.

Foreigners Loan Money in Singapore Accessible Amount

Licensed moneylenders may loan foreigners the money they need, but it should comply with the Moneylenders Act. The Act has since provided its guidelines specifically for unsecured loans. It is due to the rising cases of overborrowing by borrowers. 

Thus, the loan cap guarantees safe and disciplined borrowing by foreigners in Singapore. It is also a practical approach for licensed moneylenders to not overindulge the borrower’s request for more significant loan amounts. In return, you get higher interest rates and more considerable late fees.

The maximum total amount a foreigner can loan money in Singapore is;

  • $500 for foreigners residing in Singapore who earn less than $10,000 annual income.
  • $3,000 for foreign work pass holders with at least $10,000 to less than $20,000 annual income.
  • Six times their monthly income when you earn at least $20,000 annual income.

Interest rates and fees

Nevertheless, even when a foreigner living and working in Singapore has either less than $10,000 or more than $20,000 annual income, the interest rate for licensed moneylenders should be 4% per month. 

Late fees apply when the foreign borrower can’t pay on the agreed repayment schedule. Late interest rates shall not exceed 4% a month, and late fees won’t exceed $60 monthly.

Legal Proceedings for Taking Loans from Unlicensed Moneylenders

The Ministry of Law and Ministry of Manpower have issued countless advisories and warnings of unlicensed moneylenders in Singapore taking advantage of foreign work pass holders.

These unlicensed moneylenders have not passed the test to be authorised moneylending business operators, nor have you registered their businesses to the Registry of Moneylenders. 

If the foreigner is found to have borrowed from these unlicensed moneylenders, the Ministry of Manpower will immediately inform their employers. As a result, you’ll eventually lose your work pass and be deported. 

Foreigners Loan Money in Singapore is Possible!

Singapore houses millions of Asian and non-Asian immigrants in the country. The Singaporean Parliament protects these individuals. Thus, it is natural that you should follow the country’s laws too. 

Foreigners who are legitimately working and living can loan money in Singapore. But you must listen, be cautious, and be conscious of whom you have a loan transaction. 

Because the whole situation does not simply involve the money you’d want to borrow, it also revolves around their reputation, integrity, and safety. 

The primary choices where foreigners can loan money in Singapore are banks, financial businesses, and licensed moneylenders. For further information regarding foreigners who’d wish to borrow money in the country, you can check the Ministry of Law’s website. 

If you’re a foreigner needing a loan, look no further. Click here now and apply for a personal loan today!

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