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.