What is a Foreigner Loan?
A foreigner loan is a loan which can be accessed by someone who is not a citizen in the country he/she is in at the moment, which can be work permit holders or expat. For example, you may be looking for a job here in Singapore and you when you find yourself running low on cash. There are certain institutions that are specialized in giving such financial help. You can apply for foreigner loans from these institutions to help you meet your needs. There are some requirements that you have to meet so as to get your money.
If you want a foreigner loan, you should talk to a money lending institution and ask if you qualify. In order to have your loan request processed, you will need to have the required documents on hand. These include work permits, identification card, or even your pay check. These requirements vary widely depending on the lender. So be sure to enquire about all the requirements needed before making the applications to help your loan application get processed faster and easy.
Foreigner loans can attract an interest rate higher than the standard loans in a number of cases. This is because mostly the foreigner does not have any collateral to put up. This means it is considered a high risk loan and therefore, the loan interest rates are a little higher. However, when you are shopping for foreigner loans, you should compare different lending institutions so that you can choose one with a low interest rate.
The repayment period for a foreigner loan is normally shorter than that of a standard loan. This is especially so for foreigners who are in the country for a short time. For this reason, if you are taking such a loan, you need to ensure you are ready to pay back within a short time.
A good way to estimate your repaying capacity is by taking a look at your income. So you can take a foreigner loan that is in the amount of a fraction of your income. This means once you get your next pay check, you can easily repay and clear the loan. This will also ensure that you do not suffer any penalty charges for delaying on the payments.