Singapore is one of the most beautiful places on this planet, and that’s why more and more people are thinking about moving here, as there are numerous business and personal opportunities to explore.
There’s no wonder that more than 30% of the foreigners that come to this country are deciding to opt for a permanent residence.
But one has to wonder, is it a good idea to take a foreigner loan in Singapore and purchase a home there?
A foreigner can access a loan at around 80% of the entire financial institutions in Singapore, which means that there’s a large chance to actually get one approved. You do need to talk with a financial consultant beforehand in order to be certain that you will receive your loan as fast as possible. However, even in this situation there are still a few restrictions that prevent a person from purchasing a property in Singapore.
The foreigner will have to go to the lending institutions and find out if he qualifies.
Requirements usually depend on the lender, but they are usually focused on things like having an identification card, work permits, something that proves you are living in Singapore and even a copy of your latest paycheck in some situations. This is why it’s a very good idea to talk with the legal money lender in Singapore before moving forward with the application as you will be fully informed and thus the entire process will move onward a lot faster.
However, it’s important to note that a foreigner loan will come with a larger interest rate when compared to the one that Singapore residents pay. This is to be expected considering the fact that most of the time foreigners don’t have any collateral to put up against the loan. This makes them a risk for any financial institutions and only a few will actually move onward with the process after a foreigner applies.
Related Read: Foreigner Loan In Singapore Explained
In most situations, the foreigner loans in Singapore will have a shorter repayment period than normal loans, mostly because of the lack of collateral as well. Of course, if you loan more money, the repayment time will be a little longer.
One has to wonder though, after seeing all these requirements, is it a good idea to take a loan in Singapore? Yes, this is actually a sound idea because even as a foreigner, you might end up without that much money in your pockets, so a loan might help you a lot. At the same time, if you want to purchase a home in Singapore, then getting such a loan is the only way to get across.
In conclusion, any foreigner should not be afraid to get a loan in Singapore whether it is low interest personal loan or a short term payday loan . Sure, the requirements might seem a little restrictive at first, but they are ok for most situations, not to mention that you will be able to fulfill your dream with the money you earn. So, if you need money for your projects, don’t hesitate and take a loan in Singapore, because even as a foreigner you are entitled to get one!