Personal loans for foreigners

Yes. Because it is more difficult to be approved for a personal loan as a foreigner, you may be exposed to loan offers from unlicensed and illegal moneylenders. Avoid these at all costs, because the interest rates will be much higher, and you could be subjected to harassment and other risks. All lenders listed by Finty are registered with the Monetary Authority of Singapore (MAS).

Yes. The following types of personal loan are available to foreigners:

• Personal instalment
• Credit line
• Balance transfer
• Debt consolidation
• New car
• Used car
• Renovation
• Education

Yes, but you will probably be limited to taking out an education personal loan to cover your course fees only. You may also need a loan guarantor who is a Singaporean with a good credit history.

There is no difference in the fees charged (e.g. application fee, late payment fee, restructuring fee, early exit fee) but there may be a difference in the interest rates offered.

Loan terms are usually between one and five years, but the lender will need to be confident that you will remain in Singapore long enough to pay off your loan. So they will look at the length of time remaining on your Employment Pass or Student Pass.

Singaporeans with a good credit history can normally borrow up to seven times their monthly income, sometimes more, but foreigners may be restricted to a lower multiple of their salary.

Yes, but you may find that the amount you can borrow is limited to twice your monthly salary. If you need a larger amount, you will have to wait and build up your credit score by meeting all your financial obligations on time. Try applying for a credit card first to establish a good repayment history.

A second plan of attack is to ask the lender if they will accept non-traditional credit references, such as your housing rental payment record, utility bill payment record or payment for insurance premiums not automatically deducted from your salary.

Alternatively, if you have a Singaporean friend or relative with a good credit history, they could cosign or guarantee your loan, but they need to be aware that they will be responsible for paying off the loan if you default.

All personal loan applicants need to prove their identity, their residential address and their income.

Foreigners can prove their identity with a copy of the personal details page of their passport, plus a copy of their Employment Pass (P1, P2 or Q1, with at least one year’s remaining validity), Personalised Employment Pass, EntrePass or Student Pass.

Foreigners can prove their residential address with a copy of a utility bill showing their name and address, or any other official document showing their name and address (e.g. bank credit card statement, rental agreement, government document such as from IRAS, CPF, ICA).

Foreigners can prove their income with up to three of their latest electronic payslips, or most recent Income Tax Notice of Assessment, or their Central Provident Fund (CPF) contribution history statement for the last 6-12 months if they are permanent residents. Income requirements for loan applicants tend to be higher for foreigners ($40,000-$60,000) than for Singaporeans ($20,000-$30,000).