If you are travelling to another country, in the eyes of the state and law, you are a foreigner; an outsider to the country. Without citizenship and personal assets to call their own, they have no collateral to offer, nor is there a way for the lender to keep track of the borrower after lending them money. This bring many problems to the table in regards as to what to do when foreigners have a need for money.
There are lending institutions which provide the service of providing a foreigner loan. In order to start off the process, the person in question is required to have certain critical documents. These consist of passport or some form of identification, a work permit or the payslip you retain from work. The necessity of which documents are required vary from firm to firm, so make sure to confirm all requirements from whichever institution you choose. As the foreigner does not have anything to offer as collateral for back-up for the loan, the repayment period is very short and the interest rates on the loans themselves are high.
A legal money lender in Singapore is considered to be high risk and therefore, the interest rates on the loans are higher than that of normal loans. The period within which you have to pay back the loan correlates with how much money you borrow; the more the money, more the time you will have to pay back the loan.
There is also another option where you can take a citizen who is willing to co-sign a loan with you, to the lending institution. The native citizen’s assets will be assessed and as now you have put up some form of collateral, the firms will be much more willing to provide you with a loan. Then you must present all the essential documents such as identification, work permits and salary/pay slip from your workplace. Once these items are given to the lending institution, alongside your co-signer’s details, your loan will come through much faster.
Do not borrow more than you can pay off. Carefully choose the lending institution you wish to work with; compare interest rates between those firms. Remember that interest rates for foreign loans are high. Evaluate your ability to repay the loan by assessing your income and what you use it for. You cannot use an entire salary to pay off a loan so think about how much you can use on a loan repayment. Make sure you pay back the loan within the stipulated amount of time as delayed payments will result in additional charges.