What You Need to Know About Work Permit Loan in Singapore
For foreigners who are working in Singapore, they would need a lot of money to be able to live comfortably in the country until their next paycheck arrives. They would also need a lot of funds to ensure that they will be able to pay off their dues and other financial emergencies even if their salary day is far away.
If they couldn’t get the money to support their expenses and other financial needs, they may end up having to leave the country because they could not afford to stay for long. Some may even be stuck in the country because they couldn’t afford going back.
A big problem for foreigners is paying for their housing. They will need to pay an advance to ensure that they can move in the house they wish to stay in. They will also need to purchase a phone line so they can contact their loved ones but it can cost them a lot of money.
They could borrow money from their family and friends in the country or overseas. However, if their family and friends are overseas, transferring money can be quite complicated. Paying it back also poses a complication.
Fortunately, there are now personal loans available which could help them and they are in the form of foreigner loans or personal loans for SPASS or Work Permit holders.
Where to Get Foreigner Loans?
Previously, banks are the only source for loans in the country. If a person makes $30,000 or more every year, they will be able to get the visas and other essentials without a problem. For those with low salaries, they cannot go to credit reporting agencies and take out illegal loans to afford their stay in the country.
In order to reduce these people taking out illegal loans, the Monetary Authority of Singapore lowered the salary requirement for loans up to $20,000.
When the Moneylenders Act of 2008 was enforced, it is now easier to get personal loans for those with low-wages in the country. A majority of them do not have a large credit history and they are earning less than $30,000 per year. Moneylenders have grown in number to support this demand and they can process their applications in no time.
Sadly, personal loans do have limits. While they are offered in almost all lenders in the country, the amount you can borrow depends on your salary. If you are earning less than $20,000, you can only borrow up to $3,000. Others would only be able to borrow $1,000. The interest rates are also high and it could be around 18% per year.
For individuals with low income and bad credit history, the work permit loan is the personal loan they could get. The loan can be paid up to six months depending on your arrangement with the moneylender. If one earns more than $20,000, they should check other options because interest rates can be high.
How to Apply for Foreigner Loans in Singapore?
In order to begin applying for foreigner loans, you can begin by searching for your requirements online through Google. Check out everything there is to know about foreigner loans and find out if the moneylender you plan to talk to is legitimate. You can check their legitimacy by checking the website of Singapore’s Ministry of Law for the full list of licensed moneylenders in the country.
These moneylenders should also be able to assist throughout the process and once your application is accepted, you should be asked to go to their office to finalize the loan.
For applicants, they must be at least 21 years old and above and hold either an E-Pass or S-Pass. They must also present their three-month pay slip, their bank statement, employment letter, tenure agreement for their current residence, and their PUB or phone bill. All documents must be on hand before going to the moneylenders and nothing must be missing or else the applications will not push through.
Borrowers must also be aware that licensed moneylenders do not solicit their clients through phone, email and social media. Licensed moneylenders can only advertise through business or personal directories, their websites or through the surroundings of their physical office. If you receive one, immediately report them to the authorities since they are no doubt illegal moneylenders.
Ways to Determine Legitimate Moneylenders You Can Trust:
- Check the licenses of your moneylenders regularly through the website of the Ministry of Law since they regularly update their list. If the moneylender is not on the list, you should immediately report your status to relevant authorities.
- Always check your accreditations to see if they will not expire or anything throughout the loan process. Make it a point to regularly update your files with your moneylender whenever they call up for updates to assure your moneylender that you are committed to your loans.
- Make sure that the loans you are being offered are properly explained and not very difficult to understand. Illegal moneylenders tend to skip the explanations and just hand over the loan.
- The terms and conditions must be explained and reasonable. All the details must be written by a qualified lawyer and a contract must be provided.
- The moneylender should be open to flexible arrangements under reasonable terms, and they clearly stress the grounds for early payments or late repayments.
- Documents must be returned to the borrower after the moneylender reviews your document. If they do keep your personal documents, immediately report them to the authorities.
Staying in a foreign country to work requires a lot of money, especially if you are just going to start working for the company who hired you. Foreigner loans are a good way to fund your stay while you wait for your loans.
But remember, make sure to check everything before you sign up with a moneylender because you may end up signing with one that does not have your interests in mind. Be an informed borrower and check everything before committing to one loan.
We wish you luck!