What Are the Requirements for a Foreigner Loan Application

What are the requirements for a foreigner loan application? Several countries do not have a foreign citizen as the legal owners of its property. You can get a visa for a specific period, but you have to report to the government of the country that issued your visa, that is; Australia, the United Kingdom, Canada, Ireland, and New Zealand. These countries are usually the only places that can issue a non-immigrant visa. 

This is a different kind of application, as you are applying for a work visa. You will need to submit a certificate from your employer with proof of your employment. You should have an employment agreement with your employer, or if you are self-employed, the same applies. The requirements for a foreigner loan application are quite simple. You should have a job. The same goes for a student loan: You should have a job or a course to back up your claims for an academic loan. 

Foreigners can easily avail a loan in Singapore for any of their needs. The lending process is quite simplified and there are online applications nowadays, which make it easy for individuals to avail the loan.  

There are many banks and private-based lenders in Singapore that offer different loan products to foreigners. The eligibility/requirement can be different for different lenders. Banks generally have a stricter eligibility, but also offer better security and provisions for your loan. Private lenders, on the other hand, have a much simpler application and faster approval process. 

Below are some requirements that you will have to meet to apply for a foreigner loan in Singapore 

• Credit worthiness  

Your creditworthiness is the first and foremost aspect of your loan application. Banks have very strict criteria as regards to creditworthiness. Creditworthiness is your capacity to pay off the loan on time. Banks will thoroughly validate your credit history to verify whether you are capable of paying off the loan. Creditworthiness is also defined by your credit score. Banks have a limit for the credit score of the applicant to be eligible for a loan with the bank. Ensure that you have a proper valid credit score before you apply for the loan. 

Student loan applicants will have a sponsorer2 to support their application. The sponsor’s credit score and history will be taken into consideration while providing approval for the loan.  

Go to website like Raffles Credit they usually have a lower credit score limit ad creditworthiness. In case you don’t have a high enough score to pass the criteria of the bank, you should consider applying for the loan with a private lender. 

• Age  

The age criteria might differ slightly for different kinds of banks and lenders. However, commonly, Singaporean institutions only offer loans to foreigners between the age of 21 to 55. The age criteria are to ensure that the applicant is of healthy working age and will be able to work for a long time, enough to cover the tenure of the loan. In the case of student loans, they will need a sponsorer such as an immediate family member or relative, who will have to satisfy the age criteria of the lending body. 

• Income 

One of the most important requirements for applying for a loan as a foreign national is your income amount. Naturally, you have to earn enough so that you can pay off the loan EMI regularly. Singaporean banks usually have a set minimum income limit for foreign applicants applying for a loan. The minimum annual income of a foreign loan applicant must be $42,000 to apply for a loan with a Singaporean bank.  

Private lenders, do not have a fixed minimum income limit for foreign loan applicants. However, they do require that your income should be able to cover the cost of the monthly installments for the amount of loan you apply for.  

In the case of student lenders, the sponsored(family member or relative) will have to earn a sufficient stable income as per the requirement of the lender.  

As a proof of income, you will have to provide up to 3 months of salary slips. You will also need to submit your bank statement for the bank account where you receive your income. Up to 3 months of bank statement is required. 

Work Permit 

Foreign nationals will have to provide a valid work permit to get approval of the loan. Foreigners will need to provide their VISA proof and the type of work permit they have in Singapore. This requirement is essential and is applicable for both banks and private lenders. Make sure all your permits are verified and ready when you apply for the loan. 

In the case of students, the sponsor should be the one having a valid work permit for Singapore  

• Residency agreement  

You will need to provide proof of your current place of residence. You can provide the resident agreement that you might have signed when you took up residency. Along with that, you will have to provide a letter that you received at your current residence. Both Banks and private lenders have this essential requirement so they can verify your address in the country. 

In the case of student borrowers, naturally, the student and the sponsor should both have a valid residency agreement.  

• Proof of Employment 

Apart from your salary slips, you will also need to provide proof of your full-time employment in Singapore. Banks and private lenders do not accept any part-time working applicants. That’s why you will have to produce your employment letter to the lender so they verify your employment type.  

In the case of student applicants, the sponsored will have to provide the relevant employment proof.  

• Documents  

The banks of private lenders will not approve your loan without thoroughly verifying your documents. The list of documents required for the loan approval is usually located on the lender’s website. Make sure to go through it thoroughly before you apply for the loan.  

Some common documents required by banks for approval of foreigner loans are – Photocopy of passport (passport must not be expired), a copy of your employment pass(pass that allows you to work in Singapore), a computerised copy of your most recent payslip. The bank also required a copy of your Income Tax Assessment 

As you can see, the requirement for banks is stricter than private lending bodies. Banks also ask for heavier documentation and higher eligibility. Private lenders generally offer less documentation hassles. Private lenders also offer quick approval water for foreigner loans.  

The requirements can also depend on the type of loan that you wish to apply for. Logically, a high amount of loan will have a higher requirement as compared to lower amount of loans. For this reason, it is important to do proper research before you start applying for a foreigner loan in Singapore.