">
TechMoran
  • About Us
  • Deals
  • Jobs
  • Motoring
    • Money
  • Pitch Your Startup
  • Submit Your Post
  • Freelance Gigs
  • Travel
  • Men’s Corner
  • Dating
Friday, January 22, 2021
  • Startups
  • Reviews
  • Insider
    • Obituaries
  • Business
  • Women
  • Blockchain
  • Columnists
  • Hacks & Facts
    • How To
  • Editions
    • US Edition
    • India Edition
    • MENA Edition
    • Asia Edition
    • Europe Edition
    • International Edition
No Result
View All Result
TechMoran
">
Home Columnists

What Are the Interest Rates for Foreigner Loan in Singapore

Fredrick Gitaka by Fredrick Gitaka
8 months ago
in Columnists, Money
14 min read
0

Foreigners usually face a high-interest rate when they want to borrow money from the banks. Even if they have a valid bank account, the rate of interest is so high that it may look impossible for them to meet the repayment amount. But there are ways to get an affordable rate of interest that will suit your requirements.

Foreigner loans in Singapore are provided to individuals coming from different countries to settle in Singapore. There can be many instances where foreigners would require money for any kind of personal usage or for housing, medicine, education, etc. There are many loan products catered to foreigners in Singapore. As a foreigner, you will not need to worry about getting into debt with the many loan options available.

Getting a loan as a foreigner in Singapore

Getting a loan as a foreigner might mean that you will have to satisfy higher eligibility for the loan as compared to a Singaporean. The bank might hesitate to give foreigners a loan because there is always a little chance of the foreigners leaving and going back to their country. In such cases, the bank will be the one in the loss. Also, in the case of foreigners, there is a greater risk of them losing their job and being unable to pay too. Foreigners also have a higher chance of being bankrupt, as they might not have much savings or properties. 

What interest can I expect on my foreigner loan in Singapore

As a foreigner, it is natural to expect that you will be provided a higher Interest rate as compared to Singaporean nationals. The Interest rate on your loan also depends on a lot more factors of the application. The Interest rate on your foreigner loan can range from 4% to 10% or more. We’ll see how different factors can impact the rate of interest applicable to your foreigner loan. 

READ  Radical Steps in Getting Invoice Paid On Time

Banks vs. Private lenders 

Foreigner loans are available with both banks and private based lenders. The eligibility criteria will differ greatly between banks and private lenders. Banks ask for a lot of documents and permits to approve your foreigner loan. While banks do offer higher security and provisions for the loan, they also have much higher levels of scrutiny. For this reason, the rate of interest offered by banks for foreigner loans is quite high and might start from 10.0%.

Private lenders such as https://www.gmcreditz.com.sg generally, ask for lesser documentation and requirements from the foreigner for approval of the loan. However, private lenders might also have other terms conditions attached to the loan that you will have research carefully before you submit your application. Private lenders also offer very low-Interest rates as compared to banks. Private lenders can offer foreigner loans for as little as 4%. 

Private lenders are generally preferred by foreigners who were unable to avail of the loan through banks. The lower rate of interest can provide further impetus. However, make sure that you stay away from unlicensed lenders as you might get caught in a scam.

Related posts

Avoid Biggest Mistakes Often Made By New Poker Players

January 18, 2021
0

Growing Kenyan entrepreneurship – the digital programmes and projects that are shaping the future

January 13, 2021
0
CRB

How To Apply For Your CRB Clearance Certificate Online

January 5, 2021
0

5 Ways to Make Your Office Space Appear More Professional

December 21, 2020
0

Effects of credit score on Interest rate

Your credit score is a big determining factor for your Interest rates. A credit score can determine your capability of paying off the loan. Naturally, a higher credit score will mean higher eligibility and a great chance of approval along with a lower Interest rate. The lower your credit score, the higher your rate of interest. Your credit and financial history are also checked while calculating your Interest rate. Any delayed payments will negatively impact your foreigner loan Interest rate. Delayed payments mean a higher Interest charged to your loan. 

READ  The Right Ways to Decrease Your Card Rate of Interest

Unsecured loans and Interest rate

Quite naturally, foreigners don’t have any assets or property in Singapore. Providing a foreigner loan with no mortgage or security can be a risk factor for banks. Hence, banks will charge a higher Interest rate if you’re applying for an Unsecured foreigner loan. Private lenders will also charge lower Interest rates only if you can provide some form of security for the loan. Unsecured loans will have a higher Interest rate as compared to secured loans. 

The high loan amount and Interest rate

A high loan amount can mean a higher risk factor. A high loan amount will ask for higher requirements and, often, a longer time of repayment. The longer you take to repay, the higher your Interest rate will be. A high loan amount, coupled with a long tenure, will have a very high-Interest rate applicable. Make sure that you only apply for the loan amount that you need and try to reduce the tenure as much as you can. 

Effect of employment history on Interest rate

The bank considers foreign loans high risk because of the chances of foreigners losing their job and going away to their homeland. Strong employment history can help provide the bank or lender with the reassurance that your job will be stable, and you will be able to pay off the longer loan term. Your employment type will also be considered while determining the Interest rate for your Personal loan. Strong and long employment history with a reputed company will prove beneficial for your Interest rate. 

Type of Loan and Interest rate

Different loan types can have different Interest rates. Personal loans can often have a higher rate of interest applicable as compared to housing or education loans. It is wise to do proper research and figure out if there are specialized loan products and packages with lower Interest rates that can satisfy your requirement. 

READ  Trending Business Ideas that will make you money in 2020

As you saw, there are many factors that will determine the Interest rate that will be applicable to your foreigner loan. That is why it is important to thoroughly research before you apply for one. Make sure that you consider all factors and calculate your credit score and credibility accurately to avail as low an Interest rate as possible.

The final deciding factor lies with the bank or the financial body, but you can still approach different vendors or banks to determine if you can get a lower Interest rate elsewhere. Try to determine if there are any incentives for the kind of foreigner loan that you wish to apply for. 

For getting a better rate of interest for foreigner loan in Singapore, you need to check the different types of loans available at different banks and money granting companies. You can always use the online application to get your loan application approved. While doing so, you need to make sure that you fill the right type of documents correctly. These days, there are many online financial lenders who can help you get the best rates for the foreign loan.

Readers 2,040

Share

  • Click to share on Telegram (Opens in new window)
  • More
  • Click to share on Tumblr (Opens in new window)
  • Click to print (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)

Like this:

Like Loading...

Related

Fredrick Gitaka

Fredrick Gitaka

Related Posts

Columnists

Avoid Biggest Mistakes Often Made By New Poker Players

January 18, 2021
0
Columnists

Growing Kenyan entrepreneurship – the digital programmes and projects that are shaping the future

January 13, 2021
0
CRB
Money

How To Apply For Your CRB Clearance Certificate Online

January 5, 2021
0
Columnists

5 Ways to Make Your Office Space Appear More Professional

December 21, 2020
0
Columnists

Common VPN myths debunked

December 18, 2020
0
Money

CBK Has Officially Suspended Free Mobile Transfers

December 17, 2020
0
nokia-image
Money

Nokia Corporation Facing Legal Scrutiny After Kenyan Company Was Allowed To Prosecute It’s Directors For Illegal Tax Records

December 15, 2020
0
Columnists

Best File Recovery Software for macOS Big Sur

December 14, 2020
0

https://bit.ly/2VOxuoBhttps://bit.ly/2VOxuoBhttps://bit.ly/2VOxuoB
ADVERTISEMENT

Join our Mailing List

Loading

Recent Posts

Aerobotics Raises $17 Million Led by Naspers To Scale AI for Agriculture Globally

January 21, 2021

Tanzanian money remittance startup NALA is launching in the UK

January 21, 2021

Startup Guide to release of Startup Guide Nairobi

January 21, 2021

Nokia C1 Plus now available in Kenya for Ksh 9,000

January 21, 2021
kplc

Kenya Power Rolls Out A Smart Metering Project Across The Country

January 21, 2021
">
">

Follow Us

">

There are many sites out there focused on blowing off some steam, from funny entertainment to thrilling experiences like playing online, in some cases online gaming could grant you the chance to win extra money. We came across rocketpot.io while browsing for a good btc casino online and it left us a very good impression with their wide variety of games and crypto offering.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy

© 2019 Moran Media Group - All rights reserved TechMoran.

No Result
View All Result
  • Startups
  • Reviews
  • Insider
    • Obituaries
  • Business
  • Women
  • Blockchain
  • Columnists
  • Hacks & Facts
    • How To
  • Editions
    • US Edition
    • India Edition
    • MENA Edition
    • Asia Edition
    • Europe Edition
    • International Edition

© 2019 Moran Media Group - All rights reserved TechMoran.

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
%d bloggers like this: