Living in a first class country like Singapore is expensive with the cost of living on the rise. It is understandable that foreigners will find it difficult to sustain their earnings and send some savings back home to their families.
The good news is that they are able to obtain a foreigner loan in Singapore (think: personal loan in Singapore for foreigners) if they run into any unexpected financial hardship and are able to meet all the stipulated requirements set out by banks and other lenders.
Can a foreigner apply for a personal loan in Singapore?
Most people have the perception that personal loans in Singapore for foreigners are not readily accessible to them. However, that is a thing of the past.
The banking industry has evolved over the years to provide foreigner loans in Singapore. However, it can be fairly challenging to obtain a personal loan for foreigners from local banks and financial institutions as they have stringent guidelines and requirements.
Is it easy for foreigners to apply for foreigner loans in Singapore?
Frankly, it can be quite stressful for foreigners to obtain personal loans in Singapore — this is especially true for those who hold lower-paying, blue-collar jobs. This is despite the fact that more and more banks and financial institutions have personal loans for foreigners.
Compared to Singaporeans or Permanent Residents, foreigners residing in Singapore need to meet a higher minimum income requirement.
Additionally, banks and financial institutions tend to be more wary of extending loans to foreigners since the majority of them do not have any prior credit history in Singapore.
That’s not all. All loan applicants must also furnish a variety of documents —such as income, residency, employment pass documents— required by the bank.
What’s the eligibility criteria for foreigners to get a personal loan in Singapore?
In order to qualify for a foreigner loan in Singapore, foreigners must be above 21 years old, hold a valid Singapore employment pass and earn an annual salary of at least $40,000 to $45,000.
Listed below are the requirements when applying for a foreigner loan in Singapore:
- Passport
- Residential tenancy agreement or any bill that proves your residential address
- Bank statements
- Latest 3 months payslips
- Latest income tax assessment
- Employment letter from your employer (to prove your presence in Singapore throughout your loan tenure period)
- A guarantor (in the absence of credit history)
How much can foreigners borrow on a personal loan from the bank?
As a foreigner, what’s the maximum loan you can get for your salary? This greatly depends on your income. Below, we have compiled a list of banks in Singapore that offer personal loans in Singapore for foreigners:
| Bank | Processing fees | Loan Amount | Annual Interest rate | Effective Interest rate | Minimum Annual Income |
| Citibank | $0 | Up to 4 times your monthly salary | From 3.45% | From 6.50% | $42,000 |
| HSBC | $0 | 90% of approved credit limit at time of application | From 4.00% | From 7.50% | $40,000 |
| Standard Chartered Bank | $199 | Up to 4 times your monthly salary | From 3.48% | From 6.95% | $60,000 |
| OCBC | $100 if your income is $20,000 to $29,999
$200 or 2% of the approved loan amount, whichever is higher, if your income is $30,000 and above |
Up to 6 times your monthly salary | From 5.42% | From 10.96% | $45,000 |
Although these banks don’t openly advertise their credit checking process, it seems that the emphasis is on foreigners declaring higher salaries in order to avoid credit history checks.
Foreigners who have no local credit history are encouraged to apply for the foreigner loans they need if they meet all other requirements.
Do private licensed money lenders offer foreigner loans in Singapore?
Yes, private licensed money lenders offer foreigner loans in Singapore. In fact, it is easier for foreigners to obtain a personal loan in Singapore from private licensed money lenders as compared to banks and financial institutions.
Banks have red tape, much higher income requirements and stringent credit assessments. Private licensed money lenders offer a quick and easy application process, swift approvals, simple loan requirements, and little to no credit checks — this means you can even get a loan with bad credit.
That being said, you’ll find private licensed money lenders charge higher interest rates and processing fees than banks and financial institutions when comparing money lenders and banks.
Are there personal loans for foreigners with low income in Singapore?
Yes, there are personal loans for foreigners with low income in Singapore; foreigners who earn less than $10,000 a year can also apply for a foreigner loan from licensed money lenders provided they are gainfully employed and able to furnish all the necessary documents below:
- Employment letter, employment contract or letter of offer from employer (Proof of employment)
- FIN card or passport ( Proof of identity)
- Tenancy agreement or utility bills (Proof of residency)
- Latest 3 months payslips, income tax assessments or bank statements (Proof of income)
Note: Foreigners are capable of borrowing up to 6 times their monthly income as listed below.
| Borrower’s Annual Salary | Singaporean Citizens and Permanent Residents | Foreigners residing in Singapore |
| Less than $10,000 | $3,000 | $500 |
| At least $10,000 and less than $20,000 | $3,000 | |
| At least $20,000 | 6 times monthly income | |
Conclusion
It is possible to obtain a personal loan in Singapore for foreigners but clearly their requirements are more stringent. Use Personal Loan Finder to shop around for the best personal loan for foreigners by comparing different loan products from banks and licensed money lenders.
