How to Choose the Right Foreigner Loan in Singapore
Shopping for the right foreigner loan in Singapore can be daunting. It’s harder for local applicants to get a loan, let alone a foreigner, and it’s often because of the risks that the financial institutions have to take. As a foreigner who’s applying for a loan in Singapore, maybe to help clear off your credit balances or a set of bills, you are researching everywhere trying to find the best service provider to work with. There are a number of institutions that provide foreigner loan to help non-citizens get money without lots of stress. However, some businesses are out to take advantage of you and try to squeeze you dry. This article will help you settle for the right lender in Singapore. Registration and Certification A reliable provider of foreigner loan in Singapore has certification and licenses. A registered business is one that complies with the authority, and it’s a clear sign that it can be trusted. Accreditation means that the company can legally offer money to both the locals and foreigners. It also means that you’re getting a deal that’s scam free, and wouldn’t affect your stay in Singapore. All certified money lenders in Singapore are compliant with the Moneylenders Rules and Acts. Loan limit Before settling for a provider, make sure you’re aware of their loan limits. Lenders often have a standard range that ensures they don’t go into bad debts. How much you’re given will depend on your credit history as well as your payment ability. Take time to discuss all these with your potential loan provider to prevent financial pitfalls later on. Variable or fixed rates Most vendors offer variable rates, which means that your total repayment cost can fluctuate according to the financial market influence. You want to know about this up front to avoid any last minute surprises. If you think a variable rate could be problematic when it comes to you repaying the loan, then you can opt for the fixed price which isn’t influenced by the market. Also, bear in mind that foreigners are likely to be charged higher interest rates than the locals. But this doesn’t mean you don’t need clarification of their rates upfront. Knowing what you’ll pay upfront will cover you from amassing massive debts that you never even thought of in the first place. Lastly, keep in mind that loan providers can include service fees, especially when you fail to honour the initial contract. For instance, you’ll incur additional costs for premature termination of agreement, late payment and even for sending a bouncing cheque. Type of loans A right lender will offer you with different loan options so that you’re able to settle for one that suits your needs. You can check whether the provider of foreigner loan in Singapore offers secures or unsecured loans or both options. If they only offer secure loans, it might be a challenge because you’re a foreigner. If you’re applying business or personal loans, find out if you are eligible. Lastly, you can check how flexible the firm is regarding your payment duration. Some providers only offer short term loans.