If you are a foreign resident in the country and need funds for your projects, you should consider applying for a foreigner loan (Singapore). As implied, this category of funding options is designed to help non-citizens acquire money without extensive stress. Unfortunately, there are some unscrupulous business people who seek to take unfair advantage over foreigners. Therefore, consider these simple aspects before choosing a lender for your loan.
License and Registration
When looking for a reliable money lender in Singapore, you should ensure that the business is registered and licensed. This is a critical indicator that the business is reputable and dependable. Basically, the company can legally provide funds to permanent residents and foreigners. This means that you will be protected from illicit deals which could affect your life in the country. Moreover, licensed moneylenders are required to conform to the standards set in the Moneylenders Act and Rules.
You should ensure that there are different options provided by the foreigner loan Singapore moneylender. Multiple choices mean that you are likely to find a loan scheme that best fits your specific situation. First, whether they provide both secured and unsecured loans. You might not be able to provide security as a foreigner and this will be a big limitation. Second, you should know if you will be able to acquire personal and business loans, depending on your needs. Third, consider the possibility of getting both short-term and long-term loans.
Interest Rates and Fees
The interest rates charged for foreigner loans are likely to be higher in comparison to citizen alternatives. However, you should still clarify the rate offered by your lender and ensure that it is competitive for the market. This will protect you from accumulating large debts that you had not considered before application. You should also be aware that moneylenders are entitled to some service charges, particularly when the initial contract is not honoured. For example, there are extra charges for late payment, premature termination of the contract and even for sending an invalid cheque.
Maximum Loan Amount
Before applying for a personal loan, you should know the maximum amount that you can acquire from a lender. There are standard ranges which are in place to protect the business from bad debts. The limit imposed on you will depend on your payment capability. Still, there are other conditions that are evaluated, so you can compare your options.
If you have any concerns about your potential foreigner loan (Singapore), you should discuss the issues with the lender to avoid unexpected financial pitfalls.