What Is Foreigner Loan in Singapore?
Living as a foreigner in Singapore is advantageous when you would wish to apply for a loan. A foreigner loan in Singapore is simply a loan given to a foreigner by a country. Many licensed money lenders Singapore give such loans to foreigners. This lending institution mostly have a specific procedure and stringent requirements for this type of loan. Your credit history is extremely important when it comes to making a Singapore foreigner loan application.
Credit rating is when the lender estimates if the borrower will be able to fulfill his financial obligation and return the loan. It evaluates that whether the person is creditworthy to be given a loan. Thus the credit score or the credit rating of an individual applying for loan is extremely important.
The reasons for getting foreigner loan from money lenders Singapore are as follows:
Removes human prejudice
Since the process of credit rating is systematic and based on your credit history, the personal reasons of the lender do not play any role. If a person comes with verified and trusted credit history which is his credit score is reasonably high, the lender cannot refuse a loan.
Increases the chances of loan approval
If you come with a high credit score, the lenders or the banks are reassured that they are not entering into bad debt and that their loan will be repaid. Moreover, one cannot tamper with one’s credit history, so banks consider it a reliable source of documentation and reference while considering a loan.
Accurate risk assumption
The number of credit cards under your name, your credit card usage, prior or current EMIs and the number of accounts you hold all affect your credit rating. The lender or the banks want to minimize their losses and cut down on the risk while giving you a loan. Thus, your credit history is an accurate reflection of your financial behavior. It shows whether you are a careful planner or a spendthrift.
Lastly, if you qualify for foreigner loan in Singapore, maintain financial discipline and make sure that repayments fro the loan are paid in time to avoid blacklisting as foreigner meaning you’ll never acquire such beneficial services in Singapore again.