Getting your finances sorted and managing personal loans can be tricky for anyone, but it can be particularly challenging for a foreigner. Luckily in Singapore, foreigners are offered a range of personal loan options by banks and licensed financial institutions. To better understand what you are getting into, there are a few things that you should know and be aware of before applying. Read on to find out more about personal loans for foreigners in Singapore and how you can find the best personal loan with Lendela.

What is a personal loan?

A personal loan is a type of unsecured loan which provides borrowers with cash to cover expenses without requiring collateral to secure the financing and take on the debt. A personal loan can be used for a variety of purposes, including home renovations, debt consolidation, major purchases or expenditures, and more. These loans are generally repaid in fixed monthly instalments over a predetermined period, typically ranging from one to seven years. Personal loans may offer flexible terms and features that enable repayment over shorter or longer periods of time. Interest rates on personal loans vary depending upon specific circumstances such as credit history and repayment ability; and may be provided by banks, online lending platforms, and other financial institutions.

Whether you are looking to finance a home renovation or cover a large, unexpected expense, personal loans can come in handy for foreigners in Singapore who are struggling with short-term financial difficulties. However, foreigners may find it more difficult to apply for personal loans due to the difference in eligibility criteria to apply for personal loans when compared to citizens.

The difference between personal loans for citizens and foreigners in Singapore

Foreigners and citizens of Singapore have different eligibility requirements when applying for personal loans. Typically, foreigners have to provide proof of a valid working permit of at least one-year validity and meet the income requirement in order to be eligible to apply for a personal loan. The minimum annual income requirement varies with different personal loan providers, but it is typically higher for foreigners than Singapore citizens, ranging from around $40,000 to $60,000. It may also be more difficult for foreigners to have a personal loan approved if they do not intend to remain in Singapore for a long time.

Moreover, a big difference between personal loan options for citizens and those for foreigners lies in the amount of risk involved. Citizens have access to lower interest rates than foreigners because they have established credit histories in Singapore that allow banks and lenders to assess their ability and willingness to pay back the loan on time. Because foreigners do not have an established credit history, lenders view them as higher-risk borrowers with a bigger chance of defaulting on loan payments and may charge higher interest rates accordingly. See the table for a summary of the main differences between taking out a personal loan as a foreigner and a citizen of Singapore.

Personal Loan Application in Singapore




Eligibility Requirements

  • Minimum annual income requirement of around $40,000 to $60,000

  • May have restrictions based on length of stay in Singapore.

  • Minimum annual income of around $20,000 to $30,000

Interest Rate

  • Usually higher due to higher risk of defaulting

  • May have access to lower interest rates

Personal Loan Options

  • Limited number of banks that provide loans for foreigners

  • More banks to provide loan options

How to find the best personal loan for foreigners in Singapore

Given the higher interest rate and stricter eligibility requirements for foreigners applying for personal loans in Singapore, it is all the more important to make sure that you find a personal loan with a relatively low interest rate and suits your needs. Fortunately, Lendela is here to help you find the best personal loan for your needs.

Apply for a personal loan with Lendela

Lendela is a reliable platform that provides personalised and pre-approved offers on personal loans exclusively from trusted banks and financial institutions in Singapore. With Lendela's convenient and easy online application process, foreigners in Singapore can quickly receive and compare loan offers from multiple banks and lenders.

Rather than having to check your eligibility each individual lender and make numerous different applications, with Lendela, you only have to apply once to get multiple personalised offers. You can then compare rates and loan terms between pre-approved offers and choose the one that best suits your finances and lifestyle.

Key Takeaways

  • Getting a personal loan can help foreigners in Singapore ride out short-term financial emergencies or finance big purchases.
  • Foreigners in Singapore typically have to meet a more stringent set of eligibility criteria, including a higher minimum annual income requirement, and it may be more difficult to get a personal loan approved if the intended length of stay in Singapore is short.
  • Due to a higher risk, foreigners are often charged higher interest rates compared to Singapore citizens.
  • Lendela can help foreigners easily find the best personal loan in Singapore with the lowest interest rates. Apply for a personal loan and start comparing offers with Lendela today.