What is a foreigner loan?
A foreigner loan is a special type of loan exclusively offered to foreigners and expatriates in a certain country. It is available to expatriates and foreigners visiting, working, studying, or currently residing in the country. Foreigners are not usually able to apply for personal loans with a foreigner status because lending money to people who are currently not residing citizens of a nation state usually entails more risks than usual.
What are these risks exactly?
For one, many credit companies bank on the assumption that foreigners who run out of cash while residing in a country other than their own will more or less have a difficult time paying off the loan. This could lead to even bigger complications in the future, which is why many banks, loan companies, and other financing institutions in the past have opted not to offer personal loan services to foreigners.
However, no one can deny the fact that everybody will need a little bit of help along the way, which is why a special kind of loan with different terms and conditions was developed – foreigner loans.
How are foreigner loans different from personal loans?
Again, foreigner loans are offered exclusively to foreigners and expatriates while personal loans are available to residing citizens of the country. Moreover, foreigner loans usually have higher interest rates in comparison to the standard interest rates applicable to personal loans. This is to create more binding between the applicant and the credit company since foreigners do not usually have private property to give as collateral to the loan company.
In addition to that, payment terms for foreigner loans are usually shorter than the standard payment terms for personal loans. Again, this is so that the credit company can be ensured a little bit more security in the transaction.
If you are interested in applying for a foreigner loan, we here SU Credit Pte Ltd would be more than happy to help you out. We offer foreigner loans tailored with payment terms you would be most comfortable with. Contact us for any questions you might have, our adept and accommodating credit consultants would gladly clarify anything for you. Get in touch with us today!