Even though the distinction between the nationalities of customers is widely perceived as discrimination and therefore mostly taboo, banks differentiate between Singapore and foreign applicants in their lending. However, at least Singaporean financial institutions are clearly limited by Singaporean law.
The fundamental rejection of any lending to a foreigner is in no case allowed. Violations of the principle of equal treatment do not take place in practice. Possible refusals of lending to a foreign loan seeker are usually based on objectively justified reasons such as an unclear or temporary residence status.
Lending to foreigners from other countries
Citizens from all other states of the Community and the member states of the country are subject to an absolute prohibition of discrimination. This means that no bank is allowed to deny credit to an applicant who is a national of acountry or a country because he is a foreigner. True opportunities for the foreigner loan Singapore are there now.
Since not all states enter the respective registration address in the identity papers or citizens living abroad often only have a passport without address information, a current registration certificate may be required for the loan application.
Not only foreigners are affected by this special rule, but also citizens who can only produce a passport and no federal identity card. It does not discriminate, but is indispensable for a complete proof of identity.
Credit for foreigners
When applying for non-scholarly loans, foreigners are in fact disadvantaged by the nationality of another country. As most of these loans come from foreign countries, the refusal is due to a foreign nationality.
For the purpose of granting bank loans, the majority of Swiss banks require the applicant to live in the country of which he is a national. As it is a member of the country, unlike Switzerland, the banks there are obliged to treat all citizens equally.
However, experience has shown that they reject most of the loans requested by foreign nationals resident in Singapore, each stating a reason other than foreign nationality. A foreigner relying on a free loan is best advised to seek a credit intermediary who can raise bank credit through financial institutions.
Credit for foreigners from non-Singaporean countries
It cannot be observed that banks based in Singapore are restricting lending to foreigners from non-Singaporean countries. Rather, most banks respect both home and foreign loan applicants equally that repayment of the loan is guaranteed.
This results in the lending to foreigners with a temporary residence permit, the additional requirement that the term of the loan agreement may not go beyond the current residence permit.