Walk by anywhere in Singapore, or the typical lucky plaza over a weekend and you’ll realise that foreign domestic helpers have become an increasingly common sight.
Singapore attracts a huge number of foreign domestic helpers each year. These workers come in from countries like Indonesia, Philippines and Myanmar to try and earn a better living for themselves and their families back home. That said, it is unsurprising that Singapore is known to be amongst the most expensive cities in the world. In view of this, most domestic helpers might turn to additional sources of funding as they continue to earn an income from doing domestic work in Singapore. As a foreigner, the chances of applying for a normal bank loan and having it approved is not easy.
Therefore, an alternative source of funds that is available to these domestic helpers in Singapore is the domestic helper loan.
How Can A Domestic Helper Loan Come In Handy?
As a foreign domestic helper, it might be difficult for one to get emergency help when it’s needed. You may not have relatives or friends in Singapore. This means that there are very few other alternatives that you can pursue to get some emergency cash. This is where a domestic helper loan can come in handy. With a domestic helper loan as a timely and reliable source of financial help, you’ll be able to take care of the emergency situation that has occurred, whether it is in Singapore or back home. Most foreign domestic helpers who come to look for work in Singapore are usually the breadwinners of their families. Therefore it follows that any emergencies that may arise at home will most probably need to be taken care of by the helper in Singapore who supports the family. This type of loan can be used especially for emergency medical needs that may arise.
2. High Cost Of Living
It is a known fact that the cost of living in Singapore is very high. Some foreign domestic helpers might find that their income is insufficient to cater for all their daily needs in Singapore as well as support their families. The domestic helper loan will make it possible for the worker to handle all their obligations. The key is for him or her to have proper discipline to service the loan as it falls due. The foreign worker is able to live a fairly normal life in Singapore once they are able to meet their financial obligations.
3. Short Term Cash Boost To Payday
There are situations where you may end up using up all your income before payday. This could be due to several reasons; one could be simply lack of proper planning and another could be an unexpected expense that may have been incurred in that particular month. As a foreigner, it will be a challenge to try and borrow this cash from an acquaintance or even your own employer. In view of this, you might wish to apply for a domestic helper loan. You’ll thus be able to use this loan as a cushion to tide you through the next payday. It will enable you to avoid a scenario during the month where there is total financial paralysis. Do note that once you get paid, it’s best to repay the loan as soon as possible.
4. No Collateral Needed
The loan providers who offer the domestic helper loan in Singapore do not usually need any form of collateral. This is one reason why such a loan is very attractive. The truth of the matter is that most domestic helpers have little or no collateral at all to provide to the bank. Other types of bank loans will need a form of collateral, especially if it is a foreigner who has applied. However, this type of loan is a relief to all who are eligible for it. Foreign workers can apply for this domestic helper loan confidently because the terms and conditions are less stringent.
5. No Need For Credit Score Analysis
When one applies for regular types of loans, banks are keen to investigate the credit score of the applicant. However, with a domestic helper loan, the applicant mainly needs to have a valid foreign domestic helper work permit and proof that one is receiving the stated amount of income. Most foreigners do not even have a credit history that can be used and hence they would never be able to get to a point where they are eligible for a loan. However, the domestic helper loan is a solution to these challenges. You’ll be able to access the amount you need without taking the issue of credit score into consideration.
6. Quick Access To Funds
The beauty of applying for a domestic helper loan is that it boasts a very short processing time. If one were to apply for another type of loan through the bank, it would take a minimum of a week for the approval process to be complete and the money to be received by the applicant. This can be a major inconvenience, especially if the cash is needed for an emergency. Foreign domestic workers apply for the domestic helper loan because the process time is significantly shorter. You might be able to get your loan approved within a few hours or a few days. You’ll thus be able to receive the cash immediately and sort out the pending issues. This is yet another reason for foreigners to choose the option of the domestic helper loan.
7. Tailor Made Solutions
Loan providers who offer domestic helper loans usually provide them with a flexible and personalised package which suits their income and gives good terms of repayment. Traditional banks do not offer this. For these banks, the policy on lending is strict and there is not much room for flexibility. Domestic helpers will definitely be drawn to apply for the domestic helper loan. This flexibility reduces the possibility of the domestic helper defaulting on the loan because the terms and conditions have been made with the participation of applicant.
8. Freedom From Exploitation
Foreign domestic helpers can be left at the mercy of individuals who are willing to help them financially. This is because their family and friends are far away and when financial problems arise, they could be forced to look for help from an individual. However, this may result in the foreign worker being abused by this individual simply because of the financial assistance given. Getting a domestic helper loan gives the applicant freedom and keeps them safe from the exploitation of individual lenders.
9. Low Interest Rates
Domestic helper loans tend to have much lower interest rates than credit cards or other regular bank loans. This works to the direct advantage of foreign domestic helpers because they rarely have large amounts of cash to repay their loans. Therefore, the low interest rates help to motivate the foreign workers to apply for this type of loan. The possibility of the foreign worker repaying the loan in full is high because of the friendly rates of interest.
Ultimately, it is of utmost importance that foreign domestic helpers need to be disciplined and well organised when applying for a domestic helper loan. If utilised properly, a domestic helper loan can serve as a form of timely financial help for emergency situations. It can also be used to elevate their economic status to new levels of development even as they continue to live outside their home country. Apply for your domestic helper loan or speak to us today to find out more about how our domestic helper loans can be a timely solution to your financial woes.