What is a domestic helper loan?

You may have heard of employers being harassed by loan sharks because their domestic helpers use a residential address to get a loan and they are unable to repay the loan. There are firms Good at Domestic helper loan Singapore, find them.

Loan companies generally make it very easy for domestic workers to get a loan – which of course makes it even more attractive when money is desperately needed.  Usually, the required documents are a copy of their employment agreement, a copy of their visa, and a copy of their passport.  They are usually asked for references and a list of guarantors (usually other domestic helpers).  If the borrower cannot settle the monthly payment, the loan agencies will call and follow up with references and guarantors.  Guarantors can terminate the payment of the due because the original borrower has failed to fulfill his obligation – often signing as a guarantor without understanding the meaning.

Returned home for emergency

Domestic helpers usually send money back home each month to support their families.  Unfortunately, there can be health issues and your domestic worker’s family may suddenly need money because a relative’s condition is critical.  In that case, your domestic worker will have no choice but to send home a large sum of money to pay the medical charges.

Because of the expensive lifestyle

When it comes to shopping temptations are everywhere in Hong Kong, be it food, clothing or a new mobile phone, it can be difficult for domestic helpers to manage their budgets and save money.  Spending more than they can afford will force some domestic workers to borrow money.

If you want to prevent your helper from borrowing, what should you do?

Use the Ethical Employment Agency.

When hiring a new home helper, you should find out from the helper how much he or she has been asked to pay for the placement fee.  Don’t use an employment agency that collects illegal hiring fees from assistants.

Let your assistant know the risks of getting a loan.

Let her know about the risks she may take, for example, talk to her about online scams, encourage her to do research before doing anything, and let her know that you should always identify the company. 

How to talk to your domestic helper about debt and financial management?

To resolve the issue, being able to discuss potential financial issues is a win-win situation for both you and your family. If a problem ever arises, you will be able to help him and avoid further problems for your family if he is responsible for the unpaid debt.


Your domestic help may also have agreed to be a guarantor for a friend.  If his friend runs away, he will have to take responsibility and return the money.