To take out a loan abroad: types of loans, pros and cons, laws, registration procedure?

Getting loans abroad today is especially popular among the population of Russia. This is justified by the fact that the interest rate abroad fluctuates in the range of 4-6%, which does not compare with Russian indicators. Experts in the field of finance argue that, in addition to the affordable interest rate, foreign loans are attracted by the simplicity of registration and the shortest possible term.

How to get a loan abroad: features, difficulties and legality

Applying for a loan from a foreign bank should be considered from all possible sides. This is justified by the fact that there is not a single foreign bank on the territory of the Russian Federation. In addition, opening branches is unfeasible, as it is prohibited by current legislation. As for subsidiaries, the terms of loans here practically do not differ from those of national financial companies.

To obtain a loan abroad, it is worth knowing in detail all the conditions for its registration. Initially, it is necessary to know what package of documents will be needed to obtain credit resources and what guarantees the creditor can request.

The difficulty of external borrowing lies mainly in the fact that many banks prefer to grant loans only to citizens of their country, bypassing foreigners (even those who have been living abroad for a long time). This position of foreign bankers is justified by the fact that there is a very high risk of default on loan obligations.

Pros and cons of foreign loans

Getting a loan in another country has pros and cons that you need to know before applying. Among the advantages are:

  • Fixed interest rates available.
  • Long deadlines for providing credit funds.
  • Conditions available.
  • A wide variety of loan programs.
  • Comfortable design and more automated system.
  • Foreign legislation is more humane than national legislation.
  • Complete exclusion of commissions and miscellaneous fees.
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  • The emergence of certain difficulties in the process of obtaining credit funds.
  • The need to provide an impressive package of documents.
  • Contracts and other related documentation are written in a foreign language, which can cause all sorts of confusion.
  • The need to study the legislation of the country where the loan is issued.
  • Commissions for international payments.
  • Personal presence of the borrower when receiving loan funds.

Can I get a loan abroad? – Of course you can, but you must prepare in advance for the fact that difficulties may arise on the way to achieving the goal.

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Loan abroad: types of loans from Europe

Obtaining a loan abroad provides for the issuance of money for the following purposes:

  • Housing purchase.
  • Buying a car.
  • Business development.
  • Consumer needs.
  • Cash loan and so on.

Loans abroad offer completely different loan programs, just like in our country.

Mortgage loans abroad – solving housing problems

Loans abroad for the purchase of housing in Russia, in most cases, are issued on fairly loyal terms. As practice shows, for non-residents the loan amount will be an order of magnitude lower than for persons with foreign citizenship, but the conditions in the first case will be more acceptable.

The difficulty of mortgage loans in foreign banks lies in the fact that the amount of the initial payment for Russians will be an order of magnitude higher. It is a kind of insurance for a foreign financial company.

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If you are thinking about how to get a mortgage loan abroad, you should first study all the conditions of foreign credit companies, as well as consult experts. This will help eliminate errors and possible loss of money.

The problem is that when the money is taken abroad and the purpose is to spend it in Russia, you must first transfer it to the country.

The tax authorities will certainly be interested in knowing where you got a large amount of money from (read – you need to pay tax on profits from activities abroad), and you will also have to pay for an international transfer, because you will not be able to bring money in a suitcase.

As a result, there are so many additional payments that, in some cases, the best solution would be to borrow money from a regular bank in the country.

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Processing consumer loans abroad

To apply for a consumer loan abroad, you must follow the following steps, taking into account the characteristics of each financial institution:

  • It pays to establish trust initially. To do this, you need to collect the necessary package of documents to assure the representatives of the financial company of its reliability and solvency.
  • During the week, the bank will verify the data provided. In case the borrower's monthly income is less than 1.5% of the regular loan installment amount, there is practically no chance of getting the loan.
  • If a positive decision is made on the loan, the foreign financial company will send the Agreement, which must be registered with the Russian state financial institution.

Considering all the options for how to obtain consumer credit abroad, it is worth exploring the offers of various banks. This is necessary to get a loan on the most favorable terms.

get a loan from a bank abroad

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What do you need to know about business loans abroad?

Considering the question of how to get a loan abroad for legal entities, in most cases, the lender provides the borrower with a one-time payment under the terms of a standard loan agreement. As for the other options, the bank may offer a line of credit, which is more preferable if the business involves seasonal sales.

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To apply for a business loan, you must provide the following data:

  • Registration address and actual place of residence of the borrower.
  • Data on education and work experience. It is important to emphasize here that it will be an advantage for the client if their training corresponds to the type of business they develop.
  • Company address, business area and customer contact details.

How to get a loan abroad: what do you need and where to apply?

Per, to borrow money from a foreign bank, you need to send a request letter by email to a finance company.

As for the preparatory steps, they are:

  • Choosing the type of loan. It is important to take into account that consumer loans are issued an order of magnitude more difficult than mortgage loans.
  • Study the terms of the loan agreement.
  • Obtaining a visa for the country where the loan will be made.
  • If the customer does not speak a foreign language, it is worth contacting intermediaries or using the online credit service.

A loan abroad can be obtained online while in Russiaif the bank allows.

If you have a deposit in a foreign bank, you can count on the fidelity of the finance company in the loan application process.… But for that, you will need to prove that the deposit funds were obtained legally.

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After the bank has considered all the documents provided, a decision will be made on issuing the credit funds. In case of refusal, the credit company reserves the right not to disclose the reasons. But, if approved, the customer can receive the requested amount as soon as possible.

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