OVERSEAS BANK LOAN FOREIGN BANK LOAN FINANCING FROM ONLINE BANK ABROAD FOR NON-RESIDENT INTERNATIONAL BANK FOR BAD CREDIT
WHAT IS A FOREIGN BANK? DEFINITION
A foreign bank loan is by definition a funding solution provided by an overseas financing institution that has a head office outside the country in which the loan applicant is located and where the borrower is not willing to borrow from a domestic bank.
A foreign bank loan aims to help borrowers who are frustrated by the financing restrictions imposed by the local banks of the country where they reside in being more flexible and more client oriented when approving loans.
An overseas bank funding facility is always an option to be considered depending on the case and the needs and at least when comparing the services of so-called national banks to their competitors which are the foreign banks.
WHAT IS THE DIFFERENCE BETWEEN OBTAINING A LOAN FOR A FOREIGN BANK AND A LOAN FORM DOMESTIC BANK?
The difference between loans from foreign bank and a domestic bank is based on the different funding process linked to the locations of their head office and not only on the address of their branch or subsidiary, given that a foreign bank can also exist locally through its representation and abroad at the same time.
WHAT TYPES OF LOANS FROM FOREIGN BANKS ARE THERE?
A foreign bank loan is made up of two types of financing solutions from the borrower perspective:
The financing coming from an international bank through its representation in the loan applicant country.
A funding facility obtained from a bank abroad outside of the country of the borrower national territory.
ADVANTAGES OF AN OVERSEAS BANK LOAN OVER A LOCAL BANK FINANCING?
A foreign bank loan often offers many advantages over its domestic peers because of the following points:
The foreign bank in the country where one is resident: to establish themselves on the local market, they often have to stand out from traditional banks by offering quality services and unbeatable loan conditions in addition to their network to the foreigner when an individual or a company has a lot of business abroad.
International banking abroad: it allows a borrower to diversify the risks when it comes to taking out loans abroad particularly regarding a foreign currency loan interest rate.
THE DISADVANTAGES OF A FOREIGN BANK LOAN IN RELATION TO A NATIONAL BANK FINANING?
A bank loan abroad that differs in its function in comparison to a local bank loan bank must be chosen after careful consideration of the objectives to be achieved by opting for a financial institution outside a country.
The foreign bank loan even if it presents a bright side has also disadvantages given of the absence of a harmonization of international banking regulations and this can lead to some disadvantages:
As the head office is not in the client's country, potential conflictual situations are difficult to resolve, especially in the case of banks outside the European Union and where a funding facility has been agreed.
Opting for a loan in foreign currency involve a double risk, the one related to exchange rate volatility and interest rates variance.
Risks of being repressed by the tax authorities in the event of failure to report to the tax services when opening a bank account abroad.
A FOREIGN BANK LOAN FOR WHOM?
The loan applicant of a local bank who is dissatisfied and frustrated with the financing services and administrative constraints will often turn to a bank abroad as:
An individual or entrepreneur.
A person with bad credit score.
An expatriate or retired person abroad.
A person who needs a mortgage after a home purchase oversees.
WHY OPENING A BANK ACCOUNT ABROAD?
Opening a foreign bank account abroad because if several subjective and objective reasons depending on the situation of the account holder:
Living in several different countries.
Feeling financially secure knowing that there is a Plan B if the bank account in the holder's country of residence is affected by an unforeseeable event.
Lack of trust on the the banks of the country residence on the eve of a potential financial crisis by opting for an investment in a safer country.
Concealing financial assets vis-à-vis his relatives and the tax authorities of his country.
For professional reasons as is the case with entrepreneurs or cross-border workers.
FOREIGN BANK LOAN WITH BAD CREDIT
An overseas bank loan for bad credit is an advantage for persons with poor bank history in their country, banks abroad may grant a loan to this type of borrowers under certain conditions:
If the loan applicant with bad credit is not resident in the bank country, latter has no access to the local credit bureau.
The borrower should prove by means of supporting documents such as income so that he or she will be able to repay the loan abroad.
A better option is to own a property in order to secure a loan with a foreign bank abroad.