LOAN FOR FOREIGNER

LOAN FOR FOREIGNER

LOAN FOR NON-RESIDENT FOREIGNER

A loan for foreigner is defined as financing made available by a bank in a country in which the loan applicant does not have the same nationality as the jurisdiction of the lender.

The loan for foreigner means that the borrower applies for a funding facility in a country overseas of which he or she does not hold the citizenship either as resident there or in case he does not live there.

WHAT TYPES OF LOANS FOR FOREIGNERS ARE THERE?

Financing a foreigner is a term used in many individual situations when it comes to funding for alien and there are different forms of lending for foreign borrowers:

  • Loan for a non-resident.

  • Lending for resident foreigner.

  • Financing for worker abroad (expatriate).

  • Funding for refugees or asylum seekers.

WHAT IS THE DIFFERENCE BETWEEN A LOAN FOR FOREIGN, EXPATRIATE, IMMIGRANT?

The difference between a loan for foreigner, immigrant and expatriate is not so great even if a kind of discrimination exists in a financing which at the end will not depend on the origin of the borrower whatever its category, but on its financial situation.

The foreigner, the expatriate and the immigrant leave their country to find better conditions elsewhere and on this basis there is no difference, the expatriate even if he is called thus will remain an immigrant regardless of his nationality.

These three labels were created to give different values to these three modern nomads and to enhance the expatriate (Western) compared to the immigrant (African) yet the two sometimes live the same difficult conditions even in a world that has become more global.

A loan for a non-resident alien would in theory be a loan granted to a person in a country while not being a resident even having the nationality of the country of the lender, so the loan for a non-resident alien is almost impossible with a view to regulations in place unless sufficient collateral is provided to the local lender.

Financing for non-resident aliens allows exceptions depending on the jurisdiction such as that applied in Europe, it is possible for a non-resident to obtain a mortgage in specific cases.

A loan for a non-resident foreigner will often depend on the financial situation and the security that the credit applicant who does not reside in the country of the bank will offer him, if he has assets that can be pledged in his country.

WHAT ARE THE ADVANTAGES OF FUNDING FACILITY TO A FOREIGNER?

A loan for a foreigner has many advantages compared to the borrower who has the nationality of the bank that lends:

  • The loan applicant does not need to apply for the citizenship of the lender’s country to borrow money.

  • The foreign borrower is not obligated to inform his home country's bank when negotiating a loan outside of his country.

  • Funding a foreigner is done without knowing the bank history of the home country of the loan applicant.

  • The applicant's credit lines will be added to those available and existing in their country of origin.

WHAT ARE THE DISADVANTAGES OF LENDING FOR FOREIGNER?

The disadvantages of financing for a foreigner exist of course and are specific to this type of borrower who cannot prove local nationality:

  • A bank considers a foreign borrower to be a high risk since his stay in the country may be limited.

  • The foreign credit applicant can change country at any time as soon as he can no longer meet his financial obligations.

  • Unfortunately his source of income can be impacted by his nationality due to discrimination when looking for a job.

  • The interest rates charged to foreigners are higher than for people of local nationality.

WHY ARE BANKS RELUCTANT WHEN LENDING TO FOREIGNERS?

Banks are reluctant when it comes to providing a credit facility for foreigners residing or not residing in the country of the bank that is lending the money.

Financing when requested by a foreigner often faces obstacles no later than after the borrower presents their foreign identification document.

Any credit organization before giving its agreement for a loan will analyze the risks it will take by lending money to a person and the lender or a bank will first look at the financial situation as income, a rate of low debt but also his personal situation such as his nationality.

The risk for a bank towards a foreigner will be considered higher in comparison to a borrower of local nationality, for less objective reasons than subjective one.

WHY ARE BANKS RELUCTANT WHEN LENDING TO FOREIGNERS?

WHAT CONDITIONS MUST BE FULFILLED TO OBTAIN A LOAN AS A FOREIGNER?

A loan for a non-resident foreigner will often depend on the financial situation and the security that the credit applicant who does not reside in the country of the bank will offer him, if he has assets that can be pledged in his country.

For a foreigner, the main conditions that will make any loan request favorable to a credit organization are:

  • Income stability and regularity (not working illegally).

  • Having preferably s stable job preferably with a permanent employment contract.

  • As an independent, running a healthy business.

  • Flawless banking history with no incident or bank record (bad or poor credit score).

  • Residence permit, visa or residence card confirming that the borrower has a right of residence over several years.

  • Long-term work permit.

WHAT TYPES OF LOANS FOR ABROAD?

Foreigners or expatriates have access to a large majority of types of credit if they are resident in the country in which they are applying for the loan, among these loans we will find:

  • Personal loan for foreigners.

  • Mortgage for foreigners.

  • Debt consolidation.

  • Consumer loan.

  • Microcredit.

  • Leasing for foreigners.

  • Credit card.

  • Payday loan for foreigner.

LOAN FOR EXPATRIATE ABROAD

A loan for expatriates abroad is possible as long as the expatriate borrower has a job or a profitable self-employed activity, legally resides in the host country and has no negative banking history.

IN WHICH COUNTRIES ARE LOANS FOR FOREIGN REQUESTED?

Funding for foreigners is mainly requested in the following countries:

  • United-states.

  • United Kingdom.

  • Canada.

  • Germany.

  • France.

  • Switzerland.

  • Singapore.

  • Thailand.

  • Malaysia.

  • Korea.

  • Japan.

  • China.