It is worth knowing that at present not all banks grant loans to persons who are not citizens. A lot has changed recently and looking for a bank with a loan offer for foreigners is no longer a problem.
The number of foreigners in the country is constantly growing. Newcomers from other countries are increasingly applying in our country for cash loans or loans to foreigners. To receive financing from the bank, they do not have to meet any special conditions – all they need is a number, a permanent and legal source of income, a permanent residence card as well as a registered address in the country. Of course, the number of documents required for foreigners is slightly higher. In this article, we explain exactly what conditions a foreigner must meet to receive a cash loan from a bank.
In which bank can a foreigner get a loan?
It is worth knowing that at present not all banks grant loans to persons who are not citizens. Recently, however, a lot has changed in this area and in principle looking for a bank with a loan offer for foreigners is no longer a problem. Often, such loans are not specifically dedicated to foreigners – they can be used by both people and citizens of other countries. There are also banks which precisely state that they offer special loans for foreigners and discuss their characteristics. Nowadays foreigners have even a chance to get a mortgage.
What conditions must a foreigner meet to receive a cash loan from a bank?
Some time ago, the only way to obtain a loan by a foreigner was to have citizenship. Now many changes have been introduced, thanks to which also clients from outside the country can successfully apply for a cash loan in one of the banks.
Here are the most important requirements defined by banks for foreigners applying for a loan:
permanent residence card and visa,
having a permanent, legal source of income,
having a registered address in the territory of the Republic of the country,
possession of a valid passport,
having a account in a bank,
possessing a number,
having a positive credit history.
In the vast majority of cases, banks and lending companies require people from outside the country to have documents such as a visa and a permanent residence card. These are the two most important documents that allow you to confirm that a person is staying in the territory of the Republic of the country in a legal way. Another very important issue is for a foreigner to have a stable and legal source of income. In addition, it should be properly documented. This income must be of an appropriate amount to allow the foreigner to repay the loan within the period specified in the contract.
It is also very important for each bank what type of contract binds the foreigner to the employer. Of course, employment contracts for an indefinite period or as a last resort for a fixed period are treated best. However, this is not the rule, because in the last few years banks have started to treat customers with other types of contracts more favorably. The vast majority of clients working on a mandate contract or for a specific task are not dismissed – however, they must have a sufficiently high level of income.
It is of course extremely important for every institution granting loans to thoroughly verify the customer’s credit history and creditworthiness. In the case of foreigners applying for a loan it is not that simple. People without citizenship should build their credit history from the beginning of their stay in our country. It is not difficult at all. One of the best and easiest ways is to set up a bank account. Every foreigner can open an account without any obstacles in any bank. There is complete freedom in this regard. Our salary should go to this invoice on a regular basis. It will be a signal for the bank that a given client has already managed to accumulate a certain amount of funds. If possible, the foreigner should also actively use his account, i.e. make transfers, withdraw cash at an ATM, etc. All this causes that the client will become much more credible for the bank as a potential borrower. However, every foreigner should always remember to pay off all their debts in a timely manner, in particular on a credit card.
What documents must a foreigner have to apply for a cash loan at a bank?
The number of documents that must be provided by foreigners applying for a cash loan in a bank is longer than that required by people. It is conditioned by the fact that institutions of e must check the client from abroad very carefully to be sure that he will pay his debt within the period specified in the contract.
Which documents must a foreigner applying for a cash loan in a bank have?
ID card or passport (depending on the requirements of the bank),
permanent residence card or temporary residence card (temporary residence card if the foreigner has not yet managed to obtain a permanent residence card),
employment contract (or mandate, work) or a certificate from the employer that will confirm the legal employment of a foreigner in the country,
certificate confirming the registration of a foreigner on territory,
credit report from the country of origin of the foreigner,
It is also worth remembering that if a foreigner applies for a cash loan to buy an apartment or house, it will involve even more formalities. Of course, a cash loan can be spent on any purpose you choose, but a bank representative will certainly ask a foreigner for what purpose he wants to allocate the obtained financing. When the purpose of the loan is to be the purchase of real estate, the bank will also require permission from the Ministry of the Interior to purchase a specific real estate. The foreigner must try to obtain such a permit on his own.