Can a foreign citizen take a loan. Loans abroad
In recent decades, the popularity of lending to Russian citizens in foreign banks has increased significantly. As practice shows, taking a consumer, commercial or other money loan abroad is much more convenient and profitable than in Russia. But in order to get a loan abroad, it is necessary that a foreign client meets the requirements of the banking institution that he has chosen.
Benefits of lending abroad
Loans in foreign banks are in increasing demand due to the following circumstances:
Some citizens believe that foreign banks should implement the same lending conditions in all their branches, even those located abroad. But actually it is not. Subsidiaries of foreign financial institutions operating in Russia are required to proceed from local market conditions. Therefore, it is obvious that it is more profitable to take cash loans outside the Russian Federation.
Who can take out a loan abroad
It is not difficult for a Russian citizen to get a loan abroad if the bank makes sure of his solvency. Foreign financial institutions prefer lending to the following categories of foreign clients:
- residents of the country, that is, those who permanently reside in the territory of the state in whose bank they are going to take a loan;
- having a residence permit in this country;
- working in the territory of this state under an employment contract;
- carrying out business activities in this country;
- owning real estate in the territory of the creditor state;
- having a deposit in one of the banks of the country or a positive credit history.
This list does not imply the obligatory observance of all items. Banks of different countries have their own preferences. For example, in Cyprus, loans are provided to almost everyone, in Italy they are loyal to borrowers who have received a residence permit, and so on.
The caution with which foreign financial institutions approach servicing foreign borrowers is fully justified. If the client does not repay the debt, the bank will lose some of its resources. It will be difficult for the court to understand this case, since the financial structure is located on the territory of one state, and the borrower is a citizen of another, and there is no clarity as to which country's laws should be followed in the course of the proceedings.
The specifics of granting loans to foreigners in different states
Having answered the questions about whether it is possible for citizens of Russia to take a loan in another country, and who is more likely to get a cash loan abroad, one should proceed to consider the issue of the peculiarities of lending to foreigners in different countries of the world. The requirements that foreign banks put forward to their customers may not suit everyone.
So, for example, in order to get a loan from one of the Spanish banks, the applicant must provide a certificate stating that he does not have cash loans in his home country. In Germany, some financial institutions ask the client to transfer a certain amount to a deposit account, which will be used if the borrower fails to make a mandatory payment on time to pay off the debt. Making a loan in Japan for Russians is possible only if the Japanese are their guarantors.
Interest rates on loans, maximum loan amounts, terms and schemes for repaying debts differ in banks in different countries. More on this will be discussed later.
In foreign banking institutions, you can take a loan to buy real estate abroad. The owner of such property can be both an individual and a legal entity. The acquired property can be used by the owner both for living and for renting out.
The United States of America, Germany, France, Spain, Cyprus, Latvia, Turkey and some other countries are included in the list of states whose banks offer the most favorable conditions for those who want to get a loan secured by real estate. You can get acquainted with some of them by examining the data presented in the table below.
Features of mortgage lending in countries near and far abroad (averaged figures):
A mortgage loan in a foreign bank in most cases can be repaid ahead of schedule. But the conditions for early return also differ from country to country.
For example, customers of Spanish, Latvian banking institutions will not have to pay any commissions in this regard, while in Germany and France, early repayment entails a fine. The long term (15-30 years) for which a mortgage is issued abroad is due to the fact that, according to the laws of most countries, the monthly installment should not exceed 30-40% of the client's income received over 30 calendar days.
Conditions for obtaining a consumer loan abroad
Consumer loans are available mainly to residents of foreign countries and Russians who have a residence permit in their territories. Non-residents (persons residing outside the country in which they plan to take a loan from a bank) rarely manage to get a consumer loan abroad. This is due to the fact that the financial risks for banking institutions in this case are much higher than when issuing a mortgage (after all, the property purchased by the client remains in the possession of the bank until the full repayment of the debt).
Features of consumer loans abroad are shown in the table below.
Terms of consumer lending in some developed countries:
Citizens of Russia can take out a car loan from a foreign bank, get a loan for a major overhaul of real estate or for making any major purchases. This may be the intended purpose of consumer loans.
Features of providing commercial loans abroad
Foreign banks are willing to help people who regularly pay taxes, create a number of new jobs for their compatriots and thus contribute to the development of the national economy. The key conditions under which you can get a commercial loan abroad are listed in the table below.
Specifics of business lending in some countries:
Conditions | Germany | Sweden | Spain | Israel |
---|---|---|---|---|
Interest rate | 2.6 to 3% | Installed for each client individually | 3.5 to 7% | 3 to 9% |
Loan maturity | 5 to 15 years old | Not more than 15 years | Not more than 5 years | Not more than 5 years |
Maximum allowable loan amount | € 500 000 | kr 600 000 | € 150 000 000 | ₪ 750 000 |
Banking institutions of some European countries provide financial support to start-up entrepreneurs. So, in Germany, when a client provides a business plan that the commission recognizes as potentially effective, one can count on a loan at a low interest rate, which is 3%. A commercial loan with a delay abroad for up to 2 years is also provided.
The procedure for obtaining a cash loan
Nowadays, Russians have the opportunity to take a loan abroad in any foreign currency. Many clients of domestic banks complain that the lending procedure at home is too long and troublesome, since it requires the preparation of a solid package of documents. But obtaining a loan abroad is also not an easy task. Consider the order in which the applicant should act.
Step 1. Selecting a creditor country
Since interest rates on loans vary significantly around the world, the task of every person who wants to get a loan is to familiarize themselves with the conditions for granting loans in banking institutions of different states, to find out what programs they offer for lending to residents and non-residents. For example, if you plan to take out a mortgage, keep in mind that the most loyal to immigrants from the CIS countries are the banks of Cyprus, Spain, France, Latvia, while in Japan, Switzerland, Great Britain, the Czech Republic, the chances of Russians to get a loan secured by housing are reduced to almost zero .
Step 2. Choosing the type of loan and banking institution
First of all, you need to clearly define the purpose for which the loan will be taken (acquisition of housing, a car, tuition fees, etc.), terms (short or long-term loan) and the optimal debt repayment procedure for you. You also need to select your preferred currency. If necessary, you can seek the help of professional credit consultants.
Next comes the choice of a bank for a loan abroad. It is important to make sure that the financial institution has a positive reputation and a high credit rating, find out what loan repayment schemes it offers, what requirements it puts forward for applicants, and clarify other nuances.
Step 3. Preparation of a package of documents
In banks of different countries, the list of official papers required for obtaining a loan is different. First of all, you need to provide:
- International passport.
- Visa / residence permit / temporary residence permit.
- A document confirming the income of the applicant for the last 1-2 years.
- Certificate of absence of debts issued by the employees of the tax inspectorate.
- Labor contract.
- Documents for real estate ownership.
- Documents confirming the place of residence and personal data of the applicant.
- Certificates of availability of any regular mandatory monthly payments (other loans, alimony, etc.).
All papers must be translated into the official language of the creditor state, and then the translations must be certified by a notary office.
To increase your chances of getting a loan abroad, take a few recommendations into service:
- If you are not a resident of the creditor country, before taking a loan from one of its banks, you can get a job in its territory by entering into a formal employment agreement with the employer.
- Apply to several banking institutions at once, because no one is immune from refusals.
- To prove your trustworthiness as a client, first open a bank account where you will apply for a loan, or purchase securities: these actions will be the key to minimizing potential risks for a financial institution.
If you do not know the state language of the creditor country well enough, are not familiar with the intricacies of its legislation, it is better to use the services of a consulting firm or professional intermediaries who will help you get a loan abroad.
Frequently asked Questions
Below are the answers of experts to questions that are of interest to many citizens of the Russian Federation who want to take a loan from one of the foreign banks.
- Is it necessary to go abroad to get a loan, or is it still possible to complete a transaction online?
It is possible to apply for a loan online abroad. In many foreign banks, both forms of a potential client's application for a loan are allowed: both personal and remote via the Internet. And some financial institutions require the applicant to first send documents in electronic form, and only on their basis decide whether to approve the application or refuse to cooperate. According to this algorithm, for example, the Turkish "DenizBank" works.
If a citizen of one of the CIS countries has issued a loan via the Internet, he will be able to receive his money in his hands during a personal visit to the bank or by contacting a special representative office. In the second case, the amount issued by a foreign financial institution will be small, and the loan term will be minimal. In this case, you can use one of the international electronic payment systems as an intermediary in receiving funds.
- Can I get a mortgage abroad to buy real estate in the Russian Federation?
When providing a loan secured by housing to foreigners, banks put forward one important condition for customers: the property they purchase must be located within the creditor country. Financial institutions thus insure themselves against potential risks: if the client suddenly becomes insolvent, the bank will be able to sell the facility. Housing located in Russia is illiquid property for a foreign bank.
But there are exceptions to this rule. If one of the applicant's close relatives legally resides in the territory of the creditor country and agrees to provide his own real estate as collateral, the banking institution may approve the mortgage application.
If there are no relatives, you can find a guarantor among the residents of this state who will take on all the potential risks. But when transferring money from abroad, the recipient will have to pay a high commission, as well as tax on the income he received. Therefore, the benefit of such a deal is very doubtful.
- Do foreign banks provide loans to pay for university education?
Many foreign higher education institutions have signed partnership agreements with banking institutions that issue loans to pay for education. The money is then transferred to the settlement account of the university chosen by the client.
To get a student loan, you need to apply to the international department of a higher education institution with a guarantee application. A confirmation of the guarantee, a student visa and a contract with the university must be attached to the package of documents submitted to the bank.
- Is it possible to take a loan from Sberbank while outside the Russian Federation?
Sberbank offices operate in Ukraine, the Czech Republic, Croatia, Slovakia, Slovenia, Serbia, Germany, Hungary, Bosnia and Herzegovina, and Austria. More than 99% of the shares of Turkish DenizBank are also owned by Sberbank. Citizens of the Russian Federation - Sberbank clients abroad - can apply for a cash loan at this institution, while the list of official papers that must be provided to conclude a transaction will be much shorter than in any foreign bank. In the European offices of Sberbank, interest on loans is lower than directly in Russia, but still not as profitable as those offered by foreign financial institutions.
Summary
Formally, there is no ban on obtaining loans by citizens of the Russian Federation abroad. But in practice, not every applicant can get the approval of a foreign bank. If your candidacy as a potential client meets the requirements of the financial institution you have chosen, there is a chance to save a lot on interest payments by entering into a loan deal abroad.
Russian cities attract foreign citizens not only with their attractions, but also with rather favorable conditions for employment and training. But what if there is not enough money for some consumer needs, or if there are plans for a final move to Moscow?
Banks of the Russian Federation provide the opportunity to obtain a loan without significant overpayments and increased interest. Consider whether migrants can get a loan and what pitfalls await them.
Can foreign citizens apply for a loan in Moscow?
Most banking organizations require that you comply with the condition for having a residence permit. Upon entering the country, every citizen receives a residence permit. Conventionally, foreigners can be divided into three groups:
- Persons who have issued temporary registration because they stay in the country for a short time. It is almost impossible for such a category of citizens to get a loan in a Russian bank;
- Migrants who received a temporary residence permit . Most often, RVP is issued for the purpose of education, work and creating a family. Foreigners in this category are more likely to get a loan;
- Foreign citizens who have received a residence permit from the migration authority . Persons of foreign origin who have a residence permit have access to almost the same rights and social guarantees as Russians. Making a loan in a bank of the Russian Federation for them occurs without significant difficulties.
However, obtaining a loan even with a residence permit is a complex mechanism and it is associated, first of all, with the provision of a large list of documentation.
Required documents
A loan for foreign citizens with a residence permit can be issued only if you provide a package of securities:
- Passport;
- Visa, migrant card, residence permit or RVP certificate;
- Certificate of registration with the tax service (TIN);
- If you have a driver's license;
- Pensioner's ID;
- Certificate of marriage / divorce, presence of children;
- If you have refugee status, provide the relevant document;
- A copy of the work book, certified by a notary or employer;
- Duplicate of the employment contract;
- Certificate of income in the form of 2-NDFL;
- Work patent.
Applying for a loan to a foreigner in Russia will become even more realistic if you attach to the main list of documents:
- letter of recommendation from boss
- diploma of education,
- certificate of no criminal record,
- a document that indicates the presence of additional income and the owner's right to property.
Which banks give loans to foreign citizens with a residence permit?
For foreigners with a residence permit in the Russian Federation, the following banks can apply for a loan program:
1. Post Bank | Program: "First postal 12.9%" | Interest: 12.9% |
2. Renaissance Credit | Credit "Cash" | Interest per year: from 11.9% |
3. City Bank | Loan "Consumer" | Interest rate: from 14% and above |
4. Binbank | Loan product "Consumer for 12 months" | from 10.99% |
5. Banks VTB institution | Loan "Cash" | Overpayment for the year as a percentage: from 12.9% |
6. Moscow Credit Bank | Loan program "Non-purpose without collateral" | Rate: 14% |
7. Oriental | Banking product "Bail+" | Interest for annual use: from 9.9% |
8. Banking institution Loko | Apply for a car loan program | Interest rate: from 12.4% |
9. Raiffeisen | Loan "Personal" | From 11.9% and above |
10. VTB 24 | Loan product "Large" | Interest rate: 15.5% |
Only the presence of all documents and a transparent history of the subject of another state will allow creditors of the Russian Federation to respond positively to the desire to receive a loan.
Every year the number of immigrants from the former Soviet republics to Russia is growing. This is due to the war in Ukraine, the difficult economic situation, lack of work and political persecution. A large number of migrants quickly find work. However, in order to purchase a home or develop a business, large financial investments are needed. How to get a loan if there is no citizenship?
People who do not have Russian citizenship receive a consumer loan very difficult. Since this type of loan is designed for a small amount of money, the bank is not willing to take risks giving loans to foreigners.
You can find a way out. If a non-resident has relatives or friends who are ready to take out a consumer loan. However, in case of non-payment of a loan by a foreigner, the monetary burden fall on his benefactors.
Urgently need cash
There are situations when a foreigner may need cash urgently. In such a case, the following will help solve the problem:
- microfinance companies;
- pawnshops;
- private moneylenders.
Microfinance companies provide a small amount of money (up to 100 thousand rubles), for a short period of time. Most often, to obtain a cash loan from a foreigner, only a passport will be required. When concluding a deal with microfinance companies, you need to carefully read the terms of the contract. Sometimes the rate of such a loan reaches more than 50% per annum.
Pawnshops can provide a foreigner with a sum of money secured by household appliances, real estate or a personal car. The procedure for granting money is simple and straightforward. In case of non-payment of money in due time under the contract, the property of the foreigner is transferred to the disposal of the pawnshop.
Private loan sharks provide money in the same way as microfinance companies. An agreement will be concluded with the borrower, which specifies the terms for repaying the money and interest for the delay. Sometimes the contract is replaced by an IOU. In case of non-payment of money, the creditor can sue and forcibly return his money.
Mortgage loan for foreigners
If everything is difficult with a consumer loan, then it is possible for a foreigner to get a mortgage loan. When issuing such a loan, the following is taken into account:
- how many years a person lives or works in our country;
- is there a temporary registration;
- whether the family of a foreigner lives in the Russian Federation.
If a foreigner has been officially working in Russia for a long time, has a stable income and wants to obtain citizenship, the loan will most likely be approved. The only clarification is that the bank may impose an encumbrance on the purchased housing. At the same time, the interest on a mortgage loan will be almost the same as for citizens of the Russian Federation.
The easiest way to get a mortgage loan for foreigners is at VTB 24, Alfa-Bank, Probusinessbank.
Car loan to a foreigner
This type of loan can be obtained by a foreigner in Russia. True, there is a small condition - providing the bank with a pledge of another car, real estate or working equipment. Compliance with this condition is important for the bank and helps to avoid risks in the event of a car breakdown or non-repayment of money by a foreign borrower. In some cases, the deposit can be replaced by increased car insurance. The interest rate for foreigners is the same as for citizens of the Russian Federation.
More often than other banks, they approve car loan applications for foreigners Raiffeisenbank, Citibank and Rosbank.
Documents for obtaining a loan for foreigners
To get a loan from a bank, a foreigner needs to collect a package of documents. Most often, when concluding a loan agreement, they require:
- a patent or work permit issued in accordance with all requirements of the Federal Migration Service;
- original or copy of the employment contract;
- passport with a mark of temporary registration;
- income statements.
It is best to take a loan from the bank where the foreigner has a salary account. Also, the presence of a co-borrower, a citizen of Russia, can play a positive role in obtaining a loan. They will help you get a loan and income certificates from the non-resident's home country. References must be translated into Russian.
findings
- Banks will not give a consumer loan to a non-resident.
- Banks provide mortgage loans and car loans to foreigners who have collected all the necessary documents.
- A foreigner can take a cash loan from microfinance companies, a pawnshop or a private lender.
- When applying for a loan, a bank may require a temporary registration from a foreigner, a certificate of income, a work patent, a copy of an employment contract.
- A banking institution more often approves a loan if a foreigner has a salary account in the same bank or a co-borrower with Russian citizenship.
Hello! In this article we will talk about the credit line.
Banks are developing various tools to provide borrowers with easier access to money. A credit line is one such tool. I will talk about what a credit line is, what types of credit lines are and what are the requirements for borrowers.
What is a line of credit in simple words
Bank credit line- is the obligation of the bank in a certain amount for a certain time.
In simple terms, this is a long loan, the amount of which you can spend gradually.
There are two types of credit line limit: credit limit and debt limit. In the first case, the upper bar is called, you cannot take a loan for a large amount. In the second case, on the contrary, the upper bar is called, more than which one cannot be indebted to the bank.
The credit line is most often issued for 1 year. Much less than 3 or more.
The main differences between a line of credit and a regular loan
If we compare a classic loan, for example, a consumer loan, then it looks like a line of credit. There is also a loan amount, interest and repayment terms. But their main difference is as follows: a credit line can be used when the borrower needs it. Let's look at an example:
You are given a credit line for 300 thousand rubles, for a period of 3 years. In the first six months, you can spend 100 thousand rubles from this credit line. In the second half - 50. And then every year to spend another 50 thousand credit funds.
For the borrower, this policy is more convenient. He can independently decide when he needs money, in what amount, and simply provide the bank with all the necessary documents. This reduces the amount of time it takes to process an application.
Types of credit lines
There are five types of credit line:
- Non-renewable.
- Renewable.
- Framework.
- Onkolnaya.
- Contractor.
The main ones, which are used by almost all borrowers, are: renewable and non-renewable. Others are used when working with . Let's discuss each type in detail.
Non-revolving line of credit
Non-revolving line of credit- a convenient tool for banks and borrowers. A person once draws up a loan for a certain amount and can withdraw money as needed. Without additional provision of documents, execution of contracts and other joys of the banking bureaucracy. The mechanism of operation is as follows:
the borrower draws up a line -> withdraws funds -> gradually repays the loan -> withdraws more -> repays the debt.
And this happens until the limit of credit issuance is exhausted, the term of the contract expires, or the terms of the agreement are violated. Refunded money cannot be reused. Over time, the non-revolving line of credit decreases.
Revolving credit line
Revolving credit line differs from non-renewable in that the borrower gets the opportunity to use the money that he returned to the bank. And interest is charged only on the amount that was spent. Additionally, with a revolving credit line, the borrower is provided with a grace period during which he can use the borrowed money without interest. The main thing is to return them before the expiration date.
Revolving credit line - the mechanism of credit cards.
A revolving line of credit is also called a revolving line, comparing the mechanism for issuing, returning and using money with revolver charges. As soon as you spend a certain amount, a shot occurs and the cartridge flies out of the drum. As soon as you return the money, you load a new cartridge, which can also be fired. This is very convenient, and this practice is more common in global lending.
But convenience comes at a higher cost. The rate on a revolving line of credit is noticeably higher because the bank takes on additional risks. And if it is a legal entity, then the bank risks doubly, because it cannot track what the company needs money for and how it manages it.
Framework credit line
This is a credit line that is issued to an organization for several "projects" at once. This may be the supply of equipment, repairs, purchase of materials. First, a general agreement is drawn up for the amount of the loan, which indicates the ceiling of borrowed funds, and then a separate package of documents is collected for each of the projects.
After registration, during the entire term of the credit line, the company can borrow money for pre-agreed projects in the amount that they need right now.
On-call credit line
In its mechanics, it is very similar to (a short-term credit line, which is automatically repaid by the receipt of funds on). Only an on-call credit line is issued for a longer term. The company receives a certain lending limit, takes the money, returns the amount to the bank and can get a loan again.
Line of credit
A credit account is opened for the client, from which write-offs occur if the company does not have enough funds. It is very similar to an on-call line of credit and differs only in the mechanism for maintaining accounts.
Bank requirements for opening credit lines
Banks with the opening of credit lines take on much greater risks than with the issuance of conventional loans. That is why the conditions for obtaining a credit line are a little tougher:
- The borrower must be financially stable. You need to provide documents confirming that for a long time (usually the last year) you have regular income.
- The borrower must be served by a bank. You need to open a current or salary account in a credit institution where you are going to draw up a line of credit. This is done so that the bank can more fully determine the financial situation and draw conclusions about the appropriateness of the loan.
- A deposit must be provided. If the borrower has been served at the bank for a long time, has a positive credit history and a good reputation, then collateral is not required.
These are the basic requirements that are described on the websites of banks. But in reality there are even more. Since the credit line agreement is concluded individually with each client, the conditions and requirements of banks may be different.
A credit line is a convenient banking tool that allows you to set a credit limit in advance and use money as needed. The most popular line of credit product is the credit card. A credit line is much more expensive than a conventional targeted loan, and the bank imposes more stringent requirements on future borrowers.
The borders of Russia are open to citizens from near and far abroad. Foreigners come to our country not only for tourist excursions, but also for employment or study. Often, migrants, like Russians, have financial difficulties when it is necessary to urgently make repairs, purchase a car or housing. And if for Russians to get bank approval, a positive credit history and a permanent place of work are enough, then foreigners face a number of difficulties, ranging from collecting additional documents and ending with the guarantee of other persons. But even this is not the most important thing - not all banking institutions issue loans to foreign citizens.
What does the law say?
There is no legislative direct ban on lending to foreign citizens. Both a Russian and a foreigner, and even a stateless person can become a borrower. Here the matter is completely different: due to the high risks of default or payment delays, only a few credit institutions are ready to cooperate with foreign guests.
Credit conditions for foreigners
If you pay attention to the requirements of credit institutions for the borrower, then in almost every one of them the first line is “Citizenship of the Russian Federation”. This suggests that foreigners cannot count on obtaining a loan. But not all banks put forward this requirement. However, working with foreign clients is associated with high risks, so many credit institutions are wary of migrants, tightening requirements for potential borrowers from abroad and lending conditions, and often raising interest rates.
There are a number of financial institutions in the Russian Federation, including Sberbank, which believe that granting a loan to a foreigner is a risky deal. But some banks do not want to lose the benefit of issuing loans to migrants, and still agree to work with foreigners on the basis of proven programs.
Preference is given to borrowers with a permanent job, high income and long service. An essential point is the period of residence in Russia, the longer the migrant stays in the country, the greater the likelihood of approval of a loan application. It is also important that the citizen of which state the potential borrower is. Significant preferences in this regard are granted to citizens of the CIS, especially Belarus.
But first of all, the bank must be sure that the client will not disappear in the near future without paying the debt. Here are the guarantees:
- Permanent place of work and highly paid position;
- Owned apartment, house, car;
- Confirmed "white" salary;
- Resident status;
- The presence of a family, children.
Often employers, in order to reduce payroll taxes, officially underestimate wages. If a foreigner receives a “gray” salary that he cannot document, then, probably, you will have to forget about credit funds. It is worth adding that the level of income of a potential borrower must be sufficient to repay the debt. This requirement of the bank applies to all persons: both Russians and foreigners.
If a foreigner has a good job in a large company, the possibility of obtaining a guarantee from Russian citizens or the head of the organization where the borrower is employed, the probability of loan approval is very high.
Residents and non-residents
When considering a loan application, banks necessarily analyze the prospects of a potential borrower for further residence and labor activity in Russia. And one of the main conditions for issuing a loan is the residence of a foreigner. This status prepares for a certain "settlement" of the borrower.
Let us dwell separately on the terms tax "resident" and "non-resident", which are often mentioned in relation to foreign guests. The interpretation of these definitions is often not entirely accurate. A resident is a person who has continuously been in the Russian Federation for 183 days over the past 12 months, respectively, a citizen who has lived in Russia for a shorter time will be considered a non-resident. Also, the status of a resident is obtained by an individual who lives in the Russian Federation for less than 183 days, but who has his own housing, permanent registration, family, work, business.
Who can get a loan?
In Russia, it is customary to divide all foreigners into several categories:
- Temporarily staying- foreigners who entered the Russian Federation in a visa-free or visa-free manner. The period of residence of such persons in Russia is severely limited either by the period of validity of visa-free entry or the duration of the visa. The possibility of obtaining a loan from this category of foreigners severely limited.
- permanent residents- visitors from other states who have received in Russia (RVP). These are foreigners who are sufficiently accustomed to the country, work or study, that is, they are in the Russian Federation on legal grounds and often expect to fully settle in the country in the future. Banks are more willing to provide loans to foreign citizens with RVP than to migrants who do not have such status.
- permanent residents- foreigners with (residence permit). These migrants are practically equal in rights with the Russians. They receive social benefits, pensions, study and receive treatment for free, that is, they enjoy all the benefits that citizens of the Russian Federation do. The probability of issuing a loan to foreigners in this category is very high.
Now consider each category of foreigners from the point of view of the prospect of obtaining a loan from a bank.
Visa and visa-free foreigners
Definitely, representatives of the first category will not be able to count on obtaining a loan. Usually these are tourists and individuals visiting relatives in Russia, labor migrants. Such persons are in the country temporarily, the period of residence often does not exceed 90 days, that is, in most cases they are non-residents. According to banks, there are no guarantees that they will fully fulfill their financial obligations and will not leave the country at any time. It will be problematic for temporarily staying citizens to get a loan from a bank. It is possible that lending institutions will consider on an individual basis applications from migrant workers who have a work permit or a patent and who have obtained support from Russian citizens.
Foreigners with TRP and residence permit
- Permanent registration in the region where the bank is located;
- Long (from 3 years) work experience in one place;
- Stable proven income.
The presence of a car or real estate will be an additional advantage for the borrower. A guarantee will not be superfluous.
The most attractive for banking institutions are foreign citizens with a residence permit. The presence of a residence permit indicates a fairly long period of residence in Russia (usually such a status is assigned to foreigners after 3 years). In the future, such persons often plan to acquire citizenship and stay in Russia forever.
Loan documents
It is worth immediately preparing to collect an impressive amount of papers. A loan for a foreigner is possible after providing a certain package of documents, the main ones are:
- National passport with a notarized translation into Russian.
- Tax registration certificate (), pension certificate, driver's license (optional).
- Marriage certificate (if the borrower is married).
- Residence permit or RVP, migration card or visa.
- Refugee certificate (if the foreigner has such a status).
- A copy of the work book, certified by the employer.
- A copy of the employment contract.
- Confirmation of income (certificate 2-NDFL or certificate in the form of a bank).
- or .
Any other documents that must be necessarily translated into Russian and certified by a notary will also come in handy:
- Birth certificates of children;
- Diploma of education;
- Characteristics from the place of work;
- Proof of income abroad;
- Availability of funds for the first installment (account statement);
- Certificate of no criminal record in the Russian Federation and abroad.
Let us dwell separately on the income of a foreigner abroad. For example, it can be interest on a deposit or income from renting out real estate. For the bank, you need to prepare supporting documents. Papers are drawn up according to the rules of the country where the migrant receives income, translated and certified by a notary.
consumer credit
Obtaining a consumer or express loan for foreigners is a difficult task. The situation is similar with applying for a loan in a trading floor or an online store. Often, no information can be entered in standard loan applications, except for Russian passport data. Yes, and credit organizations in such situations take on increased risks. Such an urgent loan, when there is no time to check the borrower's integrity, is issued only to Russians. In addition, the application in the store is considered not by a bank employee, but by a program that will automatically issue a refusal in the absence of Russian citizenship.
But on an individual basis, a foreigner will still be able to get a cash loan from a bank if he provides guarantees, which will be his own property or a guarantee of Russian citizens or an employer company.
Microcredit
It is quite possible to get a small loan from a microfinance organization (MFI) if the borrower is not stopped inflated interest rates. Usually these are amounts up to 30,000 rubles, which are repaid within 2-3 weeks, in some cases a loan is issued for a longer period - up to 3-6 months. Most often, MFIs do not work with foreigners, again because of the increased risks, but it is quite possible to find a suitable lender. It is quite possible to take a loan to a foreign citizen through the Internet. Now some MFIs provide online loans, interest rates in such organizations are high, but approval is almost instantaneous, and you only need a passport.
Credit card
It is also possible for a foreigner to get a credit card or a bank card with an overdraft facility. It is especially easier to do this in a bank where a migrant receives a salary. Such an employee is considered a participant in the “salary project”. A bank client with a salary card has certain advantages over other potential borrowers. The probability of obtaining credit funds from such an employee increases significantly, the procedure for issuing a loan is simplified and accelerated. The owner of a salary card will be able to quickly and with a minimum of paperwork get a loan at the credit institution where his company-employer opened an account. Moreover, the terms of lending can be very attractive.
Pawnshop loan secured by property
It is convenient to get a small amount for current expenses at a pawnshop. By the way, this option will be the only possible one if Russian banks refuse to issue a loan. Pawnshop loans require collateral. But although this procedure is quick and simple, there is high risk of getting into debt and losing property, if the debt is not repaid on time. The main condition is liquid collateral, that is, property that the lender can quickly and profitably sell. These are antiques, jewelry, precious stones, silver and gold dishes, furs, electronic equipment, a car and even an apartment.
The advantage of a loan at a pawnshop is a minimum of documents; only a passport and papers confirming the right to property will be taken from the borrower. Money is issued instantly. There will be no long waiting, checking credit history, filling out endless questionnaires and other banking procedures.
More disadvantages:
- High interest rate (1-2% per day);
- The risk of losing property, when a debt is formed, the creditor simply sells the collateral left;
- Low assessment of collateral (no more than 75% of the real value of the property);
- Short loan terms (depending on the amount - from a week to a year).
car loan
A car loan always requires collateral, and this is one of the reasons why banks are more willing to issue it, than for ordinary consumer loans without collateral. The client is obliged to have registration in the region where the bank is located, and it must be obtained long ago. The rest of the requirements are the same: permanent work, long work experience, confirmed income. After the approval of the application, the car is insured without fail and the bank issues it as collateral for the loan.
Before going to a bank or a car dealership, it is advisable to soberly assess your capabilities, because you will have to pay not only for a loan, but also for scheduled car maintenance, insurance, unexpected repairs, and so on.
Mortgage
Oddly enough, the easiest loan to obtain is a mortgage. This is explained simply: by approving a foreigner's application for a mortgage, the bank compensates for all possible risks with the real estate purchased by the borrower. Delays in mortgage payments are unacceptable - they can cost you the loss of housing in a foreign country, and a foreigner must understand this.
Buying your own living space is especially relevant for migrants who have been living in Russia for many years. But even here there are many problems, not all banks provide mortgage loans to foreigners. An important point: an apartment or a house can only be bought within the region where the bank is located and the potential borrower is registered. A foreigner living in Moscow will not be able to buy real estate in Samara. The big pluses in obtaining a mortgage will be guarantors, the presence of a family, a “white” confirmed salary and a long work experience in the last place.
Video: about obtaining a mortgage by foreign citizens
Banks
Not every domestic bank is ready to cooperate with foreigners. But such credit institutions are not uncommon. The most loyal to foreign guests are traditionally (*rules may change):
- "Alfa Bank";
- "VTB";
- "Raiffeisenbank";
- "Citibank";
- "Home Credit";
- "Unicredit";
- Rosbank.
These are just some representatives of the credit and financial sector who are ready to lend to foreign persons. But in Sberbank, it’s definitely impossible to get a loan from foreigners, but it is possible to open an account or issue a Visa and Mastercard debit card without an overdraft.
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