How to get a loan abroad while in Russia
The fact that loans in foreign banks give a lower percentage is known to many. In addition to low rates, it attracts the opportunity to use the amount received to resolve financial issues away from home. Credit funds are used to start a business or real estate investment. But like any good idea, there are some design moments that make you wonder whether a loan in a foreign bank is so beneficial.
The nuances of lending to Russians in foreign banks
Behind the low interest rates of a western bank is a careful check of the client and strict billing requirements. As in Russia, one passport will not be given out money, but will be asked to submit an extended set of documents. Only persons over the age of 21 can count on approval.
Yet the complexity of the agreement does not scare away those who want to profitably lend. Russian citizenship is not a reason for refusing a potential borrower. Just for registration, without leaving the Russian Federation, a loan is drawn up through representative offices of foreign banks.
The very fact of issuing a loan in the Russian Federation makes the terms of the loan less profitable, because foreign agencies are forced to act within the framework of existing Russian legislation.
When coordinating an application with a foreign lender, online communication is often used. The peculiarity of a credit line with a foreign lender is short-term repayment and small size.
If the Russians intend to extract the maximum from cooperation with a foreign creditor, one cannot do without going abroad. You can get a low rate only by direct contact with the bank’s office outside the Russian Federation. Before the trip you should carefully study the list of requested documents and assess your chances of success.
Documents for registration
The office of a foreign bank will be required to submit the following papers:
- international passport;
- documents confirming the income of a citizen of the Russian Federation;
- certificate from the tax on the absence of debts;
- documents of title proving ownership (real estate, cars);
- certificate of registration from the place of residence;
- proof of employment and work experience (employment, contract with the employer);
- statements on the execution of expenditure transactions on the accounts of the future borrower.
The complexity of the coordination depends on the selected country. The easiest way is to borrow in the territories of European countries, where the offices of the Savings Bank are represented.
An obligatory condition for loan approval is the ability to regularly contribute funds to the payment of credit debt at the place of permanent residence, i.e. in the Russian Federation. It is more difficult to get a loan in Switzerland, Bulgaria, and the UK, where credit services are available only to those who have already received resident status.
Consumer loans are reluctant to issue, because in case of delay, debt collection will be difficult, and the risk of non-repayment is extremely high.
More chance of success when opening a credit line under the following circumstances:
- Credit for a startup in business. To coordinate the opening of their own business abroad, will have to turn to specialists in consulting. They will act as intermediaries, taking on part of the financial risks.
- Registration of a loan for a citizen with the status of a resident (not necessarily a relative) in the country of application.
- Mortgage agreement for the purchase of real estate in the country of circulation, with the help of realtors. This option is most preferable if the Russian wants to buy property in connection with the relocation abroad and the intention to stay there. As with a loan for business projects, you will have to attract a consulting agency, as well as notify the Central Bank of the Russian Federation about opening a foreign account. A mortgage borrower can get a loan to buy real estate with a repayment condition of up to 12 years.
The alternative is to appeal to intermediaries providing services in the field of loan approval abroad. Then you won’t have to go abroad, but the mediator will take a percentage for the service rendered.
Make a foreign loan online
The procedure of opening a credit line abroad is accompanied by serious expenses associated with traveling abroad and preparing documents. It is easier to get funds from western lenders using Internet technologies and electronic platforms, without going abroad.
If the online option is chosen, you should not count on large cash injections. The bank, if it agrees the limit, will necessarily take into account the attendant risks. In addition to the limitations in loan amounts, shorter time periods are established for a full repayment of the debt.
Among the available methods of crediting in foreign organizations, the WebMoney service has recommended itself. The money is transferred in the currency according to the details of the borrower registered by the WebMoney user. The user account must have a personal passport.
When working with an electronic service, the bank evaluates the movements on the customer’s electronic wallet account. Tracks the level of activity in the commission of credit and expense transactions. In addition to the registered wallet WebMoney from the borrower will be asked to confirm the postal address where he lives.
It is difficult to predict in advance what term and limit the foreign bank will agree on. The lender personally considers the indicators of a person’s solvency based on information on the electronic system user’s wallet. The choice of a type of credit program also influences the parameters to be agreed. If the wallet is used irregularly, it’s worth counting on amounts no more than $ 50. When an electronic wallet is used in work, in business, the loan size reaches 50 thousand dollars.
An important feature of lending through WebMoney is the ability to quickly convert the received currency and its withdrawal to a Russian card. Loans received in this way do not have a favorable rate – per month to charge up to 5-10% of the amount, and the repayment period will not exceed six months.
Considering cost-effective lending options outside of the Russian Federation, you need to understand that their availability to Russians looks conditional. In order to get a low interest agreement, you will need to pretty much spend money on middlemen and consulting services, plus include travel expenses and subsequent debt repayment. Online registration looks simpler, but you can’t count on low rates.