The Office for Foreigners informs that about 333.5 thousand live in the country. persons from other countries and at the same time holding a valid document that entitles them to stay in the territory of the Republic of the country. Unofficial statistics speak of millions of foreigners living in our country. Can such people take out a cash loan or a loan in the country?
A foreigner can count on granting a loan by a bank if he documents a permanent, legal source of income in the country and the deposits required by the lending institution documents.
Credit conditions for foreigners
When granting a credit or loan, the bank always takes into account its credit risk. It does not matter if it provides financing to local or foreigners. In order to receive a cash loan in a bank, the foreigner must document legal source of income. It is best to present a certificate of employment and the amount of remuneration you receive with your loan application. He can document his source of income by submitting to the bank a contract or day assignment or documents confirming his own business activity.
Depending on the bank, the periods that need to be documented may be different. Most often, the documents must report to income obtained for at least 3 months – in the case of employment contract and at least 6 months, as regards civil law contracts. The longest periods of income documentation refer to persons running their own businesses – in their case, income documents from 12 to even 24 months back must be presented, before the day of submitting the loan application.
A refusal will generally be met by a foreigner who applies for a loan from a bank, but obtains income outside of the country. Banks do not accept such a solution, even with high income from abroad.
The bank will not grant a loan if the person has a credit history . Banks reach for foreign registers, such as the equivalent of the Credit Information Bureau, which makes it easier for them to check how their loan or loan obligations have been repaid to date.
Other documents for the application for a loan for foreigners
Along with the loan application, the foreigner must present and other documents, such as:
- permanent or temporary residence card (for at least 12 months),
- current passport,
- a contract of employment, a certificate from the employer or other documents confirming the permanent and legal source of income.
You will also need to have an active personal account with a bank. Each lending institution may have different requirements for granting loans to foreigners.