In the 21st century, it is difficult to imagine a person who could do without the services of a bank or other financial institutions in everyday life. Basically, people do not live in a forest or a cave, and essentially strive for comfort, all kinds of benefits and satisfaction of needs. But not everyone has the opportunity to make their desires come true or create favorable conditions for existence here and now.

The reason for this is obvious - the lack or lack of financial resources. And since today you want to drive a good car, wake up in a separate apartment and start or expand your business, there are not so many options. The most real one is a loan.

Besides the interest rate, a distinctive feature of the European lending system is the mentality of borrowers. Not only income levels, economic stability and macroeconomic indicators influence the development of the credit industry, but also a person’s attitude towards his financial obligations. Unfortunately, in the understanding of most of our citizens, a loan is something terrible, extremely risky and even shameful.

At the same time, in the West, for decades, people have been successfully using all kinds of loans, completely different and at the same time, ranging from a short-term consumer loan for a washing machine and up to a 30-year mortgage loan. This doesn’t bother anyone, they live like this, and quite well.

To be fair, it should be noted that interest rates in Europe are much lower than ours. Even in countries with limping economies, for example, in Greece, which experienced a severe economic crisis in 2015, loan rates do not exceed 10%. On average, in European countries this figure varies from 3 to 8%. For comparison, in Russia in 2019, most banks offer loans at 18-22%, and some types of consumer loans even reach 35%.

The main factors influencing the level of interest rates are as follows:

1. Inflation. According to Rosstat, in 2015 the inflation rate in Russia was 12.9%, in 2016 - 5.4%, in 2017 - 2.5% and in 2018 - 3.4%. In Ukraine the following indicators are 48.7% in 2015, 13.9% in 2016, 14.4% in 2017 and 10.9% in 2018. In Europe these numbers are significantly lower.
2. Cost of funds for the bank. Very often, domestic banks use resources attracted from European financial institutions to issue loans. Accordingly, the interest rate for the borrower increases due to the cost of raising funds.
3. Risk. An unstable economy and low income levels force banks to look for ways to minimize possible losses from non-repayment of loans.
4. Bank margin. Everyone wants to make a profit, and banks are no exception. Sometimes the greed factor comes into play.

It is immediately worth noting that today almost all European banks do not have any special restrictions on issuing loans to foreigners. Formally, this is so. But in practice, financial institutions are very reluctant to take on the risks associated with issuing a loan to a citizen of another country.

In particular, it is much more difficult for a person with a Russian or Ukrainian passport to obtain a loan in Europe than for citizens of European Union countries. However, there are options, and if certain conditions are met, you can improve your chances and speed up the process of obtaining a loan from a European bank.

• A big advantage when applying for a loan is legal residence in the country, as well as having a residence permit or permanent residence permit.
• Receiving official income, owning a business or carrying out entrepreneurial activities with the corresponding payment of taxes to the country's budget will be a significant argument for European banks. By the way, loans are much more readily issued to a legal entity.
• In each case, you will have to prove your solvency and reliability; one of the options is to open an account with a creditor bank or purchase securities, which can be used as collateral and as a factor in reducing banking risks.
• If we are talking about a mortgage loan, then the property will be collateral and, as a result, will increase the bank’s confidence.
• If you are in your home country, it is possible to take out a loan in Europe with the help of specialized consulting companies. It is mainly through them that European banks provide their services, negotiate and enter into agreements with foreigners.

The above conditions are not exhaustive, but are the most effective for obtaining a loan in Europe. Sometimes European banks may set interest rates slightly higher for foreigners than for their citizens. On average, by 1–3%, which in any case is not comparable to the level of rates in domestic banks. The loan amounts are usually very significant; in some countries, financial institutions will not want to deal with the execution of an agreement for less than 500 thousand euros.

• Identity card (passport);
• confirmation of the absence of debt or outstanding loans;
• information or certificate of income received;
• information about the availability of property that can be used as collateral;

In each case, the bank may put forward additional requirements, for example, a certificate of family composition, payment of taxes, origin of income, guarantee, and so on. More detailed information should be obtained directly from the financial institution.

To summarize, we can say with confidence that it is quite possible for a foreigner to take out a loan in Europe. But only formally. To fully use banking services, it is better to live and work in a European country.

Loans in the European Union are 4 times cheaper than in Russia. This applies to both consumer and corporate loans. This data is provided in its review by the financial statistics agency StatBanker. However, Russian authorities predict a quick end to high lending rates.

In the third quarter of 2009, the weighted average interest rate on corporate loans issued in the European Union for a period of one year was 3.6%. This is four times lower than in Russia, where the average rate is 15.2%, according to StatBanker experts (text of the study in additional material). If the loan is taken out for a period of more than one year, then the rate increases to 16.2% in rubles and 9.8% in euros.

The lowest rates for loans up to 1 million euros are in Austria: in September it was possible to get a loan there at an average rate of 2.34% per annum. Rates in Luxembourg, Finland, Belgium, and France look no less attractive, where the rate is about 2.5%. The most expensive loans for business are in Cyprus - 6.76%.

In the Netherlands, loans are issued in amounts over 1 million euros at 1.68% per annum. Comparable rates (less than 2%) on such loans in September were also observed in Belgium, Finland, Italy and Luxembourg. The most expensive loans in the eurozone (over 5%) are issued in Slovenia and Malta.

Consumer loans

A similar situation has developed in the consumer lending market. The weighted average interest rate on consumer loans for up to 1 year is 7.8% per annum in the European Union, and in Russia this figure is 30.9% for loans in rubles and 17.2% for loans in euros.

The rate on consumer loans for a period of 1 to 5 years in the EU is 6.78% per annum. In Russia, such a loan will cost 2-3 times more - 20.3% per annum in rubles and 14.3% in euros.

In the eurozone countries, the lowest interest rates on consumer loans are in Finland - 3.2% per annum. The highest rates (about 11%) are in Spain and Italy.

The lowest rates on loans for a period of 1 to 5 years in September were recorded in Finland - 4.8%; in Belgium, Germany, France, Luxembourg, Austria they fluctuate in the range of 5-7% per annum. The rates are quite high in Slovakia (15%) and Portugal (12.8%).

Incorrect comparison

It is not entirely correct to compare loan rates in different countries head-on like this, says Alexander Razuvaev, head of the analytical department at Galion Capital Investment Company. According to him, rates largely depend on inflation, which in the European Union is significantly lower than in Russia (and in many countries there is even deflation). The lower the inflation, the lower the Central Bank’s refinancing rate, the source notes. “Our risks are higher,” the expert sums up.

According to Rosstat, for nine months of the year, inflation in Russia amounted to 8.1%, while in the countries of the European Union, inflation averaged 0.8%. In October, inflation in Russia is zero. In 2010, the Ministry of Finance expects inflation to reduce to 5-6%. According to the first deputy chairman of the Central Bank of Russia, Alexei Ulyukaev, in a year or two the difference in lending rates in Russia and in the world will decrease to 2-3%.

If you subtract inflation from the rate, the difference will not be so significant, says Andrei Cherepanov, head of the National Development project. In addition to inflation, loan rates depend not least on the degree of reliability of the project that attracts the loan, as well as on the business climate, the expert notes. “As long as the risk remains that your assets will be taken away and you will be imprisoned, there can be no talk of any reduction in rates,” says Cherepanov.

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There is not a person in our country who would not dream of taking out a loan abroad. This is all due to the fact that in Europe the interest rate is significantly lower than in Russia.

In this article we will tell you how a Russian citizen can get a loan abroad, whether a Russian can take out a loan from a foreign bank and put it on deposit in his country, and so on.

How can a Russian get a loan abroad?

Any adult can apply for a loan from a foreign bank, in any currency. In most countries, the age of majority is 21 years old.
The required amount will be issued only after conversion into national currency. The repayment period is from 10 to 30 years.

A citizen of the Russian Federation can take out a loan from a foreign bank while in Russia, only with the help of representative banks; it is impossible to receive funds on the terms that would be available abroad, because subsidiaries are located here. They work on the basis of the current law of our country.

How to get a loan abroad at a low interest rate?

For comparison: in Russia you can get a loan with an interest rate of 15-20%, and abroad - about 6%.

It is mainly residents who take out loans from foreign banks. In addition, there are several nuances that are worth paying attention to:

• A person wishing to take on a loan obligation must have a residence permit or reside permanently in the territory where he intends to take out a loan;
• Pays taxes regularly;
• Has some property in the country;
• Issues a mortgage for real estate abroad;
• Does not have a negative credit history in his country;
• There are relatives in the creditor country.

Of all the options listed, the last one is the most convenient. It is the most inexpensive and the most realistic.

There is no less red tape with documentation in Europe than in the Russian Federation. You must provide:

• International passport;
• Certificate confirming your income;
• Documents from the tax office that confirm the fact that you do not have any debts;
• Papers confirming your regular expenses;
• Employment contract;
• All documents for ownership of real estate in the Russian Federation;
• Documents that confirm the authenticity of the place of residence and other information about the potential borrower;
• Other certificates upon request of financial institutions.

Loan abroad via the Internet online

You can only take out a loan abroad via the Internet by using the services of Web Money or other similar organizations. The amount issued will not be large, and the loan term will also be short.

Is it possible to take out a loan abroad to buy a home in Russia?

Taking out a loan in Switzerland or any other country at a low interest rate and then buying an apartment in our country is quite possible. You need to go through several stages:

• You need to open an account in a foreign bank, then notify the Central Bank of the Russian Federation about this. The loan itself will be registered. There will be no consequences for you;
• Make a deposit. Liquidity of property, guarantee, and bank rating are extremely important;
• The nuances of this project.

Hire a good consulting company. Our specialists will assist you from beginning to end of the entire process.

How to take out a loan abroad and put it on deposit in Russia?

The easiest way to take out a loan is for those who have received a residence permit in a foreign country and are residents. Many financial institutions, when issuing money, are not interested in what purposes it will be used for. However, some enterprises provide funds only for certain needs. For example, to buy an apartment. So, you should be careful when choosing a bank.

Is it possible to take out a mortgage loan abroad?

If you want to take out a mortgage abroad, this issue needs to be studied in detail. In countries such as Cyprus, Morocco, Spain, it is easiest to get a mortgage. It is enough to present your passport and a certificate of your income. You will also need to open an account in one of the country's banks. In the Emirates, a mortgage is issued under the same conditions, in addition, the total income must be at least $10,000 per month. The maximum mortgage term for foreigners is 12 years. It is difficult to obtain a mortgage in Switzerland, Italy, France, England, and Germany.

Like every citizen of the planet, a resident of the Russian Federation has the opportunity to get a loan from any bank in the world. European banks are no exception. Moreover, the loan is issued under the same conditions on which residents of the country in which the selected bank is accredited take out loans. However, the procedure itself turns out to be labor-intensive and time-consuming. But the result is worth it, because interest rates on loans in European banks are much lower than in Russian banks. How to get a loan from a European bank?

At the time of submitting an application to the bank, there is no need to live in the exact country in which you intend to do this. It is quite enough to be there as a guest or a tourist.

Steps to a loan in the European Union

First, you will have to open a regular current account in a bank in a European country, and this can only be done by visiting it in person. In this case, you need to have a full set of documents to identify your identity and confirm your income level.

It is necessary to take into account that each bank has its own very specific client sets of documents for opening a personal account and for obtaining a loan. The contents of such a package of documents can be easily found out by visiting the official website of the bank. And you shouldn’t blithely hope that you, a resident of another country, will be able to get a consumer loan with just a passport. You must submit an application for a loan online (credits-1.ru) with a full package of documents. It would be wise to stock up on other documents for the trip that may suddenly be needed, because the attitude towards Russians in Europe is becoming more wary day by day.

The best guarantee of your successful actions would be a guarantee from the employer if this company is well known outside the Russian Federation. Considering also that our Russian banks are simple divisions of global financial corporations, you also need to have a positive credit history with them.

Having applied for a loan, do not rush to leave the European country. After all, the decision to issue a loan is made at least within a week. And then, if you are lucky with the loan, you will be invited to the bank to agree on the terms and sign the agreement.

How to get a loan from a European bank without visiting the European Union

You can get a European loan without visiting Europe. No, we will have to give up hope for online negotiations! The only option for this is to turn to intermediaries or seek help from the highest financial circles in Russia. You will have to register officially with the Central Bank and the Ministry of Finance of the Russian Federation.

Instructions

Open an account in a foreign bank where you plan. To do this, you need to travel to the relevant European country and visit a bank branch. Prepare in advance with you a package of documents proving your identity and your income. A guarantee from a reputable company, individual or credit institution will also not hurt. The fact is that in European countries they treat Russian citizens with suspicion, therefore, without having anything with you other than a passport, you are unlikely to be able to advance beyond a simple conversation. It must be remembered that most banks require you to sign the contract in Latin, so think about this option in advance.

Contact a consulting company if you are unable to visit the bank's country yourself. They will help you draw up an application and fill out a questionnaire, after which they will act as an intermediary in opening an account. These services are quite expensive, so check the prices of consulting firms in advance.

Start applying for a loan in Europe. Remember that it is pointless to contact the bank on your own about this, with the exception of those who already have a positive credit record with European credit institutions. Get a letter from your servicing bank that will confirm your solvency.

If you intend to take out a real estate loan, it is recommended to choose a real estate company as an intermediary, and in the case of a loan to purchase a business, contact a foreign consulting company. In this case, it is the intermediary who needs to prove your income, since the loan itself is issued for him, and you are the payer.

Submit an application for a loan in Europe, which is reviewed within a week. After a positive decision is made, you and the intermediary will be invited to the bank branch to sign a loan agreement. You can also get a loan in Russia. In this case, it will be compiled by the Ministry of Finance or the Central Bank of the Russian Federation. It is worth noting that if you apply for a loan in Europe without traveling abroad, then most likely in the end the amount of costs and interest will be comparable to the costs of Russian loans.

Sources:

• take out a loan from Europa Bank

In recent years, it has become popular to take out loans from foreign banks. The main advantage is the low interest rate, on average 4-6% per annum. The process of granting a loan abroad is the same as in our country. The bank checks the solvency of the potential borrower, evaluates the collateral, one of the terms of the contract is compulsory property insurance, and the property is registered. The interest rate will fluctuate slightly depending on the financial condition of the client.

You will need

• Passport, birth certificate, you may have to collect additional documents required by the bank, including a certificate of a source of permanent income, and fill out the provided forms.

Instructions

You can get it from a foreign bank either with the help of an intermediary or yourself. In Italy it is not so easy to get a loan; Italian banks can only provide a loan for half the value of the collateral and the client must have a residence permit. French banks are happy to lend to non-residents and their interest rates are quite attractive. Greek banks provide only to residents of the European Union, as do German, Czech and Slovak banks. Banks in Cyprus lend to everyone and are loyal to the documents provided by the borrower.
Previously, checking the borrower’s creditworthiness was purely conditional; now the processing time for applications has been slightly increased for a thorough study of the loan applicant’s documents.

For a bank, a loan is the main source of profit. A loan agreement from a foreign bank must contain a description of the procedure for selling the collateral, that is, the borrower has every right to sell the property without any approval from the bank and the buyer reissues the loan to himself. Banks give preference to clients who have recommendations from any of the local companies. The loan will be issued if the selected bank believes that you will repay the entire amount with interest without complications. Banks are not interested in clients who may have difficulty making payments, since then they will have to resell the collateral.

note

A down payment of 10 to 30% of the loan amount is required. You must have a good credit history with banks in your country. If in our banks it is not customary to adapt to the client, then abroad the bank may make concessions. Additional costs may arise for consideration of the application, assessment of the collateral, and execution of the contract.

Helpful advice

Foreign banks welcome the presence of an employment contract in the country where the loan is issued.

The fact that in Russian banks the interest rate for receiving loan 20% more than in foreign countries has long been known to everyone. Therefore, recently, more and more often, Russians are beginning to borrow money from foreign banks.

You will need

• documents required by the bank

Instructions

Especially often, funds are borrowed for the purchase of real estate. Firstly, prices abroad are much lower than in our country. Secondly, their percentage fluctuates around 5%. Experts note that the scheme for obtaining a loan abroad is exactly the same as in Russia. First you need to write an application for the issuance of money.

Next, collect the documents. The standard package for issuing a loan includes an identity card, a personal account statement, information about income received, information about what property the borrower owns. Information about family composition may also be required.

All documents must be delivered to the bank. The easiest way to do this is by registered mail or send papers via express delivery services. Don't forget to get confirmation from the bank that they have received your documents.

Then all you have to do is wait. A bank may refuse to issue you a loan, just like a Russian bank, without explanation. But if it is approved, and the property has already been selected, then completing all the necessary papers will take about 10 days.

The period for which it is issued is usually 10-15 years, and the down payment can be somewhere in the range of 30%. There are also advantages to lending abroad. The client, in agreement with the bank, can change some of the terms of the transaction. In Russia this is impossible - the entire agreement must be strictly observed. In addition, for border It is not prohibited to put up a house that is pledged to the bank for sale. They even have a separate category for home sales called "mortgage sales."

Remember that there are also disadvantages when applying for a loan abroad. Not all countries are ready to issue funds to non-residents of their country and non-members of the European Union. You need to take this fact into account when selecting the country in which you want to purchase real estate and borrow money.

Helpful advice

To avoid having to send any necessary documents several times, it is better to find out in advance either on the bank’s website or by calling employees what exactly is needed to apply for a loan.

The average loan interest rate for Europe is 4-5% per annum, which is at least three times more profitable than similar offers from Russian banks. Mortgage lending is the most popular among non-resident borrowers. But where are mortgages issued to Russians and how realistic is it to get one?

Instructions

In a number of European countries, home loans. These include Switzerland, Bulgaria, Montenegro, Romania. It is extremely problematic to register in England, Italy, Austria. Although credit in these countries is accessible and theoretically possible, the requirements for Russian borrowers are extremely stringent, so in practice it will be very difficult to obtain bank approval.

The opportunity in some countries depends on the region in which you plan to purchase property. For example, in France, mortgages for Russians apply mainly to real estate in the south of the country and Paris. A similar restriction applies in Turkey, where only large cities in the country are eligible for mortgage lending.