Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Mar 31, 2021

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Summary

  • If you’re having trouble securing a loan from a lending institution in your own country, you may want to consider lenders in other countries
  • You can get loans from lenders in other countries, but you need to understand the laws that govern loans in that country
  • You should also be careful about exchange rates because this can greatly affect your repayment of the loan as well

Taking out a loan from a foreign country might be the only option you have to get a solid loan. Whether you need to know how to get a loan for an overseas property or learn more about overseas loans for business purposes, this post will cover some of the critical information you need to know.

The best advice you can get on the subject of foreign loans is to take your time. Don’t rush into an agreement that you don’t understand. This could end up costing you a lot of money in the long-run. Be sure you familiarize yourself with the laws on loans in the country you are borrowing from and the exchange rate to the American dollar.

As long as you take the time to prepare, taking out a loan from a foreign country can be a great source of alternative funding. If you’re ready to compare loans from foreign countries, enter your ZIP code above.

How can I get a loan from an overseas lender?

To get a business or personal loan from an overseas lender, you need to apply for a lending institution loan. What is great about most overseas lenders is that they will not ask you for guarantors, collateral, or even private credit information.

Plus, since interest rates differ from country to country, you will likely be able to find a loan with favorable interest rates too. However, since there are so many options available to consumers, you will want to thoroughly investigate all of your options before entering any agreement.

You need to understand the laws that will apply to your loan, the terms of your loan agreement, and the current exchange rate. You don’t want to enter into a lousy arrangement that will end up costing you more money than you anticipate. Do your homework and take your time choosing lenders.

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What types of loans are available from overseas lenders?

A whole host of loan options are available from overseas lenders. You can get student loans, personal loans, business loans, import and export loans, and many more. Many global lenders are trying to attract foreign customers. Therefore they offer excellent terms and reasonable rates.

For example, the International Trade Administration has many resources available to help businesses find foreign lenders for their business loans. Many people don’t realize that they can get loans from other countries or that foreign lenders offer many of the same loan options that American lenders offer.

How easy is it to get a loan from an overseas lender?

Do you have a computer? You can apply for overseas loans online if you want to. Applying for and getting a loan from a foreign country is a lot easier than most people imagine.

We’ve already told you that a lot of the credit information that American lenders want to look at, such as guarantors, credit score, etc., are not considered by overseas lenders. The loan approval process from an overseas lender typically moves faster due to less information to consider.

If you’re looking to get a loan quickly, borrowing from a foreign lender may be the option you want to consider. You do need to be careful, though. Moving fast is how mistakes are made. Once again, make sure you take the time to understand what you agree to and the other factors that will affect your loan.

Are there many options for overseas loans?

There are a ton of different banks and lending institutions overseas that you can choose to borrow from. The wide array of options also presents an opportunity to make a bad decision too, though.

You won’t be restricted by country when it comes to loan options. Globally, there are many potential lenders you can get a loan from, but this makes it all the more important to truly research and understand your lender before you enter into an agreement with them.

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How risky is it to get a loan from a foreign lender?

The most significant risk is choosing the wrong lender to work with. Most people don’t apply for foreign loans unless they have bad credit because it is hard to be sure of who you are borrowing from.

When you choose to work with a domestic lender, you can contact them easily, you can visit their office, and you understand the laws of your own country. Borrowing from foreign lenders can be risky because you can’t easily visit their office, you might not even speak the same language, and the laws are different.

If you take the time to do your homework and thoroughly research your lender, your loan terms, and all of the other factors associated with loans, you won’t be taking on that much risk.

Taking Out a Loan From a Foreign Country: The Bottom Line

Looking overseas for a business, personal, or other loan types might be the best option available to you. Foreign loans don’t require as much credit background information, and these loans are perfect for people with bad credit scores.

If you’re struggling to get a loan from a domestic lender, you might want to look overseas for a loan. Just make sure you take the time to understand your loan’s terms, the laws of the country you are borrowing from, the exchange rate, and other vital details that will affect your loan.

If you’re ready to compare loans from foreign countries, enter your ZIP code below.