How to get a loan in Europe for Russian citizens in 2021. Which countries have the most favorable conditions and interest rates for obtaining a loan. Preparation of necessary documents for loan processing.
People who buy real estate on credit in one of the European countries are surprised by low loan rates and more favorable mortgage conditions. In the post-Soviet countries, prices for housing or consumer loans are very high, which discourages potential borrowers from banking structures.
Financial analysts say that this situation arose due to the low level of competition in the field of bank lending. There is a rather paradoxical state of affairs: there is a high demand and a constant increase in loans, which develops in conditions of insignificant saturation of the lending market.
Groups of loans from European banks
The most popular and popular type of obtaining a loan from a bank is a mortgage loan. Foreigners should take into account that it is possible to take money from the bank if the cost of the purchased house is high. Banks believe that this is the best protection against financial losses and risks.
The mortgage provides that a person must make a down payment, the amount of which is determined individually for each client. On average, the amount of this contribution is 30-60% of the cost of an apartment or house. Interest rates are not very high and range from 4 to 6%.
You can only get a consumer loan for residents of a particular country. Payout rates are already rising slightly, sometimes reaching 10%. The average interest rate in many countries of the world is 7-8%. But to do this, a person must have a good credit history, own real estate or own a business.
A business loan can be obtained by visitors from other countries who want to start their own business in a European country. Such a desire is welcome, since a person creates new jobs, pays wages and taxes, and develops the economy of the city and a particular region. To formalize this type of lending, you need to develop an effective business plan, coordinate its positions with specialists-an accountant, lawyer and manager, and then show it to bank employees.
Countries with low mortgage rates
Foreigners apply to European banks for either mortgage or consumer loans. Credit conditions for foreigners and citizens of European countries differ. For the latter, there are more favorable rates and tariffs. For foreigners, a consumer or housing loan is available if they belong to one of the following categories of bank clients::
The list of countries that have the lowest interest rates and favorable credit conditions includes:
In order to get a loan in Luxembourg or Germany, borrowers must submit the following types of documents to the bank:
Such data is needed to understand whether the client can pay off the mortgage loan every month. On average, the monthly contribution is 35% of a person's income level.
A loan in Europe provides for the deposit of 35-40% of the initial amount, which is calculated based on the value of the property. Mortgage interest rates in European countries may look like this:
Israel and Cyprus are "open" to residents of the former Soviet Union. Getting a mortgage on an island nation is easy. Here, a large number of properties purchased by foreigners are purchased through a mortgage, which is issued in one of the Cypriot banks.
Prices for real estate in Cyprus can be found on our website.
In Israel, Russians have to pay only 1.5% a year for making mortgage loans.
Features of consumer credit
This type of loan at low interest rates is much easier to get than a mortgage. To do this, you need to apply abroad to one of the banks, collecting a package of documents. The main thing that a foreigner should do is to prove their own solvency. Otherwise, no one will issue the loan. An important aspect is the presence of a guarantee. You can get it from one of the large companies or corporations, a credit or financial institution.
In addition to the fact that there are low lending rates in Europe, there are other significant nuances that foreigners need to take into account. These include the following factors:
People consider the possibility of obtaining mortgages and consumer loans as an opportunity to solve the housing problem, to buy the necessary things in the house, means of transportation. And they do not think that getting a loan from a bank is something risky or shameful. At the same time, people open several loans, both short-term consumer loans and long-term loans for 25-30 years.
The main obstacle to lending to foreigners in Europe is the lack of evidence of their solvency. There are several ways to solve this problem:
If you use one of these methods, the chance of getting a loan will increase several times. Only for foreign clients, European banks raise their loan rates, but only by 1-2%, up to a maximum of 3%.
What documents will you need
To obtain a mortgage or consumer loan, you must submit the following documents:
We recommend you to watch a video about getting loans from European banks.
Thus, you can apply for a loan in one of the European countries if you meet a number of conditions and requirements. Low interest rates must be supported by real reasons for granting a loan, so there is a strict procedure for obtaining money to buy a house or household appliances.
People who buy real estate on credit in one of the European countries are surprised by low loan rates and more favorable mortgage conditions. In the post-Soviet countries, prices for housing or consumer loans are very high, which discourages potential borrowers from banking structures.
Financial analysts say that this situation arose due to the low level of competition in the field of bank lending. There is a rather paradoxical state of affairs: there is a high demand and a constant increase in loans, which develops in conditions of insignificant saturation of the lending market.
Groups of loans from European banks
The most popular and popular type of obtaining a loan from a bank is a mortgage loan. Foreigners should take into account that it is possible to take money from the bank if the cost of the purchased house is high. Banks believe that this is the best protection against financial losses and risks.
The mortgage provides that a person must make a down payment, the amount of which is determined individually for each client. On average, the amount of this contribution is 30-60% of the cost of an apartment or house. Interest rates are not very high and range from 4 to 6%.
You can only get a consumer loan for residents of a particular country. Payout rates are already rising slightly, sometimes reaching 10%. The average interest rate in many countries of the world is 7-8%. But to do this, a person must have a good credit history, own real estate or own a business.
A business loan can be obtained by visitors from other countries who want to start their own business in a European country. Such a desire is welcome, since a person creates new jobs, pays wages and taxes, and develops the economy of the city and a particular region. To formalize this type of lending, you need to develop an effective business plan, coordinate its positions with specialists-an accountant, lawyer and manager, and then show it to bank employees.
Countries with low mortgage rates
Foreigners apply to European banks for either mortgage or consumer loans. Credit conditions for foreigners and citizens of European countries differ. For the latter, there are more favorable rates and tariffs. For foreigners, a consumer or housing loan is available if they belong to one of the following categories of bank clients::
- Having a permanent or temporary residence permit. Where it is better to get a residence permit in Europe can be found here.
- Legal residence in one of the European countries.
- Conducting business activities.
- Study at one of the higher educational institutions. Check out the rating of the quality of education in the countries of the world on our website.
The list of countries that have the lowest interest rates and favorable credit conditions includes:
- Germany;
- Luxembourg;
- Finland;
- Sweden;
- Slovakia.
In order to get a loan in Luxembourg or Germany, borrowers must submit the following types of documents to the bank:
- Information about the client's expenses and income. The salary level for applying for a loan must exceed 20 thousand euros per year.
- Statement of rent.
- Help from the bank, if there are other loans, or the person applied for such assistance to the bank earlier.
- Information about the property that a person wants to purchase on credit.
Such data is needed to understand whether the client can pay off the mortgage loan every month. On average, the monthly contribution is 35% of a person's income level.
A loan in Europe provides for the deposit of 35-40% of the initial amount, which is calculated based on the value of the property. Mortgage interest rates in European countries may look like this:
- In the UK – 2%.
- Spain – 3%.
- Italy – 3.5%.
- In France-2%.
Israel and Cyprus are "open" to residents of the former Soviet Union. Getting a mortgage on an island nation is easy. Here, a large number of properties purchased by foreigners are purchased through a mortgage, which is issued in one of the Cypriot banks.
Prices for real estate in Cyprus can be found on our website.
In Israel, Russians have to pay only 1.5% a year for making mortgage loans.
Features of consumer credit
This type of loan at low interest rates is much easier to get than a mortgage. To do this, you need to apply abroad to one of the banks, collecting a package of documents. The main thing that a foreigner should do is to prove their own solvency. Otherwise, no one will issue the loan. An important aspect is the presence of a guarantee. You can get it from one of the large companies or corporations, a credit or financial institution.
Consulting companies help you get a consumer loan. Their services are expensive, but this investment pays off very quickly. Employees of such firms not only help to get the client money, but also negotiate with the bank, solve legal issues.
In addition to the fact that there are low lending rates in Europe, there are other significant nuances that foreigners need to take into account. These include the following factors:
- economic stability;
- high macroeconomic indicators;
- borrowers ' income level;
- people's attitude to money and financial obligations.
People consider the possibility of obtaining mortgages and consumer loans as an opportunity to solve the housing problem, to buy the necessary things in the house, means of transportation. And they do not think that getting a loan from a bank is something risky or shameful. At the same time, people open several loans, both short-term consumer loans and long-term loans for 25-30 years.
The main obstacle to lending to foreigners in Europe is the lack of evidence of their solvency. There are several ways to solve this problem:
- First, get an official job that will allow you to get a loan from a bank.
- Secondly, entrepreneurship and providing jobs to citizens of the country where the company is registered and operates. This option is considered the most optimal, since a person pays taxes to the country's budget and salaries to employees. Accordingly, such a foreigner is considered solvent.
- Third, go into business.
- Fourth, opening a bank account that a person considers as a potential lender.
- Fifth, you can buy securities or shares that will become collateral in the bank.
- Sixth, in your country of residence, you should find a consulting company that specializes in obtaining loans from foreign banks.
If you use one of these methods, the chance of getting a loan will increase several times. Only for foreign clients, European banks raise their loan rates, but only by 1-2%, up to a maximum of 3%.
What documents will you need
To obtain a mortgage or consumer loan, you must submit the following documents:
- A passport that can confirm a person's identity.
- Bank statement stating that the potential borrower has no outstanding previous loans.
- Income data – salary certificates, constituent documents on the establishment of a firm or company in a particular country.
- Any information about the property that will then be used as collateral.
- Information about the family composition.
- A document from the tax office that can confirm that a person regularly pays taxes.
- Information about the origin of income.
- A guarantee.
We recommend you to watch a video about getting loans from European banks.
Thus, you can apply for a loan in one of the European countries if you meet a number of conditions and requirements. Low interest rates must be supported by real reasons for granting a loan, so there is a strict procedure for obtaining money to buy a house or household appliances.
