It is always challenging to avail of financial support when you are a migrant to another country. You are starting a new life in a totally different environment, for which you need an ideal plan in terms of the money matter. While you migrate to Japan as a foreigner, getting a loan may be your need sometimes, which is not impossible. In this article, we will discuss a few aspects to know about getting a loan for foreigners in Japan and the prerequisites for the same.
Kavan Choksiabout foreign nationals’ loans in Japan
As we discussed above, it is possible to get a loan in Japan for foreigners, but there are many prerequisites to be met before the get-go. Here, カヴァン・チョクシ will explain the available foreign loans in Japan.
Usually, there is a possibility for foreigners to avail of different types of loans like mortgage loans, personal loans, vehicle loans, etc., as in the case of the citizen. However, the procedures to avail of a loan may differ. As an overview of the lenders, we can see that there are three major types of financial assistance providers in Japan:
- Traditional banks and financial institutions
- Consumer credit firms
- P2P lending
It is always the best option to get a loan from the traditional banks if possible. Being a foreigner, you need to check if you qualify with their set of requirements to apply for a personal loan with a bank. Usually, the eligibility criterion for the foreigners to get traditional bank loans in Japan are:
- The foreign national should have a valid permanent or temporary visa.
- It is easier for foreign nationals who are married to a Japanese native.
- Special adoption children can get a bank loan.
- Someone who is born in a foreign nation, but if the birthplace is Japan.
Mortgage loans may have the lowest interest rates, but strict restrictions and regulations could be associated with those. Banks and other institutions offer these loans for buying a property or house. Mortgages in Japan are available for foreign nationals also if they meet the eligibility criteria, which differs for various institutions. These loans will be tied to your home, and the mortgages also have risks like foreclosure if you default on the monthly payments, etc.
Many people migrate to Japan for their higher studies from different parts of the world. The student loans are meant to support the students and families to cope with the cost associated with higher levels of education. There are government-funded loans and also student loans by private financial institutions and banks available in Japan. These also have lower interest rates and more relaxed repayment terms compared to other loans.
Along with these, many other institutions and lenders also specialize in foreign loans in Japan. カヴァン・チョクシ suggests that foreign borrowers explore as many options as possible when in need of borrowing money in Japan and choose the best mode of financing with easier and relaxed terms.