Can A Foreigner Get A Loan In The Philippines?

Can a foreigner get a bank loan in the Philippines? Is it possible for a foreigner to get a loan with many leading banks across the Philippines? However, there are more strict requirements, such as guarantors and additional financial requirements.

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What Are The Requirements For Foreigners Applying For A Bank Loan In The Philippines?

Every bank has a slightly different policy when it comes to offering a loan to foreigners. Below is a list of requirements most mainstream banks tend to ask for

Residential / Non immigration visa
Married to a Filipino citizen
Working / Own a business in the Philippines

Guarantor
Meets minimum financial requirement

You won’t necessarily need to meet all these requirements, but the more you can meet, the better your application is. To ensure the information is up to date, you can visit the bank’s requirement page here with BDO, Security Bank, Metro Bank, China Bank & others.

Are There Any Tips For Foreigners Applying For A Bank Loan In The Philippines?

Being with a Filipino will make things 1000 times easier. If you don’t have a partner, this could either be a friend of your real estate agent. These agents can often work with the bank to match you with a suitable loan for your real estate or other investment.

Another thing you could do to help with your application is to build a relationship with your bank. When I first started investing in real estate, I opened a security bank and BDO checking account. I was able to have a meeting with the bank manager and my real estate agent/broker. This cleared many things up, and as they saw, I started putting regular money into my account with them. This built their trust in me to repay my loan.

Please note, Some banks won’t allow foreigners to open up a standard bank account until they have been in the Philippines for more than six months and possess a valid ACR card.

If you are unmarried, this can be a little more difficult; however, it is still possible. If you have a permanent visa (Not just an ACR card) or a local business, this can be enough for most mainstream banks to accept. In my finding, I noticed that some branches were stricter than others. When I wanted to open a security bank, I was told I couldn’t… I took the jeepney downtown and went into another security bank branch, and within an hour, I had an account.

The best two banks I’d recommend are Security-Bank & BDO. This is because, through my months of research and continuous calls, I found more foreign-friendly banks.

Does your bank back home have a branch in the Philippines? For instance, HSBC is known as the world’s local bank, so if you are with HSBC or another international bank, the approval can also be much more straightforward.

The chances you are reading this article may indicate you cannot get a loan back in your country of birth. If you can get a loan, then I’d suggest a loan in your home country rather than in the Philippines as often these have a much cheaper interest rate.

If this is a joint loan with a Filipino, then the process is often far more straightforward than applying for your loan.

As a final note, I’d endorse keeping your options open with other banks and looking into other loan providers until you get an official contract, as the words can be broken.

How Can A Foreigner Get A Loan In The Philippines?

If you ask, can a foreigner get a bank loan in the Philippines, then you most likely want to know how you can start? You can start by visiting your chosen bank and opening a standard checking (or saving) account. This will help build your relationships with the bank. Most banks have free approval and repayment prediction on their websites, which you can use to see if you are qualified. However, most of these do not factor in ex-pats, so you may need to contact the bank personally to arrange a meeting after checking their website for pre-approval.

Once you have all the requirements and fill in the application form, the turnaround time is relatively quick. I found this to be anywhere from a few days to a few weeks.

Can A Foreigner Get A Loan In The Philippines: Extra Information

One thing you may notice is that a foreigner will pay higher interest than a Filipino! This is not advertised on their website or most places on the internet but is true. When I had a meeting with BDO bank in Davao city, I was told by the manager that he could offer me a loan, but instead of the normal percentage, it would be around 3% higher because I’m more of a risk as a foreigner.

This would have eaten away at my profits, Luckily, I didn’t buy any real estate, so I didn’t lose any money. That is why it is so essential to find out these things before making a financial investment.

I spoke to a few other ex-pats during my time here, and some of them have confirmed they also needed to pay a higher interest rate compared to Filipinos when applying for housing loans. Even though I have not had this verified, it’s worth mentioning those foreigners applying for a loan in the Philippines.

Another point to mention is if a foreigner has a business in the Philippines, then they can, in theory, put a property loan on their business account, which may be a way of getting around a personal loan hurdle. A lawyer told me this process, but some tax implications may be considered first.

Expat Loan In The Philippines: Takeaway

Financial loans in the Philippines are getting easier for foreigners to invest in as the year’s pass. However, many foreigners invest using money from back home or their accounts. With this being said, it is quite possible that this is not a big market for the Philippines mainstream banks in time, so improvement may not be a priority.

The longer you have been here and the more ties you have are often a significant advantage when it comes to getting approval for real estate loans. As you know, it’s not always what you know but who you know in life. If you can make a good connection, this would have a significant impact on your application. Can A Foreigner Get A Bank Loan In The Philippines.