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Korean banks are stingy with foreigners. They like it when foreigners deposit money in banks, but they refuse when they try to borrow money. Nevertheless, if you look carefully, you can find that some banks provide loan services to foreigners. Let’s find out which banks provide which loan services?
Jeonbuk Bank JB Bravo Korea Loan
Jeonbuk Bank JB Bravo Korea Loan is a representative loan product exclusively for foreigners that provides living funds to foreigners. This is a credit loan that does not require collateral. Different conditions and benefits are provided to foreigners depending on their status of stay. Jeonbuk Bank is a financial company belonging to the second financial sector.
*Target customers: Foreigners who hold visas such as E-9, F-4, F-5, F-6, E-7, F-2, H-2, etc. and have an annual income of 15 million won or more can receive a loan. there is. Each visa type has different standards, so please contact your bank for details.
*Loan limit: minimum 1 million won ~ maximum 40 million won
*Loan interest rate: minimum 10.24% per year ~ maximum 15% per year
*Inquiries: 031-223-7284 www.jbbank.co.kr
IM Capital Credit Loan for Foreign Workers
IM Capital is the renamed name of DGB Capital. This is a credit loan product targeting foreign workers. IM Capital is a financial company in the third financial sector.
*Target customers: Foreign workers residing in Korea who have obtained an E-7, E-9, F-2, F-5, or F-6 visa
*Loan limit: minimum 5 million won ~ maximum 30 million won
*Loan interest: undisclosed
*Inquiries: 1566-0050 www.imcap.co.kr/personal/frgnProdGuide.do
First-tier financial sector banks’ foreign rental loans
First-tier financial companies such as Kookmin Bank, Shinhan Bank, and Hana Bank do not provide credit loans to foreigners. Instead, we provide jeonse loans that can secure jeonse collateral.
*Target customers: Foreigners who can provide proof of income and want to rent a house in Korea
*Loan method: Sign a housing lease contract through a real estate agency in Korea, pay at least 5% of the rental deposit, and then apply to the bank. (Need to consult with the bank in advance)
*Target houses: apartments, townhouses, multi-family houses, officetels, etc. (excluding single-family houses and multi-family houses)
*Loan limit: Up to KRW 200 million, up to 80% of the rental deposit (Seoul Guarantee Insurance required)
Why banks are not good at lending to foreigners
In fact, there is a reason why banks do not lend well to foreigners.
When a bank lends money, it looks at the person's credit, but since it does not have credit information on the foreigner, it cannot lend. This credit information is accumulated by banks through dealing with people over decades.
If a foreigner came to Korea at the age of 20, graduated from college, and worked steadily for more than 10 years, banks would have secured some credit information about that foreigner. So there is a high possibility that a loan will be granted to that foreigner.
The reason why first-tier financial companies do not provide credit loans to foreigners
If a bank lends a loan to a foreigner, what are the chances of not receiving the money? If you listen to a bank official, it is said that the loan delinquency rate for Koreans is around 1%. On the other hand, the loan delinquency rate for foreigners exceeds 4%. Because the delinquency rate is high, banks that provide credit loans to foreigners charge higher interest rates.
Banks belonging to the first financial sector, whose names we easily recognize, are earning enormous profits every year. Therefore, we do not feel the need to provide loan services to foreigners with high delinquency rates. Transacting with a first-tier financial bank is advantageous in many ways for customers.
In addition, among the third-tier financial institutions, Daishin Savings Bank provides credit loans to foreigners.
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