Not everyone emigrates permanently. Some leave only for some time to earn a better start in a new stage of life, others feel a strong longing for family and homeland, which means that sooner or later they return to Poland. However, to return, you have to have something to do.
That is why Poles returning to Poland plan to buy an apartment or build a house but to do so, they often need a cash loan. And you are in such a situation? Check what to look for when choosing a loan in a foreign currency and what conditions to meet to get it.
Cash loan for persons working abroad
The banking services market is unfortunately not very friendly to people who earn in foreign currency. The reason for this is Recommendation S, which prevents Polish banks from lending to people earning money in a currency other than the dollar. But not everyone! The situation of compatriots who earn in dollars looks definitely the best – the banks look kinder at such cases.
Loans based on earnings abroad can be difficult to obtain due to the fact that such clients require higher creditworthiness and more detailed income documentation. This should not surprise anyone, because a cash loan for income from abroad is a very high risk for the bank.
If the borrower fails to pay such liability, the bank will have limited means of redress. What else makes cash loans for working abroad so difficult to get? Unfortunately, contrary to what most people think, high nominal earnings do not translate into high creditworthiness.
To get a loan for several hundred thousand, it must be really big. The same is true when it comes to the mortgage for people working abroad to buy an apartment.
The conditions for obtaining a cash loan for people working abroad?
Bearing in mind the fact that a cash loan for a person working abroad is granted in a foreign currency, it is based on a different interest rate than a USD loan, which generates an additional risk for the borrower, which means that banks are obliged to restrict the calculation of the customer’s creditworthiness.
Banks require a longer continuity of employment from a person working abroad and applying for a loan than for customers working in Poland. Theoretically, this period is 6 months and for some banks, it is enough to grant a loan, but there are also those which raise this threshold to 12 or even 24 months.
In the case of customers earning in a currency other than USD, a larger own contribution is required, sometimes even 40%. property values. Of course, the higher the own contribution, the smaller the amount of credit taken, and hence the lower the costs.
Documents required for a cash loan for working abroad
If you want to apply for a cash loan in a foreign currency, you must provide a number of documents and certificates. You will need:
- Employment contract or contract. The bank may require you to translate documents that a sworn translator must do (usually you don’t have to do it when the documents are in English). The required period of employment with the current employer is a minimum of 6 months.
- Identity document (passport may be required).
- Income certificate. The funds cannot come from economic activity, but they can come from a disability or old-age pension (dollars pean Union, Norway, Iceland, and Switzerland).
- List of payments to a bank account. Usually, banks have sufficient proof of payments from the last 6 months, but it happens that the selected bank asks you to provide lists from the last year.
- Tax return (foreign PIT).
- Confirmation of registration in Poland. Although not all banks expect this document, for some it appears on the list of mandatory documents.
- Credit history or report issued by the off-site Credit Information Bureau.
The form of employment has the greatest impact on the credit decision. The bank will also pay particular attention to the seniority of the current employer. The minimum required employment period is 6 months.