Can You Get an International Personal Loan?

The internet has made it easy to get a loan anytime, without leaving your house. You don't even have to limit your search to lenders in your immediate area. But you may have assumed until recently that you had to choose a lender in the same country. That actually isn't the case. Although they come with higher risks, you can get fast turnaround on a personal loan from lenders on the other side of the globe.

Can You Get an International Personal Loan?
Image Credit: structuresxx/iStock/GettyImages

Overseas Personal Loan

If you're located in the U.S. but interested in taking out a loan from a financial institution in another country, it's important to enter with skepticism. An overseas financial institution would have a difficult time legally getting the money if you defaulted on the loan, so it isn't in their best interest to lend it to you. One exception would be a payday loan, where your upcoming paycheck is used as collateral on the amount you borrow. Whether located in the U.S. or overseas, payday loan companies advertise their offerings directly to those with bad credit, promising a better chance of getting approved. As many learn, though, payday loan companies charge much higher interest than you'd pay for other types of personal loans.

While Traveling

If you're traveling to another country for an extended period, you may be interested in getting a loan outside the U.S. for that reason. In actuality, though, unless you're interested in relocating to that area, you'll have an easier time getting a loan from a U.S. bank. You can apply online and have the money dropped into your account, as long as you have the necessary credentials. You might encounter problems with not having a U.S. address if you've relocated, but if you have a U.S. bank account and your employer is based in the U.S., that could help. If a traditional lender turns you down and you'll be staying in another country for a while, check into payday loan services there, especially if your employer is based in that area.

Exercise Caution

Although you'll find many places advertising payday loan services to U.S.-based customers, it's important to be careful. They may promise you a lower interest rate than you can find with similar lenders in your own country, but there could be a catch. You'll be handing over essential personal information to the lender you choose to trust. Before doing so, thoroughly research the company and, if in doubt, don't act. Even if the payday loan company is reputable, can you be sure they'll responsibly store your sensitive information, such as your bank account information and Social Security number? If an international lender has contacted you and seems on the shady side, get in touch with your state banking regulator or your state's attorney general.

references