Personal Loans for Non-US Citizens
If you thought getting a loan as a non-US citizen was impossible, then you’ve got another thing coming.
Moving into the US can prove expensive. And, getting your way around the financial system can prove even harder.
So what do you do when you need to buy air tickets, pay for medical bills, or just sustain yourself? Personal loans for non-US citizens can prove helpful. What are they? Can you qualify? Stick here for more.
- Representative APR %
- Highest Loan Amount
Stilt
- 7.99% to 15.99%
- $2,500
SoFi
- 9.95% – 35.99
- $35,000
LendingClub
- 10.68% to 35.89%
- $5,000
- APR range
- Fees
- Terms
- Amounth
- Unemployment protection
Bank 1
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Bank 2
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Bank 3
- 6.95%–35.89%
- Up to 5% transfer fee
- 3–5 years
- $1,000–$40,000
- No
Table of Contents
Can you get a personal loan as a Non-US citizen?
Yes, most of which come after a fairly long process but it’s all worth the effort. The process will also involve lots of paperwork.
Please note that you’re only more likely to access these loans if you intend to stay in the US three years after getting the loan.
Lenders will check if you are a legal US resident. That entails checking if your Visa is valid and the possibility of renewal if it’s one that expires soon.
Different banks will check on different things before they offer you a loan. Please note that the decision of whether or not to offer you a loan solely lies on the bank. As such, the bank will put in measures they feel are appropriate to determine if you should get a loan.
Lenders will check if you are a legal US resident. That entails checking if your Visa is valid and the possibility of renewal if it’s one that expires soon.
Requirements to qualify
Just like in other loans, requirements vary from one lender to another. However, the universal requirements are;
- You must have a valid US visa
- You should show an intention to live in the US for at least 3 years after taking the loan
- Proof of income
- Employment authorization form
Other factors such as your credit history will also determine whether or not you’re offered a loan.
Other lenders may decide to deny you a loan. Such lenders consider lending a non-US resident risky since you might decide to leave the country before repaying your loan. And, that’s a risk they may not want to take.
However, there are still other lenders who’ll be ready to offer you a loan.
Types of personal loans for no-residents in the U.S
As a non-resident, the following types of loans can help cushion you through your stay. You can use them for all sorts of payments including rent, food, and other basics.
If you intend to stay longer in the US, you can also use them to build a good credit profile so you can access even better loan products.
Unsecured personal loans
You don’t need any collateral to apply for unsecured personal loans. That makes them easier, and safer to apply.
They are also highly versatile. You can use them to buy household items, pay rent, offset medical bills, or take care of any personal expenses.
However, they are known to carry fairly higher interest rates. The maximum you can borrow for this type of loan is $100,000.
Secured loans
These are the exact opposite of unsecured loans. For secured loans, you use your property as your collateral. That can be your home, car, or any other assets.
The property acts as security to the lender so when you are unable to pay back the loan, the lender sells it to recover the money.
Installment loans
In these types of loans, repayments are scheduled and equally spread for weekly or monthly payments.
It’s easier to build a good credit report with installment loans since the lender updates your profile every time you make payments.
Their flexibility of payment is what makes them stand out. You’ll have lots of time to repay your loan.
However, they often attract higher interest rates compared to payday loans.
Payday loans
These are typically small sums of money. You can borrow from $50 to $1000.
You can borrow these if you have a bad credit report. They carry very high-interest rates and their repayment mostly ranges between 2 to 4 weeks.
What Do You Need to Know
Here’s a quick summary of the basic things you should know about personal loans for non-US citizens;
- Versatility: personal loans for non-US residents don’t have a specific use. You can use them to pay your rent, buy air tickets, and cover other transport costs, pay medical bills, or sponsor a vacation.
- Interest rates: different non-resident loans come with different interest rates. Payday loans carry the highest interest rates. The same is with unsecured personal and installment loans. Secured loans, however, carry lower interest rates compared to the other three.
- Repayment terms: Payday loans have a repayment period of mostly 2 to 4 weeks. They can either be paid all at once or in bits. However, the other personal loans for non-US citizens have repayment periods of up to three years and longer depending on your agreement with the lender.
- Guarantees: You won’t need a guarantor when applying for payday loans. The same case is with secured loans since you already have collateral. However, for unsecured loans, you may need one. The guarantor agrees to take responsibility for your loan should you fail to repay. Having a guarantee may also unlock better loan terms.
- Qualification criteria: Different lenders will consider different factors before offering you a loan. However, personal loans for non-US residents are only available to individuals with valid US visas.
As you find a suitable lender, be sure to check out the terms of their loans and ensure you’re comfortable with them before applying.
Also, check out their interest rates. Only go for payday loans if you have an urgent need for cash and are sure to repay within the agreed timeframe.
As you find a suitable lender, be sure to check out the terms of their loans and ensure you’re comfortable with them before applying.
How much can you borrow?
Personal loans for non-US citizens range from $100 to $100,000.
For payday loans, the highest most of them can go is $1000 with a repayment of up to 4 weeks and a fairly high-interest rate.
Unsecured, secured, and installment loans can fetch up to $100,000. Their repayment terms are also more flexible.
The most effective way to qualify for higher loans would be to improve your credit score. That entails repaying other debts on time and being financially disciplined to avoid falling into a recurrent debt cycle.
Alternatively, you can get a co-signer with a stellar credit score to guarantee your loan.
You should also consider borrowing from institutions meant especially for immigrants. They are more likely to have better loan terms. They also understand immigrant challenges and therefore will be more lenient in such matters as credit scores.
But all this boils down to the need to find a financial institution with better loan products and terms.
How To Source The Best Personal Loans For Non-Residents
Loans will come in handy in sorting out your financial needs. However, choosing the right loan product is crucial. Here are some of the things you should consider;
- Interest rates: Shop around for loans with lower interest rates. Loans with low-interest rates but high fees aren’t desirable. Go for ones with moderate interest rates and lower fees.
- Loan terms: Here you’ll choose between long-term and short-term personal loans for non-US citizens. While long-term loans often carry lower monthly repayments, they often carry high-interest rates.
- Monthly repayments: Varied personal loans for non-US residents like payday loans often have low repayment rates. However, their interest rates are usually high and they come with high costs, too.
Can I get a loan without a U.S Credit History?
Navigating the loan systems can be hard, especially for non-residents. Most institutions will require that you have a 2-year credit history and stellar credit score.
However, you can still get a loan without a credit history. Here’s how to get around it;
- Get a co-signer: Get somebody with a good income and good credit score to co-sign for you. they’ll be responsible for repaying your loan should you be unable to.
- Find a lender accepting ITIN: Instead of SSN, find an institution accepting ITIN (Individual Taxpayer Identification) number as a method of identification. The number is an assurance to the lender that you are a taxpayer and you’ll pay back your loan.
- Borrow from lenders meant for immigrants: Like earlier mentioned, such lenders are likely to offer better terms and will easily offer you alone.
- Verify your credit status from another country: this might require lots of paperwork but mostly works. The best time to do it is before moving to the US.
Frequently Asked Questions (FAQ)
You can borrow up to $100,000 for most long-term and even higher for mortgages.
Yes. Depending on the lender, you can choose to verify your credit history from another country, use your ITIN number, or get a co-signer.
Yes. Several lenders are willing to offer you loans. The most common ones are secured, unsecured, payday, and installment loans.
Yes. Several institutions are willing to finance your education. The easiest way would be to get a co-signer.
Yes. However, you’ll need to provide such documents as a valid visa, proof of income, Valid SSN, and good credit history.
