Loans for foreign residents in Taiwan

The banks here do zero risk analysis. A long term resident here is treated as equal to a kid getting off the plane. APRC holders are also discriminated against. Doesn’t happen in Japan, HK, or Singapore.

But they have no problem giving tons of credit to unemployed students to get them in debt

8 Likes

No they DO give loans to resident foreigners.

House loans and also company backed loans for company owners. If you are fortunate and have collateral and good credit etc.

They do not give personal loans, the common ones from 500k to 2 million NTD max, at least so far I’m coming up against a brick wall.

Someone told me in Taiwan personal loans are really hard to get, even for a Taiwanese.

Seems banks here prefer to give loans for something they can easily repossess if you default, like house, maybe cars. He said I could spend 2 million NTD on a CNC machine and easily get a loan because they can repossess them if you default.

Yeah. They do give loans.
I was told once that the form of collateral they took was a HOUSE.

A multi-hundred-thousand Western Dollar freaking house for a $10000 business startup loan, something that could be paid back in a few of years even by the poorest in Taiwan.

If you can get a loan, you probably don’t need one. This is the single biggest thing holding back Taiwan’s social mobility IMO.

Wanna borrow my dog collar and leash?

2 Likes

Update: ONE bank has said they will offer me a personal loan and sent me the application docs knowing that I’m a foreigner. Chinatrust. :sunglasses:
There’s no law or regulation against giving foreigners personal loans . It’s the banking culture here.

Now I haven’t applied for the loan yet because I’m evaluating the conditions and interest rate, I will keep folks posted. Personal loans seem to be limited to 2 million NTD here which is helpful but still a bit on the low side for what I intend to borrow. The final rate will be calculated later , I think it could be around 4% not sure.

Some banking reps mentioned you shouldn’t approach multiple banks as they will record that and rate your credit risk higher…Not sure is that total BS or not ?

We also checked with the landbank , they give Loans
against land or property collateral (could use some farmland as collateral) but there needs to be a defined purpise such as fixing up your house and they will check supposedly that you use the funds for that.

If you work for a large public company supposedly you as a foreigners may also be able to get a loan here or preferential rate, I work for a large international org but not a local public company so no use .

Mostly the bankers are lazy, they want to know if you have property in the big cities to use as collateral , if you don’t they are just not very arsed at all cos it involves them actually having to calculate your credit risk.

PS On a separate note banks do give mortgages to foreigners but they will be looking for collateral and often/possibly always a local cosigner. Without collateral you wont get those Low rates.

2 Likes

If you apply I’ll be interested in the results. I asked China trust about 3 years ago after holding their credit card for the previous 3 years. They made a call to someone one and was told no loans for foreigners but they offered to cash advance my credit card for the amount. How generous they were, at the cards 15% interest rate, only a moron would do that

1 Like

This is a great reason to invest in annuities early. Most of them allow you to borrow against them for almost no interest and pay them back however you’d like.

To be fair, they probably would like to keep their jobs.

Ok that may be true but I’m looking for a personal loan from the bank here. Or at least check if it’s feasible and accessible.
I have plenty of cash and income it’s access to credit that’s my problem.

I’m saying that if you put money into annuities early and need a few million you can just borrow against those. No need for a bank loan. Getting a loan without lots of collateral or a co-signed will be almost impossible.

How about back home? Can you secure a loan there?

I would hazard to say most banks won’t loan to a non resident in any country. Unlikely a home country bank would want to give money to a person who doesn’t live there

This definitely grinds my gears. This is exactly why credit unions were formed in North America. I wonder how one would go about setting one up in Taiwan? (Or if it is even possible?)

Dam i wanted to buy a fishing boat :sunglasses:

does this help?

Credit Union Act

1 Like

Interesting. Upon initial purusal, it almost looks possible.

This one may be almost bank.


The Credit Cooperatives Act Of The Republic Of China

Article 13
Shares of a credit union shall be a value of one hundred dollars (NT$100) each; the total value of shares held by any member shall not exceed ten percent (10%) of the total share balance of the credit union.
Money paid in on shares is as the saving and also the obligation as a member.

It doesn’t say foreigners cannot set one up, so maybe with 10 members, you can start it?

Correction: you need 50 members.

2 Likes

I don’t think it would be very hard to find 50 members. The issue would be finding the capital (investors?) to back it, if that works.

1 Like

My home is here where I have lived and worked for decades .
I could possibly get a loan in other home country (in fact the banks even supposedly have a service for overseas compatriots such as myself, living in Taiwan may definitely omplicate it though ) but I want to get one here.in Taiwan first, mainly because interest rates can be very low in Taiwan and obviously because I live and work here .