After the economic recession began in 2007, securing a loan has become substantially harder. When seeking out a mortgage, it is not unusual for buyers to have anywhere from 20 to 50 percent as a down payment, which is a shocking rise from the 5 percent needed just a decade ago.
Open lines of credit, car loans, mortgages and business lending are all harder to secure domestically, which is why many borrowers are turning to international loans. Here are six of the many benefits of choosing to borrow money offshore from a destination like Belize.
1. Easier Lending Requirements for Borrowers
The biggest reason to seek out an international loan rather than a domestic one is because the lending requirements may be looser. Rather than needing to supply 85 percent of the loan’s value in collateral, for example, you may be able to use future income as a guarantee.
Those who are struggling to take out a loan in their country of residence might find that looking further abroad gives them more options.
2. Lower Overhead and Management Fees
Many offshore loan destinations have lower costs of living than the United States or Western Europe. Belize, for example, is an affordable place to live, which means that their overhead and utilities costs are also much lower.
For banks and lenders in Belize like the Caye International Bank, that translates to the need for lower fees from borrowers, which saves you money and may even help you to pay back your loan in less time.
3. Choice of Foreign Currencies
Another perk of seeking out an international loan is the fact that you can get loans in a variety of different currencies. Rather than getting a loan in U.S. dollars and then converting it to buy a vacation home overseas or pay for a business expansion internationally, you can get the loan in the currency you need most.
This can cut down on conversion fees and may even provide you with lower interest rates, because every currency has different variables involved when it comes to lending.
4. More Privacy Surrounding Your Loan
A benefit of taking out loans in an offshore destination with minimal government intervention is that you can enjoy greater levels of privacy. If anonymity if a concern, then offshore loans are a smart choice for borrowers.
5. Varying Interest Rates
Interest rates for loans depend on a number of factors such as your credibility, your collateral, the length of the loan, the amount and the currency. Overall, however, many borrowers find that international loans can provide lower interest rates than domestic loans, which can save a substantial amount when it comes time to repay the value of the loan.
6. Range of Available Loan Types
Finally, it is absolutely worth noting that international loans are not earmarked for specific demographics. Whether you are interested in taking out a loan to pay for your child’s college tuition, you want to invest in a beach condo for retirement or you want to invest in a new startup company, there is an offshore or international loan that meets your needs.
With so many benefits, international loans are a great choice for savvy borrowers from around the world. Contact Caye Bank for more information on securing a loan.