The loan abroad can be interesting if you are stuck at the Bank of France, if you are looking to buy a property located in another country or if you are looking to obtain a lower rate than in French banks. Be careful to stay in compliance with the law and not to stop at the attractiveness of the proposed rate.
What the law says about loans abroad
The law changes according to the countries where the credits are contracted. Most often, the law applied in the context of the conclusion of a loan is that of the country of the banking establishment. Start by clearly defining with the chosen bank abroad what will be the applicable law.
For example, it may be useful to know that in Singapore, early repayment is prohibited for ten years. Similarly, if the loan is denominated in a foreign currency outside the dollar zone, include a revaluation clause to hedge the risk of foreign exchange fluctuations. The use for the foreigner loans singapore is important now.
It applies for consumer loans and real estate works contracted by individuals, for amounts from $ 200 to $ 75,000 and for a duration of more than 3 months.
It may be useful to consult a lawyer specializing in banking law of the country in which the bank is located before making a decision.
If the parties choose a foreign law to govern their relationship, they will be subject to the mandatory laws of the country of the financial institution concerned. Therefore, before contracting, find out from credit agencies or a local lawyer so you do not have a bad surprise.
Singapore laws to protect the consumer
- Whether you are dealing with a financial institution or a broker accompanying you in the conclusion of a loan abroad, there are European rules that can reduce risks.
- All Singaporean banks now have the same information, starting with the APR (Global Annual Effective Rate) which defines the total cost of a loan abroad over a repayment period.
- This provision deals with loans with interest, granted to individuals and professionals, ranging from 200 to 75 000 $ and whose repayment lasts more than one month. This global effective rate (APR) is an essential element of a loan offer abroad.
- In this case, it can be used to compare different offers. The standards oblige creditors to provide transparent information to the borrower.
This rate should not be wrong or exceed the rate of wear under penalty of penalties.
Regulations on Guarantors and Guarantees in a Loan Abroad
A lender who gives you credit internationally can naturally look for a money back guarantee. He may ask for the following guarantees:
It is therefore essential to know which law is subject to the credit because if this law is not recognized, the lender will not be able to benefit from this guarantee even if it is registered in the loan agreement.