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How can a foreigner get a loan in Russia?

Moscow. In a Sberbank branch.

Artyom Geodakyan /TASS

You are unlikely to get consumer credit, but a mortgage of 10 million rubles is not a problem.

In general, Russian banks prefer not to provide consumer credit to foreign citizens. There are two reasons for this: the high risk of default and the difficulty of checking the creditworthiness of the borrower. The largest Russian banks no longer have special loan programs for foreign nationals. However, foreigners can still apply for a mortgage secured by the property to be purchased. In this case, the bank has a guarantee that the money will be returned.

From March 1, 2022, foreign nationals can take out a mortgage in a Russian bank, provided that their country of citizenship is not on the list of countries hostile to Russia. This list, approved by the Russian government, now includes 49 countries whose citizens are subject to a special procedure for financial transactions. This means that citizens of the USA, Canada, the UK, Japan and EU countries, for example, cannot in principle take out a mortgage in Russia. Citizens of other countries (such as Brazil or India), on the other hand, can apply for a mortgage at a bank.

Documents for taking out a mortgage:

– Passport of a foreign citizen (including a notarized copy in Russian)

– Migration card with a valid length of stay in Russia

– Document on temporary or permanent registration of a foreign citizen in the Russian Federation or a residence permit

– Document confirming the right of a foreign citizen to reside in the Russian Federation (residence permit, temporary residence permit, visa)

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– Certificate from the Information Center of the Ministry of Internal Affairs stating that the citizen is not accused of having committed a criminal offense on the territory of the country of which he is a citizen.

The full list of documents must be obtained from the bank at the time of application.

There are not many Russian banks that give money to foreigners and there are only two big banks among them: the Sberbank and Raiffeisenbank.

In Sberbank, the borrower can count on a mortgage loan from 300 thousand to 100 million rubles. In this case, he must be between 21 and 75 years old and have been employed at his current job for at least 3 months. The mortgage loan relates to a land or real estate with a land plot in Moscow, Moscow region and St. Petersburg (excluding Kronstadt district). Sberbank informed us that the borrower must also be a member of the bank’s salary project.

Raiffeisenbank considers applications from foreign nationals between the ages of 21 and 65 with at least 6 months of professional experience and at least 1 year of overall professional experience. A minimum wage is required to obtain a loan, which in Moscow is not less than 20,000 rubles. The maximum amount for a mortgage loan is 40 million rubles.

The interest rate on a loan for foreigners is determined when the application is examined and may be higher than for Russian citizens, since state support programs and individual grants do not apply to these loans. Also, a co-borrower (usually the spouse) may be required to receive the funds.

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Foreigners are advised to apply for a loan in a bank branch and not online – this way there is a better chance that all documents will be filled out correctly and a positive decision will be made. The bank usually responds within 10-16 working days.

Loans for foreigners in microfinance organizations

Foreign nationals can apply for a loan from microfinance institutions (MFIs) as they do not have to carry out such an in-depth screening. However, the decree on unfriendly countries also applies to them. However, MFIs have a higher interest rate (1% per day) and the amount of the loan can be limited to 10,000 rubles at the first application.

MFIs are considered to be more credit-friendly than big banks, but they mainly work with citizens of the Russian Federation or CIS countries. The service Pojdjóm!, for example, serves customers from Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan. In addition, citizens of Azerbaijan, Georgia, Belarus and Moldova can get a loan through the service “Salatája Karóna”.

To get a loan, all you need is a passport of a foreign citizen, a residence permit in the Russian Federation (migration card/residence permit/temporary residence permit) and a residence permit (temporary or permanent).

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