With the European Union, the credit market is liberalizing. It is possible to make a credit in another country of Europe. But it is not easier to have a credit so far: the credit rules are European, only the registration at the Bank in France is ignored by foreign banks.
Make a credit abroad for financing in France, a good idea?
Imagine the following case: you are banned banking in France , you can no longer make a loan. It’s the FCC or FICP registration that blocks you, but these files are exclusively French. To circumvent this registration, it is legally possible to borrow outside France.
Another case: you simply want to enjoy the best conditions for obtaining credit by playing the competition, especially that being a border, the approach seems simple.
But in practice, can one apply for a loan at a bank abroad? Can one obtain a mortgage abroad to buy a house or an apartment in France?
File: credit abroad
- How to make a credit in Europe?
- Credit in Belgium
- How to finance a home in Portugal
- Muslim credit
Especially since today, banks are no longer strictly national, many foreign banks are also present in France. Crediter for example is also very present in Belgium. In practice, nothing prevents the Belgian bank from asking its French branch if a customer is registered with the Banque de France.
Compare our best credit offers credits without proof of Minga Credit!
A bank abroad can thus ask you for guarantees:
- Deposit with guarantor. Most of the time, it is someone who lives in the foreign country in question.
- Mortgage on the real estate purchased.
- Domiciliation of income. In the SEPA area of the euro area, it is now possible.
- Registration of the Denier Proxy Privilege (IPPD). This guarantee is valid, in addition to France, only Monaco, Luxembourg and Belgium
Article dedicated to credit in Europe
For border workers , it is relatively easy to cross the border and go to Andorra, Luxembourg or Belgium, for example. If a Frenchman works in one of these countries, he will have no difficulty in opening a bank account and obtain a credit. We do not recommend going to another country where you can not speak the language.
Let’s take a quick tour of the countries where French is understood.
Credit in Andorra
Andorra, a small mountainous country of the Pyrenees, in addition to offering tax-free shopping, has the good taste to have modern and competitive banking services. On the other hand, it is better to move on the spot and to speak directly with the bankers of its financing project, or to call on specialized brokers.
Credit in Belgium
The rates are competitive, but you should know that, as for other countries, will always be slightly above the French rates.
Complete file on credit in Belgium
Credit in Luxembourg
Luxembourg, often singled out as a real tax haven, has a very successful financial sector. For Mosellans or Alsatians, it is quite common to have a bank account, especially when working as a border in Luxembourg.
Credit in Switzerland
Switzerland, well known for its banking services, is for many synonymous with security, a country where one puts its economies safe.
So it is not a country where one comes to ask for a credit, but a country where one comes to deposit one’s fortune, let us say it clearly. Yes, it is possible to make a credit in Switzerland, but with very strong guarantees that reassure the banker.
Bank loans abroad are advantageous when one is in cold with his French banker. But they do not allow to have state aid , especially in terms of mortgage. No Zero Rate Loan (PTZ), no loans under contract (including the social loan).
Borrowing outside the euro area is a significant additional risk. If the foreign currency gains value against the euro, it will be much more difficult to repay the loan with income in euros.
Concretely, imagine that you borrowed in sterling. Every month you have to pay £ 500. If in 2018, it only took € 575 to get the British sum (£ 1 = € 1.15), imagine that in 2020, it takes € 650, with € 1 to € 1.30. What could have seemed to in the beginning a good deal can become a nightmare. However, it is also true that foreign currency can also depreciate, and you end up doing a good deal, but are you ready to take that risk?
We must also take into account any bank fees that exist as soon as we leave the euro area. They are sometimes consistent.
Even though European legislation is the same everywhere, some clauses may differ from one country to another. This is particularly the case for early repayments:
It is the national legislation that determines whether the creditor can claim compensation from the client who reimburses his loan before term.
Obligation to declare an account abroad
A person residing in France has the obligation to declare to the tax authorities his bank accounts held abroad.
Do not do it, it is to expose to 1,500 euros of fine by undeclared account, even of 10 000 euros if the foreign country does not have an agreement with France to fight against the fraud and the tax evasion.
To make a credit abroad without showing guarantees, it is almost impossible.
At the time of making a loan, one may be tempted by a credit abroad, perhaps cheaper or less looking on bank fichage.
To bypass a Bank in France card, preventing anyone from applying for credit, some credit agencies offer credit abroad, where the BdF does not exist. You have to be very careful! It is possible to make a credit outside the national territory, as for example the EU, but under certain conditions, very strict.
To make a real estate credit abroad to buy in France, only the putting in guarantee of a property could perhaps make it possible to obtain the loan. To discuss with the foreign bank advisor, case by case.
It is better to stay in France in view of the low French rates compared to neighboring French-speaking countries. This is something to reserve when you have more banking problems and despite that, the banks refuse to lend because of an internal file.