Hello,
Finances and banking can sometimes be a headache for many expats, especially when it comes to taking out bank loans.
Is it difficult for an expat to get approved for a bank loan in Portugal?
What are the types of bank loans available for expats (mortgage/bonds; business loans; car loans; personal loans; student loans)?
What are the general conditions for expats to take out bank loans (interest rates; timeframe to repay loans, etc.)?
Which bank in Portugal is the most popular or accessible for expats regarding loans?
Would you normally require the services of an accounts manager at the bank in order to facilitate the process of taking out a loan? Is this service free of charge?
What would happen in the case of an unpaid loan if you have to repatriate back to your home country or move somewhere else?
Are there any other options for loans aside from the bank in Portugal, such as taking out a loan from your bank in your home country, or other types of companies not affiliated with banks, that give out loans?
Thank you for sharing your experience.
Priscilla
Bank loans in Portugal
My spouse and I looked into financing a home (mortgage) since the borrowing rates are very cheap. But the requirement that Portugal banks have of additional life insurance for each mortgage holder is so expensive at our age (60), that it was prohibitive. We have USA life insurance that would pay out here but apparently that was not considered as acceptable. This is the bank's way of ensuring they always get paid in case of death. These rules don't exist in the USA unless you are putting down less than 20% (that is called mortgage insurance). But in Portugal at least with Millinneum Bank the amount you put down does not matter. All in all we ended up purchasing outright with no financing.
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