offshore loan provided for foreigners

[matty37]

Anyone here know the steps involved for applying for a loan in euros for Australia citizens in european countries or the easiset country?

 

[lory]

Will be following, without a large deposit for the credit line I believe it is going to be impossible. I don't know, so will hope some of the experts will chime in.

 

[matty37]

Will be following, without a large deposit for the credit line I believe it is going to be impossible. I don't know, so will hope some of the experts will chime in.

I Hope so too, it would be a huge gain if it can be down.

 

[Gediminas]

Hey,

Pacific Private Bank offers back-to-back loans if this is something you are looking for. In other words, it's a collateral loan.

 

[FinTech Avenger]

I Hope so too, it would be a huge gain if it can be down.

It is highly unlikely that you could be granted an offshore loan, unless:
a) you have a solid cash collateral (as high as 110-130% of the loan amount);
b) you have some liquid assets in Aus or elsewhere that the loan provider would be willing to accept as collateral

 

[Martin Everson]

Anyone here know the steps involved for applying for a loan in euros for Australia citizens in european countries or the easiset country?

It is not entirely clear your situation. But if your an Australian living in a European country with a job and track record of receiving a regular salary then ask your local bank. However if you are resident in Australia looking for a foreign loan in Europe or elsewhere in euros then you will need to collateralize the loan amount or if you have a portfolio of stocks then try a basic Lombard loan with any broker if you can. I was able to do this with internaxx in Luxembourg (as a non-European) before it became swissquote so shop around.

The process via a broker is quick if you have collateral. If you just have salary then you need a bank and can expect lots of paperwork and difficulties if not impossibilities as has been mentioned. Non-collateralized crossborder loans are suicide for a bank and only private bank will be doing this for their biggest clients.

 

[stevy777]

Hey,

Pacific Private Bank offers back-to-back loans if this is something you are looking for. In other words, it's a collateral loan.

I was wondering if you could share more about the back to back loans with Pacific Private Bank? What sort of collateral is used? and do they acceot Isle of Man residents?

Many thanks in advance

 

[newNomad]

Can someone clarify what are these back to back loans used for? Especially if 100+% collaterized in CASH, why would you need a loan if you have cash?

 

[Martin Everson]

Can someone clarify what are these back to back loans used for? Especially if 100+% collaterized in CASH, why would you need a loan if you have cash?

Disguising source of funds. i.e switching dirty money to become clean money via a loan from bank. People use it to buy property in UK etc where UK want to know source of funds. You present to anyone asking paperwork showing its a bank loan.

P.S Even the Vatican launders money in UK real estate .

Behind the Vatican’s London real estate scandal | Crux

The Vatican has set a July 27 trial date for 10 people, including a once-powerful cardinal and papal contender, on charges related to the Holy See’s 350 million-euro investment in a luxury London real estate venture.

cruxnow.com

 

[lory]

That's a good way of doing it, maybe it is the only way in the near future to avoid unnecessary attention or monitoring by governments!

 

[Martin Everson]

That's a good way of doing it, maybe it is the only way in the near future to avoid unnecessary attention or monitoring by governments!

Sadly back to back loans stopped being a good idea in early 2000's. Some banks refuse to offer this service because of high risk of money laundering as there is no economic purpose for depositing i.e EUR and getting a loan in EUR against it for example.. It's basically disguising source of funds. Some banks however will still do it (if they are compliance naive) or at least ask that the loan be in another currency so it aint too obvious .

 

[newNomad]

Some banks however will still do it (if they are compliance naive)

I like this concept of compliance naive banks Seem rare as unicorns though...any example?

 

[Martin Everson]

I like this concept of compliance naive banks Seem rare as unicorns though...any example?

Not about to publish the two I know as I am still using them and I know who watches this site .

 

[MiddleEuroAsia]

I like this concept of compliance naive banks Seem rare as unicorns though...any example?

Not as rare as you might think. some people even buys CDs with cash and and they use these CDs as a collateral to borrow from banks, some banks even allow you to get loan of up to 95% of the value of your CDs. Then you use this loan to buy property from whatever country. and the same happens with gold, crypto and stocks. So, it's not that rare.

 

[Martin Everson]

Not as rare as you might think. some people even buys CDs with cash and and they use these CDs as a collateral to borrow from banks, some banks even allow you to get loan of up to 95% of the value of your CDs. Then you use this loan to buy property from whatever country. and the same happens with gold, crypto and stocks. So, it's not that rare.

Yup did this with Bank of Georgia

 

[John Spectre]

Not as rare as you might think. some people even buys CDs with cash and and they use these CDs as a collateral to borrow from banks, some banks even allow you to get loan of up to 95% of the value of your CDs. Then you use this loan to buy property from whatever country. and the same happens with gold, crypto and stocks. So, it's not that rare.

just to clarify, what 'CDs' mean here?

 

[MiddleEuroAsia]

just to clarify, what 'CDs' mean here?

time deposits.

 

[Martin Everson]

just to clarify, what 'CDs' mean here?

Certificate of Deposit

 

[fatcat]

Not as rare as you might think. some people even buys CDs with cash and and they use these CDs as a collateral to borrow from banks, some banks even allow you to get loan of up to 95% of the value of your CDs. Then you use this loan to buy property from whatever country. and the same happens with gold, crypto and stocks. So, it's not that rare.

Interactive Brokers does margin loans, but sadly they don't provide you with any contracts or agreements, they just direct you to their general ToS.

A cash transfer is just a cash transfer - how do you prove to a European commercial bank it is, in fact, a loan?

 

[clemens]

A cash transfer is just a cash transfer - how do you prove to a European commercial bank it is, in fact, a loan?

That could actually be a huge problem if you get troubles with the tax authorities!