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It's okay even if you don't have a permanent residence permit! Loan guide for foreigners

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Investing in housing and real estate is one of the major concerns for people who are thinking about living in Japan for the long term.

When thinking about getting a loan in Japan as a foreigner, you may have many questions and concerns, but is it possible to get a loan if you don't have permanent residency? How do Japanese financial institutions treat foreigners?

In this article, we will explain in detail how loans are handled in Japan in order to answer such questions from foreigners. Even if you don't have permanent residency, you can take the first step toward getting a loan to enrich your life or buying your dream home in Japan with this guide.

It is possible for foreigners to obtain a loan even if they do not have permanent residence!

Obtaining a loan in Japan as a foreigner is a dream step for many people. However, if you do not have permanent residency, you may be worried about whether your dream will come true. However, fortunately, there are various types of loans available to foreigners even without permanent residency. In fact, recent data shows that the number of loan contracts for foreigners in Japan is steadily increasing, and demand is also increasing.

For foreigners in JapanLoan types and recommended financial institutions

Loan options in Japan are wide-ranging. We will introduce the main types and recommended financial institutions that foreigners should consider when taking out a loan in Japan.

1. Mortgage loan

You can apply even if you do not have permanent residency, but some financial institutions may require a certain period of stay or require a higher down payment. In addition, stable income, employment status, and history of stay in Japan will also be considered.

  • Sumitomo Mitsui Banking Corporation (SMBC):If you have a long residence history and stable income, your application may be considered even if you do not have permanent residency.
  • Yokohama Bank:Even foreigners can apply for a home loan if they can prove their employment and income in Japan.
  • Mortgage loan selection for foreign nationals by Let's Live! my home Even if you are a foreign national, we will tell you the possibility of getting a mortgage.

2. Car loan

Basically, permanent residency is not required, but stable income, sufficient period of stay, and credit history in Japan are important.

  • Oryx:Foreigners can also apply for a car loan by submitting proof of residence status and income.
  • Jacks:We also accept car loan applications from foreigners, subject to stable income and a certain period of stay.

3. Card loans/cash advances

Permanent residency is not required, but period of stay, income, and credit history are key points for screening. Also, some credit cards and loans may not be available to foreigners with short-term residence status.

In addition, consumer finance's card loans and cash advances have comparatively quick screening and simple procedures, but interest rates are often set higher than those offered by banks. On the other hand, while bank card loans are reliable and have a good support system, they can be subject to stricter screening procedures. However, once you pass the screening, the interest rate is lower than that of consumer finance, and the credit limit is often sufficient.

  • Consumer finance:
    • Eyeful:Period of stay, income status, place of employment, etc. will be key points in the screening.
    • Promise:Even foreigners can apply by submitting their residence card and proof of income.
  • major bank:
    • Sumitomo Mitsui Banking Corporation (SMBC Mobit):Foreigners can also apply, and screening will be based on period of stay, income, credit information, etc.
    • Mizuho Bank:Even foreigners can apply for a card loan if they have a certain period of stay and stable income.
    • Resona Bank:It is characterized by relatively low interest rates and high-cost loans, and it also accepts applications from foreigners.

Points to consider when choosing a loan in Japan and lifestyle

Even foreigners without permanent residency have a wide variety of loan options in Japan. The important thing is to choose the most appropriate loan based on your lifestyle, future plans, and financial situation. For example, young families and single people who wish to stay in Japan for a long time are increasingly considering home loans. On the other hand, if you are coming to Japan for a short stay or for business purposes, a private car loan or credit card loan may be appropriate.

For example, in Tokyo, the number of property buyers for foreigners who do not have permanent residence is increasing. Tourists and businessmen from Asia in particular are interested in purchasing real estate in Japan with the aim of investing and establishing a base of livelihood in Japan. The foreign community living in Japan is also growing, and home loans in Japan are an important means for them to securely invest in their future and start a family.

Steps for foreigners to obtain a loan in Japan

Obtaining a loan in Japan is a big step for foreigners as well. There are many procedures and necessary information, and by knowing what is important and how to proceed, your loan application will go smoothly.

Points for foreigners to obtain credit information in Japan

There are important points that foreigners should know when obtaining a loan in Japan. First of all, credit information is very important. In Japan, it is necessary to obtain credit information from credit information agencies such as Credit Saison and JICC (Japan Credit Information Corporation). This allows financial institutions to evaluate an individual's credit history and determine their ability to lend. Therefore, it is important for foreigners to check their credit information before applying for a loan in Japan.

Applying for a loan in Japan: Proof of income for foreigners and its importance

Proof of income is also very important. Many financial institutions require stable income. When a foreigner provides proof of income, employment contracts, pay stubs, and proof of bank account balances may be required. Having these documents ready will help the loan application process go smoothly.

Choosing a loan in Japan: Plans suitable for foreigners and their features

Another important thing to know when applying for a loan as a foreigner is to understand what kind of loan plans Japanese financial institutions offer. For example, in addition to home loans and car loans, there are also card loans that meet short-term financial needs, and specialized loans for specific purposes such as marriage or study abroad. Each loan has different interest rates, repayment periods, screening criteria, etc., so choose the one that suits your needs.

Preparing for loan down payment

Additionally, many financial institutions may require a down payment. For example, with home loans for foreigners, it is common that a portion of the property price must be paid as a down payment. The down payment percentage varies depending on the financial institution and the individual's credit history, but generally around 20-30% of the property price is required. It's also important to have a systematic savings and investment strategy in place to prepare for your down payment.

Points to know before applying for a loan in Japan

Foreigners need to understand several important points when applying for a loan in Japan.

The importance of Japanese language skills: ensuring understanding of loan documents

Japanese language ability is very important during the loan application process. All loan agreements and related documents are written in Japanese, so sufficient Japanese language skills are required to accurately understand and respond appropriately to these documents. In particular, advanced reading skills and knowledge of technical terminology are essential in order to understand contract details and conditions.

Cross-cultural communication: Understanding the Japanese loan system

Another important point that foreigners should keep in mind before applying for a loan is cross-cultural communication. Japanese financial institutions are often unfamiliar with the culture and practices of foreigners, so it is recommended that you familiarize yourself with the Japanese system and rules regarding loans in advance.

Japan's loan system has many unique features compared to other countries. For example, a "credit history" system that strictly manages records of past borrowing history and delayed repayments, mortgage loan practices that require a certain amount of down payment or more, and detailed confirmation of contracts are required. There are many things that can be mentioned. Additionally, the need for a guarantor and the existence of interest-free loans that require repayment in a short period of time are unique to Japan.

Expert loan application support

It is important to seek professional help to understand the laws and contract terms. Professionals such as lawyers and real estate agents can provide valuable advice to help expats navigate the loan application process.

Interest rates and repayment terms: Points to note for foreigners

Furthermore, interest rates and repayment terms are also important points. Interest rates and repayment terms for loans for foreigners may differ from those for Japanese people. Some financial institutions may set high interest rates or short repayment periods, so it is important to carefully check these conditions and plan in anticipation of future burdens.

Mortgage loan guide: How foreigners can buy a home in Japan

There are several guidelines for foreigners to take out a mortgage and purchase their dream home in Japan with peace of mind.

Preparing your mortgage application: Checking your credit report and documents

When foreigners apply for a home loan in Japan, the first thing they need to do is check their credit information and prepare the necessary documents. Obtaining a credit report from a credit bureau, proof of income, and a savings plan for a down payment can help the loan application process go smoothly.

Property selection: market research and appropriate budget setting

When considering obtaining a home loan in Japan, how to choose a property is also an important point. Land prices are soaring in Japan's urban and tourist areas, so finding a suitable property within your budget can be difficult. Therefore, it is essential to conduct market research and consult with experts to determine the location, conditions, and future value of the property. Choosing a property can have a big impact on your loan repayment plan and future lifestyle, so you need to choose carefully.

Expert support: The road to a worry-free home purchase

When foreigners consider purchasing property in Japan, it is important to seek the help of experts. Lawyers and real estate agents can provide the information and advice that foreigners need when purchasing property in Japan, so with their expert knowledge and experience, you can proceed with a mortgage loan agreement with peace of mind.

long term life plan

Additionally, it is important to plan for future burdens. It is necessary to carefully manage your budget, taking into consideration not only interest rates and repayment terms, but also future living expenses and taxes. This allows foreigners to live with peace of mind after purchasing their dream home in Japan.


It is possible for foreigners to obtain a loan even if they do not have permanent residence. When a foreigner obtains a loan in Japan, it is necessary to check credit information and submit proof of income, and Japanese language ability and the help of experts are also important. In addition, systematic budget management is essential for foreigners to purchase their dream home in Japan with peace of mind.

If you are a foreign national and are considering a home loan,Mortgage loan selection for foreign nationals by Let's Live! my home Please consult with us!

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