The American credit system has long served as a model for banks in many countries around the world. Under some terms, foreign citizens can be approved for a loan in the United States. Not all American banks cooperate with foreigners, and interest rates will be slightly higher. It makes sense to think about an American loan if you plan to move to the United States or decide to enroll in one of the country’s universities.
Many of today’s prosperous Americans have been developed their own business by effective loans. At the moment, the United States offers loans for the following purposes:
- auto loan;
- business development;
- consumer (personal).
It is difficult for a non-resident to be approved for a loan in the United States. For US citizens, lending is not a problem. The system has been worked out and adjusted. It has been efficient for many decades.
In 2020, American students will be costing their families much money. Around $ 130,000 over 4 years of study is expensive for the average American. Therefore, many young people and their parents are considering such an option as getting a student loan.
The most popular types of loans in the student community include:
The average loan amount is $ 21,000. The advantage of student loans is that they can be repaid after the student graduates and starts working. The average student loan rate is 5-7%. The American government intervened in the process of lending to students. Such an intervention made it possible to gradually reduce interest rates. In the US, you can find student loans taken for over 30 years.
American mortgage loans
The crisis has made American mortgages much more profitable than they were, for example, 10 years ago. However, at the same time, it did not become more popular, which is due to the lack of money for the purchase of houses and apartments among the average American families.
10 years ago, the average US mortgage interest rate was approximately 8.5. The terms were depended on the region and the status of the acquired housing. Today, the average rate in the country does not exceed 3.7%. In most cases, it is lower. Banks issuing loans to cover mortgages are forced to make additional bonuses to attract clients. It is difficult to obtain a mortgage loan for a foreigner in the American banking system, but it is possible. The process will take over one month. Rates for foreigners range from 6 to 8 % per annum.
It is profitable to use auto loan in the USA. Interest rates are extremely reasonable. The overpayment amount will be low even in cases when a comfort class vehicle is purchased. For inexpensive cars, it can be equal to 1% annually, and sometimes even 0.5% per year. For some brands and models, banks provide credit deals, benefits, thanks to which you can get a car for almost the actual cost.
If you buy a non-preferential car, the interest rate will depend on your credit history and on the car class. A good Credit Score will allow you to cooperate with banks on more favorable terms.
On average, the rate will be 3.28% if you sign a 72-month loan greementag when buying a new car. For a second-hand car, it will decrease to 3.06%. The shorter the term, the more profitable the rate. So, for 48 months for a new car, it will be 2.28%, for a car that has just come off the factory line – 2.34%.
To obtain a loan for business development in the United States, you need to have a well thought out business plan. It should consider the following areas:
- business orientation;
- information about available finances;
- planned expenses for the crediting period;
- description of the income generation scheme, etc.
The business plan should include everything that indicates the safety of financial cooperation with you. Information about guarantors, governance structure, etc. is helpful. If you intend to obtain a commercial loan in the United States, contact the Small Business Administration.
The agency can become your guarantor, as well as provide information about financial structures with which it is safe and profitable to cooperate.
Personal Loan – American consumer loan
It is one of the most popular loans in the United States. Americans call it a personal loan. This refers to the funds that the borrower takes for his personal needs. This can be a large purchase or an expensive clinic appointment. The average rate is 6%. Specific terms depend on factors such as term, amount, credit history, job seeker’s salary, etc.