7 conditions that non-Japanese without permanent visa need to fulfill to take up loan in Japan

For non-Japanese people who apply for credit-card loan, whether they have permanent visa or not is one of the most important factors to pass the screening for taking up a loan.

However, if the application conditions have no description about application restriction of non-Japanese without permanent visa, those who don’t have permanent visa can expect to take advantage of this opportunity.

Nevertheless, Japanese financial institutions are basically skeptical against lending money to non-Japanese people without visa that grants them permission to settle down as a secondary home base in Japan.

In this article, I want to share with you about what Japanese financial institutions actually worry about prior to lending money to non-Japanese. I summarize the conditions that most of them require non-Japanese applicants without permanent visa to satisfy.

The following conditions are the most outstanding requirements that most of Japanese financial institutions present. You should at least make sure these lists before thinking how to borrow money.

7 conditions that non-Japanese applicants without permanent visa need to fulfill

How long an applicant have ever stayed in Japan so far

It is obvious that how long you’ve continued to live in Japan so far is the most important point for financial institutions to know. You might predict why.

Whether an applicant take borrowing money back to a home country is the most concerned matter for them. In most cases, if a foreigner, who just came to Japan, escapes from Japan with a certain amount of borrowing money, he should have no inconvenience about that and no punishment will be imposed because it is 100 percent impossible for financial institutions to collect lending money taken away overseas.

For that reason, they carefully investigate applicant’s background especially about residence, job, stable life base.

Basically, personal credit information is not reflected on the Japanese credit information database shared by Japanese financial institutions. Only your borrowing history in Japan is recorded in the database. That’s why applicants are required to answer their personal information.

You have already lived in Japan for at least 6 months with a long-term stay visa at the time you apply for credit-card loan.

How much longer an applicant will stay in Japan from now

How much longer an applicant will stay in Japan from now is also as important screening point for financial institutions as how long have an applicant ever stayed in Japan for. If applicant’s visa expiry date remains only 1 month, it is impossible to pass the screening because an applicant is likely to return back to his/her country without fully paying off.

At least, an applicant visa validity should remain at least 1 year until the expiry date.

If you are stable full time worker in Japan

As of the screening of credit-card loan, a financial institution will make sure if you really work for the company you declared on the application form you submitted.

This is also very important screening point to be checked if you have stable life base with stable income.

For that reason, the length of service is an indicator to know how long an applicant have ever continued stable life. It is obvious that the longer you work for the company, the stabler, your living becomes.

A Japanese applicant pass the screening even though the length of service is about 1 month. However if non-Japanese applicant want to pass the screening certainly, 1 year length of service is preferable. When credit-card screening, a person in charge will make a call to the office you work in.

Lending restriction per annual income

Even if an applicant is non-Japanese, an applicant is under lending restriction that loan exceeding over one third of annual income can’t be taken up. In addition, allowance remitted from applicant’s country on a regular basis will not be counted as applicant’s annual income.

If you have stable income on a monthly basis

This section is partially related to the third section above. Whether you receive stable income on a monthly basis becomes very important point of if you can continue paying off interest of your loan stably.

It is natural that if you borrow money, you have to pay it back with interest. For a financial institution, it wants to lend money to a person who can pay the debt back with interest stably by the fixed repayment date.

Receiving stable monthly income will get you a room in your mind to pay off by the repayment date in plenty of time

If you can submit income certificate

How much salary you get a month is an indicator for a financial institution to decide how much loan you can take up. So, notifying how much salary you get a month is equal to knowing how much you can borrow money.

If a Japanese applicant wants to borrow over 500,000 yen, or total debt you have including other consumer finance companies is over 1 million yen, an Japanese applicant is obliged to submit an income certificate. But in case of a non-Japanese applicant, an income certificate must be submitted no matter how much you borrow. If you want to take up credit-card loan, you should at least prepare 3 month withholding slip and income certificate.

If you understand Japanese

Web application form is all written in no English but Japanese. Even if you apply with an automatic contract machine, voice guidance and words appeared on the screen are all in Japanese.

Moreover, Call operators don’t speak English but only Japanese. You need to understand every single details about loan conditions, repayment methods, and terms of agreement on personal credit information and contract. You must be able to understand Japanese, speak Japanese, read Japanese, write Japanese.

If you can understand Japanese perfectly will also become an indicator to know how long you stay in Japan.

4 Banks and consumer finance companies that you may able to take up loan without permanent visa

Risona Bank Card Loan

There is no description about the limitation of non-Japanese applicants on the application terms.
You can apply for loan from the website. You should give it try if you want.

Risona Bank Card Loan application page

SMBC Card Loan (三井住友カードローン)

There is no description about the limitation of non-Japanese applicants on the application terms same as Risona

You don’t even have to open an account of SMBC to take up a loan. Monthly repayment is from minimum 2,000 yen

SMBC Card Loan application page

J.Score Lending

J.Score Lending application page

SMBC MOBIT Card loan

SMBC MOBIT has just two conditions. SMBC MOBIT is known as quick screening credit-card loan company. You need money as soon as possible, you should consider this consumer finance.

SMBC MOBIT Card loan application page