Sometimes you want to invest outside of your country. It can, for example, move that you want to buy a house on the Costa del Sol or the desire to invest in a company in Norway. If you need to borrow money to do it, you can sometimes end up in a difficult situation.

Banks often do not lend money if the security is outside your country and it is difficult to enforce. A foreign bank will not lend you money because you do not live and work in the same country. They simply do not know how much you earn. So all this can be a problem!

An example - Norgelån.com

In this article, we shall take a closer look at what you can do in these situations. Let us for simplicity, say that in this case, you need a loan for an investment in Norway. The process would be about the same regardless of which European country it concerns.

Start by visiting a website that specializes in loans like norgelån.com, so that you can determine if there's cheaper to borrow money in Norway or in your country. If it seems cheaper to borrow in Norway, so we start with trying to get a loan in Norway.

Contact as many Norwegian loan companies as possible and see if it is possible for you to borrow money in Norway. How easy or difficult it will be will largely depend on what you want to use the loan to. It is usually much easier to borrow money for something that is a good security such as a house than it is to lend to other things.

For example, want to borrow money for a house may be possible to borrow money in Norway, even though you have no Norwegian income if you are willing to pay a larger down payment than normal so that the bank has a good security if you do not pay. If this is possible, you can borrow most of the money in Norway and then just borrow the down payment in your country. This is much easier than trying to borrow the entire amount in your country.

If you want to use the money for an investment that you expect to give a good return, it's a very good idea to create a well-made business plan before applying for a loan to bank officials can see that you know what you are doing and have a sound plan for the loan.

How to borrow money in your country for use abroad

Most banks do not accept assets abroad. There are some exceptions to this. This gives you two options if you want to borrow money in your country for use abroad. You can offer the bank to another security or you can make use of a more expensive unsecured loans / personal loans.

Safety

If you have something that you can put as security then this is the absolute best option. A mortgage, i.e. a loan where the bank has a security for the loan is always cheaper than other types of loans. This is because this type of loan is less risky for the bank.

Examples of collateral that you can use to include such shares (can often only be mortgaged to 80% or less), or if you have unused credit in your house. The stockbroker Avanza offers a very favorable loan using your equity portfolio as collateral. You may use this loan to what you want and the interest rate is very low.

Consumer Lending

Lending is a type of unsecured loans (unsecured), which bases entirely on your income. These loans are more expensive than the mortgage but with today's low interest rates are still relatively cheap.

How much you can borrow and how long depends on how much money you earned last year. Different lenders are willing to lend different amounts of money, but most companies have a maximum loan is around $ 35.000. To borrow this amount, you must have a sound financial standing and a relatively high income!

Author's Bio: 

Md Rasel is a professional blogger.