Cyprus Bank loans for Expats - such a thing?

sneezing7 · instructor

As the subject says, is it possible for a ex pat living in CY to get a bank loan from a Cypriot Bank?

From what the Cypriots tell me, it is hard enough for them to get loans, so I am assuming it would be even harder for foreigners (who do not have gaurantors).

Thanks in advance!

devil · lecturer

If you have collateral, there should be no problem. The banks are more cautious now, since the Stock Exchange scandal. If you think you can walk into a bank, where you are unknown, ask for a few thousand quid, and expect to walk out with it, then you could expect to receive the same response as if you did the same in the UK, USA, Switzerland or anywhere else.

Cypriot banks, like those elsewhere, are there to milk their clients of as much profit as possible. They will lend money to anyone, Cypriot or otherwise, provided they can be sure of getting it back again, with interest. If there is any doubt, then they won't. After all, they have shareholders who expect a return for their investment.

A banker is someone who will lend you his umbrella when the sun is shining, but he will ask for it back the moment there is a cloud on the horizon.

michalis5354 · lecturer

Banks are very greedy. They can give you the loan as long as they can prove to them that you will be able to repay the loan in a fixed time, there is no problem and I dont think it is hard. But If you notice the charges on your statement each month you will regret getting the loan in the first place.

If the loan is not for a decent investment then I can say it is not worthwhile!

Note that the Cyprus interest rates are one of the highets in EU if not worldwide!

sneezing7 · instructor

Thanks for the replies....

Tell you the truth, I am just curious to see what goes on with Cy banks. I have asked various banks about this, and no one seems to be able to give me a straight answer.

When I first arrived here I was told that If i wanted my bank card to work outside of Cyprus, then they would require a 1000 pound safety fund.... kind of ridiculous imo

JustAnAmerican · advanced member

We see tons of GC employees getting non-collateralized loans, i.e. loans without any assets tied to them. One guy got $30,000 Cyp without one asset as a lien and he is 32 years old with a family of 4. We saw another girl, no longer wanting to make the specified payment amount per month, so she called the bank and asked for a lower rate and lower payment and THEY GAVE IT TO HER!!!
Beware the National Cypriot Bank loaned Saddam 8.7 billion dollars and is being asked like the rest of the world to forgive Iraq of the debt. The national bank is of course resistant to this action, but this write off, when it occurs, will affect the monetary rate negatively.

michalis5354 · lecturer

They dont operate in a competitive environemnt yet since most of the rules are already set by the Central bank and it seems in general that all the banks are into an aggreement not to change any of their long estalished policies so they collude with each other. You canot find many differences regarding the charges involved between banks.

Marinella · advanced member

sneezing7 · instructor