Getting a personal loan in Japan as a foreigner is harder than for Japanese nationals, but it’s not impossible. Stable income, a solid credit history in Japan, and the right lender make the difference. Here’s what you need to know.
Types of Personal Loans in Japan
1. Card Loans (カードローン)
The most accessible option for foreigners. A card loan is a revolving credit line attached to a card — borrow up to your limit, repay flexibly, borrow again.
| Lender | Foreigner-friendly | Interest rate | Limit |
|---|---|---|---|
| SMBC Mobit | Yes | 3.0–18.0% | Up to ¥8 million |
| Acom | Yes | 3.0–18.0% | Up to ¥8 million |
| Aiful | Yes | 3.0–18.0% | Up to ¥5 million |
| Promise | Yes | 4.5–17.8% | Up to ¥5 million |
| Rakuten Card Loan | Partial | 1.9–14.5% | Up to ¥8 million |
Consumer finance companies (Acom, Aiful, Promise) are generally more lenient than banks for foreigners.
2. Bank Personal Loans (銀行カードローン)
Banks offer lower interest rates but stricter criteria. Most require:
- Permanent residency or long-term stable visa
- Salary above a certain threshold (often ¥2–3 million/year)
- Existing relationship with the bank
Easier to access: Shinsei Bank, SBI Shinsei have more foreigner-accessible products.
3. Credit Card Cash Advance
If you have a Japanese credit card, you can usually access a cash advance (キャッシング) through ATMs. Interest rates are high (typically 15–18%), but it’s immediate.
Can Foreigners Apply?
Yes, but with these requirements:
| Requirement | Details |
|---|---|
| Residency | Valid residence card required |
| Visa status | Most lenders require status with more than 6 months remaining |
| Income | Stable, documented income — ¥1.5–2 million/year minimum |
| Age | 20–65 years old typically |
| Bank account | Japanese bank account required for transfers |
| Credit history | Japanese credit history helps significantly |
Permanent residents and long-term visa holders have the easiest time. Short-term visa holders (under 1 year) are generally declined.
Building Credit History in Japan
Japan uses a separate credit system from your home country. Your history doesn’t transfer.
How to build Japanese credit:
- Get a credit card — even a secured or basic one (see: Japanese Credit Cards for Foreigners)
- Use it regularly and pay on time, every time
- Maintain a Japanese bank account with regular deposits
- Pay all bills (phone, utilities) on time
- After 6–12 months, your credit score starts to build
Interest Rates to Know
Japanese consumer loan rates are capped by law:
| Loan amount | Maximum legal interest rate |
|---|---|
| Under ¥100,000 | 20% per year |
| ¥100,000 – ¥1 million | 18% per year |
| Over ¥1 million | 15% per year |
Bank loans are typically lower: 1.5–14.5% depending on your profile.
Avoid: Any unlicensed lender offering loans outside these limits — it’s illegal and predatory.
The Application Process
- Choose a lender and check their foreigner eligibility (most have it on their website)
- Apply online — most major lenders have online applications with ID upload
- Upload documents: residence card, proof of income (salary slip or tax certificate)
- Wait for screening — usually same day to 3 business days
- Receive card or transfer if approved
Some lenders have English application processes or English customer support — call ahead to confirm.
Alternatives to Borrowing
Before taking a high-interest loan, consider:
- Salary advance through your employer (前払い制度)
- Credit union or cooperative loans associated with your company
- International money transfer from family abroad — Wise makes this fast and cheap
- Selling items — Japan has excellent second-hand markets (Mercari, BookOff, etc.)