coolandhot

How easy is it for people to get loans in Panama? In some countries it is easier than in others. I find that countries are better off when people can get loans, because they can start businesses and spend money in the economy.

coolandhot

I think it depends on whether you have collateral or not. I do not think credit matters as much. If you have bad credit, you will get a higher interest rate. Generally, as long as you have collateral, you can get a loan. If you do not have any collateral, it will be very hard to get any loans.

kale

It depends on whether you're Panamanian or not. For Panamanians, good credit and a regular income is enough. If you're a foreigner, collateral is essential, and you also need lots of references. I read an article about that in a tourism magazine the other day and will try to find it.

themark

Local references are what is best, I think. It won't mean much to a bank if all your references are random people outside the country.

Lalaguayaba

Why would you have references inside the country if you are just moving there? Its a little hard to live in a country w/o a local account (although many do)--which you cannot obtain w/o references. The bank will check your references, so it doesn't matter if they are all from 'random people outside the country.' That is the entire purpose behind a background check--to verify your identity, and check your references. Considering that a basic American background check is available online for $20, I don't think that talking to a few ppl out of the country is a problem for international banks, which is what Panama has in spades.
As far as local references go, who would you ask to vet you? How many people do you actually know and trust enough to speak to a bank on your behalf in Panama?

Cheers.

expatplayer

You can always try to get a loan from your home country. It may be easier, if that's where you built up all of your credit and references.

AOSTEVE

We have found a piece of property we are interested in and would like to finance part of it locally in panama. We are being told so far that the only interest rates available in Panama are variable. Does anyone know of fixed interest rates, and if so, at which bank? thnx

tallman33

What's the difference between variable interest rates and fixed interest rates?

PanamaPat

A variable interest rate is adjustable and can vary a lot over the term of your loan. A fixed interest rate is fixed at the time you get the money and can't be changed later.

It's expected that interest rates will increase over the coming years so it makes sense to freeze in a lower rate whenever that is possible. Many people in the US got loans at variable rates earlier this decade and that got them into big trouble when rates increased.

If you can find someone that agrees to give you a dollar loan at a fixed interest rate right now, go for it. The way the dollar is going (inflation, printing presses running full-time, etc.) you can only win.

coolandhot

Thanks for that information PanamaPat. I was also wondering about the different types of loans. The names were pretty big clue, though.