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18 Key Documents you’ll need to buy a house

There’s a country called Cambodia. It’s got a lot of culture, history, and chances to make money. As Cambodia grows, more opportunities come up for both locals and people from other countries. One big chance is getting money through loans for foreigners who can help with lots of things, like starting a business or buying a house.

Knowing about how money works in Cambodia is really important if you want to get a loan for a house or something else, this concept applies to locals and foreigners who live in Cambodia. In this blog, we guide you by giving all the information possible for foreigners to use during loan application.

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Understanding the Cambodian Financial Market

Before we jump into how to get a loan in Cambodia, let’s get a handle on how money works there. Cambodia’s economy has grown a lot lately, mainly because of things like tourism, making stuff, and real estate. This growth means there are more places where you can get money-related help, like banks, small loans, and places that lend money.

The UN Department of Economic and Social Affairs (UNDESA) reported 79,341 international migrants living in Cambodia so if you’re one of them, getting money help in Cambodia is difficult for foreigners. Regular banks mostly help Cambodian people, but smaller loan places might be more open to helping foreigners. Knowing these differences is super important when you’re thinking about loans for foreigners in Cambodia.

Importance of Access to Loans for Foreigners

Getting loans for foreigners is really important for people from other countries who live in Cambodia. Whether you’re buying a house, starting a business, or dealing with sudden expenses, loans for foreigners can help you out financially and let you do what you want in a new place. But getting a loan as a foreigner might be different from getting one as a local, so it’s important to know all the rules and what paperwork you need. Khmer Prosperity Loan brings you to explore which finance institution offers personal loans for immigrants in the market.

Reason of immigrant to Cambodia  - low cost of living

What to Be Aware When Being a Foreigner in Cambodia

Being a foreigner in Cambodia gives you lots of chances to grow as a person and in your job. You can do things like learn about the cool culture and join in with community projects. This way, you can make friends and help Cambodia grow and get better.

Legalities and Visas

Knowing the rules and visas for people from other countries living in Cambodia is really important to follow the law and feel calm. This means getting the right papers to stay there and making sure you know what to do when your visa needs renewing. If you know what you need to do legally, it can help you fit in better in Cambodia. There’s total of 6 types of visa in Cambodia and each represents a different function to be used. As a Cambodia experienced loan provider, we summarize the details of each visa for you to review like which Visa eligible for entrepreneurs apply for SME loans.

Visa TypeFunctionEligible Applicants
TOURIST (Type-T) VisaAllows entry for tourism purposes, including sightseeing, visiting friends or relatives, and participating in recreational activitiesForeign nationals intending to visit Cambodia for tourism purposes, such as vacationers, travelers, or backpackers
BUSINESS (Type-E) VisaPermits entry for business-related activities, such as attending meetings, conferences, or negotiating contractsForeign nationals conducting business activities in Cambodia, including investors, entrepreneurs, or company representatives
KHMER (Type-K) VisaDesigned for Cambodians holding valid foreign passports who wish to enter CambodiaCambodian citizens holding foreign passports and wishing to visit Cambodia
COURTESY (Type-C) VisaExtended to registered Non-Governmental Organizations (NGOs) with a valid Memorandum of Understanding (MoU) with the Cambodian governmentRepresentatives of registered NGOs with a valid MoU with the Cambodian government, typically involved in humanitarian, development, or advocacy work
OFFICIAL (Type-B) VisaIssued to individuals traveling on official government business, such as diplomats, government officials, or employees of international organizationsGovernment officials, diplomats, employees of international organizations, or individuals traveling on official government business
DIPLOMATIC (Type-A) VisaReserved for diplomats and embassy staff representing their respective countries in CambodiaDiplomats, embassy staff, or members of international organizations with diplomatic status representing their countries in Cambodia
Cambodia Type-E  Visa

Challenges and Considerations for Foreigners Obtaining Loans

Getting a loan from a bank in Cambodia can be really helpful, but it might also be tricky for people from other countries. Things like not speaking the language well, not understanding the culture, or finding it hard to follow the rules can make it tough. But if you work on these things and ask for help when you need it, you can get through the loan process without any problems.

Tips and Strategies for Successful Loan Approval in Cambodia

Foreigners can do a few things to make it more likely for them to get a loan. This includes making sure they have a good history of borrowing money, keeping a steady job, and getting help from people who speak more than one language. If they take action and know what’s going on, they can reach their money goals by securing loans for foreigners in Cambodia.

Overview of Loan Options in Cambodia

Definition and Purpose

In Cambodia, loans for foreigners are used for lots of different things, like paying for personal stuff or buying property. Figuring out exactly what kind of loan you need is the first thing to do when you want to borrow money. Understanding unsecured loans or mortgages is more aligned to financial goals. Usually, loans with mortgages like car loans are especially helpful for people from other countries who want to buy big things like land or houses with the loans for foreigners. Other than home loans, there’s several loan options available in Khmer Prosperity Loan. Contact our loan advisors to know more about our financial services.

Eligibility Criteria for Foreigners

Do you ever know how to be eligible for a personal loan for your needs? The only answer is to review the eligibility criteria set forth by lending institutions which offer loans for foreigners. While requirements may change depending on the loan provider and the type of loan, common criteria include proof of identity, residency status, and income stability.

Factors to Consider to Get a Personal Loan

Getting approved for personal loans often makes our life much easier with financial support. However, applicants have to review multiple lenders to find the best offer like choosing traditional banks or microfinance institutions?

Traditional Banks vs. Microfinance Institutions

Banks might give you more money and lower interest rates, but if you don’t have much of a money history or stuff to use as collateral, microfinance spots might be easier to deal with. For an example, Cambodia Maybank approved for a loan agreement with requirements:

  • Up to 6 years of installments
  • Multipurpose loan to support education / marriage / medical treatment
  • Joint applicants (Cambodian or foreigner whose spouse is Cambodian)
  • Earn a stable income of USD1,000/month or more
microfinance features

In contrast, Khmer Prosperity Loan doesn’t require complicated credit check or even collect origination fee from applicants. As trusted personal loan providers, we look into the applicant repayment capability which is able to cover your monthly installment of loans for foreigners. That’s why our websites need to provide a personal loan calculator for borrowers to know their capable borrowing amount. Visit Khmer Prosperity Loan website to use free loan calculator features, it’s free and easy to use.

FeaturesTraditional BanksMicrofinance Institutions
Type of InstitutionLarge, established financial institutionsSmaller, community-based organizations
Customer BasePrimarily serve established customers with good credit historyCover underserved populations, including those with limited credit history
Loan AmountsTypically offer larger loan amountsOffer smaller loan amounts
Interest RatesGenerally lower interest rates, especially for borrowers with good creditInterest rates may be higher to mitigate risk, but may offer lower rates for certain products
Collateral RequirementMay offer both secured and unsecured loans for foreignersMay offer mostly unsecured loans, although some may require collateral for larger amounts
Eligibility CriteriaStricter eligibility criteria, including higher credit scores and stable incomeMore lenient eligibility criteria, may consider factors beyond credit history
Processing TimeLonger processing times due to stringent verification processesFaster processing times, with quick loan approval
AccessibilityMay have limited accessibility, especially for rural areasOften have branches in rural areas, offering greater accessibility
Additional ServicesOffer a range of financial products and services, such as savings accounts and investment optionsFocus on providing basic financial services, such as savings and credit

Secured vs. Unsecured Loans

Foreigners can obtain mortgages and unsecured loans in Cambodia. When you’re thinking about getting a loan, one thing to think about is if it’s going to be secured or unsecured. Secured loans for foreigners need something valuable, like property or savings, to make sure you pay the loan back. This makes it less risky for the loan provider. Unsecured loans for foreigners, though, just depend on how good you are at paying back money. They might have higher interest rates because of this. Applying for a home loan as a foreigner is a most common scenario in Cambodia because US citizens can buy a home without reporting it to the IRS for avoiding tax payment.

FeaturesSecured LoansUnsecured Loans
Collateral RequirementRequire collateral, such as property or savings, to secure the loanDo not require collateral, based solely on borrower’s creditworthiness
Risk for BorrowerLower risk for borrowers, as collateral provides security for the loan providerHigher risk for borrowers, as defaulting on the loan could result in legal action or damage to credit
Interest RatesTypically lower interest rates, as the collateral reduces the loan provider’s riskInterest rates may be higher, as loan providers compensate for the lack of collateral with higher rates
Loan AmountsOffer larger loan amounts, depending on the value of the collateralOffer smaller loan amounts, typically capped based on borrower’s income and creditworthiness
Approval ProcessMay have a more involved approval process, including appraisal of collateralOften have simpler approval processes, with less emphasis on collateral and more on credit history
AvailabilityLess accessible to borrowers without valuable collateralMore accessible to a wider range of borrowers, especially those with limited assets
Use CasesSuitable for larger expenses, such as home purchases or business investmentsSuitable for smaller expenses, such as medical bills or home improvements

Steps to Apply for a Personal Loan

You can start to check out different loan providers and see what they offer, whether their offer aligns to the desired property that you found in IPS Cambodia? Then, you’ll need to look at the terms and conditions of the loan to make sure you understand everything. If you follow these steps, you’ll feel more sure about getting loans for foreigners, and your chances of getting approved will be better too.

Researching Lenders and Loan Products

To get a personal loan, the first thing you need to do is look into different loan providers and the kinds of loans for foreigners they have. You’ll want to compare things like how much interest they charge, what fees they have, and what you need to qualify for the loan. This helps you find a lender that’s right for you.

Initiating the Application Process

When you’ve picked out a loan provider, it’s time to start the loan application. This usually means filling out a form and giving the loan provider all the documents they need to check over.

Assessing Loan Terms and Conditions

Before you agree to take a loan, make sure you read through all the rules and conditions that the loan provider gives you. You’ll want to know things like how much interest you’ll have to pay, how long you have to pay the loan back, and if there are any extra fees you’ll need to deal with.

Interest Rates and Fees

Different loan providers and different types of loans for foreigners have different interest rates and fees. So, it’s a good idea to look at a few different loan providers to see who has the best deal. That way, you can make sure you’re getting the best terms for your loan.

Repayment Periods and Options

How long you have to pay back a personal loan and what choices you have for repayment can affect how much money you have to give back each month. So, it’s a good idea to pick a repayment plan that fits with your budget and what you want to do with your money.

Tips for Improving Loan Approval Chances

If you’re not from Cambodia and you want to qualify for a loan without collateral needed, there are things you can do to make yourself look good to the people who lend money.

Building a Strong Credit History

If you’re from another country and you want to borrow money in Cambodia, having a good record of borrowing money before is really important because most formal bank institutions will request a credit score for checking. You can do this by being careful with any money you borrow already, making sure you pay your bills when you’re supposed to, and not letting any bills go unpaid for a long time.

Maintaining Stable Employment

People who lend money like it when borrowers have jobs they’ve had for a while and get money regularly. If you’re from another country, it’s important to try to keep a steady job or make sure you’re getting money regularly to show that you can pay back the loan.

5 tips boost your chances of loans for foreigners

Apart from getting personal loans for foreigners, people from other countries might also want to borrow money to buy a home in Cambodia. Figuring out how to get a home loan means knowing about the real estate market in Cambodia, the rules for owning property there, and what kinds of mortgages foreigners can get. Purchasing Cambodian property with a foreigner identity must be more complicated and required than the personal loan because they need high loan amounts.

Overview of the Cambodian Real Estate Market

In the last few years, the property market in Cambodia has grown a lot. This is because more people are moving to cities, the government is building better roads and buildings, and people from other countries are putting money into the country. People from other countries like to do home purchase in Cambodia because the cost of purchasing property is low and they can make a lot of money if they invest in it.

Besides, many foreigners try to get Cambodian passports because it allows the passport holder to travel and shop around to 25 countries without a visa. However, or enter 174 other destinations by applying for a visa. So what’s the easiest way to get a Cambodian passport? Be the ownership of the property by investing a minimum of $100,000 into real estate for a renewable visa with a ten-year validity period. After five years of residency, it is possible to apply for a Cambodian passport.

cambodia real estate market

People from other countries can have land in Cambodia if they follow the rules set by the law. It’s not too hard to buy property in Cambodia, but sometimes it’s a good idea to get help from a lawyer who knows about the rules so you don’t make any mistakes.

Types of Home Loans Available for Foreigners in Cambodia

Cambodia’s financial system offers loans and mortgages to people from other countries to apply. They can get mortgages from banks or other money places. These loans for foreigners can help them buy houses to live in, buildings for business, or even to help with building new properties. However, the banks that provide personal finance might not offer mortgaged property home loans to foreigners. Khmer Prosperity Loan suggests you choose an international bank or Malaysian-owned bank like RHB Cambodia or Public Bank Cambodia. Here is our table to clarify each bank loan product availability:

BankEligibility Criteria for ForeignersLoan Products AvailableInterest RatesLoan AmountsAdditional Features
RHB CambodiaRequires valid identification and proof of incomeHome loans for residential propertiesCompetitive rates based on creditworthinessVaries based on individual circumstancesFlexible repayment options, personalized customer service
Canadia BankMay require proof of residency and stable incomeHome purchase loans, mortgage refinancingCompetitive rates, depends on borrower’s profileUp to 70-80% of property valueAssistance with property valuation and legal documentation
Vattanac BankAccepts applications from foreigners with valid documentsHome loans for residential and commercial propertiesCompetitive rates, with options for fixed or variable ratesFlexible, based on borrower’s financial capacityAssistance with property appraisal and loan processing
Public Bank BerhadOffers home financing options for foreign nationalsHome loans for purchasing or refinancingCompetitive rates, with options for fixed or floating ratesUp to 70-80% of property valueStreamlined application process, personalized service
Advanced Bank of AsiaExtends mortgage loans to eligible foreignersHome loans for multiple property typesCompetitive rates based on creditworthinessFlexible, based on borrower’s financial capacityOnline application portal, dedicated relationship managers

Financing for Property Development Projects

Besides buying buildings that already exist, people from other countries might also want to borrow money to build new properties in Cambodia. This means they need money for things like buying land, building stuff, and other costs that come with making new properties.

Required Documentation for Home Loan Application

Just like when you want to borrow money for yourself, getting a loan for purchasing a home needs some paperwork too. You’ll have to show who you are, how much money you make, papers about the property you want to buy, and any permits or approvals you might need.

We’ve explained the loan documents that Cambodians should prepare in the previous blog post. So, we can emphasize that the additional documents have to be ready by the foreign buyers:

  • Proof of Residency or Visa Status: Foreign borrowers must demonstrate their legal status in Cambodia to serve as proof of their eligibility to reside and work in the country.
    • Valid residency permit
    • Long-term visa
    • Work permit. 
  • Proof of Income: Similar to local borrowers, foreign borrowers need to provide proof of income to show their ability to repay the loan.
    • Employment contracts
    • Income statements
    • Bank statements from their home country or employer in Cambodia.
  • Legal Permits and Approvals: Foreign borrowers may need to obtain additional legal permits or approvals, depending on their residency status and the type of property being financed.
  • Translation and Notarization: Documents issued in a foreign language may need to be translated into Khmer or English and notarized for authenticity. This ensures that the loan provider can understand and verify the contents of the documents.
  • Additional Documentation: Depending on the loan provider’s requirements and the borrower’s circumstances, additional documentation may be requested.
    • Proof of residency in their home country
    • References from financial institutions
    • Documentation related to their financial stability.

The documentation process for foreign borrowers is often more complex and may require additional verification steps compared to local borrowers. Loan providers may conduct more thorough checks on the authenticity of foreign documents and may require certification or validation from relevant authorities or embassies. Foreign borrowers may need to allow extra time for document processing and verification, as well as potential delays due to language barriers or differences in legal systems.

18 Key Documents you’ll need to buy a house

Common Challenges and How to Overcome Them

Getting a loan in Cambodia can be a good thing, but it’s not always easy. People from other countries might have trouble with the language and understanding the culture, need to meet rules about living there, and deal with complicated legal stuff when they want to borrow money in the country. Especially when foreign entrepreneurs plan to do business registration for applying for business loans for foreigners.

What challenges and obstacles will foreigners face

Language and Cultural Barriers

If you’re not from Cambodia, talking to loan providers and getting a loan can be hard because of the language and culture differences. Getting help from someone who speaks both languages or an interpreter can make it easier to understand each other and make sure everything is clear when you’re applying for a loan. As a professional financial consultant, all our financial advisors are proficient in English and Khmer language so you’ll not face the issue at Khmer Prosperity Loan.

Addressing Residency Requirements

If you’re from another country and you’re in Cambodia temporarily or because of work, you might have trouble getting a loan because of the rules about living there. It’s important to understand what loans for foreigners you can get and how Cambodian citizenship requirements work.

Avoiding Predatory Lending Practices

Most loan providers in Cambodia are good and fair like Khmer Prosperity Loan, but it’s still important for people borrowing money to watch out for bad practices. This means making sure you understand everything about the loan, reading all the details carefully, and asking questions if something doesn’t seem right or is confusing. With rapid growing speed, Cambodia has many unlicensed loan providers which offer you super easy repayment terms in Phnom Penh. Typically, formal personal loan lenders may not be able to offer that because it doesn’t make profit if they don’t charge hidden fees on the deal.


Getting financial help in Cambodia as someone from another country takes hard work, patience, and smart thinking. Whether you’re getting a loan for yourself or buying property, it’s important to know how borrowing money works and to do it right. Even though loans for foreigners are more complicated, there’s still many reliable loan providers like Khmer Prosperity Loan that are still here to support whoever is facing this problem. Contact us via email, call, and application form submission to get helpful advice.

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Frequently Asked Questions (FAQs)

Q1. Can foreigners get a mortgage in Cambodia?

Yes, foreigners can get mortgages in Cambodia with some limitations. Banks like Canadia Bank offer them, but expect stricter requirements and fewer options compared to locals.

Q2. What is the easiest country for foreigners to get a mortgage?

While requirements change, countries like Portugal and Spain are generally easier for foreigners to get mortgages due to openness to foreign investment and resident applicants.

Q3. Can foreigners buy houses in Cambodia?

Foreigners can’t directly own land in Cambodia, but there are ways to purchase property like condos or invest in land through alternative methods.

Q4. Can a foreigner own a business in Cambodia?

Yes, foreigners can own businesses in Cambodia. They can even have 100% ownership of some business types.

Vannak Sen

Vannak Sen is Khmer Prosperity Loan's dedicated financial advisor. His expertise lies in guiding entrepreneurs through the loan process with ease. Vannak’s articles offer simple, actionable advice, helping your business navigate the financial landscape and thrive. For personalized, clear, and practical strategies that resonate with the Cambodian business community, rely on Vannak’s insights.

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