Personal loans in Japan for foreigners: what lenders require and what to avoid

A personal loan in Japan for foreigners is hard to get without permanent residency. As of October 2026, card loans from MUFG Bank and Rakuten Bank are open to foreign nationals only with permanent residency (永住者), and Lake accepts foreign applicants who have permanent residency. The law also caps interest at 15% to 20% a year, depending on the amount. Registered money lenders can’t lend you more than one third of your annual income in total. Anyone offering easy money above those limits is likely an illegal lender.

This page explains the rules and the risks. It doesn’t recommend a lender. For a debt you can’t manage, talk to a lawyer (弁護士) or judicial scrivener (司法書士). The help desks are listed below.

What do lenders require from foreign residents?

In Japan, a personal loan is usually a card loan (カードローン): you get a credit limit and borrow and repay as often as you like. Banks offer them, and so do consumer finance companies (消費者金融), which are registered money lenders (貸金業者).

Here is what lenders say on their own pages about foreign applicants, as of October 2026:

What this means for you:

• No permanent residency: MUFG and Rakuten exclude you in writing, and Lake mentions only permanent residents. Where a lender doesn’t state a rule, ask before you apply. Each application stays on your credit file for 6 months (see our credit score guide).
• A guarantee company decides too. MUFG’s loan is guaranteed by ACOM, SMBC’s by SMBC Consumer Finance, and Rakuten’s by Rakuten Card or Sumitomo Mitsui Card. You must pass their screening as well as the bank’s.
• Stable income. MUFG, Rakuten, SMBC and AIFUL all ask for regular or stable income.
• Your name. Lake says to call its free line (0120-09-09-09) if your name is in the alphabet and won’t fit the online form.
• A low rate isn’t automatic. Rakuten Bank charges 14.5% on limits from ¥100,000 to under ¥1 million, and its lowest rates apply only to the largest limits. MUFG also sets your rate by your limit.

Your credit history matters as much as your visa. Japanese lenders check the credit bureaus (CIC, JICC and the Zenginkyo center), and history from your home country isn’t there. Our credit score guide explains how it works.

How much interest is legal in Japan?

Two laws set the limits.

The Interest Rate Restriction Act (利息制限法) caps interest by the loan amount:

Interest above the cap is void. Fees count too: the act treats any money the lender takes apart from principal, such as a “commission” or “screening fee”, as interest. Contract and repayment costs are the exception. If you borrow again from the same lender, the band is set by your remaining balance plus the new loan.

Late-payment charges are capped at 1.46 times these rates. Rakuten Bank, for example, charges 19.9% a year on the remaining principal if you pay late.

The Investment Act (出資法) makes high interest a crime. A business lender that contracts for, receives or demands more than 20% a year faces up to 5 years in prison, a fine of up to ¥10 million, or both. Above 109.5% a year (0.3% a day), the penalty rises to up to 10 years or ¥30 million. The criminal cap was 29.2% until it fell to 20% on 18 June 2010.

How much can you borrow? The one-third rule

The total borrowing cap (総量規制) applies to registered money lenders. If your combined balance with them is more than one third of your annual income, you can’t borrow anything new. With an annual income of ¥3,000,000, the cap is ¥1,000,000 across all money lenders.

What counts, according to the Financial Services Agency (金融庁):

• Counts: consumer finance card loans and credit card cash advances (キャッシング).
• Doesn’t count: bank card loans, credit card shopping, and housing and car loans.
• Business loans to sole proprietors can be an exception if you show a business plan and ability to repay.
• A spouse with no income may be able to borrow with the other spouse’s written consent and proof of the other spouse’s income.

You need income proof, such as a withholding slip (源泉徴収票) or tax return (確定申告書), when you borrow more than ¥500,000 from one lender or more than ¥1,000,000 in total from money lenders. SMBC asks for it on applications over ¥500,000 too. If you exceed the cap, you don’t have to repay the excess at once, but you can’t borrow more.

How to spot illegal lenders (ヤミ金)

An illegal lender (ヤミ金) lends without registration, often at illegal rates, and collects with threats. The FSA’s advice is plain: never borrow from one. Its warning signs:

• No registration number, or a fake one, or another company’s number. The FSA publishes lists of both.
• A name with “バンク” or “信託” to look like a bank or trust company.
• Interest above 20% a year. Illegal lenders often make small loans for 7 to 10 days.
• Asks for your family’s and employer’s contacts. These are later used for threatening calls.
• Asks for your address, phone or bank account number. The FSA warns that some then pay money into your account unasked and demand illegal interest.
• No written contract.

Watch for loans in disguise too. The FSA warns about person-to-person loans on social media (個人間融資), factoring that is really a loan, and “buy now, cash later” schemes (後払い現金化, 先払い買取現金化).

Never sell or lend your bank account to get cash. Our scams guide explains why that is a crime, and covers fake-official calls.

If an illegal lender is already contacting you, keep the evidence: contracts, repayment records and recordings of calls. Report it to the FSA’s consultation office (金融サービス利用者相談室), your local finance bureau, the police or the help desks below.

Where to get help with debt

For civil legal aid, the income limit for one person is about ¥182,000 a month (¥200,200 in large cities such as Tokyo and Osaka). It may rise by up to ¥41,000 if you pay rent. Apart from 法テラス’s multilingual line, we found no language support listed for these desks, so bring a Japanese speaker if you can.

If you worry about borrowing too much, you can also register for self-exclusion (貸付自粛制度) with the 日本貸金業協会 or the Zenginkyo credit center. Lenders then see that you asked not to be lent to.

What if you leave Japan with a loan?

A loan doesn’t end when your visa does. Unpaid debts stay on your Japanese credit file, which can affect a later card, phone contract or mortgage. Repay before you go, or talk to the lender about how to keep paying. Our leaving Japan checklist covers the other steps.

More guides: credit cards for foreigners, bank accounts for foreigners, credit score in Japan.