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The Loan Process in Costa Rica: What You Need to Know

The Loan Process in Costa Rica Step by Step

Are you looking to secure a loan in Costa Rica? Initially, the loan process in Costa Rica may seem complex and confusing, but it can be a smooth and straightforward experience with proper guidance and preparation. In this article, we’ll break down the loan process of Gap in Costa Rica, including the types of loans available, the requirements, and the steps involved to ensure a fair and balanced transaction. We help borrowers and lenders navigate the loan process in Costa Rica step by step, using our knowledge and experience, which has assisted many people in achieving their ambitions.

Types of Loans in Costa Rica

Before diving into the loan process, it’s necessary to understand the different types of loans available in Costa Rica. There are two main categories of loans: secured and unsecured.

Unsecured loans do not require collateral. They are riskier for the lender, so the interest rates are typically higher and the terms less favorable.

Secured loans require collateral, such as property or assets, to guarantee the loan. If you default on the loan, the lender can seize the collateral. This type of loan typically has lower interest rates with more favorable terms and is the only type of loan the private lenders that work with Gap Equity Loans fund.

The Loan Request

  • A potential borrower finds Gap Equity Loans Gap through our website, internet search engines, social media profiles, word of mouth (typically from a satisfied borrower), or our referral program.
  • The prospect fills out a loan request online and usually contacts us with questions.
  • We contact potential customers, analyze their requirements, and guide them through the loan application process. We ask any questions on which we require clarity.
  • To examine the feasibility of a loan, we start with the basics, such as a land survey (Plano cadastro), 10 to 15 photos of the property, and any other relevant details.
  • We schedule a site visit with the prospective borrower to inspect the property. Following that, we meet with the borrower to discuss the loan. Finally, we complete the entire loan application form to close the transaction, including all required paperwork.

The Investor Alert

  • We create an Investor Alert with the loan information and photos taken during the site visit. This is how we promote the loan opportunity to our select potential lenders.
  • Given the market conditions, we suggest interest rates and terms based on the borrower’s needs and what we believe would be attractive to the lender. Final rates and terms are always subject to negotiation between the lender and the borrower.
  • We submit the information we obtained during our site visit to a lender who expresses interest in the loan. Gap Investments will address any concerns or questions that the lender may have at that time.

Term Sheet and Closing the Deal

  • We’ll create a Term Sheet for both sides to review if the lender agrees to undertake the loan and both sides agree on rates and terms.
  • We arrange the necessary documents for closing the loan with assistance from the respective attorneys. The notary public registering the loan will perform their due diligence as required by law, but we have already made their job easy by doing much of the legwork.
  • The Term Sheet will be modified as needed. A date and location for formalizing the loan and making disbursements will be determined.
  • The parties sign at the closing, and the lender makes the disbursements specified on the Final Term Sheet. According to Costa Rican law, the official terms of the loan are recorded and signed in the protocol book of a notary public. The formal loan documentation (escritura) is then filed with the National Registry, which records the loan on the borrower’s title.

After the Close

Following the start of the loan, the borrower makes their first payment to the lender accordingly to the terms previously agreed upon by both parties. We understand a loan is a term-long relationship between the lender and borrower, so we may periodically keep up with both the private lender and the borrower during the duration of the deal. Therefore this is merely the beginning.

We are here to guide you through the loan process, including possible renewals, when it comes time. We redo our due diligence checks with renewals to ensure the property’s conditions haven’t changed. All term sheets we drum up will once again be crystal clear and explain all the ins and outs of the details.


By understanding the loans available, the requirements, and the steps involved, you can confidently approach the loan process in Costa Rica. With the proper preparation and guidance, you can secure the financing you need to achieve your goals.

-Written by Glenn Tellier (Founder of Grupo Gap)


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    Frequently Asked Questions

    What are the requirements for obtaining a loan in Costa Rica?

    The requirements vary depending on the lender and the type of loan, but typically, you will need to provide proof of income, residency, and a good credit score. For secured loans, you will also need to provide collateral.

    How long does it take to process a loan in Costa Rica?

    The loan processing time can vary depending on the lender, the loan type, and the completeness of the loan application. Generally, it can take anywhere from a few days to several weeks to process a loan.

    What is the interest rate for loans in Costa Rica?

    The interest rate for loans in Costa Rica can vary depending on the lender, the type of loan, and the borrower’s creditworthiness. Generally, secured loans have lower interest rates than unsecured loans.

    Can foreigners apply for loans in Costa Rica?

    Yes, foreigners can apply for loans in Costa Rica, but they must meet other requirements the lender sets.

    What is the maximum loan amount I can get in Costa Rica?

    The maximum loan amount in Costa Rica varies depending on the lender and the type of loan. Generally, secured loans have higher loan limits than unsecured loans.

    What happens if I default on a loan in Costa Rica?

    If you default on a loan in Costa Rica, the lender can seize the collateral you provided or take legal action to recover the debt.

    Are there any fees associated with obtaining a loan in Costa Rica?

    Yes, there are usually fees associated with obtaining a loan in Costa Rica, such as application fees, appraisal fees, and notary fees. The fees vary depending on the lender and the type of loan.



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