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Private Lenders in Costa Rica

Private Lenders in Costa Rica: The Best Option for Borrowers

Are you searching for a loan in Costa Rica but need to decide whether to approach traditional banks or private lenders? If so, this article will help you make an informed decision. In this article, we’ll compare the pros and cons of traditional banks and private lenders in Costa Rica and explain why private lenders are often the best choice for borrowers.

Traditional Banks:

If you are a foreigner in Costa Rica, you may need help to secure a bank loan. Traditional banks often have strict policies that make it difficult for non-residents to qualify for a loan. Additionally, the paperwork is usually lengthy, complicated, and time-consuming. Conventional banks also charge significantly higher fees than those in North America.

Private Lenders:

On the other hand, a private loan is usually for a shorter term of 1 to 5 years, with interest-only payments. It is mainly based on the value of the property you currently own. Private loans are ideal for funding short-term projects such as business growth, construction, paying off higher-interest debts, or purchasing a property.

Private lenders are willing and able to fund loans quickly, often within 7 to 10 business days. This speed is crucial for borrowers who want to take advantage of time-sensitive opportunities. Private lenders also offer more flexibility regarding loan repayment and collateral release arrangements. They work with non-residents, foreigners, and projects that banks won’t touch.

Gap Equity Loans:

Gap Equity Loans is a Costa Rica private lender offering better options than traditional banks. We focus on three core factors: speed, flexibility, and approval. In order to establish loan repayment and collateral release agreements that are advantageous to both parties, we engage with private lenders. We structure loans based on a proportion of the property’s quick-sale value or LTV (loan to value) as collateral for the loan.

At Gap Equity Loans, we usually help to close private loans in 7 to 10 business days through our private lenders. Our lenders are trustworthy and competent, and they provide competitive rates and conditions. We operate in locations where banks are hesitant to lend, such as the coast and tourist destinations.

How We Work:

To qualify for a private loan from Gap Equity Loans, you must have a property in your name with a building and no liens attached. Private lenders will lend you up to 50% of your home’s actual value. Our straightforward approval procedure focuses on the property’s worth and attractiveness. We will ask for official plans detailing the property’s features and confirmation that it is suitable for use as collateral. To market your loan to possible investors, we will ask for basic details on what the cash will be used for.

We charge a flat fee of 6% of the loan value for our services at the loan closing, often less than what banks in Costa Rica charge for a loan origination fee. This cost, together with the legal price, is paid upfront by the investor and then rolled into the loan to be repaid over time. An attorney handles the closing, and a mortgage is registered with the Registry like a bank.


In conclusion, private lenders like Gap Equity Loans are often the best option if you’re looking for a loan in Costa Rica. They offer more flexibility, speed, and approval than traditional banks. With Gap Equity Loans, you’ll get competitive rates and conditions, trustworthy and competent lenders, and a straightforward approval procedure. Save your time and energy with traditional banks. Choose Gap Equity Loans for your borrowing needs.

-Written by Glenn Tellier (Founder of Grupo Gap)

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    Frequently Asked Questions

    What is a private lender?

    A private lender is an individual or company that provides loans to borrowers without regulation by a traditional financial institution like a bank.

    Can foreigners get loans from private lenders in Costa Rica?

    Yes, private lenders in Costa Rica are willing to work with non-residents and foreigners and individuals and projects that banks may need more time to be ready to fund.

    How long does getting a private loan from a Costa Rican lender typically take?

    Private loans from Costa Rican lenders can typically be closed within 7 to 10 business days, much faster than the several month’s traditional banks may take to respond to loan requests.

    How do private lenders differ from traditional banks?

    Private lenders offer short-term loans with interest-only payments depending on the property’s worth. Traditional banks offer longer-term loans with principle and interest payments based on creditworthiness.

    What types of projects are private loans in Costa Rica typically used for?

    Private loans in Costa Rica are generally used for short-term projects. Things like growing a business, construction, paying off higher-interest debts, or purchasing a property.

    What fees do Gap Equity Loans charge for their services?

    Gap Equity Loans charges a flat fee of 6% of the loan value for their services at the loan closing. This is often less than what traditional banks in Costa Rica charge for a loan origination fee.

    What are the advantages of choosing a private lender over a traditional bank?

    Private lenders offer several advantages over traditional banks, including faster response times, more flexible loan terms, and a greater willingness to work with non-traditional borrowers or projects.

    What is the maximum loan-to-value ratio for private loans?

    The maximum loan-to-value ratio for private loans is usually set at 50%.

    How are private loan repayment and collateral release arrangements determined?

    Private lenders in Costa Rica work with borrowers to set loan repayment and collateral release arrangements that benefit both parties. These arrangements are usually based on a proportion of the property’s quick-sale value, or LTV (loan to value), as collateral for the loan.

    Do you know if Gap Equity Loans’ private lenders are trustworthy?

    Gap Equity Loans carefully chooses their lenders and only offers loans they would invest in themselves. They also provide competitive rates and conditions, so borrowers can trust that they work with reputable lenders.



    Contact us for more information, or fill out a loan request now!




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    Article by Glenn Tellier (Founder of CRIE and Grupo Gap)

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