The Swiss loan is an unbureaucratic solution if a loan is to be taken despite a negative Credit Bureau. At least that’s the widespread opinion. However, there are many discrepancies and wrong approaches when it comes to a Swiss loan. This starts with the origin of the loan and ends with the requirements that must be met for a German loan to be taken out of Switzerland.
We have therefore once gathered all the advantages and disadvantages of a loan from Switzerland for Germans and prepared them here. Hoping to be able to provide you with comprehensive information on this topic and to show you the right way to take out a Credit Bureau-free loan.
What is behind the term “Swiss loan”?
An installment loan granted by a foreign bank is called a Swiss loan. However, it is not absolutely necessary for this bank to have its headquarters in Switzerland. Rather, the term can be seen as a generic term for all installment loans offered to foreign customers by banks outside of Germany.
Most of these loans come from the Principality of Liechtenstein. And that from the Sigma credit bank. There are certainly also banks in Austria, Switzerland, Poland or the Netherlands that offer a loan for German citizens. But the best chances are clearly with the Sigma credit bank, because this bank specializes in the granting of such loans.
The special thing about a loan from Switzerland for Germans is the fact that such a loan does not require Credit Bureau. So if you have problems with Credit Bureau, you only have to contact a foreign bank such as Best Bank in order to be able to take out a loan despite the negative entries. Therefore, the loan offers from abroad are often referred to as “Credit Bureau-free loans”.
What does a loan from Switzerland look like for Germans?
The easiest way to explain a loan from Switzerland for Germans without asking Credit Bureau is the offers from Best Bank. Because the bank is the only credit institution that presents all conditions relating to the loan offers on the website. Without registering and before applying for a loan.
A foreign loan is usually only available as a small loan. Here security plays a major role and the banks want to prevent the risk of default from increasing unnecessarily.
At Best Bank there are therefore only loans with a volume of 3,500 or 5,000 USD. A free choice of the loan amount is therefore not possible. Despite all of this, we think that both loan amounts are very well selected and should fit perfectly with many projects.
Furthermore, the effective interest rate as well as the monthly installments and the duration of the repayment are regulated in advance. Therefore, there are no nasty surprises here, and the borrower does not have to have any concerns that the bank will somehow trick them or rip them off.
The effective interest rate is slightly over 11 percent. Of course, this is more than a conventional installment loan that is taken out at a German bank. However, if you are in a financial bottleneck and urgently need the loan, you will also be happy to pay this interest.
Repayment will be made within 40 months. The rate is therefore between 100 and 150 USD. Depending on which loan amount was selected in advance. A cash payment of the money is not possible. The bank only transfers to a previously specified reference account.
What are the requirements for a loan from Switzerland for Germans?
Anyone who thinks that they have to go the long way abroad to take out a loan is wrong. There is also no need for a credit intermediary to turn the loan into reality. Rather, it is sufficient to sit on the computer or laptop and go to the Best Bank website in order to easily order the loan there. An internet-enabled computer and printer is therefore the first requirement for borrowing.
The second requirement is about the borrower’s creditworthiness. Since Credit Bureau is not involved in borrowing, the borrower must use his income to prove that he is worthy of a loan. This is most likely to succeed if the income is obtained from a permanent job and is above the garnishment allowance. The borrower must be able to prove that this is the case with the relevant documents.
On top of that, the monthly expenses must match the income and not exceed it. Because there must be sufficient scope for repayment of the loan. The borrower must also be a German citizen, have a permanent residence in Germany and be at least 18 years old. If these requirements can be met, a loan from Switzerland is within reach for Germans.