If you need money at short notice, you can borrow money quickly and easily over the Internet today. Thanks to electronic applications and largely automated credit check processes, many credit providers are now able to pay installment credit within 24 hours. More and more consumers are turning to the possibility of bridging short-term financial bottlenecks with online instant loans. Especially in a low-interest phase, it makes sense to take better a cheap installment loan instead of saving a long time on his purchase.
But not everyone who applies for an installment loan, gets one granted. Banks in Germany base their lending on relatively strict criteria. Thus, certain professional groups such as self-employed and freelancers are much harder to get a loan from the bank than other customer groups such as permanent employees or civil servants. For people who have a negative Schufa, the likelihood of a loan commitment even tends to zero – at least in the German credit market. So a negative Schufa entry can quickly make a dash through the bill. Once an invoice is not paid – missed the opposition period – and then you have caught a negative trait in the Schufa. Unfortunately nobody asks afterwards how it happened and who was the culprit. Not infrequently, companies accidentally put a wrong bill. Those who do not become active as invoice recipients within the period of objection risk a negative Schufa, and that often comes at the expense of those affected. Regardless of whether you are looking for a flat or applying for a loan – a negative Schufa entry can often make life difficult for victims. For most landlords and banks in Germany look for new customers especially on a clean Schufa.Even if the bill, which was the reason for the negative entry, has long been paid, the entry remains a total of three full years in the Schufa file ,
So what to do if the bank says no? Unlike banks in Germany, Swiss banks are not soliciting information from the Schufa. Negative Schufa entries thus go unnoticed and thus can not influence the credit decision. If the applicant meets all the relevant requirements, there is nothing in the way of disbursement of the so-called Swiss loan. The sticking point: Compared to the credit check with banks in Germany, an important source of information is missing here to realistically assess the payment behavior and creditworthiness of the applicant. The Swiss bank therefore takes a higher risk than a German bank, which can make a good picture of the applicant on the basis of the Schufa score and the entries noted. This increased risk is compensated for by the Swiss loan on the one hand by relatively strict lending criteria and on the other hand by a higher interest rate .
Strict lending criteria for Swiss credit
Due to the increased risk that a debt free loan inevitably entails, the Swiss bank wants to protect itself as much as possible against a loan default based on a whole range of criteria. For example, a Swiss loan can only be given to civil servants or permanent employees with a certain minimum length of service with the same employer. Finally, it must be ensured that the borrower is in secure employment and has a regular monthly income. Again, this may not fall below a certain minimum amount. For example, in the case of a Swiss loan with a principal amount of € 3,500, the borrower must be employed by the same employer for at least 12 months and receive a monthly net income of at least € 1,210. If the claimant has one or more dependents in the household, these values increase even more. For the Swiss loan of € 7,500, the borrower must have been employed by the same company for 4 years, and his net monthly income must be at least € 1,860, depending on the number of dependents. In addition, the Swiss bank wants to ensure that the customer has paid off the Swiss loan with a high probability before the end of his life. Therefore, the applicant may not exceed a maximum age of 62 years.
Clearly defined conditions for the Swiss loan
Like the requirements for borrowers, the terms and conditions of the Swiss loan are clearly defined. The maximum amount that can be paid out on the Swiss loan is € 7,500 per person. Alternatively, a Swiss loan of € 3,500 or € 5,000 can be requested. For existing Swiss loans, an increase to a maximum of € 7,500 is possible. The interest rate is uniform for all borrowers and across all loan amounts 11.11% eff. APR. The repayment is made in constant monthly installments, the duration is uniformly 40 months. From the 6th month, the possibility of early repayment is granted. Unlike banks in Germany handle this, the paid-out Swiss credit is not reported to the Schufa and therefore does not appear in the Schufa file.
As the facts show, the Swiss loan places relatively high demands on the borrower. Only persons with a secure employment relationship and good creditworthiness have the chance of a Swiss loan. A negative Schufa does not play a role in the credit decision. Crucial for the Swiss bank is that the borrower is financially able to pay off his monthly loan installments on schedule. For many credit seekers in Germany, which were rejected at your house bank due to Schufaproblemen despite otherwise good credit rating, the Swiss loan can thus be the key from a seemingly hopeless situation.
Although the double-digit interest rate on Swiss credit is well above the interest rate level of many loan offers from online direct banks. But against the background that the financing bank assumes a comparatively higher risk with the Swiss credit – since no Schufa information is obtained, which represents for banks an important indication for the payment morality and creditworthiness of an applicant – the interest premium with the Swiss credit is quite justified ,