A loan from abroad can basically be used for any purpose. Foreign loans, however, have a significant share of borrowing exclusively in the area of bank loans without Credit bureau and in real estate financing. In this case, loans that are paid out by a bank licensed in a foreign country with a branch in Germany are not considered as foreign loans.
Loans from abroad without Credit bureau
Most consumers with a negative credit rating look for a loan without Credit bureau, which is most often found with a Swiss bank. Although it is a loan from abroad, the payout and repayment are in euros. Thus, the risk associated with a foreign currency loan does not occur.
Real estate financing from abroad
A real estate loan from abroad is usually settled in the currency of the country in which the bank is based. Thus, real estate financing through a foreign credit bank is a foreign currency loan that involves the risk of unfavorable price fluctuation for the borrower if the home country of the bank is not a member of the euro area. Naturally, the price development of a real estate loan from abroad can also be in favor of the credit customer.
While the longest possible interest-fixing period for real estate financing is customary in Germany, foreign banks prefer credit processing with variable interest rates. This results in the risk for the client or homebuyer that the initially very low real estate interest increases noticeably after a short time.
Other loans from abroad
The offers for loans from foreign banks for purposes other than bypassing a Credit bureau inquiry or the construction or acquisition of a property have been increasing for some time. Banks and credit intermediaries are promoting lower interest rates compared with German banks, as well as the opportunity to save further money through a positive price development for credit customers.
5 tips on credit from abroad
1. Foreign currency loans offer lucrative interest advantages
As interest rates differ from one country to another, it can lead to sometimes lucrative advantages for the borrower. This includes EU member states as well as those outside mainland Europe. In addition to interest, the currency itself can also have a positive effect on the repayment process. Because such a loan or credit does not always have to be paid in euros. It can also be targeted for a euro-foreign currency ausschau.
2. Loan without Credit bureau abroad
If you have negative Credit bureau entries, a loan abroad can be the solution. Because the Credit bureau acts only in Germany and thus banks and lenders in the German area use this reference for credit decisions. However, anyone who thinks abroad there is no credit check is wrong. Because foreign institutes access other examination methods. One of these is, for example, the income that is generated. However, contaminated sites in the form of negative Credit bureau entries are ignored.
3. Does German law also apply abroad?
Here caution is required. Because not always a loan abroad must be handled in accordance with German law. The decisive factor is usually from where this loan agreement was issued. If the intermediary is in Germany and from there it was also transferred abroad, there is usually German law. However, this does not necessarily apply to Credit bureau’s free loans.
4. When is such a loan worthwhile?
For negative Credit bureau entries in Germany and associated lower credit rating. Abroad, a loan may still be approved. In addition, a long-term loan can better offset and even take advantage of currency fluctuations. In addition, of course, the prevailing interest rate should be to the benefit of the consumer. If you are still informed about local conditions, such a project can be worthwhile.
5. What requirements must be fulfilled?
Without any collateral, even foreign credit institutions and banks do not spend large sums of money. In this way, guarantors should be found in advance if their own financial resources are not available in sufficient amounts. Checks do not differ much from those of German companies. Salary statements of the last 2 to 3 months are needed.
What is a foreign loan?
The foreign loan was also known in the past as a Swiss loan. It was primarily the banks in Switzerland that awarded such a Credit bureau-free loan to consumers living in Germany. Due to missing licenses, the banks in Switzerland had to cease this activity.
What requirements do borrowers have to meet?
Although the Credit bureau is not inquired, but without collateral, no foreign bank forgives a loan. For this reason, the borrowers have to prove that they have a social insurance obligation. That should last for at least a year. A temporary employment contract or a terminated employment contract will not be recognized.
What is the loan amount?
The minimum loan amount for this foreign loan is 3,500 euros. Then follows loan amount of 5,000 euros and 7,500 euros. The amount of credit the customer can claim depends on their net income. The bank has an internet presence. The loan can be requested via the Internet directly from the bank or through an intermediary.
What is the term?
The term for this loan without Credit bureau is fixed. It can not be changed. If a higher loan amount is in question, then the monthly rate and not the term increases, as is customary in Germany for loans. The interest rates are also higher than with a installment loan in Germany.
Credit from abroad through intermediaries
The loan without Credit bureauprüfung can also be applied for through a mediator. In the case of a successful loan brokerage a commission will be charged. This must be paid by the borrower. Most agents work for the benefit of their customers. There are some telltale signs that a mediator does not mean it honestly.
For whom is a foreign loan suitable?
This loan is not only interesting for people who have a negative credit rating and therefore no longer get money from a German bank. There are also people who, despite a good credit rating, opt for this path, even if it is more expensive. Every credit and direct credit request is reported to the Credit bureau. This is not the case with a foreign loan. Who does not want an entry in the Credit bureau, can also opt for this loan from abroad. No one in Germany learns of this loan.
The Credit bureau is pure and is still needed a loan, the borrower can apply for a loan in Germany. If a loan is already being paid, the banks will see it in Credit bureau, provided that it comes from Germany. That could thwart another loan commitment. The borrower does not need to worry about credit-free foreign credit. Gladly, this loan is also taken by a spouse, if he does not want the partner to learn about it.
A foreign loan is understood to mean a financing that is processed via a foreign bank or investors abroad, but is paid to a German bank account. This type of loan has several advantages and, for various reasons, is handled not only by traders but also more and more often by private individuals.
Call in credit intermediaries
To get a loan abroad, a credit intermediary is turned on in the most common cases. This then mediates between the client and the corresponding bank. The entire loan process takes place online. A visit to the bank or loan talks are often unnecessary.
People who opt for a loan abroad have different motives for doing so. In the most common cases, the money will be used to finance a property, but more and more small loans are being transacted abroad in order to avoid information from Credit bureau. Especially before the lowering of CEB key interest rates, a loan abroad was interesting, as other currency areas were associated with significantly lower interest rates.