Apply for a foreign loan and receive immediate payment – where is this possible for germans?
A foreign loan with negative schufa is possible. However, there are a few things to keep in mind with these loans. We show which points are particularly important for borrowers. Usually this "loan without schufa" comes from liechtenstein, formerly from switzerland. The term "swiss loan" also dates back to this time.
The most important things in a nutshell:
- A foreign loan with negative schufa often comes from sigma bank, based in liechtenstein.
- The loan is strictly structured and offers only three loan amounts with a fixed term.
- The acceptance guidelines are more restrictive than those of many german banks.
- A loan despite schufa at a bank located in germany can sometimes be the better solution.
- Another alternative is to borrow from private sources.
Reputable providers for the foreign loan despite negative schufa for germans
- Apply for a foreign loan without upfront costs
- Immediate payout possible
- In our list: reputable providers with good testimonials from customers
- Very experienced and well-known loan broker with a high success rate (already over 100.000 loan disbursed)
- High transparency
- Very good and fast service
- Construction financing also possible despite schufa
- Good customer reviews and testimonials
- Fast acceptance
- Also in the business for a very long time
- Installment break can be agreed
- Unscheduled repayments at any time
- Real-time processing and very quick loan approval
- Immediate payment in 24h
- Germany's largest provider of loans from private individuals
- Loan from private also possible with negative schufa score
- Good customer service
Why get a foreign loan with negative credit history?
Often enough people get into a financial emergency through no fault of their own. Bounced direct debits, outstanding loan payments or an open credit card balance are the result. The impact is obvious. Negative schufa entries are the result, borrowing to bundle outstanding debts becomes impossible. In this case, good advice is expensive. Often only a foreign loan can help.
Credit without schufa – where it comes from?
Switzerland, but also liechtenstein or poland, do not know an institution like the german schufa. Against this background, there is neither a schufa query nor a schufa entry when the loan is approved. In almost all cases, a foreign loan with negative schufa is granted by the liechtenstein sigma bank. Sigma bank specializes in loans to german citizens with weak credit ratings.
What are the requirements for a foreign loan with negative schufa?
However, sigma bank does not distribute loans in a scattergun fashion. Rather, it sets fairly strict standards even for acceptance requirements. These are sometimes stricter than with banks in germany, which grant loans even with negative schufa entries. Sigma bank's acceptance guidelines at a glance:
- The loan is granted only to people in permanent employment.
- Applicant must be no older than 62 years of age.
- Only borrowers with a permanent employment relationship are accepted.
- Applicant must not have been sick more than 10 days in the current calendar year.
- Employment after parental leave must have been continuous for at least four months.
- If applicants are eligible for short-time benefits, a special test is given.
- New sigma bank customers must provide an extract from the debtors' register if they have been employed by their current employer for less than two years.
- Salary assignment must be either notarized or certified by the municipality.
The last point in particular will irritate borrowers in rural areas where everyone knows everyone else. Notarization costs money, an unnecessary expense in a financially precarious situation. Having the notarization done by the municipality when you kick on the same soccer team with your co-worker, or sit at the same regular table, is pretty awkward.
The question about sick days probably also seems a bit strange to german borrowers. No german bank asks how long a borrower was sick.
The conditions for the swiss loan
As strictly, as the acceptance guidelines are arranged, so strictly are also the conditions. The borrower can not choose a free loan amount or for him suitable term. The loan period is basically 40 months, regardless of the amount of the loan. The foreign loan with negative schufa is also only available in three sizes. These are 3.500 euros, 5.000 euros and 7.500 euros.
Also noteworthy are the specifications for the minimum available household net income. These are based firstly on the amount of the loan, and secondly on the number of dependants of the borrower.
The following overview shows which incomes are required:
Interest rates depend on the amount of the loan, not on the creditworthiness of the applicant. For a loan in the amount of 3.500 euros, sigma bank charges a fixed borrowing rate of 8.84 percent per annum, effectively 11.12 percent per annum. With a credit over 5.000 euros 8.83 percent nominal and 11.11 percent effective interest accrue. The identical conditions also apply to loans in the amount of 7.500 euro.
The spread between the nominal interest rate and the effective annual interest rate is an indication that an additional brokerage fee applies. This is for loans over 3.500 euros one-time 105 euros. For a loan in the amount of 5.000 euro the sigma bank charges a brokerage fee of 150 euro and for 7.500 euro credit is 225 euro. The broker commission is financed. It is generally incurred, even if the application is made directly through the sigma bank.
The monthly rate is 3.500 euro loan 105.15 euros. For 5.000 euro loan fall 150.20 euros per month and at 7.500 euro credit 225,30 euro to.
As of april 2020, sigma bank has not yet reached the stage where it has implemented a digital loan process. The whole procedure still seems very "old school. Even the videoident procedure is not possible when applying directly to sigma bank. This, of course, also extends the period from the loan application to the payment of the money to the account. If the applicant uses the detour via a credit broker based in germany, the videoident procedure is possible on a case-by-case basis.
All forms must be printed, filled out and sent with the requested documents by mail to liechtenstein or to the intermediary who may be involved in germany.
Experiences: what are the alternatives to the foreign loan without schufa?
As a borrower in germany, you must keep in mind that there are banks that generally refuse an application with negative schufa. However, there are also banks that very well look for the cause of a negative schufa.
If the reason for the schufa entry was a one-time contact with a debt collection agency, this worsens the credit rating. This in turn leads to a higher creditworthiness-dependent interest rate, but not to a rejection of the loan request.
The credit institutes evaluate naturally differently the credit standing, if to a negative schufa entry also still the entry text "return debit note" appears above average frequently in the account documents. In this case, the granting of the loan becomes more difficult.
In connection with a loan and the associated advertising, consumers must always distinguish between "credit despite schufa" and "credit without schufa". A loan without schufa is a foreign loan with negative schufa. A loan despite schufa comes even with weaker creditworthiness still to the disbursement, only with higher interest rates. Before a borrower takes the trouble to take out a foreign loan with negative schufa, he should first see if he can not get a loan in germany despite schufa.
This is often easier to do than consumers believe. If you can use an electronic loan application, the money is usually available in the account the next day as a true instant loan.