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 some things to consider with these loans. We show which points are particularly important for borrowers. Usually this "credit without Schufa" comes from Liechtenstein, formerly from Switzerland. The term "Swiss loan" also dates back to this time.
The most important thing in a nutshell:
- A foreign loan with negative Schufa often comes from the Sigma Bank based in Liechtenstein.
- The loan is strictly structured and offers only three loan amounts with a fixed duration.
- 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 the loan from private.
Serious providers for foreign credit despite negative Schufa for Germans
- Apply for a foreign loan without any upfront costs
- Immediate disbursement possible
- In our list: Reputable providers with good testimonials from customers
- Very experienced and well-known credit intermediary with a high success rate (already over 100.000 loan disbursed)
- High transparency
- Very good and fast service
- Also construction financing despite Schufa possible
- Good customer ratings and testimonials
- Quick commitment
- Also very long in business
- Installment break can be agreed
- Unscheduled repayments at any time
- Real-time processing and very fast loan approval
- Immediate payment in 24 hours
- Germany's largest provider of loans from private individuals
- Loan from private also possible with negative Schufa score
- Good customer service
Why a foreign loan with negative Schufa?
Often enough people get into a financial emergency through no fault of their own. Burst direct debits, open credit installments or an open credit card balance are the consequence. The effects are obvious. Negative Schufa entries are the consequence, a borrowing to bundle the open demands becomes impossible. In this case, good advice is expensive. Often only a foreign credit helps.
Credit without Schufa – where does it come from??
Switzerland, but also Liechtenstein or Poland, do not have an institution like the German Schufa. Against this background, neither a Schufa inquiry nor a Schufa entry is made 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 creditworthiness.
What are the requirements for a foreign loan with negative Schufa?
However, Sigma Bank does not distribute the loans according to the watering can principle. Rather, it sets quite strict requirements already in the terms of acceptance. These are in part stricter than those of banks in Germany, which grant loans even with negative Schufa entries. The acceptance guidelines of Sigma Bank at a glance:
- The loan is granted only to persons in permanent employment.
- The applicant must not be older than 62 years.
- Only borrowers with a permanent employment contract are accepted.
- The applicant must not have been sick for more than ten days in the current calendar year.
- Professional activity after parental leave must have been at least four months without interruption.
- If applicants are entitled to short-time allowance, a special check is made.
- New customers of Sigma Bank must submit an extract from the debtor's record, if they are employed for less than two years with their current employer.
- The salary assignment must be either notarized or certified by the municipality.
Especially the last point will irritate borrowers in rural areas where everyone knows everyone else. A notarial certification costs money, an unnecessary expense in a financially precarious situation. To have the certification done by the municipality, if you kick with the employee in the same soccer club, or sit at the same regulars' table, is quite inconvenient.
The question about the sick days probably also seems a little strange to German borrowers. No German bank asks how long a borrower has been sick.
The conditions for the Swiss loan
As strict as the acceptance guidelines are designed, as strict are also the conditions. The borrower can select no free credit sum or for him suitable running time. 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 Euro and 7.500 euros.
Also noteworthy are the specifications for the minimum available net household income. These are based partly on the size of the loan and partly on the number of dependents of the borrower.
The following overview shows what income is required:
The interest rates depend on the respective amount of the loan, not on the creditworthiness of the applicant. For a loan of 3.500 euros, Sigma Bank charges a fixed borrowing rate of 8.84 percent per year, effectively 11.12 percent per year. With a loan over 5.000 euros, 8.83 percent nominal and 11.11 percent effective interest accrue. The identical conditions also apply to loans amounting to 7.500 euros.
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 Euro one-time 105 Euro. For a loan in the amount of 5.000 Euro, Sigma Bank charges a brokerage fee of 150 Euro and for 7.500 Euro loan it is 225 Euro. The broker's commission is financed as well. It generally applies, even if the application is made directly through Sigma Bank.
The monthly rate is 3.500 Euro loan 105,15 Euro. For 5.000 loan falls 150.20 euros per month and at 7.500 euro credit 225,30 euro to.
As of April 2020, Sigma Bank is not yet ready to implement a digital credit process. The whole procedure still seems very "old school". Even the VideoIdent procedure is not possible when applying directly to Sigma Bank. This naturally also extends the period from the loan application to the payment of the money into the account. If the applicant uses the detour via a credit intermediary based in Germany, the VideoIdent procedure is possible on a case-by-case basis.
All forms must be printed out, filled in and sent by mail to Liechtenstein or to the intermediary who may be involved in Germany, along with the requested documents.
Experiences: What are the alternatives to foreign credit without Schufa?
As a borrower in Germany, you must keep in mind that there are banks that generally refuse an application with negative Schufa. But there are also banks that very well look at a negative Schufa for the cause.
If the reason for the Schufa entry was a one-time contact with a 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.
Of course, credit institutions assess creditworthiness differently if, in addition to a negative Schufa entry, the entry "return debit note" appears more frequently than average in the account documents. In this case the credit 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 credit without Schufa is a foreign credit with negative Schufa. A loan despite Schufa still comes with weaker credit rating to the disbursement, only with higher interest rates. Before a borrower makes the effort to take out a foreign loan with negative Schufa, he should first see if he does not get a loan in Germany despite Schufa.
This is often easier to do than consumers think it is. If you can use an electronic loan application, the money is usually available in the account the next day as a real instant loan.