The Swiss loan is essentially a normal loan or credit from a Swiss credit institution, but from the borrower’s point of view it has certain advantages. In general, it is a loan agreement between a Swiss bank and a foreign borrower, which is concluded according to Swiss law. Most demand for Swiss loans is in Germany. In contrast to Germany, there is in the Credit Bureau Register in Switzerland, so that a loan payment is possible, even though, for example, the borrower already has a negative Credit Bureau entry in Germany. The Swiss loan thus enables liquidity despite a negative Credit Bureau entry. In addition, the loan is not entered in the German Credit Bureau register due to the Swiss law agreed in the contract.
This form of credit offers people the opportunity to apply for a loan despite a negative Credit Bureau entry, or to take out a credit check from the Swiss bank. The positive credit rating of Swiss banks is, however, tied to certain conditions, as is customary in the industry; usually a certain, regular income is assumed when employed, which ensures the future repayment of the loan. If this is not the case, additional security (eg life insurance, real estate, guarantees) may have to be provided by the borrower. Further formal requirements for the payment of the loan are legal age and German citizenship.
The Swiss loan is primarily used to bridge short and medium-term liquidity shortages. Therefore, the contracts often include small loan amounts and short loan terms, sometimes the Swiss loan is concluded as a classic consumer loan for the purchase of consumer goods. For example, a temporary loss of job or exceptional financial burdens in the budget can be offset. In general, however, there is no restriction on the use of Swiss loans, which means that they can also be used in the real estate sector.
Providers and intermediaries
There are various providers of Swiss loans on the Internet, which usually act as mere intermediaries. It is important for interested parties to pay attention to distinguishing reputable providers from possible fraud websites. Serious providers of Swiss loans are characterized, among other things, by the fact that a loan is not associated with excessive fees or the purchase of other products (eg insurance). In addition, no costs should be charged on the part of the intermediary until the loan agreement is binding. The German company Lite Lender is a well-known provider that mainly appears through TV marketing. As a potential prospect, however, one should check comments and recessions of existing customers in order to obtain an external opinion about the credit broker beforehand.
From the borrower’s point of view, Swiss credit appears to be an interesting way of bridging liquidity bottlenecks in the short to medium term if, due to a negative Credit Bureau entry on the German banking market, there is no longer any possibility to take out a loan . Since this form of lending is an increased credit risk due to the higher uncertainty and the possibly higher default risk of the borrower, the interest conditions and other processing fees will generally be higher than a current account credit or a secured real estate loan. In addition, the Swiss bank must pay the commission to the credit intermediary, which in turn will also increase the total cost for the borrower.