More than an alternative – loans from abroad!
In the life of a person, there are always situations which not only make a loan mandatory, but often even make it unavoidable. Actually, in a modern society of the 21st century, nothing unusual would be the case with the private credit. Quite apart from proof of income or possible guarantees, without a private credit information nowadays no way leads past a reputable bank within Germany.
But that’s where the first difficulties begin, because the private credit clause on a loan request makes it extremely difficult and often impossible for a large number of people to get a loan. In the end, literally, the only way to escape abroad is to be able to avoid the private credit at least. Loans from abroad? Sounds practical, logical and meaningful, but what is behind it?
What do loans from abroad really mean?
Loans from abroad are a lucrative alternative to lending institutions within Germany. In particular, the great advantage is that banks abroad are not subject to the strict German guidelines for credit brokerage and authorization. private credit information is therefore only available within Germany, and even successful lending is not subject to any guidelines that would entail an entry into the private credit.
A large proportion of such foreign loans are also issued by banks in Switzerland,but Lichtenstein, Luxembourg and Malta are also eligible for such a case. In neighboring countries, such as Austria, loans abroad have been playing a major role for decades, as more than 50 percent of all real estate financing has been realized with the help of foreign credit institutions.
Only the interest rate differentials are a crucial factor to look for a loan abroad, because this can easily save tens of thousands of euros without further effort.
A corresponding example is a foreign loan in Switzerland, where interest rate differentials are found, which are between 1 and 2 percent below that in Germany. The whole thing is made possible by the different policy of the central banks within these countries, literally “very much to the joy of the one and to the annoyance of the other”.
What requirements must be met for this?
Of course, to qualify for a foreign credit, which can also be obtained without the need for guarantees, extended security (eg real estate, insurance) or spouse, some conditions must be met. Of course, credit institutions abroad also try to make lending dependent on certain basic conditions, which guarantee a certain guarantee that the bank concerned can expect a secured repayment.
Thus, a regular monthly income should be available, which can also be demonstrated on the evidence. Furthermore, as a rule, a temporary or permanent proven employment relationship is required as well as the legal age of the applicant.
Self-employed or freelancers, however, are burdened with a loan abroad with some disadvantages and should therefore rather resort to a German bank (tax aspects).
Required documents for a loan abroad!
Similar to the application for a loan within Germany, a valid proof of income must be provided for the credit abroad (usually the last two pay slips) as well as the corresponding account statements of the corresponding salary account. Alternatively, a copy of the income tax card may be submitted for this and, if the applicant is a member of an armed body, a corresponding service certificate will be required.
The processing time for a loan abroad usually takes 10 working days, from the day the application is submitted until the final granting of the loan.
A few dates
Each year, more than 7.6 loan agreements are concluded in Germany. Borrowing is in most cases a man’s business. The proportion is 72 percent. In addition, men also take on higher loans than women. The average is here at a height of almost 12,000 euros. The most common reasons for borrowing are the purchase of a new or used car, the modernization of the house or apartment or the replacement of another loan.
In doing so, borrowers no longer opt for a home or other bank loan but many borrowers for a loan abroad.
Reasons for the loan abroad
Taking credit abroad can have many reasons. Especially in commercial areas, such borrowing often takes place. In addition, private consumers can also take out loans abroad. The main reasons for this have recently been the reduction in the base rate and the subsequent decline in German mortgage rates. As a result, lower interest rates prevail in other currency areas than in Germany.
In addition, many consumers also borrow abroad if they are affected by negative entries in the private credit. It has been proven that consumers with a negative entry into the private credit from German banks or savings banks receive very little or no credit. Already an unpaid mobile bill is sufficient for such a negative entry.
The reasons for the non-payment do not matter. The German banks and savings banks see only a negative private credit information and thus refuse to borrow. Another aspect of awarding a loan is the private credit score. This is calculated from the gearing of a person without his income.
If consumers have taken too many loans in the past, they will drop below 90 points and the consumer will not receive another loan. A loan from a foreign bank is also the solution for these people.
Risk of foreign credit
Taking a loan abroad is only a risk if you get to the wrong provider. In addition to being able to hire a financial intermediary to look for a loan, you can also ask for a loan from any bank in the EU.
With a good credit rating, this would of course be approved. Credit intermediaries have the advantage that they know which foreign financial institutions have no business relations with the German private credit and which nevertheless. In addition, not all foreign banks or savings banks lend a loan to Germany, so that the search would also be very difficult.
Main requirements for such a loan
The main difference between a loan at home and abroad is that foreign banks usually renounce the information of private credit. Of course, foreign lenders also want to have met some conditions. Depending on the type of lender, bank and country, this includes proof of income.
Other requirements include the age of the borrower. It must have a minimum age of between 18 and 21, depending on the country, and must be at least 10 years younger than the legal retirement age of the country of origin. For those living in Germany this is 57 years. Central and northern European credit institutions, however, act more cautiously than southern banks.
How to apply
In times of the Internet, it is possible to complete a loan abroad without any problems. However, the way through the personal conversation with the bank or a credit intermediary is more secure. So you do not only get to know each other, but both the bank and the credit intermediary can prove their seriousness.
Of course, such a personal conversation also represents a greater expenditure of time as well as longer journeys. Because of this, it is essential to obtain information on the internet about a loan from a foreign bank. Some comparison portals specialize in foreign lending and analyze and compare them.
In the case of loan agreements in another language, unless the language itself is powerful, a professional interpreter should be consulted to protect against unpleasant surprises.
When brokering loans, a loan broker is very helpful. The credit intermediary receives the borrowing abroad a commission. This commission is borne either by the borrower or by the bank. It is due only when the loan is paid out.
The advantage of the credit broker is that he can make exactly the loan offer that is tailored to the financial situation of the customer from the huge offer of banks and credit institutions for his customers. In addition to loans abroad, the credit intermediary arranges free loans, short-term loans as well as loans abroad for specific financing objectives such as a car loan, a real estate loan or a modernization loan.
Credit intermediaries often work with certain banks and can thus assess well in advance which bank could be eligible for which loan abroad.
Dubious mediation offers
Of course, there are also black sheep when arranging loans from abroad. These can be recognized, for example, by cost. Dubious mediators exploit loopholes referring to “higher-level services”. Here you can ask for pre-payments, which do not have to be repaid if the credit is not established.
Some dubious brokers send, upon request by the customer, for a high cash on delivery fee not about the credit agreement but just the application form. Another indication of a black sheep is ancillary business, which should accompany the credit brokerage. These can be useless insurances or participations. For some it is even possible to send the representative to your own house.
Serious placement offers
Serious brokerage offers include, in addition to a free consultation and a non-binding loan comparison as well as a free, credit-sensitive interest rate offer for the loan. The applicant can think about it in peace. No matter how the decision turns out, this does not result in any pre-costs. Serious mediation offers do not ask the private credit on request and leave, if desired, the credit abroad not in the private credit register.
The right to compensation for serious placement offers is only asserted after the grant of the loan application. The amount of the remuneration results from a contract between the customer and the agent. In addition, reputable agents also work transparently for the customer. Experiences from other customers can be very helpful here.