A foreign loan is a loan that is brokered by foreign banks. As a rule, the loan seeker must contact a credit broker. The credit agencies located in Germany work with foreign partners and broker a loan from abroad.
Most loan seekers who are interested in a foreign loan have anomalies in their Credit Bureau file. Such entries are made if installments have not been paid, cell phone bills have been forgotten or department store bills have not been paid. Canceled loans, bankruptcies and oaths of disclosure are also noted in the Credit Bureau. Since every German bank queries Credit Bureau before a loan is issued and receives information from Credit Bureau that negative entries are present, the loan will be rejected.
The risk of default is too high for the banks, the creditworthiness has suffered from the entries. A loan from abroad is often the last chance for a loan seeker to make money. A loan from abroad is not affiliated to a German Credit Bureau, and no loan granted is entered in the same. Under certain circumstances, a loan seeker can get a loan from a German bank. However, other loan safeguards such as real estate or life insurance must then be provided.
The foreign loan and the prospects
Even civil servants or employees who have a good income and have no Credit Bureau entries are interested in a loan from abroad. It is not only important that this loan is not entered into Credit Bureau, but a loan from abroad can be used as a second loan, an anonymous loan that neither Credit Bureau nor the bank notices. In many cases, this approach is used by people who want to carry out a larger financing project and who are hoping for good interest rates because of their creditworthiness. Because in the case of a civil servant loan in particular, it is required that all existing obligations be repaid and combined into one civil servant loan. This is the reason why the loan from abroad is very popular, it is better known under the name Swiss loan.
Of course, a foreign loan is also not granted without restrictions. There will be no credit check by Credit Bureau, but the credit check will still be carried out. To be able to choose a foreign loan, you must have sufficient and regular income. An open-ended employment contract is also mandatory, and you must also be of legal age. The loan amounts are limited to two amounts, firstly 3,500 USD and secondly a maximum of 5,000 USD.
The conditions for a foreign loan
The conditions that show a loan of $ 3,500 (as of June 10, 2014), repayable in 40 installments of $ 105.40, the total loan amount is $ 4,216.00, the effective annual interest rate is 11.27%. For a 5,000 USD loan (as of 10.6.2014), repayable in 40 installments of 150.55 USD each, the total loan amount is 6,022.00 USD, the annual percentage rate is 11.26%. For example, if you now want to take out a 5,000 USD loan, you must have a net working income of 1,600 USD and that for a single person.
In addition, many foreign banks have an age limit stating that an applicant must be 18 years old and no older than 58 years. The income for a loan from abroad must be above the garnishment exemption limit. This form of credit is secured by assignment of wages. If there are payment defaults, the garnishment is carried out immediately. If you want to avoid this embarrassment, you should pay back this loan particularly correctly. Hartz IV recipients and the unemployed are excluded from a foreign loan because they have no attachable income.
The reputable credit broker
The loan from abroad is only offered by credit agencies. A loan seeker should not fall for the brooding slogans of some intermediaries. A reputable credit broker will only charge its fees once the loan approver and the money have been received by the loan seeker. The reputable methods also include the disclosure of all costs, such as the loan amount, the term, the interest rate and the rate. Placements that work particularly correctly also provide a sample calculation of how high the loan will ultimately be.
With all warnings about dubious credit intermediaries, a foreign loan is the last resort for many people to get the financial situation in order or to carry out a small debt rescheduling. Loan seekers often order in different department stores and a considerable sum comes together. This could be converted into a loan with a foreign loan, which may reduce the installments to be paid.