A Swiss loan is usually a loan from a Swiss or Liechtenstein bank without Credit bureau. These loans are paid out as well as their repayment in USD. In addition, federal credit institutions issue foreign currency loans in Swiss francs (CHF) for real estate financing.
Prepayment is another term for preliminary costs, which are sometimes required by credit intermediaries. They are clearly prohibited for loan applications within the EU, and there is a legal gray area for loan applications in third countries such as Switzerland. In both cases, commissions paid for successful credit brokerage are acceptable and acceptable. When borrowing Swiss Credit bureau-free loans, this almost always bears the borrower.
Why prepayment is to be avoided
Ideally, consumers apply for a Swiss loan only without prepayment. There is no such requirement if customers submit the loan application directly to the bank and therefore without an intermediary. This is possible with Swiss loans if the applicant has a permanent job and achieves the minimum income determined by federal banks based on the size of the household. Furthermore, the lending of federal banks is generally limited to an amount of 3500 USD, only a few credit banks grant higher loans of up to 5000 USD.
In addition, most banks from Switzerland or Liechtenstein only grant their loans to applicants who are citizens of their country of residence. The obligation to treat all EU citizens equally does not apply to them, as Switzerland is not a member state of the USDpean Union. Freelancers and the self-employed also get a loan without Credit bureau at some Swiss banks, but if applicants use the credit brokerage service due to their personal situation or the required loan amount, they still get their Swiss credit without reimbursement from reputable brokers.
A reputable credit broker only charges the client the agreed commission for loans from foreign banks if the transaction is successful. If service providers do not provide a Swiss loan without prepayment, there is also the risk that they will be more interested in collecting the preliminary costs and not in an actual loan brokerage.
Application and payment of a Swiss loan
The Swiss bank does not make a Credit bureau request before lending and does not report the borrowing to the German credit protection association either. This makes the Swiss loan without prepayment and without Credit bureau suitable for loan applicants with negative characteristics in their Credit bureau information. However, there is a notification to the central office for credit information, which is to be classified as a Swiss counterpart to the German Credit bureau. This notification primarily prevents the simultaneous taking up of several Swiss loans from different banks, which could result in borrowers undermining the limit on the loan amount.
The Swiss financial institution usually transfers the requested and approved loan amount to a borrower’s checking account; at the express request of a customer, most Swiss banks also make a cash payment. The currency of the Swiss loan is the USD, so that there are no conversion costs or exchange rate risk. There are also no costs for the transfer of the monthly repayment installments, since the financial institutions applying for their loans in Germany maintain a bank account with a domestic credit institution.