There are different reasons why Germans take out a loan abroad. In most cases, negative Credit Bureau information is the reason for this. A relatively harmless entry is enough to refuse a loan. The banks do not ask about the background of this negative entry. Those affected only have the option of taking out a foreign loan for Germans.
The international loan – serious or untrustworthy?
Basically, a foreign loan is serious for Germans. In the background is a bank in Liechtenstein with a corresponding license. However, many consumers go the easy way for them and engage an intermediary. Unfortunately there are some black sheep here that do business with prepayment. These have caused the bad reputation of foreign loans. With a little caution, consumers shouldn’t fall for it at all.
Caution is advised as soon as prepayment is requested, a representative visit is announced or insurance is to be taken out. The past has shown that these offers are dubious and only look for customers’ money. There is no credit contract at all.
Fortunately, most financial service providers work seriously and for the benefit of the customer. A foreign loan for Germans has the advantage that it is not reported to Credit Bureau. There is also no question of creditworthiness. Therefore, this loan from abroad is also suitable for people who have a good credit rating, but reject an entry in the Credit Bureau about a loan.
The requirements for an international loan
Basically, unemployed and Hartz 4 recipients as well as self-employed and freelancers do not get a foreign loan for Germans. In principle, applicants must have income subject to social security contributions. The employment contract must not be limited and the employment relationship must have existed for at least one year. A net salary of around 1,100 USD is another prerequisite for a loan approval. In addition, the applicant must be permanently in Germany and have a home address there.
If these requirements are met, there are no problems with a loan approval. The bank will of course check the information provided. As proof, borrowers must send a copy of the employment contract and the latest income statements to the bank. If the details given in the loan application match, the loan amount will be transferred to the borrower’s account within a few days.
The maximum loan amount is limited to 5,000 USD. The term is fixed. Likewise the amount of the monthly installments. A change in the term or the rate is not intended. For many customers, this loan is the last resort to eliminate a financial bottleneck.