When it comes to finance, Switzerland has a very good reputation. Even if CD’s with black accounts have appeared again and again in recent years, which have put some tax evaders in dire straits, Switzerland is still considered a safe banking country in which you don’t just like to deposit your money, but also which one borrows. In the form of a loan. How taking out the loan in Switzerland works, why you borrow money there and what things have to be considered, would like to bring you a little closer at this point.
Why taking out the loan in Switzerland is so interesting
Actually, one would like to assume that there are enough banks and savings banks in Germany that offer so many loan offers that they should comfortably suffice for every conceivable loan request. Why are there as consumers who absolutely want to take out a loan in Switzerland? Isn’t that enough for them in our country? Or do the Swiss do something different when it comes to lending?
The Credit Bureau is the crux of the matter
Anyone looking for a Swiss bank to take out a loan there is mainly doing so to bypass the German Credit Bureau. Anyone taking out a loan in Germany must give the lender bank permission to query the Credit Bureau data. The bank will only approve the loan application if they are all positive in nature.
In Switzerland, as in every other country, things look a little different. If you take out a loan there as a German citizen, the Credit Bureau doesn’t matter. It cannot be queried from Switzerland because the banks have no access to the data. For the 6.6 million people who have one or more negative entries in Credit Bureau, taking out a loan in Switzerland is therefore a good alternative because they do not have to have any concerns that the loan application will be rejected because of Credit Bureau.
It is not without security
However, anyone who thinks that money is given lightly in Switzerland is wrong. Credit Bureau has no relevance for borrowing. However, this does not mean that no collateral has to be provided when taking out a loan in Switzerland. But on the contrary. The Swiss look very closely at whom they trust their money to and immediately reject loan applications if their creditworthiness is poor.
So you don’t get a loan there if you don’t have a fixed income that is significantly above the garnishment allowance. The income must come from a job and may not be earned on an independent or freelance basis.
In addition, there must be a permanent residence in Germany. The minimum age for borrowing is 18. The maximum age is retirement. As a rule, only small loans that are personal and that may not be passed on are offered. The money is not paid out in cash, but is always transferred to a reference account. The account holder must also be the borrower.
On top of that, it must be borne in mind that the interest rates on a Swiss loan can be significantly higher than what we know here in Germany. For this, the credit is not noted in the Credit Bureau, which many borrowers find very positive.