If you apply for a loan from a German bank, you must engage in a lengthy process in which the outcome is uncertain at the beginning. Much easier it is to apply for a foreign loan, because there is no private credit information is obtained. In addition, foreign credits have other benefits, especially with regard to savings on interest rates.
For foreign loans, there are two major differences, namely that there is no exchange rate risk for a foreign loan in euros, while a foreign loan in another currency is exposed to exchange rate fluctuations. More information on foreign loans for the self-employed can be found in this article.
What advantages do foreign loans have and which requirements have to be met?
More and more self-employed and private individuals are opting for foreign loans. Of course, some conditions must be met for the loan to be granted. Nevertheless, handling a foreign loan is much easier and less bureaucratic. The biggest advantage is that no private credit information is obtained. Foreign credit is usually granted by Swiss banks and is therefore also known as Swiss Credit.
In principle, this loan is a small loan, which is approved up to a maximum of € 3,500 and a maximum maturity of forty months. Once the loan has been approved, the money is ready. Further prerequisites for a foreign loan are that you have not taken any oath of disclosure, are a German citizen and are at least 18 and the highest 58 years old. You should also have collateral, such as a property or life insurance.
What else should you consider?
It usually does not take long for the foreign credit to be approved. You can also easily apply for this loan online by completing the form on the internet and sending all the necessary documents to the bank. Some foreign banks will call you or send you an e-mail. Foreign banks do not obtain private credit information, but check whether sufficient collateral is available. If the loan is approved, you will either receive a check or the money will be paid to you postable.
Before you decide on a bank, you should definitely compare the offers with each other to find out, foreign loans for the self-employed come into question for you. Especially for foreign loans for the self-employed, there are some major differences. It does not always matter what the interest rates are, but what the repayment terms look like. Be advised in detail and only then decide which loan is best for you and fits your financial situation. If things go well, you can make your desired investment in the shortest possible time.