A loan from foreign banks is especially a popular alternative when looking for a loan without credit. A well-known example is the loan, which can be applied for in Germany via credit intermediaries. A loan from foreign banks can prove to be useful, but often comes with restrictions.
Foreign loans as an alternative – advantages and disadvantages
Applying for a second loan in Germany is made much more difficult if there is no income available that, in the view of the banks, is sufficient to service two loans. That’s why many borrowers look for alternatives, and they often head out to neighboring countries through a credit intermediary.
But it can also be significantly more favorable terms that allow German bank customers to think about a loan from foreign banks. However, the same applies as with domestic banks: A favorable debit interest does not make any cheap credit. Again, the conditions must be compared exactly. It is also important to ensure that they are taught in a language that you yourself master.
In addition, it should be checked on which jurisdiction the contract is based. If this is foreign law, you should familiarize yourself in advance with the laws of each country, as far as they are of interest for a loan from foreign banks. This can be particularly beneficial when it comes to disputes with the lender.
A classic: the credit
A number of credit intermediaries specialize in offering foreign loans in Germany. It is no coincidence that a loan from foreign banks is often advertised as a loan without credit. Because here it is actually the case that no information from credit is obtained. This applies above all to the well-known loan. However, this must not be regarded as a panacea against financial bottlenecks. This is mainly because the loan amounts are usually fixed in advance and are usually between 3,000 and 4,000 euros. The same applies to the other conditions such as duration, amount of installments and interest rate. The offers are therefore usually completely rigid and do not allow any modifications.
Even if no credit check by means of a credit inquiry is required, collateral still has to be provided which is based on a regular income in sufficient amount. This income must come from dependent work, which in turn is based on a contract of employment that has been running for at least two years. Anyone still in the probationary period has no chance of receiving a loan. The same applies to self-employed and freelancers. Although there are now special offers on the market especially for these groups, but their conditions should be checked in advance.
Before a loan is taken up by foreign banks via a German-based credit intermediary, its terms should also be scrutinized.
This is particularly important to pay attention to the processing fee, which can drive up the effective interest quickly.