Did you know that a Swiss loan without Credit Bureau, with a loan amount of USD 3500, has not come from Switzerland for a long time? The article provides all the important information about Swiss credit without Credit Bureau 2013.
Swiss loan without Credit Bureau – 3500 USD Credit Bureau-free small loan
Switzerland is known and famous for many things. Everyone involuntarily thinks of mountains and snowy landscapes. Switzerland is also an important financial center. For a long time, Switzerland was a safe place for the wealthy people’s investments and special loans for poor people. A Swiss loan without Credit Bureau, with a loan amount of 3,500 USD, is part of Switzerland’s public image.
It was not only the name of the country of origin that shaped this type of loan. Many also associate the sums of 3,500 USD and 5,000 USD with this foreign loan. Unfortunately, the Credit Bureau-free credit facility from Switzerland also repeatedly caused negative headlines. Reason enough for the Federal Financial Supervisory Authority (Banking and Finance) to intervene. In 2003, Banking and Finance prohibited Spin Lender from granting loans in Germany. A long legal battle followed through all instances. Six years later in April 2009, the Federal Administrative Court ruled finally.
The company was no longer allowed to grant loans to Germans. The last real Swiss loan without Credit Bureau disappeared from the market. Spin Lender and presumably also the competitors from Switzerland lacked a decisive banking license. Without this license, future loans to Germany, which is around 90 percent of Fidium’s business, would not be legal.
Swiss loan from Liechtenstein since 2010
The court ruling had far-reaching consequences. Financing without Credit Bureau was suddenly no longer legally possible from one day to the next. To compensate for the gap, various loan concepts were tried in the context of private lending. The result, however, was extremely devastating for the credit intermediation industry.
A loan without Credit Bureau, if there was any investor at all, became prohibitively expensive. At that time, effective annual interest rates of 20 percent were reported. Those who saw no other choice and took advantage of these offers often got into a spiral of debt, which in turn produced negative headlines. It was not until 2010, when Across Lender was founded, that the credit opportunities for affordable, Credit Bureau-free loans improved again. Since then, however, the Swiss loan without Credit Bureau, with a loan amount of USD 3500, no longer comes from Switzerland, but from Liechtenstein.
This time, in compliance with the law, the Lite Bank has practically completely adopted Spin Lender’s concept for success. According to unconfirmed sources, the same investors are behind this bank that previously stood behind all Swiss credit providers. The interest rates for a Liechtenstein loan are of course still adjusted to the credit risk. With an effective APR of 11.62 percent, they are roughly at the price level of an average overdraft facility.
Credit conditions for Swiss loans 2013
A Swiss loan without Credit Bureau is endowed with a credit sum of 3500 USD or a net credit sum of 5000 USD. The loan offer of the Lite Bank is aimed exclusively at employees who are subject to social security contributions. The employment contract with the current employer must have existed for at least 12 months. Loan protection is based solely on the secure monthly income. Therefore, depending on personal circumstances, income must significantly exceed the garnishment exemption limit. Guarantees or property collateral cannot compensate for a low income.
Employees whose income is seized or the attachable portion of the income has ceded cannot qualify for a loan. In addition, the public debtor register is viewed for the credit check. Anyone who has submitted the EV or has another entry in the public debt register is also excluded from lending.
Credit conditions for approved Swiss loans
For a Swiss loan without Credit Bureau, with a loan amount of USD 3500, the Lite Bank calculates 11.62 percent APR. The loan is repaid in 40 equal monthly installments of USD 105.95 each. A total of 4,238 USD must be repaid for 3,500 USD of Swiss credit.
A single person without any maintenance obligations must prove at least USD 1,130 monthly net income in order to qualify for the loan. If the prospective customer has to support a person who is subject to maintenance, the minimum income increases to 1,550 USD.
Child benefit and other social benefits from the state cannot be counted as income. For Swiss credit without Credit Bureau, with a loan amount of 3500 USD, only the net labor income counts as credit-relevant income.