If a loan seeker in Germany makes a loan request, the bank obtains a Schufa report from the applicant. The data stored at Schufa on accounts, credit cards, credit inquiries or payment history give the bank the opportunity to get a better picture of the applicant's financial situation and to evaluate his creditworthiness and creditworthiness as well as possible. People who, according to the Schufa score, have a poor credit rating or even a negative Schufa characteristic are subject to a higher risk of default for the bank than people with a strict Schufa. The bank compensates for this increased risk of default with a higher interest rate - or gives it in the event a negative Schufa no credit at all. Because a negative Schufa is a KO criterion for most banks in Germany when granting loans.
As the name suggests, a Swiss loan is issued by a bank from abroad, mostly from Switzerland, Liechtenstein or Austria. What is special about the Swiss loan is that the bank does not need to obtain Schufa information. Accordingly, a Swiss loan is particularly interesting for people who have a negative entry in the Schufa. Because the negative feature remains hidden and the chance of a loan approval is significantly higher compared to a loan with Schufa information.
Nonetheless, banks abroad do not want to take too high a risk when granting loans. Swiss banks know that a certain part of the customers who apply for a Swiss loan without Schufa, very likely also have a negative Schufa entry. This can be an indication of poor creditworthiness and / or poor payment behavior, but does not have to be. However, the increased risk is reflected in the Swiss loan in a higher interest rate. In addition, the creditworthiness and other criteria of the applicant are checked more precisely and stricterly with the Swiss loan than is the case with many loans in Germany. This is intended to reduce the credit default risk.
Criteria that are used to assess the creditworthiness of the applicant are, in addition to monthly income and expenses, for example, professional situation or age. The applicant must, depending on the number of their dependent children and the requested loan amount, draw a fixed minimum income from employment. In addition, when it comes to Swiss loans, banks attach great importance to a secure employment relationship, such as permanent and permanent employment with a certain minimum length of employment with the same employer or civil servant status. In order for the loan to be repaid with a high probability by the end of life, applicants must not be older than 62 years. Additional collateral, such as real estate, can have a positive effect on credit checks. With such “tough” requirements, banks want to protect themselves against loan defaults on Swiss loans - even if a certain residual risk cannot be avoided.