Consumers refer to a Swiss loan as a loan without Credit Bureau, which is paid out by both Swiss and Liechtenstein banks. Preliminary costs are costs calculated by credit intermediaries, rarely banks, for processing a loan application. They are legally inadmissible because credit intermediaries are only entitled to an appropriate performance fee if the loan application is successful.
Credit application through a Swiss or Liechtenstein bank
Consumers with a negative Credit Bureau only get a loan from domestic credit institutions after tough negotiations and often have to pay high interest rates for them. As an alternative, a loan can be taken out in Switzerland, for the settlement of which Credit Bureau is irrelevant, since the Swiss bank cannot obtain any information. A Swiss loan applied for directly from a financial institution is always issued without any upfront costs, since the bank naturally complies with the provisions applicable to banks in Germany.
A Swiss loan with no upfront costs is not a foreign currency loan, rather the entire loan is processed in dollars. The loan application submitted directly through a Swiss bank is processed in any case without calculation of preliminary costs, but is limited to amounts from 3500 to a maximum of 5000 dollars. Furthermore, direct applicants have to meet a variety of personal conditions so that the Swiss financial institution can process their loan request.
Loan application through a credit intermediary
The Swiss credit institutions grant a Credit Bureau-free loan in excess of 3500 to 5000 dollars if the consumer submits the application through a credit intermediary. The option to successfully take out a Swiss loan through an intermediary without any upfront costs also exists for not all consumers who meet the requirements that apply when applying for a loan directly. The seriousness of a credit intermediary can easily be checked by asking whether it can broker the desired Swiss loan without any upfront costs.
Reputable credit service providers observe the legal provisions and only charge their clients the approved, appropriate percentage success fee. If credit intermediaries insist on the payment of upfront costs or flat rates, loan seekers choose another provider whose business practice complies with the legal requirements.
The calculation of preliminary costs suggests that the intermediary is only interested in receiving the money and less in the successful credit service. If, on the other hand, credit service providers mediate a Swiss loan without any upfront costs, they only earn if the loan has been paid out successfully.