For many loan seekers, a Swiss loan, also called a Credit bureau-free loan, is the last option for a loan if a loan was refused at Cream banks. In the approval criteria that Cream banks require, in addition to a flawless Credit bureau, sufficient and regular income must also be submitted. Even if the Credit bureau is positive, one can normally assume that the pension is lower than a working income and is therefore no longer above the garnishment limit.
The Swiss loan for pensioners
Anyone looking for a loan as a pensioner in Germany will quickly find that long-term loans that require repayment after retirement are no longer possible. Think of a real estate loan here, all other consumer loans are granted up to the age of 60+.
Most retirees have a significantly lower income when they retire, which practically minimizes a pensioner’s creditworthiness all at once. The pension is secure and is transferred to the current account every month, but the garnishment-free limit is hardly exceeded. As a result, the prerequisites for lending via securing sufficient income are no longer met.
Requirements that are required
Pensioners who can prove that they are sufficiently high, at least from USD 1,000 upwards, can take advantage of the Swiss loan for pensioners. The cantonal banks have raised the age limit for a Swiss loan for pensioners up to the age of 75. No matter which country of origin the loan comes from, securing credit is the top priority for the lender.
That is why the Swiss loan is offered to pensioners with residual debt insurance and this is emphatically. For a younger person, the cost of residual debt insurance may still be acceptable. For pensioners, this type of insurance can significantly overstretch the budget.
Anyone who is faced with such a decision as a pensioner should have the costs calculated precisely. If these are greatly increased, a pensioner can fall back on a younger co-applicant, here the children would be addressed. This increases the creditworthiness again and interest rates fall. Loan approval is also made easier and Swiss credit for pensioners can be granted on generally favorable terms.