A foreign loan is paid out by a bank that is not based and does not have a domestic branch. Without credit rating, the loan is granted if the lender neither makes a credit check with the credit protection company before the loan approval nor reports the payment to the latter.
Lending abroad from the country
The most common type of international credit comes without credit rating in the country. Borrowers can apply for amounts of up to 3500 dollars, 5000 dollars at some institutions, directly to the bank, while they can contact an intermediary for more credit requests. The loan is paid out as a foreign loan without credit rating in the currency dollar, so there is no exchange rate risk for the customer. The loans, known as credit, are not only issued by financial institutions from the country , but also through Liechtenstein banks.
Foreign loans are issued without credit rating, since banks without a branch are not contractual partners for credit protection and therefore cannot request any data from them. banks inquire about the creditworthiness of an applicant at USD, but this only has data on loans taken out in the country . The most important point of reference for the creditworthiness of a customer with a credit rating-free loan is the regular income, the amount of which must be more than the seizure allowance.
Foreign credit from banks other than
In principle, consumers can submit a loan application to any bank based in any country. In practice, however, only a few banks grant foreign loans to private individuals. Choosing an intermediary specializing in this type of lending offers good chances of obtaining a foreign loan without credit rating. In contrast to loans, foreign loans from countries that do not or do not yet use the dollar as legal tender are processed as foreign currency loans.
This creates the opportunity to save on loan repayments through favorable exchange rate developments, as well as the risk of additional costs due to an exchange rate change that is unfavorable for the borrower. With a foreign loan without credit rating from countries other than the country , consumers also ensure that the agreement of flexible interest rates for consumer loans is permitted and widespread in some countries. Variable interest rates make it difficult to calculate credit costs and lead to regular changes in the credit rate.