Loans from banks without Schufa are common

For certain financial products, banks without Schufa are required or, more precisely, banks that do not cooperate with Schufa or that offer loans without Schufa. These banks without Schufa are often located abroad. How to best identify these banks without Schufa is explained here.

If you need a loan, which can happen quickly, you turn to a bank or credit institution with your request. There you can quickly get the desired money if you can prove your creditworthiness with the last three payslips or, for example, an unemployment notice. The banks and credit institutions then contact Schufa to obtain a final safeguard before granting the loan.

The fact is that almost every household in Germany has already taken out a loan from a bank, many of them also from banks without Schufa. The family needs a new car, the move to a larger apartment is more expensive than expected, or a new kitchen is due. Loans can be taken out for almost any occasion. These loans are then repaid in monthly installments. After all, not every household has saved enough money to pay for a new car or a new kitchen out of pocket.

On the other hand, many families also prefer not to touch their savings to finance a new purchase, and instead take out a loan that they can repay in monthly installments within their budget. For this reason, many banks without Schufa and conventional credit institutions at home and abroad are set up to grant many such loans.

Concept of credit institutions or banks without Schufa

Banks without Schufa and those that do use Schufa, as well as credit institutions, live not only from citizens' savings deposits but above all from granting loans, mortgage financing and other loans. Because the interest on the loan amount and the costs that the borrower incurs for a loan are primarily the income of banks without Schufa and conventional credit institutions. Therefore, they are especially interested in granting as many loans as possible to many borrowers. For this reason, it is also not difficult to obtain a loan if you need one.

Before granting the loan, banks without Schufa and credit institutions first check the borrower's creditworthiness. As a borrower, you only need to provide the proof of the last monthly incoming payments. You can present payslips, pension notices or unemployment notices. From this, the lending institution can determine how much monthly income is available.

This is important for calculating the loan term and the monthly installment amount. First, a so-called household budget is drawn up, recording recurring monthly expenses. Then the monthly installment for repaying the desired loan can be calculated. But not only the borrower's monthly, recurring amounts are important for German banks and credit institutions. Many also request a positive Schufa report from the prospective borrower and make an inquiry before granting the requested loan.

What is Schufa?

Schufa is a German institution where, among other things, debts are registered. That means banks and credit institutions report the loans that borrowers have taken out with them. Payment behavior of these borrowers is also reported. But payment orders, dunning notices, amounts to be paid from final court judgments or cost assessment decisions of local and regional courts can also be recorded for a borrower here, as well as mobile phone contracts and other obligations.

With a so-called Schufa inquiry, German banks and credit institutions can immediately check the creditworthiness and payment morale of the prospective borrower. Of course, Schufa is also notified when a recorded loan has been repaid and settled. Banks and credit institutions also report when a borrower is behind with their monthly installment payments for a loan. In this way, German banks and credit institutions can support each other.

However, because payments that have been made are often not reported to Schufa, it is important that a prospective borrower also takes a look at their own record at Schufa in advance. Otherwise it can happen that the bank or credit institution rejects an application for a new loan because there are allegedly too many debts recorded at Schufa for the borrower, which may already have been repaid long ago and should no longer be listed. For this reason, it can sometimes be very annoying to take out a loan with a bank or credit institution that requests a Schufa report. Therefore, it is good that there are also lenders who do not obtain information from Schufa.

Banks without Schufa from abroad

There are also banks that grant a loan without a Schufa report. These are usually banks without Schufa from abroad, for example Switzerland, which are not connected to the German Schufa system. But German banks and credit institutions also frequently waive a Schufa inquiry, for example for an instant loan within 24 hours, where a quick decision must be made on the applicant's loan request.

It is therefore easy for borrowers to take out a loan in Switzerland if it is no higher than EUR 5,000.00. You also disclose your monthly income here, but these banks operate without Schufa because they are not registered with the system. This is a good option when you need a small loan quickly and want to avoid long processing times.

German banks and credit institutions have also increasingly been forgoing a Schufa report lately. It is often possible to get instant loans within 24 hours without the bank requiring a Schufa report. For these instant loans, the interest rates may be somewhat higher than for a normal installment loan. However, you only need an instant loan if you want quick access to a small amount of credit in the shortest possible time. Therefore, you should always consider applying for a loan with foreign banks without Schufa, for example in Switzerland.

Such banks based in Switzerland are also part of MAXDA's large network of credit providers. Therefore, MAXDA can also compare and place loans without Schufa for you.