There is no common definition of microcredit, with some providers still using the term for ten-thousand-euro loans, while other banks are drawing the limit at five thousand euros or less. Significant is the classification of a loan as a small loan due to the simplified lending often associated with this classification.
For example, German credit institutions sometimes forego submission of the salary certificate for small loans, but not a compulsory Private Credit request. Anyone who wants a small loan without Private Credit usually addresses a Swiss or Liechtenstein bank.
What speaks against a Private Credit?
Not every Private Credit entry necessarily requires a small loan without Private Credit to apply. If it is a soft entry, lending is often possible. This is especially true if the Private Credit entry was forfeited several years ago and the financial situation of the loan applicant has improved significantly since then. An improvement in the personal financial situation is generally accepted by the bank if the lending customer was unemployed at the time of the Private Credit entry and has since found a new permanent job.
Anyone who has good nerves, puts his loan application at the house bank and hopes that this grants the desired small loan without Private Credit. The chances are good, as the internal credit rating is much more informative than a Private Credit statement. However, the bank will refrain from informing the client that it will refrain from soliciting the Private Credit information because of the meaningful, internally available credit data, especially since the bank must sign the Private Credit clause anyway because of the reporting of the borrowing in each case.
Another way to get a small loan without Private Credit offers the pawnbroker. This grants small loans exclusively on the basis of the deposited deposit, which serves as security. Since he has no risk of default on a realistic estimate of the deposit value, the pawnbroker does not request a Private Credit request. In addition, there is no notification of the loan agreement to Private Credit for mortgage loans.
Private Credit small loans at Swiss banks
Swiss and Liechtenstein financial institutions give their small loans without Private Credit, because they have no access to the German Private Credit due to the lack of membership. They report the lending as well as a possibly incorrect loan settlement to the ZEK, which is called by German borrowers colloquially also as Swiss Private Credit. Since the Swiss ZEK are not aware of the Private Credit entries from Germany, the request does not lead to a deterioration in the creditworthiness of the borrower.
The banks from Liechtenstein and Switzerland give their small loans without Private Credit and without causing an entry in the German Private Credit file, they require as security, however, a significantly higher income from work than most German credit institutions.