A loan line is a financial product similar to a revolving loan

We will find it mainly in the offer of non-bank institutions offering installment and short-term loans (payday loans). As part of the loan line, the non-bank institution signs with the client the so-called loan limit agreement.

What does it mean? During the term of the contract, the customer may freely use the funds accumulated on his loan line. What’s more, he decides what amount he pays out, and then pays in to offset the account limit.

The online loan line is a flexible solution because the duration of the contract can be extended at any time at the customer’s request. This is the main issue that distinguishes it from a revolving loan, in which the contract is automatically renewed.

How does the loan line work?

How does the loan line work?

We already know in theory what a loan line is. Let’s check its operation on an example. Let’s assume that we are signing a loan limit agreement for USD 5,000. These are funds that we can freely use in a given period, e.g. within half a year.

If we choose 1.5 thousand from the account dollars, and after a week we will supplement this amount, our limit still reaches 5 thousand. USD (in accordance with the provisions of the contract). It should be remembered that the loan must be repaid systematically.

The reference period to be agreed with the lender is usually one month. This means that at least once a month the lender should make a payment, thus supplementing the funds on the account with the amount paid, increasing it with interest.

It is transferred to the account of our loan line and at the same time increases the available limit of funds. That is why the loan line is also sometimes called the renewable system.

At the same time, a big advantage is a fact that the customer can request a change in the repayment date, thus adapting it to their needs. How to do it After repayment carried out in the first settlement period, you should inform the lender that we want to change the repayment date.

In most cases, you just need to indicate a different date convenient for us. However, we must remember that this solution is not free, which means that changing the repayment date costs money. Usually, these are small amounts from 10 to 50 dollars. We can change the dates even several times.

Control the amount remaining on your account so that the loan line can be renewed by reimbursing previously paid funds.

How is the loan line launched?

How is the loan line launched?

The loan line can be launched via the internet on the website of the selected loan company. So it works like loans for proof because formalities are kept to a minimum. To do this, simply submit the appropriate application and then follow the instructions.

It may happen that you will need to verify our income, e.g. by sending your bank statement. At the stage of completing the application, we must indicate what amount we are interested in and for what period we intend to launch the loan line (the most commonly chosen is 4-12 months).

Filling out the application takes only a few minutes, and after submitting the application, all you have to do is wait for the decision. If the answer is positive, usually on the same day, the funds will be paid into the created loan line. So it is a beneficial solution for people who need money immediately.

Some companies limit the first payment on a loan line to the max. max height 50% of the allocated limit.

Costs related to a revolving loan line

If we decide to launch a renewable loan line, we must take into account the costs, the amount of which usually looks similar to that of payday loans. These include the cost of interest, preparation fee, and commission.

Most often they are strictly dependent on the loan amount. It is also worth knowing that interest, as well as other costs, are calculated only on the amount used. When we withdraw only USD 500 from the available USD 5,000 from the account, interest is charged only on the amount of USD 500.

Renewable loan line – is it worth it?

Renewable loan line - is it worth it?

This solution undoubtedly has its advantages and disadvantages. Let’s take a closer look at them.

The advantages of a revolving loan line include:

  • permanent access to borrowed money – the borrower can freely choose funds from his account and spend it on whatever he wants,
  • flexibility – the customer decides when to pay back the loan because the repayment date can be changed as desired.
  • long loan period – the loan line can be launched for up to 12 months,
  • each repayment increases the available financial limit.

However, the loan line is not free from defects. The most common are:

  • limited access – only customers with an impeccable credit history will get it,
  • risk of getting into the register of indebted persons (in the case of irregular repayment),
  • the so-called risk loan spiral.

People who suspect that they may have a problem paying off their debts, e.g. due to a lack of self-control in issuing them, should not consider starting a loan line.

Loan line – who is it for?

The loan line is intended for people who can boast of good credit history and at the same time do not want to use bank loans. It is also an interesting alternative to non-bank loans for 12 months. Importantly, people who apply for it do not need to have high incomes.

Certainly, this solution will also be appreciated by borrowers, for whom flexibility and lack of rigid contracts, as well as short waiting time for access to borrowed funds, are important.

Loan applications – is it worth using them?

Non-bank companies and the use of mobile solutions Who are the loan applications for? How to get a loan through the mobile application? Is a mobile loan different from an online loan? Is the use of loan applications safe? Loan applications – pros and cons

In the era of universal internet access, there are many possibilities to take a quick loan for any purpose. Currently, an application for additional cash can be submitted directly on the website of a bank or a company from the non-banking sector – it is a convenient and intuitive solution, thanks to which the borrower saves time and money.

Institutions offering loans go even further and offer customers the opportunity to submit applications from the level of the mobile application, i.e. special software installed on a smartphone or other mobile device (e.g. tablet). Is this a safe solution?

Non-bank companies and the use of mobile solutions

Non-bank companies and the use of mobile solutions


Institutions from the non-banking sector go with the times and try to keep up with the changing expectations of customers who actively benefit from the achievements of modern technology.

You are not parting with your cell phone? Is it used not only for calling, sending messages or checking e-mail but also for surfing the Internet or shopping online? According to the Gemius report on the E-commerce market in Poland in 2019, as much as 61% of people using online stores use a smartphone for this purpose, and 27% use a tablet.

Confidence in mobile shopping is enhanced by rapidly developing mobile payment applications. Non-bank companies are noticing this trend and are creating their own loan applications, which make the submission of applications for additional funds even easier.

Who are the loan applications for?

Who are the loan applications for?


Loan applications were created for clients who actively use electronic banking services, they care about maximally simplified procedures and for which making mobile transactions is not a problem. To get a loan using the smartphone application, all you need is to have:

  • 18+ (in some companies 21 or 23),
  • Polish nationality,
  • place of residence in Poland,
  • active bank account,
  • cell phone.

Loan applications are intended for people who do not appear in the debtors’ databases and are not in arrears with repayment of liabilities in other companies.

How to get a loan through the mobile application?

How to get a loan through the mobile application?


Preferably, mobile applications are very simple – the software interface has been designed in such a way that the application for a loan is intuitive. We present a flowchart in a few steps.

Step 1: Download the application – e.g. in the AppStore or Google Play, and then install it on the device.

Step 2: Specify the loan amount and loan period.

Step 3: Provide your personal details (name, surname, PESEL number, series, and ID card number, address, phone number, email address, bank account number, monthly income) and confirm the application.

Step 4: Perform the verification transfer.

Step 5: Enjoy additional funds on your account.

During the verification procedure, the loan company checks, inter alia, registers of debtors, as well as the bases of the Credit Information Bureau. The decision is issued immediately after the customer is verified, and the funds are paid instantly – sometimes they are on the borrower’s account even within a few minutes.

Is the use of loan applications safe?

Is the use of loan applications safe?


Cybercriminals are not idle and are inventing new ways to obtain personal information, e.g. to obtain a loan. Mobile applications can carry many threats, so it’s worth remembering to follow a few rules and check if someone has taken a payday loan on you – then using mobile loans will be safe.

First of all, you should only use applications downloaded from reliable sources, e.g. Google Play or AppStore. Software from outside the official store can be infected with malicious viruses that take control of our smartphone and gain access to sensitive data.

It is also worth regularly updating loan applications and smartphone software, as well as using anti-virus systems that catch any irregularities. We should also remember to secure the phone, e.g. with a PIN code, fingerprint or password.

Before sending a loan application, it is also worth verifying its cost, e.g. by checking the APRC (actual annual interest rate). What makes up the total cost of the loan? The amount of interest is influenced by:

  • interest,
  • commission,
  • additional insurance.

In order for the loan applications to be completely secure, you must verify how much the commission will cost us.

What is a Swiss loan and how does it work? All information here!

In the search for Credit bureau-neutral loans, offers for so-called Swiss loans quickly appear. Such loans offer you the opportunity to take out a loan without Credit bureau having any influence. For many consumers with slight problems with their Credit bureau, this is a way to get a loan if German banks refuse to accept it. The easiest way to apply for a Swiss loan is through a credit intermediary. The best known include Best bank and Fine Bank.

What is a Swiss loan?

What is a Swiss loan?

A Swiss loan is basically a normal loan, as you would get from your house bank. But unlike a normal installment loan, the requirements are different.

While credit institutions in Germany are obliged to check their creditworthiness using Credit bureau, Swiss banks are not under this obligation. A Swiss loan does not need a Credit bureau check. An entry in your Credit bureau file is also not made when borrowing.

As the name suggests, such loans are negotiated with banks located in Switzerland. In general, Swiss credit is to be understood as a generic term for loans from abroad or a synonym for loans without Credit bureau per se. For example, they often come from Liechtenstein or Luxembourg. Switzerland is only one of the first countries to grant Credit bureau-free loans to German citizens. The term Swiss credit has thus become common for this type of loan. In the meantime, Swiss banks are not granting credit to Germany due to the high requirements.

Outside of Germany, banks have other methods of assessing your credit rating. Credit bureau as a company only operates in Germany. In other countries, there are either other credit agencies or no such agencies as in Switzerland. The creditworthiness of the borrowers is then determined on the basis of other, sometimes much stricter criteria. That is why Swiss loans usually have higher interest rates than installment loans from German banks.

What are the advantages of a Swiss loan without Credit bureau?

Minor discrepancies in the Credit bureau can lead to you not getting a loan from your house bank. In Germany, the examination of the Credit bureau is the basis for a positive or negative credit decision for many credit institutions. If irregularities can be identified here, this can quickly result in the loan application being rejected. Even though your financial situation would be sufficient to finance the loan.

Therefore, the biggest advantage of Swiss loans is that Credit bureau does not play a role in the credit check. So if you have slight negative characteristics in your Credit bureau, they do not automatically lead to a rejection of the loan application. Especially since such entries often do not have to reflect your current financial situation. However, you must then provide sufficient evidence of this during the further credit check. Even if Credit bureau does not play a role for Swiss loans , you will of course still get certainty about your creditworthiness and possible collateral.

Swiss loans without earmarking

Swiss loans without earmarking

In addition, Swiss loans have no purpose limitation. You can use the requested loan amount for a new car or renovating a property, for example. However, specifying a purpose can help with the loan approval. A loan that is tied to an object such as a car or an expensive electronic item has additional security for the bank.

In addition, a Swiss loan cannot worsen your chance of a later large loan. Because the loan does not appear in the Credit bureau, it cannot have a negative impact on the credit check for other loans. This can be an advantage if, for example, you plan to buy a house but want to take out a smaller loan beforehand.

Where can I get a Swiss loan?

Where can I get a Swiss loan?

In Germany it is not common to go straight to the Swiss banks. That is why the route usually leads through credit intermediaries. Such providers maintain partnerships with many small and large banks. Most of these are in Germany, but also, for example, in Switzerland. When you make a credit request, the credit intermediary checks which bank has the best deal for your financial situation. Basically, an attempt is initially made to arrange a loan with Credit bureau, since the better conditions can be negotiated here. Only if no suitable loan is found or if the borrower explicitly requests it, does the credit intermediary switch to a Swiss bank. As a result, credit intermediaries also carry out an examination of Credit bureau first.

Two of the largest credit intermediaries in Germany are Best bank and Fine Bank. Since these providers are purely online offers, the loan applications are also made in digital form. This speeds up the processing of your initial application enormously and you can quickly be certain whether the loan is approved or rejected.

  • Best bank has been in business for over 40 years and has a long experience in arranging loans without Credit bureau. The provider arranges loan amounts of 1000 to 100,000 USD with terms between 12 and 120 months. Proof of a regular income is required for a loan. However, this does not necessarily have to come from an employment relationship. Loans for self-employed and freelancers can therefore also be realized with Best bank. Retirees also have good chances because there is no age limit when it comes to lending. If the provider is unable to provide a Credit bureau-effective loan, he invokes partner banks abroad.
  • Fine Bank provides Swiss loans without Credit bureau under the category “special loans”. For this, the provider has cooperations with banks in Switzerland and Liechtenstein. Credit bureau-free loans are paid up to a maximum of 5000 USD. Otherwise, up to 250,000 USD are possible with Fine Bank. The terms are between 12 and 360 months. In order to make a positive credit decision, you must have an income of at least USD 1130 per month. It is not so important whether this comes from an employment relationship or self-employed work. A Swiss loan for pensioners is not easily possible with Fine Bank, as the age limit for applicants is 60 years. People who are older also need a guarantor.

What are the requirements?

What are the requirements?

Regardless of which provider you apply for a Swiss loan, the basic requirements are basically the same:

  • Minimum age of 18 years
  • German citizenship
  • Permanent and permanent residence in Germany
  • A verifiable monthly income

The first three points are basically self-explanatory. A Swiss loan is not granted to minors, as they are only of limited legal capacity. If you live in Germany, it is also very important that you have valid identification documents. When applying for a Swiss loan on the Internet, you must subsequently prove your identity via Postident. For this, a valid ID card is required to compare your data.

Your monthly income is very important. A credit without Credit bureau has very strict creditworthiness requirements, especially with regard to income. Depending on the provider, not only the regular income itself is decisive, but also the type of employment and the length of employment at the employer. On average, credit intermediaries are expected to earn a minimum of USD 1130 per month. In part, the required income is made dependent on the number of dependent children. That means the more children you have, the higher your monthly income needs to be before you can get a loan approval.

In addition, the public debt register is checked for a Swiss loan without Credit bureau. This includes, for example, affidavits or associated arrest warrants. Such incidents are also noted as hard negative characteristics in the Credit bureau. No matter whether with or without Credit bureau, such entries always lead to the rejection of a loan application.

Who gets a Swiss loan?

Who gets a Swiss loan?

Basically, a Swiss loan is available to everyone as long as the above requirements are met. Thus, all working people with a corresponding minimum income are eligible. A Swiss loan can also be realized for apprentices and students with a suitable income. Freelancers and the self-employed also have a good chance of getting such a loan. The hurdles for these professional groups are often not as high with a Swiss loan as with an installment loan from the house bank.

A Swiss loan without income is difficult to achieve. Loans are generally not recommended for the unemployed. In this case, a loan without Credit bureau should already be rejected due to the minimum requirements for monthly income. In exceptional cases, suitable collateral and co-applicants or guarantors can provide a loan, but you should consider carefully whether this is the right way in your situation.

As the example of the credit broker Best bank has shown, a Swiss loan for pensioners is possible. While in many other lenders pensioners are fundamentally out of the box, with some providers of Swiss loans they are not excluded from lending. Otherwise, a co-applicant or guarantor is also helpful for this group of people, who can take over the other installments in the event of death.

What are the conditions for a Swiss loan

That initially depends on the provider. As the two providers Best bank and Fine Bank show, the conditions can be quite different. For Swiss loans, often lower loan amounts of, for example, 3500, 5000 or 10,000 USD are common. Often such amounts are also related to the fact that the provider does not provide higher loans without Credit bureau, as the example of Fine Bank shows. In this case, the banks counter the fundamental risk of a Credit bureau-free loan not only through higher interest rates, but also through a lower loan amount. If you want a higher Swiss loan, you are better off with a provider like Best bank.

No general statement can be made with regard to interest rates. As with normal installment loans, interest rates fluctuate from provider to provider. In general, these are somewhat higher for a Swiss loan. Interest rates of 3 or 4 percent are quite possible with a Swiss loan.