Sometimes it just takes money in the short term. Unemployment, illness or simply a wrong or incomplete financial planning can be reasons.
The biggest obstacle is the Credit Protection Association (KSV) based in Vienna. However, there are also loans without KSV entry , so that the shortage of money can be overcome quickly and without consequences.
The Credit Protection Association of 1870 (KSV) is the most important credit agency in Austria. Creditors can deposit their debtors’ data, which can be used by other lenders for credit checks and similar transactions that are relevant for granting loans . In the neighboring country Germany exists with the Schufa (short for: protection community for general credit protection) in the Hessian state capital Wiesbaden a similar institution, which fulfills the same tasks.
Tasks of the KSV in Austria
The KSV stores quite extensive data, which is used for the overwhelming majority of lending. Banks and other institutions can use the KSV to determine the likelihood of loan repayment . The information provided by the KSV is therefore a big step that is taken in almost all loans.
As a creditor protection association, it is the declared goal of the KSV to protect economic operators against financial damage and thus to promote their liquidity in the long term. Banks and other lenders therefore use KSV products. These include:
- credit checks
- Collection services
- insolvency representatives
- marketing data
Credit information for lenders
The credit report is the most important service of the KSV. On the basis of already granted loans, the KSV has information on the payment behavior as well as the financial situation of individual legal and natural persons.
This information is used to assess their creditworthiness, which is particularly interesting for lenders. After all, they are interested in repaying the loan. With the monitoring, the KSV also offers a continuous monitoring of the creditworthiness of the individual persons. This service is also used for lending because changes in credit are also included in the audit.
Insolvency representation of private and business customers, however, is less relevant when it comes to obtaining a loan. It is important for lenders alone, whether the possible debtor is solvent, so against him no bankruptcy or insolvency proceedings has been initiated.
When the KSV entry becomes an obstacle
The KSV carries two different types of entries. It is distinguished between positive and negative entries. A positive entry is usually made when a loan has already been fully repaid in a reliable and problem-free way. Such a positive entry is a good argument for lending. Accordingly bad are the effects of a negative entry. This can be a particularly difficult obstacle that feels almost insurmountable.
A negative entry is made to those who have experienced financial difficulties with previous loans or contracts (eg cell phone contract). So if you do not pay for bills for a longer period of time , you have to reckon with a negative entry at the Schutzverband (and also at similar institutes). Even in the event of insolvency, a negative entry is made at the KSV. Since this can still be an obstacle for years to come, the importance of the negative entry is not to be underestimated.
Of course, the legislature is also aware of this significance. He has therefore created every Austrian citizen a legal claim to annually comprehensive insight into his file at the KSV. This regulation can be found in the Data Protection Act. So it allows a kind of free financial self-disclosure . In case of incorrect data, legal protection exists.
Loans received without KSV information
But what if you have a negative entry and still need a loan? After all, anyone can quickly get into a situation where liquid funds are needed quickly and easily. Who in this situation has a negative entry in the KSV, is quickly rejected by numerous banks.
However, even with a negative entry, you have the option of receiving loans without an entry. The offer is limited. There is also a risk of dubious providers and loan sharks.
First, it should be noted that even a loan without KSV entry is not an unconditional loan . Even those providers who refrain from obtaining a KSV information, so reject applications in individual cases. For example because there are no securities or the customer does not convince in a personal conversation. It is therefore in personal conversation (or on the phone) to convince. Here it is helpful to provide good reasons for securing the loan.
Serious providers will, despite the waiver of a KSV extract, make an audit of their own kind.
Dubious providers continue to recognize you on the following things:
- Remarkably low interest rates
- Application documents must be paid
- Advance payment of processing fees
- Few contact options (eg expensive hotlines)
- Incomplete information (eg type of loan or term not specified)
- Company name “Finanzsanierungsunternehmen”
It is important that loans without KSV have higher interest rates due to the higher default risk. Offers with particularly low interest rates are therefore often dubious and should be avoided.
Should the assessment of the seriousness of various providers cause difficulties, support can be obtained from the Chamber of Labor . This leads namely lists of dubious providers who often operate under the name “financial restructuring companies”.
In addition to domestic institutions, there is also the possibility to obtain loans from foreign banks. The most popular banks are in Switzerland.
Obtaining a so-called “Swiss loan” is therefore another opportunity to obtain loans without KSV entry into Austria. Offers from Austrian banks are usually found on the Internet.