How to open a German bank account
A simple step-by-step guide on how to open a bank account in Germany. Open an online Germany bank account and documents required to open a German Bank account
Read MoreCredit Loan in Germany
Are you a foreigner and looking to get a loan in Germany? It may be a small loan to furnish your new apartment after moving to Germany, or a big loan to buy a car or a house in Germany. This article provides all the basic information you need to know about getting a credit loan in German, the types of loans in Germany, the requirements of getting a loan and other alternate ways to obtain a loan even if you have no credit score in Germany.
Types of Credit Loans in German
There are different types of credit available in Germany depending on the purpose of requiring the credit. The main types of credit loans are:
- RatenKredit – Installment Loans i.e Personal Loan with variable monthly payment
- RahmenKredit – Personal credit loan with a fixed monthly payment
- AutoKredit – Loan for buying a Car, Car Loans for auto financing in Germany. Read more about How to get a Car loan in Germany.
- Wohnungskredit (Immobilien)- Credit for a Home, Home Loan or House Mortgage Loan
- SofortKredit – Instant Credit
Requirements for getting a Credit Loan in Germany
Germany is a credit conservative country and does not offer credit loan easily unless you meet some basic requirements. Therefore in order to obtain a credit loan in Germany from a bank, you will have to meet at least the following requirements:
- A good SCHUFA score., i.e good credit rating. Learn more about how to keep a good Schufa credit rating here.
- A residence permit (preferably permanant), or at least a resident permit or Visa that covers the entire period of the loan
- Regular and stable income. You should be able to provide your salary slips. If you are a freelancer you can show your previous year tax returns and regular monthly billing. If you get regular work from a single client, you can ask the company to write that you might be getting regular work from them and the possible amount you will earn from them.
If you have the above conditions, you can try for a loan in Germany from a bank, which usually has a lower interest rate. However, do not be disappointed since you can also get credit loans from other institutions if you do not have the above requirement, but with a little bit higher interest rate.
Types of institutions which provide credit loan in Germany
There are different institutions which provide loans in Germany. Depending on the institution, the rate of interest changes.
1. Credit loan from Banks in Germany
The first option is to try the bank you are using for a loan. Normally, they provide credit with the lowest interest rate and easier documentation as they know the client. Sometimes, you can also use other securities (stocks, fixed deposits) with the same bank as collateral for a favourable interest rate
However, this comes at a cost. You will have to show a very good credit rating and a stable income. For this, you would have to be living in Germany for at least a couple of years and should have a permanent residence permit or one with a long validity period. Examples are the Sparkasse banks, Volksbank etc.
- Lowest interest rate for Home loans
- Provides larger loan with a longer repayment period
- Requires good credit score
- Usually 2 to 4 per cent interest for long-term house loans
2. Loan from Credit Institutions in Germany
They provide easier credit than the banks and most of them are online. However, the fees are usually higher than the Banks. some examples of such credit institutions in Germany are Barclays Credit or EasyCredit.
- Low-interest rate for small and short term loans
- Especially for personal loans with small loan amount with faster payment terms
- Requires a decent credit score
- usually between 4 to 10 per cent interest on short-term loans.
3. Peer-to-Peer lending providers in Germany
They are mainly websites which provide an interface between lenders and borrowers. In some cases, the investors just invest in the website which then selects the people who may borrow. This can be an option for foreigners who have not been in Germany for a long time but need a credit loan in Germany. They have a high-interest rate depends on the credit score. Therefore, if you have a decent credit score you can get a loan with a lower interest rate compared to someone with a negative credit score. Examples of peer-to-peer lending systems are Smava, and Lendico.
- High interest rate
- For personal loans with with no or negative SCHUFA score
- Can also get credit with a lower credit score
- usually between 3 to 14 percent interest on short term loans.
4. Mini Loans
It is good financial practice to have an emergency fund saved up which covers at least 3 months of your expenses. But, we understand that time might be tough and sometimes you might end up living paycheck to paycheck. First advice is to ask your family or friends, but when living abroad it might not be possible.
These loans are short-term loans to meet an urgent requirement which cannot wait till your next paycheck. Sometimes also called payday loans, they usually run for a month or two and are for very small amounts. It is also more lenient with credit score. But, the interest rates are very high and can go as high as credit card rates of 15 per cent. So, only use this as a last resort and always pay on time.
- Immediate loans
- Short duration (as small as 1 month)
- Small loan amounts, normally €500 and a maximum of up to €1500.
- Also for lower credit score
- High-interest rate
Credit Requests
There is a difference between checking for loan condition when shopping around and applying for a loan.
When shopping for loans, make sure that you are only making a conditional request (Konditionen Anfrage). This request will only be visible to you and not be to the others. So the other banks will not know you are shopping around.
Do not apply for a loan using the hard credit request (Kredit Anfrage). This request will remain on your credit report as a request which others can see. This will affects your credit score. Even when it comes time to apply for the loan, do not apply for more than one loan at a time.
To keep a track of your requests, register for an online account with SCHUFA.
Compare Loan providers
19 thoughts on “Credit Loan in Germany”
Leave a Reply Cancel reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
- Home
- Bank Account
- Credit Cards
- Loans
- Invest
- Guide
- Deals
Hello all I am LEONARD from USA, I am here to give a
testimony on
how I got a loan of ,000 from a genuine loan lender after
being
scammed and almost frustrated for three years by
fraudulent scammers
who call them selves loan lenders , at the first stance it was
all
like a scam to me but when I played along to see what will
happen this
time it just turned out to be that miracle lender I have being
searching for all my life and after I got this loan I promised
my self
and the lender that I must spread his good work because. I
know many
others who has fallen victim for scams and I know how its
hurts that\\’s
why I want you to contact Mr Cloby Lious today if you really are
in any
form of financial distress his email is
clobylious4@yahoo.com
contact her and after you have gotten your loan, you will
also testify
and thank me later. God bless you all.
Dear Sirs,
Do you have possibility to give loan for business in Ukraine?
Thank you.
Kind regards,
Mr. Gennadiy Zakharov
Invariant Co.
Kiev, Ukraine
Worldwide sales and delivery.
And if in the beginning you had a little, but in future will be too much.
+380 67 3790588
krotosti@visti.com
Are Investors/Financial Seekers. We are a Registered Private Investors/Loan Lender! Do you need FINANCIAL ASSISTANCE? Are you in financial mess OR debts? We offer loan at 2% interest rate within 1 year to 30 years repayment duration period to Individual and Companies that are in need of financial assistance and to any part of the world. We give out loans ranging from $5,000.00 to $500,000,000.00, CURRENCIES: USD, CAD, KWD, OMR, SGD, RUB, GBP, AUD, MYR, ZAR, IDR, UAH, PHP, EURO. Our loans are well insured for maximum security is our priority, Are you losing sleep at night worrying how to get a legit loan lender? Are you in poverty? Do you need financial assistance to set-up a business? We can assist you financially. We’ll help you get over those financial obstacles.whatsapp +2348179296157
Hello.Could you tell me do I have chance for loan?I’m searching about that information but still I can’t find.I’m working for Princess Cruise Line two years. And I’m start new contract one month ago .And I have serbian passport with C1/D vissa on the three years.Do you know maybe where I could apply for loan with serbian passport?because I’m working for American company maybe I have chance.I’m not sure 🙂 Thank you
Are you financially down? Do you need a loan
to start up business or pay off bills? we offer
all kinds of financial assistance to every
individuals”Business loan and personal loan,
for investment,debt consolidation and house
purchase etc.” we will be willing to offer
you the loan.
First of all, thank you for this useful forum. You cannot imagine how your articles help making the banking system clear and accessible.
Second, according to this article, one must be a German resident to get a mortgage.
I am a German citizen but lives outside Germany.
In the attached link for an article its says that getting mortgage for non-resident is possible.
https://www.expatica.com/de/housing/How-to-get-a-mortgage-in-Germany_740222.html
I would be glad to have your advice.
Privatkredite und Unternehmenskredite
Wollen Sie wirklich einen persönlichen Kredit oder benötigen Sie einen Kredit für Ihr Unternehmen? Wenn ja, können wir Ihnen den besten Preis von 2% anbieten, wir bieten Ihnen eine 100% ige Garantie, dass Sie Ihr Darlehen innerhalb von 6 Geschäftsstunden erhalten. Kontaktieren Sie uns mit den folgenden Details kiva_finance@outlook.com und gehen Sie voran.
Vollständiger Name:
Geschlecht:
Sozialer Status:
Besetzung:
Land:
Kontakt Adresse:
Monatliches Einkommen:
Darlehen benötigt:
Ausleihfrist:
Telefonnummer:
Der Grund für das Darlehen:
Are you thinking about buying a house in Germany? Our professional advisors and free online mortgage calculators at LoanLink will help you navigate every step of the property purchasing process with ease – visit here to learn more! https://www.loanlink.de/
Hello I am elli my personal request for a loan of 50 thousand for correction and car pls reply
Guten Tag,
Ich bin bei der Suche eines Kredits von € 25.000,-
Bei einer Rückzahlung von 36 Monaten
Wer kann mir Geld leihen ?
Mit freundlichen Grüßen
Kontakt E-Mail: loanervicespennymac.cm@gmail.com
Sie erhalten Ihr Darlehen innerhalb von 5 Werktagen
Wen es angeht.
Unsere Mission ist es, eine gewinnbringende Lösung für all Ihre finanziellen Probleme zu finden. Wir geben Kredite an Menschen mit schlechten Krediten oder brauchen Geld, um Rechnungen zu bezahlen, in das Geschäft zu investieren. Mit diesem Medium möchten wir Sie informieren, dass wir Ihnen eine verlässliche Kredithilfe bieten. Wir freuen uns, allen Kunden Kredite in Höhe von 2% anbieten zu können. Interessierte Personen sollten sich für weitere Informationen
Hi all,
I live in Germany, Munich since 2 years now. I have a job with a net salary of 1220 Euro, a bit more with monthly bonus.
I’m looking for a loan of at least 2500 Euro to completely furnish my apartment but so far no luck with banks and other lending institutions.
I just need a loan between 2500 to 3500 Euro to repay in 36 to 48 months with interest.
If you are interested in lending you can contact me here: kcromeo7@gmail.com
Kind regard
Cyrille K.
I feel so excited today and my depression have been ease, all thanks to trustworthyloaners and their term. i meet their agent online and seek for assistance and 3 day time i was granted the loan i required to help me situation, Just in case you are in need They gives out loans for project, business, taxes, bills, and so many others reasons. . They operate at 3% interest rate. There is more to gain by getting a loan from this company you can contact them via their email at TRUSTWORTHYLOANERS&GMAIL.COM
Hello I am looking for some help or assistance here.
I need credit loan amount betweeen 30 – 40 K Eur for personal reason.
I am resident permit holder duration with 2 years this of course would like to extend.
Do I have any chance here to borrow this amount?
Please send me a message.
callhitomi @hotmail.com
Loan offer ? do you need a loan for 2 % interest rate ? if yes, apply now at via email for more info: creditacceptancec @ gmail.com
Project Funding/ Financing of Investment
We are into facilitating loan or direct investment within lenders/investors and projects owners or borrowers that need funding for there various projects etc.
Mr. Derrek Christopher
Aggies Finance Project Funding
eMail: aggies_finance@consultant.com
Tel: 832-919-6792
Hello, are you a business owner? Looking for a loan to upgrade your
business contact Ryan Scott loan firm via email
ryanscottloanfirm@gmail.com at relatively low interest rate of 3%
My name is Ramsey Mike,I live in Germany and i am a happy man today? I told my self that any Loan lender that could change my Life and that of my family, i will refer any person that is looking for
loan to Them.
If you are in need of loan and you are 100% sure to pay back the loan please contact them and please tell them that Mr Ramsey referred you to them.
Email them on europeaninsurancecompany@gmail.com or whatsapp/call : +393510747468 And they are located in the European part of the world.