Can Foreigners Get A Loan in Germany?

Can Foreigners Get A Loan in Germany titlecard

People are taking loans for different reasons, whether it’s an urgent need for money, a purchase of a car, or some other expense they didn’t plan for. Germany is an economically wealthy country, so it shouldn’t be a problem to get a loan, even as a foreigner.

Foreign nationals can get a loan in Germany if they meet the following criteria:

So you are determined to take a loan in Germany? In this article, you will learn which instant loan options are available for foreign nationals and how to apply for one with a 100% success rate! 

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Available Foreigner Loan Germany

German flag raised in front of an old building

Germany is a country of opportunity, but being a foreigner can bring some obstacles to your life. Usually, you can’t work without a permit, and you can only stay as long as your visa is valid. Is it even possible to get a car loan?

According to the law, foreigners can get a bank loan in the country, but it will mostly depend on the credit institutions, your creditworthiness, loan period, and net income. Loan amount, your credit report, fixed monthly payment, and overdraft credit will significantly impact when you borrow money. 

Overall, getting a loan as a foreigner is more difficult than if German is your home country. EU citizens have better chances than non-EU nationals at getting a short-term loan.

Ultimately, credit institutions want to see that you are staying long-term in Germany, especially if you are thinking about borrowing money for an extended period.

However, payday loans are easy to access but with higher interest rates, even for a mini loan or depending on the loan amount. 

EU/EEA citizens and PR holders have higher success rates in getting a short term loan in Germany. Nonetheless, all foreigners can receive a good loan in Germany, assuming they fullfill basic requirements such as having:

  • Residency in Germany
  • Salary slips 

Tips on getting a bank loan in Germany

Person handing money to another person

To increase your chances of getting a good loan in Germany as a foreigner, only inquire about loan types with a repayment period within the duration of your residence permit. If you are looking at getting a mortgage, your best chance is to wait until you hold a settlement permit (PR). 

  1. Apply for a bank loan/personal loan with the maximum duration of your residency permit in Germany.
  2. Provide income and financial proof (existing assets) – you can support yourself and can pay back the money with the accumulated interest rates.
  3. Try to apply for smaller loans at online platforms – they have a shorter probation period, a few additional fees, reasonable payback rates, and a low annual percentage rate for short-term loans. 

Also, check out How To Get A Personal Loan in Germany? [2023 Guide]

Get a bank Loan in Germany as a Foreigner

Man thinking how to get a bank loan in Germany as a foreigner

Standard requirements of traditional banks when applying for a loan in Germany:

  • You are older than 18 years
  • It’s a personal loan 
  • You have a residence in Germany
  • You have a bank account based in Germany
  • You have a good SCHUFA (credit score)

As part of the credit check, banks will have a look at your Schufa (credit score). If it’s negative, obtaining a mini loan from a traditional bank will not be possible for you. The other option for credit will be an online bank, providing faster online loans with fewer requirements and low-interest rates on a car loans.

Online financial organizations like Auxmoney have fewer requirements:

  • You are a resident of Germany
  • You have a current account with a German bank

Getting a Loan as a non-EU Citizen

Map pinned with countries in Europe

Bank’s decision will also depend on whether you are from an EU or non-EU country. For non-EU citizens, most banks will ask for a residence permit and a property assessment report (Determining property value) before offering loans.

Hence, the loan term duration will be limited by the validity period of both documents. A loan for foreigners with a temporary residence permit is possible if the duration of the credit isn’t longer than your permit.

However, banks often make exceptions, provided that the residence permit/work permit extension will not be a problem for you.

Loans for self-employed in Germany

But what if you are self-employed in Germany? Can you still get a mortgage loan? Yes! However, for business owners and freelancers, a certain period of self-employment is usually required to get a secured loan in Germany. Your financial situation and marital status largely impact mortgage repayments in some banks. 

Alternatively, you can present current account statements and enroll for a fixed installment loan as an alternative to the salary confirmation. 

Student loans in Germany

Close-up of a student loan document

Student loans are quite common in Germany with the increase in peer to peer lending. You can get a loan to finance expenses during a course of study.

Funding options for students in Germany:

  • BAföG
  • KfW student loans
  • Student loans from individual banks, e.g., from Sparkasse
  • Loans at private banks, including micro-financial organizations

Unfortunately, not all international students are eligible for this credit. The official student loan is available for:

  1. EU citizens are residing in Germany for at least three years.
  2. Family members of the above-mentioned EU citizens who are living in Germany together.
  3. People with a German school-leaving diploma or who have finished a German school abroad.

Nonetheless, if you don’t fall into one of those categories, you can still take personal loans with some private bank. Peer-to-peer loan is also another option to consider. 

Requirements for getting a loan in Germany Credit Institutions

A contract document stamped with "loan denied" in red ink

In order to get a loan in Germany, there are a few requirements you must fulfill. You need to:

  • be registered in Germany
  • be able to provide proof of regular income (3 – 6 months of payslips for employees, up to two years of balance sheets for freelancers)
  • present a decent SCHUFA score

Check your SCHUFA

As we mentioned before, traditional banks will check your SHUFA (credit score) to decide on the loan. You can do it before them by using an online platform like meineSCHUFA.

People with good SCHUFA scores have a higher success rate and a lower interest rate. Auxmoney and Smava are some of them.

Loans with no or bad Schufa score

Having a bad credit score or not having it is problematic, but doesn’t mean that you can’t get an original loan in Germany. Some banks and financial institutions offer credits regardless of previous loans or bad SCHUFA scores.

For instance, bank Maxda is one of them. They have very straightforward requirements for both foreign and German citizens. Maxda offers loans without SCHUFA of up to 7,500 EUR and a repayment period of up to 40 months.

Yet, if your income is lower or your age is different, you can provide a guarantor as a securities loan. Self-employed and freelancers can also get get a secured loan without having lower SCHUFA scores at Maxda. 

In addition, credit request without SCHUFA is available at Auxmoney. Or you can try comparing loans on platforms like Tarifcheck and Smava.

The best loan with good interest rates for foreigners in Germany

As seen above, getting mini loans in Germany is relatively easy if you save money, apply for the correct loan type, possess a securities account, and have a good consumer credit score.  

Auxmoney logo

From our research and experience, Auxmoney is by far the best and easiest place for getting mini loans and mortgages in Germany as a foreigner, depending on your financial status. It’s a private organization powered by investors’ funds, which is different from the traditional bank.

Read our full review on loans from Auxmoney.

As a foreign citizen in Germany, you need an address, a German bank account, and regular income to get a personal credit loan. After fulfilling these requirements, you will receive a loan from Auxmoney within 24 hours or the next few days.

Benefits of the loan with Auxmoney:

  • favorable interest rates
  • fast money from private and institutional investors
  • Offer loans from 1,000 EUR to 50,000 EUR
  • Favorable annual percentage rate
  • uncomplicated loan application

Over the company’s history, Auxmoney has given over 325 thousand personal loans of more than 2 milliard EUR. Auxmoney is rated as 4,8 out of 5 in service and offerings.

There, you can apply for a personal loan within five minutes. You can borrow flexible installment loans between 1,000 and 50,000 EUR  with good consumer credit. A second loan with Auxmoney is possible, particularly with personal loans. 

You might also want to read this How To Get A Personal Loan in Germany? [2023 Guide]

Finance your business in Germany

If you need money to finance your business in Germany, you can apply for one of the easy-to-get loans, such as Auxmoney. They provide money for different categories of people, including self-employed, students, freelancers, and of course, employees.

Benefits of the personal loan with Auxmoney

You benefit from a fast payout with the Auxmoney personal loan. Your desired loan amount will be available in your account within a few days. The entire loan process is done online and without paperwork. And probably the biggest advantage: you have better credit opportunities than with a bank.

How to apply for a loan with Auxmoney?

  1. Create your digital profile 
  2. Fill out the loan request – it takes a few minutes
  3. A quick review of financing options will be done
  4. Go through identification by VideoIdent
  5. Sign contract online
  6. The decision will be made, and money will be transferred to you within 24 hours or a few days.

Compare loans in Germany

Person counting money in front of an atm machine
Comparison Loans


Smava logo

Compares loans from various banks, offers free comparison, fast processing, and high loan amounts.

Versatile Loans


Tarifcheck logo

Provides versatile loans, including no SCHUFA options, with favorable interest rates and high success rate.

Diverse Loans


Verivox logo

Offers diverse loans up to 100,000 EUR with low-interest rates, including car loans, SCHUFA-neutral inquiries.

1. Smava

On the Smava platform, you can compare hundreds of different loan options in Germany. They provide an overview of the best, quick, easy, and affordable loans since 2007. You will only need to fill out your preferences and some personal information.

With Smava, you can apply for loans from banks like Commerzbank, Postbank, Unicredit, Sparkasse, and Deutsche Bank.

Benefits of Smava

  1. It’s 100% free!
  2. Favorable interest rates
  3. The loan comparison has zero negative impact on your credit score
  4. There are no additional or hidden costs
  5. High loan amounts from 1,000 EUR to 120,000 EUR (resulting in high sale commissions)
  6. Interest rates from 0,68%
  7. Fast processing time (max. 2 working days)
  8. Fast loan payment (usually within 3 to 5 days)

Steps to get a loan with Smava

  1. Submit all information after you receive loan offers from different banks in Germany.
  2. Select the bank and apply for a desirable credit directly from the platform.
  3. If your documents are complete and all requirements are met, you will receive your money quickly.

Find cheap loans with the loan calculator

With Smava, you can find the most favorable loan rate. With the financing calculator, you can easily calculate the monthly amount you will need to pay. The shorter the term, the higher the monthly rate.

2. Tarifcheck

On the platform Tarifcheck, you can compare a wide range of loans and credits in Germany (including with no SCHUFA). Tarifcheck.de has been around since 2001 and is one of the largest loan comparison platforms in the country.

The process is super easy; you just need to specify the desirable loan duration and amount. The conditions are very favorable, including:

  • Interest rate between 0,68% – 5,99%
  • Loans up to 100,000 EUR
  • Loan term between 12 – 120 months
  • High success rate

3. Verivox

Verivox is the largest German loan comparison platform, with electricity & gas plans, car insurance, and internet deals. Here, you can choose the type of loan and the conditions. Loans up to 100,000 EUR with a duration of up to 10 years with low interest rates are available. All inquiries via Verivox are SCHUFA-neutral.

How to choose a loan with Verivox

  1. Choose the amount of money you want to borrow, the purpose of the loan, and the duration of the credit
  2. You will receive different loan offers from various German banks
  3. After choosing an appropriate loan, you can apply for a loan directly from Verivox. In fact, you can choose between signing for a loan online or by mail.

Besides normal loans, you can also compare car loans with Verivox.

Documents you need to get a loan in Germany

In Germany, you will need several documents to get a loan, including:

  • Bank statements
  • Proof of salary
  • Self-disclosure
  • Copy of your identity card

I hope after reading this article, you are more certain about your chances of getting a loan as a foreigner in Germany. Even if you aren’t fulfilling all requirements, trying won’t make it worse!

Also, check out Best Car Loans in Germany in 2023

Final Thoughts on Can Foreigners Get A Loan in Germany

Foreigners can get loans in Germany, but it relies on things like where they live, how good their credit is, and how stable their income is. EU members and permanent residents are more likely to get loans than people who are not from the EU. 

Traditional banks may have stricter requirements, which makes internet platforms like Auxmoney a good choice for getting loans faster and easier. Even though it can be hard, foreigners can get loans in Germany if they know what to do and have the right paperwork. 

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