Can Foreigners Get A Loan in Germany?

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:

  • Be a resident of Germany
  • Have a current account with a German bank
  • Have a regular income

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

Loans for foreigners in Germany

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 loan?

Luckily, Germany isn’t racist and doesn’t discriminate against people just because of their nationality. Accordingly to the law, foreigners have a right to get a loan in the country, bus it will mostly depend on the bank and your life situation.

Overall, getting a loan as a foreigner is more difficult than being a German citizen. EU citizens have better chances than non-EU nationals. Banks simply don’t want to take a high risk.

Ultimately, banks want to see that you are staying long-term in Germany, especially if you are thinking about getting a loan for an extended period of time.

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

  • Residency in Germany
  • Regular income

Tips on getting a loan in Germany

To increase your chances of getting a loan in Germany as a foreigner, be sure to only inquire about loans with a repayment period that lies entirely 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 loan with the maximum duration of your residence permit in Germany.
  2. Provide income and financial proof – you can support yourself and are able to pay back the money.
  3. Try to apply for a smaller amount at online banks – they have fewer requirements and easier processes for granting a loan.

Get a loan in Germany as a foreigner

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

  • You are older than 18 years
  • You are taking a loan for yourself
  • You have a residence in Germany
  • You have a bank account based in Germany
  • You have a positive SCHUFA (credit score)
  • You have a regular income

As part of the credit check, banks will have a look at your Schufa (credit score). If it’s negative, obtaining a 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.

Online financial organizations like Auxmoney have fewer requirements:

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

Getting a loan as a non-EU citizen

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 work permit.

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 loan? Yes! However, for self-employed people, business owners, and freelancers, a certain period of self-employment is usually required to get a loan in Germany.

As an alternative to the salary confirmation, you can present current account statements. Apply for a loan as a self-employed here.

Student loans in Germany

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

Here are some possible funding options for students in Germany:

  • BAföG
  • KfW student loan
  • 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 residing in Germany for at least three years.
  2. Family members of 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 a student loan with some private bank.

Requirements for getting a loan in Germany

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 a 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

In most cases, you will need to take a personal loan. Although traditional banks also occasionally offer personal loans, the chances of getting one are rather poor, especially for certain people, such as freelancers, students, or the self-employed.

You have better chances with Auxmoney because it’s not a single bank but many private and institutional investors. They will decide whether you get a loan or not. Moreover, loans with such organizations are more flexible.

When you are requesting a loan in a traditional bank, you should apply for a loan conditions inquiry (Kreditkonditionen Anfrage) instead of a loan request (Kredit Anfrage).

The former won’t impact your SCHUFA score, whereas the latter can negatively influence it.

Check your SHUFA

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. But you can also select banks that aren’t that strict about your SCHUFA and give loans even if the score isn’t optional. Auxmoney and Smava are some of them.

Loans with no or bad credit score – SCHUFA

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

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.

The requirements are:

  • Regular monthly income of at least 1,130 EUR
  • Age between 18 and 60 years old

Yet, if your income is lower or your age is different, you can provide a guarantor to get a loan. Self-employed and freelancers also have a chance to get a loan without having SCHUFA at Maxda. You must prove that your business has been successful for the last three years.

In addition, loans without SCHUFA are available at Auxmoney. Or you can choose one yourself on comparison platforms like Tarifcheck and Smava.

The best loan solution for foreigners in Germany

So after you have learned more about loans in Germany and opportunities for foreigners, what will be your optimal solution?

From our research and experience, Auxmoney is by far the best and easiest place you can get a loan as a foreigner. The refusal rate is very low, as well as the requirements. It’s a private organization powered by investors’ funds, which is different from the traditional bank.

Read our full review on loans from Auxmoney.

You can apply for a loan even if a traditional bank refuses your loan request. Application and the whole process at Auxmoney are made online.

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

You can finance anything with such a loan, and you don’t need to give a reason why you are applying for credit. Thus, financing a new car with an online loan at Auxmoney is also not a problem.

The main requirements

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

Other benefits of the loan with Auxmoney:

  • favorable interest rates
  • fast money from private and institutional investors
  • loan from 1,000 EUR to 50,000 EUR
  • uncomplicated application
  • very satisfied customers

Over the company’s history, Auxmoney has given over 325 thousand 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. The application process is completely online. The amount you can borrow ranges from 1,000 and 50,000 EUR, and the duration of the credit can be between 12 and 84 months.

The investment decision is freely up to private investors. Depending on the duration of the project’s financing, the money payment takes place within 48 hours.

Since Auxmoney is headquartered in Germany, documents and contracts are in German. But if you have any questions regarding borrowing or other concerns, you can also contact our customer service on weekdays between 8 am and 6 pm.

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 loan request – it takes a few minutes
  3. 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

Other loan options in Germany

Loan providerInterest rateLoan amount (EUR)Loan term (months)Success rateBonus
Smava0,40% - 10,90%500 - 120,00012 - 120HighFast processing time
Auxmoneyaverage 4,42% 1,000 - 50,00012 - 84HighFast payout
1822direkt2,49% to 7,31%2,500 - 50,00012 - 120 AverageFree bank account
Tarifcheck0,68% to 5,99%1,000 - 100,00012 - 120HighBest rates on the market
VerivoxFrom 0,0%; Average - 3,52%up to 100,00012 - 120HighFind best rates through detailed comparison

Some traditional German banks where you can get a personal loan:

On the Smava platform, you can apply for a loan at some of the most popular banks in Germany, including Commerzbank, Deutsche Bank, Barclays, Bank of Scotland, and Santander.

Compare loans in Germany

We recommend you check all loan options on the comparison websites such as, Verivox, and Smava. Verivox is the largest German platform to compare loans, electricity & gas plans, car insurance, and internet deals.

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 in banks like Commerzbank, Postbank, Unicredit, Sparkasse, Deutsche Bank.

Benefits of Smava

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

Steps to get a loan with Smava

  1. Submit all information, after you will 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 within a very short time

Smava is rated as 5 out of 5 in finding a credit in Germany. With Smava, you can apply for loans in banks like Commerzbank, Postbank, Unicredit, Sparkasse, Deutsche Bank.

Find cheap loans with the loan calculator

With Smava, you will be able to find the most favorable loan rate. With the financing calculator, you can easily calculate the amount you will need to pay every month. Basically, 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). has been around since 2001 and is one of the largest 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 platform to compare loans, 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 are available. All inquiries via Verivox are SCHUFA-neutral.

You can save money with Verivox

In 2020, Verivox customers saved an average of around 40% on interest rates compared to the average interest rate. With the average loan (15,720 EUR, 66 months, 5.82% effective interest rate), they could save 1,052 EUR.

Which credit can you find with Verivox?

Consumers can borrow sums from 1,000 EUR to 100,000 EUR for a duration starting from 12 to 120 months. The longer the loan is taken for, the lower the monthly rate.

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!

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