The most common reason to take out a loan in Germany is to fund the purchase of a costly item, but there are many others. Loans and credit cards aren’t widely used in Germany, but borrowers still have plenty of options. Most are open to non-Germans as well, provided they have a valid residence permit in the country.
Smava and Auxmoney, in addition to comparison tools like Tarifcheck and Verivox, offer some of the best personal loans in Germany.
It is important to do your homework and carefully compare all of your loan options before committing to one. This article details the best personal loan providers in Germany where non-EU citizens have the best chance of being approved and can easily apply.
Loan Categories in Germany
In Germany, you can get a loan from a bank, a credit union, or a variety of other institutions. Each comes with its own set of prerequisites, perks, and drawbacks.
Traditional bank installment loan
The traditional type of loan with monthly payments is called a Ratenkredit. You can get a loan like that from a lot of banks. The borrowed funds are at your disposal for whatever purpose you see fit. You can get an installment loan from a bank if you have good credit. Existing customers have the upper hand.
The lowest interest rates (2%-4%) are available at a conventional bank. A high credit score and consistent earnings are usually requirements for many jobs.
Generally, interest rates for personal loans in Germany range between 1,99% and 19,99%.
Loans made possible through crowdsourcing are increasing in popularity in Germany. These are mainly online providers, offering a marketplace between lenders and borrowers.
Rather than borrowing money from a bank, you would borrow it directly from an individual. The terms and conditions are more malleable than those of a loan from a conventional bank. P2P lending consequently has a higher rate of success. The primary benefits of a P2P loan are:
Moderate rate of interest
Rapid payment time
Efforts should be made to reduce bureaucracy.
Loans for people whose credit is less than perfect
Installment loans between 1,000 and 50,000 Euros
To that end, Auxmoney has become the largest private loan service provider in all of Germany, with loan amounts up to 50,000 EUR.
When it comes to private loans, they have a stellar reputation for success. From 12 to 84 months, you can borrow between 1,000 and 50,000 EUR.
Marketplaces to shop for loans
Borrowers in Germany can benefit from using loan comparison and calculation websites like Smava, Tarifcheck, and Verivox.
In order to make an informed decision about a loan offer, it is important to shop around. If you want the best credit possible, you need to look at all of your options.
- Berlin-based FinTech pioneer Smava was established in 2007. Obtaining credit in Germany is rated a perfect 5. Using Smava, you can apply for a loan at any of these German financial institutions: Commerzbank, Postbank, Unicredit, Sparkasse, and Deutsche Bank.
Loan amounts range from one thousand to one hundred and twenty thousand Euros.
- When looking for a loan or mortgage in Germany, Tarifcheck is your second best option for comparison shopping. Choosing the loan amount and the length of the term is all that’s required to see your options.
- Verivox is one of the most popular places in Germany to compare offers for everything from loans and car insurance to internet service providers and utility rates.
There, you’ll be able to select the terms and conditions of your loan. Loan amounts up to 100,000 EUR are offered, with repayment terms of up to 10 years. The Verivox platform is impartial to the SCHUFA in all inquiries.
- Loanlink24 is a German mortgage rate comparison website. Over four hundred different German financial institutions have made their rates and terms available. The fact that it’s entirely written in English is arguably the greatest feature of this site.