As a foreigner living in Germany, an expat working in a large German city or as a student here for a Master’s degree: At some point you might want to obtain a personal loan in Germany. Whether small amounts like 1.000,- Euro for a purchase or a larger loan to finance your car: With a very advanced and regulated financial system and a high language barrier, obtaining a loan or credit in Germany can seem like a challenge.
GIROMATCH is a loan and credit platform operating out of Germany and we will show you
We will also show you the typical personal loan in Germany including monthly payments, what fees, costs and interest rates to expect and ways to save money.
While Germany is a huge country with a large and developed financial system, many of the banks are still quite traditional, especially when it comes to English-speaking support and products. For this reason we are not just explaining how big banks and credit comparison platforms operate, but we will also show you alternatives you have when trying to get your loan and platforms that can help you in English – just like we do.
Feel free to apply for a cash loan on our platform:
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Understand how Personal Finances work in Germany
We also have in-depth guides to find the right bank and credit card for your purpose. Read our guide on the best bank accounts in Germany or our German credit card-guide to find current, rated and reviewed products that fit your needs.
There are generally four different loan types in Germany to look out for. Those four are:
A fifth type is the “Immobilienkredit” which is a housing loan or financing when you purchase real estate. Housing loans are not in the scope of this article and differ quite largely from consumer loans and personal credit.
We are a loan platform operating out of Frankfurt, Germany. As such, it is possible for foreigners to apply for a personal and instant loan in Germany on our platform. We have been operating as a loan and brokerage platform and offer loans that are financed by banks, credit institutions and private individuals. Whether you're looking for 500 Euro cash or larger loans of 10.000 Euro or more: The process on our platform is pretty much the same.
To obtain a loan, you have to fill out our online loan application form. Don't worry: Our services are always free for you. Generally, a personal loan involves the following steps:
1. Fill out the online application form
2. Pick your preferred loan offer
3. Receive your loan within 24 hours
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Most personal loans given out in Germany are fixed installment loans. To give you a feeling for the typical personal loan in Germany, we’ve gathered statistics from public and private sources, including some of largest banks, loan comparison platforms as well as Germany’s largest credit bureau called SCHUFA.
|Typical loan type||Fixed installment loan ("Ratenkredit")|
|Avg. disbursed loan amount||Between 7.000,- and 12.000,-€|
|Avg. loan duration||Between 48 and 60 months|
|Loan interest rate||Between 4% to 6% annual percentage|
The typical German personal loan amount is a fixed installment loan (“Ratenkredit”) where the monthly rate you pay back stays the same. The loan amount is anywhere between 1.000,- and 50.000,- Euro, whereas most loans paid out fall between between 7.000,- and 12.000,- Euro. The duration can range between 12 and 120 months, but usually is around 48 to 60 months (4 or 5 years).
The interest rates are currently at an all-time low. German consumers applying for a loan pay between 4% to 6% annual percentage rate, or “Effektiver Jahreszins” in German. Some platforms are even advertising for zero-interest rate loans or even negative-rate loans, only a few of which are paid out due to the high requirements for creditworthiness. The general interest rates in Germany range between 1,99% and 19,99% APR.
It is already known that interest rates for a loan in Germany are quite low compared to other European countries, but what about a loan with a negative interest rate?
In the last years people looking for a credit bumped into loan offers such as:
A loan of 1.000,- € with a interest rate of -5%, where in the end you only have to pay 950,-€ back
Seems unrealistic? Actually, those offers exist and are usually obtained through loan platforms or brokers. In those cases:
And why would a loan broker spend his money in this way? Well, that's how he will get more and more customers, that is why usually these offers are only temporary and for a limited number of customers.
The following are two examples of loans that foreign nationals residing in Germany have obtained on our loan platform and given out by Fidor Bank. Both loans represent the general national average for consumer loans in Germany. Both individuals had a clean credit history (SCHUFA), a net income higher than 2.000,- Euro per month and existing monthly loan rates of 200,- Euro and 140,- Euro respectively.
|Income||Over € 3.000,-||€ 2.500|
|Existing loan payments||€ 200,-||€ 140,-|
|Credit rating||Very good||Good|
|Loan amount||€ 10.000,-||€ 7.500,-|
|Duration||48 months||60 months|
|Interest rate (APR)||3,48%||5,11%|
|Monthly payment||€ 223,47||€ 141,91|
|Total cost||€ 10.726,61||€ 8.514,75|
Please also note our representative example in accordance with § 6a PAngV repr. calc.: APR 4,62%, borrowing rate 3,90% p.a., net loan amount 10.000 €, loan term 4 years, one-time commission 1,25% of net loan amount, creditworthiness assumed. Loan broker: GIROMATCH GmbH.
At GIROMATCH we strive to offer you the best we can. How do we do that? After having analyzed the market deeply, we consider your initial economic situation and match you with one of our partners with the highest chance of approval. Do you need a loan without payslip? We will find an offer for you. Are you looking for a loan with bad credit? We will do our best to satisfy you, and if we can't, we will find alternative products to help you with your finances in Germany.
Take a look at our customers' reviews:
I must say that this site or credit company is the best I can rate for years as a borrower. Fast processing always helpful and without complicated processing.
MANY MANY THANKS"
Denise, April 2023
"Top. Although I have not completed my request, there were good tips. Would definitely go back to it again."
Sascha, May 2023
"Initially a bit complicated but has worked despite poor credit rating. Gladly again nice that there are still banks that give us a chance…"
Dani, August 2022
Since our main business is based in Germany and our bank partners offer loans to customers based in Germany, the present reviews have been translated from their German original.
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Another perspective we want to give you is an answer to the question of how much money you can borrow. While all banks are different and there are many factors at play when deciding whether to give out a loan or not, this should be counted as a soft indicator for possible loan amounts you can obtain.
|Net income||Available budget per month (minimum)||Credit history||Realistic loan amounts|
|€ 750,- to € 1.500,-||€ 100,-||Good or bad||Maximum of € 1.000,-|
|€ 1.500,- to € 2.500,-||€ 300,-||Good||Up to € 7.500,-|
|€ 1.500,- to € 2.500,-||€ 300,-||Bad||Up to € 3.000,-|
|Over € 2.500,-||Over € 500,-||Good||More than € 10.000,- possible|
|Over € 2.500,-||Over € 500,-||Bad||Up to € 7.500,-|
As a foreigner living in Germany, getting a loan is generally not a problem. You do however need to fulfill a few legal and credit requirements. Before you start applying for a loan, make sure that you fulfill the following minimum requirements to obtain credit:
For the actual loan application, you also need to verify some of the information. Independent of the loan amount, you will always need:
For larger loans over 5.000,- Euro, you will also need a proof of income, which could be a pay slip or a (digital) bank account statement.
Loan applications are usually done online or digitally and you do not have to walk into any bank branch or physical location. If you explicitly want personal support, then you will have to check with each bank individually whether they are able to even help you in English. If you’re in the larger cities such as Berlin, Hamburg, Frankfurt or Munich, larger banks such as Deutsche Bank and Commerzbank should be able to help you - but it might take some time and effort.
If you have just moved to Germany to start your studies, you may not have the necessary net income to apply for a personal loan. Do not worry! There are some options of student loans in Germany that you can find explained in our ultimate guide!
Germany is a heavily regulated country with a focus on consumer protection. For this reason there are quite a few legal requirements that banks, lending platforms and peer-to-peer lenders have to fulfill to give out loans. This will help you understand the rights that you have, but also the requirements that you need to fulfill to get a personal loan in Germany.
Generally, every bank has the obligation to:
The bank is forbidden to:
Lastly, you, the consumer, always has the right to:
In the past, when applying for a loan in Germany, your credit score could be influenced negatively.
This was given by the fact that applying for a loan was considered as a warning signal from banks: Customer A needs money. Let's now imagine that customer A applied for 10 loans in a row: he does not only need money but has also difficulties in finding it.
With the emergence of online platforms and credit comparison tools, customer can apply for a loan at dozens of banks with one single application. That is why banks have progressively refused to register your loan applications to credit bureaus and these have lost they predictive character.
Nowadays, you can apply for a loan online without fear: your credit score in Germany will not change and other banks will not know anything about your application.
|German||English with explanation|
|Kredit, Darlehen||Personal loan, credit|
|Kreditbetrag, Nettokreditbetrag||Loan amount, net loan amount|
|Laufzeit||Duration (typically in months)|
|Effektivzins, effektiver Jahreszins||Annual percentage rate (APR)|
|PAngV, Preisangabenverordnung||Regulatory requirement for pricing transparency|
|2/3-Beispiel, Zweidrittel-Beispiel, §6a PAngV||A representative example of the interest rate that 2/3 of all customers receive at the bank offering the personal loan, see PAngV (regulatory requirement)|
|SCHUFA||Germany's largest credit bureau, a private company with financial data over around 65 million consumers in Germany|
|Sofortkredit||Instant credit or instant loan|
|Minikredit||Payday loan, small loan|
|Autokredit, KFZ-Kredit||Auto loan, car financing|
|Geld leihen||Borrow money|
|Immobilienkredit, Immokredit||Housing loan, real estate financing|
|Identifikation, Legitimation||Identification (legal requirement for identification with passport or ID card)|
Yes, it is possible to obtain a personal loan or credit in Germany as a foreigner. This counts for expats as well as students. You do however need to have a residence in Germany and need to be registered here ("Anmeldung" or "Meldebescheinigung").
The required qualifications include a fixed monthly income, a clean credit history ("SCHUFA") as well as proper identification and ability to pay back the loan.
For personal loans ranging between 1.000,- and 25.000 Euro, which is the most common amount for credit in Germany, you will need to have
Furthermore, a clean credit history is recommended, otherwise your options will get a lot narrower and interest rates increase.
For personal and consumer loans, interest rates are at an all-time low. Most consumers are paying between 4% and 6% APR. Some credit platforms such as Smava, Check24 and Finanzcheck are advertising negative interest rate loans where you are effectively paying - 0,99% APR - in other words: banks are giving away money for free.
Looking at the wider market, especially for online loans, the standard interest rates are ranging between 1,99% APR and a maximum of 19,99% APR for peer-to-peer platforms. With good credit you will be in the expected 4% to 6% APR range whereas lower credit scores and incomes will yield a higher interest rate.
Credit cards are still the most expensive in Germany with interest rates ranging between 14% and 19% APR for overdrafts and revolving credit limits.
We are a loan platform operating out of Frankfurt, Germany. As such, it is possible for foreigners to apply for a personal loan in Germany on our platform. We have been operating as a loan and brokerage platform where loans are financed by banks, credit institutions and private individuals.
To obtain a loan, you have to fill out our online loan application form. Don't worry: Our services are always free for you.
Your loan application with GIROMATCH will not affect your credit score. Also, GIROMATCH won't check your credit history, but some of our bank partners will. Still, a loan application will not influence your credit score in Germany.
We do not offer a calculator as such. We believe that it is much better to make you calculate your eventual loan according to your actual situation: by applying for a loan through our loan platform you will get a loan offer from one of our partners. You will actually see loan conditions calculated basing on your profile. If you accept, you can go on with you application. In the case that you would like something different, you can just choose one of the alternative products that we offer to you.
GIROMATCH.com is your credit platform. Our mission is to make credit and finance simpler and more accessible for everyone. For this reason, everything we do for you is free.
To keep it free, we finance our operations through so-called "affiliate links" and commissions. This means that if you conclude a loan, open a bank account through us or get a credit card via our platform, we may receive a commission for this.
The commission has no influence on the product or the price you pay for the product. Sometimes you may even receive benefits such as a cashback or rewards for completing it through us.
The commission allows us to continue to offer our platform free of charge to you and to improve our product portfolio.
Did you find this page useful? Do you have any further doubts about how to get a personal loan in Germany? Leave a comment, we look forward to reading your feedback!
Hi, iwant to know that i am using the gold card since more than 2 years. but my credit max limit is €1000. How can i increase this limit?
Hi Muhammad, you need to contact your credit card provider and ask for an increase. Generally, if you have a clean credit history and a proper income, you should be able to get an increase if you've been a customer for 2 years.