If you want to take out a loan, you have to fulfill different requirements. Depending on whether the loan is applied for in Germany or abroad, the conditions may vary.  While flawless database information in Germany is almost a must, it plays no role abroad.

Requirements for a loan in Germany

Requirements for a loan in Germany

Many German banks or savings banks only lend their loans to employees or civil servants. Those who work independently or on a freelance basis must demonstrate credibly that the revenues are so high that they not only ensure the financing of livelihoods, but also the regular payment of monthly loan installments. The database information must not contain any negative entries. Otherwise, it almost always means the end for each loan application. This is true even if the income is high enough and paid on a regular basis. Any person wishing to apply for credit in Germany must provide the bank with proof of income. In addition, the legal age and a permanent residence in Germany is required by law. If one of these conditions is not met, the bank may demand a guarantor or additional collateral. An employee in the probationary period or an unemployed person usually has no realistic chance of getting a loan.

Requirements for a loan without database record

Requirements for a loan without database record

A loan without database is not available in Germany, but only in Switzerland or another country. Those who are interested in no way need to travel abroad, but can make the loan application from the comfort of their own home. All you need is Internet access. Most foreign banks require a regular income, a permanent contract of employment and proof of employment as a worker or civil servant. All other groups of people have a hard time getting credit abroad. The borrower must be of legal age and have an officially registered permanent residence in Germany. Some foreign banks have set an upper age limit for lending. It can be between 55 and 75 years old. For this reason, any prospective borrower should seek accurate information as to whether such an age limit exists in the specific case.

Earnable income

Earnable income

For both a German and a foreign bank loan, income must not only be paid on a regular basis, but must be high enough to exceed the seizure limit. Otherwise, the bank will not be able to access the borrower’s income and seize part of it if the arrears persist. The income can only be partially compensated by other collateral. A guarantor or co-applicant who meets all credit requirements is ideal. Whether and to what extent the bank can accept other collateral must be decided on a case-by-case basis. If the borrower is significantly in arrears, the bank can terminate the loan agreement. Before that happens, the borrower must receive a reminder and be given the opportunity to settle any arrears. A loan termination in Germany entails a negative database entry. As a result, it is not possible to take out a new loan until further notice.