Personal bank loan

17 posts in this topic

Posted

Dear all,

 

I am going to move to Germany soon. I would like to know if anyone has been approved a loan?

I am looking for 15-20k personal loan. What banks do you suggest? are there specific banks who are willing to give loans?

 

Thank you for your support

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Posted

As a new resident you may well have difficulty finding any bank willing to give you a personal loan unless you are able to meet some special conditions. Having an established resident of good financial standing willing to co-sign as guarantor would be one example. There's no bank I know of that will lend to individuals without having them a positive SCHUFA report. SCHUFA = credit rating agency servicing the banking industry. Type the word into the TT search box (at the top right) and you'll find several topic threads with good info on the SCHUFA. Only registered residents who have, at least, established bank accounts are in that system and, as I said, banks routinely refuse loans to 'no SCHUFA data' applicants.

 

The first years I was in Germany I did take out such personal loans, without a guarantor, to establish household furniture needs. Those are common for young people establishing an independent home, especially if moving to a new city, and are called Anschaffungskredite. I was working in a self-employed capacity which would have made my situation even less attractive to them if I'd not had the nous to present my case in a convincing form. First day in country I opened a bank account and then paid in my income cheques for 3 months and got a letter from the company I contracted to (inferring I had a secure, well-paid, and long-term contract) before applying.

 

I started out with a Sparkasse (local savings bank) account, then found they serviced only their local district or city residents so had to transfer institute and close the account when I later moved states. Getting a new credit at another Sparkasse to clear my former bank's open credit balance plus moving expenses was merely a matter of form thereafter.

 

There're other types of locally organised banks here called Volksbank and Raiffeisen banks. These are comparable to UK (or US) Co-operative or agricultural co-op banks and, like the Sparda and Sparkasse banks are open, but not limited, to membership schemes with minor advantages offered to members. Their customer charges tend to be lower than 'High street chain' commercial banks of which there are many.

 

I wouldn't like to suggest any bank as their conditions, charges and interest rates all vary, but you can easily do research online using financial news and magazine databases. Try looking for Spiegel, Focus, Focus Money and, particularly, FINANZ TEST and also WISO at ZDF (public) TV. They all issue comparisons of rates and conditions regularly, some of which is in English. Watch out for UK/USA flag buttons on the websites.

As it is the business that makes them money, all banks are willing to give loans. Just not to you, maybe. ;)

 

I haven't taken out a loan, or used any form of credit, for the last 15 years. It's likely that other TTers will have more current (and/or contradictory to my own) information.

 

2B

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Posted

Use the search function to read other threads about how difficult it has been for some TTers to even open a bank account in Germany, and then ponder about how willing they will be to lend money to you, as a new customer...

 

Since you are apparently located in the UK at the moment, have you thought of borrowing money from your bank there? - assuming that you have been banking in the UK for some time already, it might be easier...

 

There are other options for small loans, but ti sort of depends upon what you plan to do with the money...

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Posted

Just try to place yourself in the shoes of a German bank for just one minute with your inquiry (or any bank around the world for that matter)...and you'll have the answer right away.

 

Imagine some stranger moves into the apartment/house next to you. You have never known him before but on the second day of moving in he comes to your door and asks if you can lend him 500 quid he needs to pay for something...would you lend it to him? Of course not, lending is about trust. And the banks here can't trust you without having any local credit history, any means of income or assets they can lay their hands on in case you default.

Therefore, unless you have special collateral like some real estate in Germany, there is not a chance that any bank will be willing to lend you money upon arrival nor for the first 6-12 months while you are in Germany, even if you are the nicest and most trustworthy person in the world.

 

Cheerio

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Posted

interesting topic. I recently had a conversation with a friend who is from Scotland living here in Germany and he also attempted to find a means to get a loan. Aside from the great points made by the afore individuals, you must have permanent German residence for a German bank to approve loans. I introduced my friend to my bank advisor. While I did not sit in the meeting (not for my ears) I was told he was turned down for the reason he was not permanently in Germany.

 

However the suggestion of obtaining a credit card (not a good alternative and with bad interest rates) was a possible idea.

 

Best of luck to you, though.

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Posted

 

interesting topic. I recently had a conversation with a friend who is from Scotland living here in Germany and he also attempted to find a means to get a loan. Aside from the great points made by the afore individuals, you must have permanent German residence for a German bank to approve loans. I introduced my friend to my bank advisor. While I did not sit in the meeting (not for my ears) I was told he was turned down for the reason he was not permanently in Germany.

 

However the suggestion of obtaining a credit card (not a good alternative and with bad interest rates) was a possible idea.

 

Best of luck to you, though.

 

This is not always true. Some banks will loan you money even if you do not have permanent residency. As long as your residency permit covers the entire length of the loan, some banks would be willing to give you a loan.

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Posted

 

... a friend who is from Scotland living here in Germany

....he was not permanently in Germany.

 

How can he be "living here" and not a permanent resident?

 

You don't need to be a permanent resident (or even living here) to get a loan, but if you are then it helps substantially as the bank can keep a track on you. Of course, if you provide security then you have a better chance. I know a number of non-residents with a house here and a mortgage from a German bank. Any unsecured loan (which would include a credit card) will need a history, a confirmed and stable income and a credit (Schufa) record, unless you find a sponsor with these to shoulder the risk.

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Posted

I have a question why I am being rejected a loan.

 

I am living in Munich since August/12, and just finished my Probezeit in the company I'm working. Recently I had to leave my möbliert wohnung and moved to a new one, completely empty. After paying Makler, Kaution and buying some basic stuff to survive, I'm broke. :D

 

Anyway... My new apartment has no kitchen and I was thinking about doing a small loan to buy one. Something around 2000€ or less. But I've tried until now to do it online, but it is always rejected. I tried on Deutsche Bank (client there) and EasyCredit.

 

Does anyone has an idea why they're rejecting such a small loan?

Is it worth maybe go the bank itself and ask or the answer will be the same?

Or do I just save more a few months (least favorite option - eating out everyday sucks)?

 

Thanks,

Tedesco

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Posted

I'd save more for a few months. A Probezeit is not a long enough time to build a credit rating, I suspect. Even after I moved to the USA, it took me a year to get a credit card, and that is an "easy credit" country. YMMV as ever.

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Posted

Any system which automatically evaluates your creditworthiness is likely to reject you, meaning you are unlikely to have any luck with a faceless online system. Better to present yourself personally to a bank (such as one you already bank with) and try to make a good impression. A suitably impressed bank employee/manager can over-ride the system, especially if they have seen you managing your money well so far for the time they have known you...

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Posted

 

I have a question why I am being rejected a loan.

 

I am living in Munich since August/12, and just finished my Probezeit in the company I'm working. Recently I had to leave my möbliert wohnung and moved to a new one, completely empty. After paying Makler, Kaution and buying some basic stuff to survive, I'm broke.

 

Anyway... My new apartment has no kitchen and I was thinking about doing a small loan to buy one. Something around 2000€ or less. But I've tried until now to do it online, but it is always rejected. I tried on Deutsche Bank (client there) and EasyCredit.

 

Does anyone has an idea why they're rejecting such a small loan?

Is it worth maybe go the bank itself and ask or the answer will be the same?

Or do I just save more a few months (least favorite option - eating out everyday sucks)?

 

Thanks,

Tedesco

 

Your ID on TT shows you as Brasilian national...which might indicate that you are living and working in Germany based on a time-limited Visa? If that is the case, chances of you getting a loan/credit anytime soon will be rather low indeed. Even though you have an employment and survived probation period, you are still a high risk to leave or have to leave Germany when your Visa runs out - something banks do not like.

You might have a better chance indeed directly at IKEA or try to get a loan thru SMAVA, a private plattform, I think they accept you after having lived for >6 months in Germany, provided you have succeeded in building up a first and decent SCHUFA record.

 

Cheerio

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Posted

If you are able to save for a kitchen and can do without a full kitchen for a while, I would recommend saving rather than going for loans. Especially if there's a chance you might move out at some point and switch to a better place. Imagine that - still paying off a loan on a kitchen you have since handed over to the next tenant who enjoys it long after you leave... (Well, unless you take the kitchen with you when you move out again)

 

I am a survivor of being kitchenless for a certain amount of time, and I can tell you a few things I learned from the whole experience. I realized that it wasn't so much the whole kitchen I missed/used. It was actually the washing up sink. Sure its great that I now have all the electrical appliances, and all the cupboards and work bench etc... But really, at least for me, 85% of the inconvenience from times being kitchenless was only and purely stemming from the lack of a washing up sink - everything else I could put up with for a while.

 

You know, its weird, there's at least a bathroom sink (and a toilet) in most rental apartments in Germany, yet no sink in the kitchen.

 

Anyway, now that I have my kitchen in all its glory, I still use my portable mini backofen oven more often than my in-built oven because it heats up super quick and consumes less electricity.

 

If you go the save for a fitted kitchen route, I would say you can get by with:

 

- Disposable plates/cutlery

- Mini Backofen and/or hotplate

- Fridge

- Very large plastic washing up bowl for any saucepans etc...

 

Or take the opportunity to diet a la sole source and live off delicious nutritious milkshakes.

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Posted

If you were really dying for a washing machine or a fridge freezer, you could always see if you could buy them on credit at Saturn. Being with the same employer for at least 6 months (and presumably no negative Schufa entries) seems to be the only requirement of their bank.

 

Mind you, if you are on a visa that will expire before the last installment of the credit were due, you'd have a problem.

 

(I did manage to live without a fridge for quite an extended period once, thanks to a balcony, and it seemed no hassle at all at the time. Today I do wonder how I managed without a freezer, though. And if there is not even a sink, I think a stand-alone unit can be got from Ikea quite cheaply).

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Posted

 

Your ID on TT shows you as Brasilian national...which might indicate that you are living and working in Germany based on a time-limited Visa? If that is the case, chances of you getting a loan/credit anytime soon will be rather low indeed. Even though you have an employment and survived probation period, you are still a high risk to leave or have to leave Germany when your Visa runs out - something banks do not like.

You might have a better chance indeed directly at IKEA or try to get a loan thru SMAVA, a private plattform, I think they accept you after having lived for >6 months in Germany, provided you have succeeded in building up a first and decent SCHUFA record.

 

Cheerio

 

Guilty, I'm brazilian indeed.

But as the matter of Visa: I'm a holder of the new Blaue Karte and it is valid until 2015. Much more than the 6 months I was expecting to pay back the loan.

 

The funny thing is when I go to the bank the clerk always offers me loan options to buy a house/apartment. Which I have interest, but in a few years only. :P

 

 

If you are able to save for a kitchen and can do without a full kitchen for a while, I would recommend saving rather than going for loans. Especially if there's a chance you might move out at some point and switch to a better place. Imagine that - still paying off a loan on a kitchen you have since handed over to the next tenant who enjoys it long after you leave... (Well, unless you take the kitchen with you when you move out again)

 

I am a survivor of being kitchenless for a certain amount of time, and I can tell you a few things I learned from the whole experience. I realized that it wasn't so much the whole kitchen I missed/used. It was actually the washing up sink. Sure its great that I now have all the electrical appliances, and all the cupboards and work bench etc... But really, at least for me, 85% of the inconvenience from times being kitchenless was only and purely stemming from the lack of a washing up sink - everything else I could put up with for a while.

 

You know, its weird, there's at least a bathroom sink (and a toilet) in most rental apartments in Germany, yet no sink in the kitchen.

 

Anyway, now that I have my kitchen in all its glory, I still use my portable mini backofen oven more often than my in-built oven because it heats up super quick and consumes less electricity.

 

If you go the save for a fitted kitchen route, I would say you can get by with:

 

- Disposable plates/cutlery

- Mini Backofen and/or hotplate

- Fridge

- Very large plastic washing up bowl for any saucepans etc...

 

Or take the opportunity to diet a la sole source and live off delicious nutritious milkshakes.

 

I agree on the sink, I believe it is what I miss most too.

And I've been living already in a 'forced' diet, don't worry. haha

 

Thanks all for the replies. Much appreciated.

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Posted

Those standalone kitchens are great to start with. If I remember correctly, they cost around the €200 mark. I saw them in Quelle when I was buying my fridge and washing machine a few years ago. Quelle is gone now but if you go into any of the big household electronic places they should have one. I've seen them in Toom Baumarkt as well. There a two-ring hotplate on one side with a fridge underneath that and a sink and cupboard on the other side - the whole thing is no bigger than a standard double-size kitchen cupboard. That was my entire kitchen the whole time I lived in Baden-Baden (about 9 months).

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Posted

FYI:

 

Commerzbank is now willing to make a loan to customers who have a restricted residence permit. About 6 months ago I tried to apply for a loan, but because I had (and still have) a restricted work permit (3 years), they wouldn't make a me loan. They have now apparently changed their rules and will make a loan as long as the length of the loan is less than or as long as the validity of the residence permit.

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