While loans to people with regular income and financial security are easily given, people without these crucial factors have a hard time getting a loan from a reputable company. Borrowing is problematic for all those who can not record regular income or even reserves.

Nevertheless, there are ways to get loans granted in financial problems. In the following, therefore, it is briefly outlined which prerequisites are to be met for taking out a loan, which possible alternatives are available for borrowers and what should be taken into account.

    • Minimum age 18 years

First of all, the personal data of the potential customer are checked by the institute in advance of any possible borrowing. First of all, the decisive factor is the age of the customer. Anyone who wants to take out a loan must be at least eighteen years old and therefore able to work, but should not have passed the age of sixty-five yet.

    • Residence Germany

This age limit is primarily drawn from risk protection for the credit institutions, but does not constitute a legitimated limit age. Furthermore, the borrower should have his current place of residence within the Federal Republic of Germany.

    • No Private credit entries

Likewise, there are currently various fundamentals that credit institutions use to test the creditworthiness and liquidity of their potential clients. This includes, for example, querying the Private credit entries of the applicant. Private credit is the protection group for general credit protection, a database that ensures information about current loans, debts and the creditworthiness of the customer. By means of the credit check, the respective bank can determine whether the customer will later be in a position to meet his payment obligations on a regular basis. To this end, Private credit uses the comparative values ​​of other customers to find out which obligations have already been entered into and whether the income is actually sufficient to repay a loan of a certain amount.

    • Collateral?

In addition, further financial security on the part of the institute is checked for availability. These mainly include assets such as real estate. The bank or similar credit institutions often subscribe to letters in order to be insured in the event of a borrower’s insolvency.

For lenders such as banks, the granting of a high loan is often already excluded if the borrower can not provide any financial collateral. Nevertheless, there are various ways to obtain a loan, even without financial security.

Get credit even without collateral

Get credit even without collateral


One of the most well-known alternatives to regular loans at a bank is the so-called guarantee. Such guarantees also allow customers without financial guarantees to receive a higher loan. A guarantee is an additional or supplementary contract in which a third party commits, in the event of the borrower’s insolvency, to repay the additional installments, thereby settling the outstanding liabilities.

Nevertheless, even with this variant, it can not be completely ruled out that the loan will come about without prior examination of financial collateral. At least the guarantor will usually have to disclose whether he himself has collateral that could be used in the event of insolvency.

Several borrowers

It is also possible to divide the loan among several individuals, who then share the monthly loan installments. Again, each party agrees to continue to bear the ongoing charges if one of the other parties is no longer liquid, as solvent. Since the credit burden is shared among several people, there is often no evidence of financial security.

small loans

Furthermore, there is the option to take a so-called small loan. These are usually only suitable for bridging financial bottlenecks or financing smaller purchases, as they usually move within a financial framework of a maximum of five thousand euros. Such a small amount of loan allows the bank to agree on the lowest possible monthly installments, which can be repaid without any financial reserves or regular income.

Credit by private

Finally, it is also possible to borrow from a private individual. At present, there are several direct online providers on the Internet who grant loans at different levels without first checking the customer’s liquidity. Neither financial hedging nor regular income play a central role. Such credit institutions only check the legal basis for taking out loans prior to their admission.

What to look for?

What to look for?

Caution should be exercised especially when taking out loans from online providers. First of all, the Internet is obscure because of its multitude of providers and for customers often difficult to understand which provider is actually serious.

This offers the option of a consultation with the consumer center. Customers can thus gain access to the so-called blacklist. This list mainly lists providers who work with dubious methods and offer loans on unfair terms.

Likewise, consumer centers provide clear rules of behavior that are taken into account when dealing with borrowing.

In addition, the customer should aim for an interest rate comparison. This is the only way to determine which institute actually works on fair terms. Moreover, such interest rate comparisons exclude a possible debt spiral.

In addition, a so-called household bill should be carried out by the customer in advance of borrowing. In it, the customer can independently calculate what income and expenses he has to record each month and to what extent a loan would be acceptable for him at all.

Check the Private credit

Check the Private credit

Although the various institutions always use a review of the Private credit entries and the potential creditworthiness of the customer, even negative entries in the Private credit do not always mean the end of a loan.

Fundamentally, every consumer has the right to obtain information about his data stored at the Private credit at regular intervals and to correct it. For example, entries resulting from suretyships can be deleted immediately after the conclusion of a guarantee. However, in the case of entries resulting from debts in respect of past loans or trade, a period of three years after repayment of the debts must be respected. Only then can the customer request the deletion of his data.

Take into account current interest rates

Take into account current interest rates

When taking out a loan, however, the interest rate is always in the foreground. However, with regard to taking out a loan, the time could not be better than it is currently. The German market economy is currently recording a record interest rate in the lower segment.

Although savings are currently receiving interest rates that are lower than ever before, the same applies to loans and advances.

The term loan interest first of all refers to the sum which the customers have to pay to their institution in addition to the loan taken out. It can be called the remuneration of the bank, since they demand the amount for the provision of the money as collateral. But interest rates in this context are not equal to interest. When borrowing, different interest rates must be taken into account, which must be paid in addition to the loan granted.

    • Credit-independent interest

This primarily includes the credit-related interest rate. However, this can not be quantified as a fixed rate, since, as the name suggests, it depends on the creditworthiness and the collateral of the customer.

    • nominal interest rate

Furthermore, nominal and effective interest rates have to be considered. The nominal interest may be termed the remuneration of the credit institution and will be credited against the amount of the borrowed capital. The amount of this interest rate is usually based on the market economy and thus supply and demand.

    • effective interest

By contrast, the effective interest rate, also known as the APR, is the annual cost of an ongoing loan. It is basically given as a percentage of the loan amount.

In addition, there are several other aspects that should be considered in conjunction with interest rates and clarified in advance. This includes, for example, the possibility of allowing the customer to make special repayments and adjust his installments accordingly. In addition, it should be clarified whether the nominal interest rate is a constant during eradication or can be changed by the institution.

In addition, borrowers should be aware of whether the issuing institution has good customer service. A local contact person should be available in order to be able to eliminate possible uncertainties and difficulties immediately.