In principle, you can get a loan in Germany from the age of majority, i.e. the age of 18 (with 18). Then you are fully legally competent and can legally sign contracts (in this case a loan contract).
Legislator to review creditworthiness
The legislator has laid down further hurdles for banks with regard to a review of their creditworthiness (creditworthiness) in section 18 of the Banking Act. Astro also specifies general framework conditions for banks, which they have to take into account when deciding whether to grant loans. Ultimately, the bank is a company that has no money to give away and wants to get the money lent back in full and at interest.
In addition to the age of majority, this results in further basic requirements for a normal installment loan for private individuals:
- Regulated income from permanent employment (regular monthly payment). The fixed salary serves on the one hand the possibility of the proper repayment of the loan, but also the attachment in the event of a delay in payment. You can also read our detailed article on loans for unemployed as well as information on temporary contracts and temporary work
- The amount of income is of course also decisive, if and how much credit you get. Read also: How much credit do I get?
- The trial period of the employment relationship must be over (this requires the employment contract and usually the last 3 proof of salary)
- perfect Credit Bureau information without negative entries
Requirements to approve loan
If these requirements are not met, additional collateral must be submitted to the bank before one can think about an approved loan. These can be:
- Guarantee the loan, which must be paid if the installments fail to appear
- Lien of own real estate or land
- the bank keeps the vehicle registration document as security for car loans
It should be noted that the bank can also pay the higher risk in the event of a loan with higher interest rates.
Another option is private loans (i.e. loans from private), for which the strict credit checks are not necessary. But private lenders will also require sufficient security to get their money back with interest.