Payday loans should be legal

Loan for the unemployed: an overview of reputable options

Loan collateral: co-applicants, guarantors and insurance companies

Those who are unemployed and / or receive basic security normally only receive a loan from a German bank if they take a co-applicant or a guarantor on board. However, an unemployed guarantor or co-applicant is of little help. A co-applicant should receive a regular attachable income, this increases the chances of getting an unemployment loan. You can quickly check whether a loan is suitable for you and your co-applicant at You can submit a condition request to a large number of banks online without any Schufa disadvantages. Within 5 minutes you will receive information about which conditions are possible for you. If you receive a loan offer, you can print out the application, fill it out and send it to the respective bank.

But be careful: When the bank receives a signed application, it checks the creditworthiness again and orders a binding Schufa information with the feature "credit request". If the data was entered incorrectly, no credit agreement will be concluded. The Schufa evaluates this as a rejection on the part of the bank, which has a negative impact on the Schufa score.

Anyone who has a saved endowment insurance can borrow it as part of a policy loan. Either the insurer itself or a separate bank can act as the lender.

Loan from the employment office

In urgent cases, the Federal Employment Agency also grants an unemployment loan. These cases are listed in several places in SGB II. In ยง 22 SGB II, for example, loans for accommodation are regulated: Unemployed people who receive basic security are entitled to a loan if, for example, they have to repair the house they live in or cannot afford the rent deposit or heating costs. If there is an unavoidable need of a different kind, the unemployed can also receive a loan according to Section 24 Clause 1. Section 16c SGB II regulates loans for unemployed people who want to become self-employed.

In all cases, an unemployment loan is only issued after a review of the situation and is only intended to serve the purpose specified in advance. Such loans have very favorable terms: no interest is charged and the monthly installments are adjusted to the solvency of the unemployed.

Loan exchanges: loans from individuals

An alternative for the unemployed still offers credit exchanges, on which loans are granted from private to private. However, a credit check is inevitably carried out here as well. It is questionable whether a lender lends money when repatriation is in doubt due to a lack of regular income. At the very least, the loan application usually doesn't cost anything, and unlike a credit intermediary who charges an upfront fee, the lending is reputable.

Unemployment loans from abroad

If the credit broker demands a fee before the credit agreement is concluded, or if he requires the purchase of a home loan and savings agreement or life insurance, it is usually a dubious offer.

No reputable bank, be it in Germany or abroad, grants a loan to the unemployed without depositing additional collateral. This is also the case with the "credit without Schufa", which is often advertised. The term refers to loans from countries like Liechtenstein or Switzerland. Since the Schufa is a purely German institution, banks from abroad often do not check the Schufa score. If the loan is taken out, there is no Schufa entry. However, this does not mean that the creditworthiness is not checked. Swiss banks also only grant a loan under certain conditions. These include:

  • proof that the loan can be repaid,
  • further collateral, if applicable,
  • Age of majority and
  • a permanent residence in Germany.

The first two points in particular show that different customs prevail in other countries. In Germany it is not enough to deposit collateral, because a loan must be able to be borne in this country from current income. Since unemployment benefits cannot be seized if the installments are not paid, this represents a hurdle. Basically, only rental income or interest income can be considered as other income for the loan in the event of unemployment. These in turn are credited at the latest when receiving unemployment benefit II (Hartz IV) and sooner or later they are used up to the minimum amount.

Swiss banks can be more generous in assessing collateral and types of income. But they also charge higher interest rates for the increased risk.