In Germany it is almost impossible to get a loan in the event of unemployment and without Credit bureau information. The Best banks demand security from the debtor in the form of an employment contract if the Credit bureau information is negative. However, other collateral such as a house is also accepted as collateral when lending.
But many unemployed people don’t have that, which is why it is almost impossible for them to take out a loan. However, in some cases an unemployment loan and without Credit bureau information is needed to improve the chances of a job. This can be the case, for example, if an unemployed person needs a driver’s license or a car so that he can find a job again. However, loans for electrical household appliances such as washing machines or refrigerators are also required if they are defective.
The risk of unemployment for lenders
In Germany, the chances of getting a loan with unemployment and without Credit bureau information are very low. Banks shy away from the risk they could take by granting a loan to unemployed people. However, an ALG II can also be regarded as a regular income. However, care should be taken by both the unemployed and the lender to ensure that no loan is taken out which overburdens the unemployed. It must be ensured that the monthly installments can be paid relatively easily without the unemployed being at risk of losing their livelihood. It can therefore also be possible to obtain a loan in the event of unemployment and without Credit bureau information.
The ways that the unemployed have a loan
Since a negative Credit bureau information is a prerequisite for lending and the proof of a regular monthly income must be presented by the German credit institutions, there are not very many ways for unemployed people to obtain a loan. One of them is the proof of a life insurance or other security such as a private pension and of course the ownership of real estate. However, anyone who is unemployed and cannot provide this security has the option of receiving a loan in the event of unemployment and without Credit bureau, provided that he has a surety.
This guarantor is responsible for repaying the loan if the actual borrower is unable or unable to do so. This represents a risk for the guarantor, which is why this variant is difficult to carry out in practice, because often no guarantors are found. Another possibility is offered by private lenders, where an unemployed person can receive the money from several private individuals through a credit institution as a loan with low monthly repayment rates.