MonthJanuary 2019

Loan Without German Citizenship – it’s that easy | Loan Options

It is very difficult to get a loan without German citizenship. Even if the seeker is registered in Germany and has a permanent residence here. How the loan can be implemented in spite of all, they learn here.

That’s how it looks right now


A loan without German citizenship seems almost impossible at first sight. The banks simply require German citizenship when borrowing. It must be proven with the help of an identity card or passport.

Despite all this, citizens without German citizenship can apply for credit here in Germany. And the banks and savings banks must not refuse this application from the outset. Because that prohibits etiquette. But in the end it usually comes down to rejection, which of course is always very hard for those who really need it.

But there is also a bright spot. Because a little bit always decides the country from which the loan seeker comes from a lending. For example, those who are domiciled within the EU must be able to borrow in Germany. That is what EU law provides. But those who come from a country that does not belong to the EU have to make do otherwise or hope for the favor of the banks.

Credit without German citizenship – requirements

Credit without German citizenship - requirements

In order to be able to benefit from a loan at all, foreigners must be able to meet the same strict conditions for borrowing as all other potential creditors. This means that in addition to the permanent residence in Germany always a German bank account must be presented. In addition, the prospect must be at least 18 years old.

It is also important that a fixed income is given. The employment contract should be indefinite, so that optimal conditions are met. The same applies to the residence permit in Germany. Again this must be indefinite, so that sufficient time for the repayment of the credit exists.

Credit without German citizenship – loan options

Credit without German citizenship - loan options

If a credit due to the wrong citizenship is not possible, it can only be started with a little trick. It would be possible to arrange the loan with the help of a second applicant. However, this second applicant must have German citizenship and be solvent on top of that. Good friends could therefore help to ensure that the desired loan can still be set in motion.

It would also be possible to simply borrow the loan as a consumer loan from a dealer. Such installment payment agreements are provided in large numbers via the Internet. The traders only check the address and the private credit, and if there are no abnormalities, the loan can be taken out. Even if no German citizenship exists. Because this is not checked.

A difficult way

A difficult way

It is therefore relatively difficult to get a loan without German citizenship on the way. But with a few tricks and adjustments everything is possible.

Our tip: Small loan amounts are always easier to implement than large loan amounts with a long term. Therefore, as a loan seeker, you should always show modesty and not ask for more than you can. This increases the chances of a loan and secures the planned project.

What is a Mortgage Loan and its Characteristics?

First of all, let’s say that the mortgage loan is a long-term credit product, the beneficiaries are those over sixty years who own a residential property, to which they have access to a loan of a certain amount agreed with the bank or some other intermediary financial. The sum must be repaid after the death of the beneficiary, or through the heirs or through enforcement.

In short, the mortgage loan is a possibility to obtain liquid capital from your home (or in any case from another residential property owned) in old age. The capital as mentioned above, will then be returned after the death of the beneficiary or of his spouse or cohabitant.

The characteristics of the mortgage life loan

The characteristics of the mortgage life loan

This particular type of loan originated in Britain in the late nineties of the twentieth century with the name of ” lifetime mortgage ” or ” equity release ” (and ” reverse mortgage ” in the United States). In Italy it was introduced precisely in 2005 by paragraph 12 of the art. 11- quaterdecies of Decree-Law No. 203 of that year, converted into Law No. 248 of 2005.

It is important to underline that the mortgage can be made only on the residential building, that is on those goods that are destined to be used as a civil dwelling, or that are pertinent to it. The application of the mortgage life loan has not been very successful in practice, this because in the aforementioned rule, there was no regulation that was introduced later by the Decree of the Ministry of Economic Development No. 226 of 2015, which came into force on 2 March 2016.

The fact is that the rule is clear, and the loan can be granted by banks or financial intermediaries regularly registered in the Register held by the Bank of Italy pursuant to art. 106 of the Consolidated Banking Act (TUB) contained in Legislative Decree No. 385 of 1993, and must guarantee a medium and long-term loan by holding as a guarantee the first degree mortgage on a residential property owned by the funded entity, with capitalization annual interest and expenses, which is suitable for individuals over the age of 60.

It is good to point out that the reimbursement can be asked to the heirs in a single solution, only upon the death of the financed subject, that is to the debtor as soon as the properties or other real or personal rights of enjoyment on the property are transferred in whole. property given as collateral, or even if   actions are taken that considerably reduce their value.

Even if the law does not explicitly communicate it, it is obvious that the lender, before granting the money to the applicant through the mortgage annuity loan, makes an estimate on the value of the property by an expert. We must also analyze the case in which the applicant to be financed is married or cohabiting ” more uxorio ” for at least five years, in this case the contract by law must be signed by both even if the property is only one of them, obviously both spouses must be at least 60 years of age.

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