Those who come to Germany as foreigners want to realize their dreams and build a regular life in financial independence. This is certainly not easy in the start-up phase. Often there is a lack of money to realize one's dreams.
A loan as start-up financing helps, no question about it. The problem is only that many foreigners receive their residence permit in Germany for a limited period of time. Is it possible to get a loan from German banks and savings banks as a foreigner with a temporary residence permit?? We have investigated the question.
In principle, a loan is possible
We have queried several German credit institutions for our research. The answers to the question – can you take out a loan with a temporary stay – have been different. Some banks reject such applications from foreigners in principle. The effort of the examination and the final credit default risk are too high.
Other credit institutions, however, have answered the question positively. Borrowing for foreigners with a temporary residence permit is not excluded. It is important, however, that the applicant fulfills a wide range of conditions.
Residence registration must be available, account must exist
Temporary resident credit is often referred to as "refugee credit," which is certainly not incorrect. The first basic requirement is that the loan applicant must be at least 18 years old. has reached the age of. In addition, the person should be in a permanent, unlimited employment relationship. In addition to the German residence, a current account is also important. We summarize. If someone with a temporary residence permit wants to obtain a loan, he must
- Have a current account
- Have a registered address
- Provide a permanent employment contract
- The 18. Have reached the age of 18
In practice, the somewhat paradoxical situation can arise where the applicant presents himself at the bank with a temporary residence permit and an unlimited employment contract.
There is no chance of a loan if the refugee is dependent on social benefits (Burgergeld, etc.).) lives. Child benefit, which the families receive, is generally not counted as income.
The possible credit amounts for the foreigner with temporary residence
You should know that we are not talking about very large loans, but rather smaller amounts. Long-term construction and mortgage financing is not possible. A smaller installment loan is feasible. At this point, however, the bank will make sure that the repayment window corresponds to the duration of the temporary residence permit. If, for example, this still has a validity of two years, the maximum credit period is 24 months. The rule applies even if it can be assumed that the residence permit will subsequently be extended. The banks do not take any risk at this point. If a person has to leave the country, it will be difficult or even impossible to enforce the outstanding debt.Expensive but a variant – the overdraft facility
A possible credit option for foreigners with temporary residence is the overdraft facility. If it is apparent to the bank that the applicant's account regularly receives wages, it is not uncommon for a smaller line of credit (usually up to the amount of one month's salary) to be granted. However, higher sums are usually not available to foreigners here.
However, you should bear in mind that an overdraft facility is associated with comparatively high interest rates.
The solution for undocumented migrants
For foreigners who do not yet have a permanent residence permit or a settlement permit, there is hardly any recommendable credit solution. The only variant is that the persons concerned have already settled in Germany and have built up a circle of friends. From this under circumstances a guarantor for the credit can be won. If a German (or a foreigner with a residence permit) is liable for the applicant's debts, the loans are usually granted without any problems. In practice, however, the old saying often applies: "Friendship ends when it comes to money".
Conclusion: Credit with temporary residence only in very few cases possible
In conclusion, it can be summarized that loans with temporary residence permits are possible in theory, but in practice they are almost never granted. The additional conditions required can almost never be met by the applicants. Against the loan also speaks that the repayment must be made within the time limit of the stay. The necessary loan installments are then usually so high that they are out of proportion to the disposable income.