In the era of globalization and integration, the financial sectors are becoming increasingly international, where Germany is no exception. More and more foreigners are moving to Germany to start a new life here and new career opportunities. To get family and children. The proportion of immigrants in the total population is now around 21 percent. In order to overcome some financial difficulties in the initial phase, people with foreign roots must now take out a loan.
Loans for EU citizens
As a rule, there is no significant difference between loans for German citizens and loans for other EU citizens. In order to receive a loan from a German bank, foreigners from other EU countries should be able to demonstrate full business ability and sufficient creditworthiness, as well as a permanent residence in Germany. For the credit check, you should submit a contract of employment as proof of regular work. Otherwise there are no formalities for immigrants from the EU member states to complete in order to get a German loan approved.
Loans for non-EU citizens
Citizens of other countries that do not belong to the European Union have to meet further requirements to receive a loan. In this case, the credit institution requests a residence permit and a work permit from a borrower. Even the period of validity of these documents is taken into account when determining the loan amount – the larger the loan amount, the longer the residence permit should be valid. A permanent place of residence in the Federal Republic, a permanent job and a regular income are also the essential prerequisites for credit approval for foreigners who are not EU members.
Loans for foreign students
As is known, German universities are very popular and respected among foreign students, so that several students come to Germany to graduate here. There is an option for the customer group to obtain a student loan. Some regional banks and the KfW development bank often offer student loans at very favorable terms so that foreign students can easily finance their studies.
Interest rate on immigrant loans
The interest rates for a foreign applicant are the same as for a German:
- First and foremost, the credit score is taken into account, which is checked by checking the ability to repay.
- Next, the requested loan term is of great importance – the longer the term, the higher the risk of default for a bank. Therefore, a shorter term is more desirable if you want to get cheap interest.
In conclusion, it can be said that as a foreigner – both as an EU citizen and as a non-EU citizen – you can still get a loan in Germany, and with conditions similar to those of German citizens – certain conditions must now be met and criteria are fully met.