At the moment, interest rates on loans are very low. On the one hand, that means that loans are cheaper, but also means that banks make less money with credit.
So it may be that lending altogether gets a bit of a hitch. For many individuals, it is already difficult enough to get a loan anyway. Those who have a negative Private credit entry and / or are unemployed usually have bad cards to get a positive credit decision.
Credit also despite unemployment
- Start your free loan request now (there is no contract yet)
- Fast payout within just 12-24 hours after credit application check
- Guaranteed without risk: no hook, no cost.
- Use a second co-applicant, the loan payout ratio increases by about 72%!
To whom does the employment agency lend money?
The good news in advance: The loans of the employment agency are interest-free. You only have to repay the borrowed amount. But there is also a catch: Of course, not everyone gets these free loans.
Prerequisite: You must receive unemployment benefit I in order to belong to the elite group of persons. If you are unemployed for more than one year, you automatically fall into unemployment benefit 2, colloquially called Hartz 4. As a Hartz 4 beneficiary, you can also apply for a loan; but not with the employment agency, but with the ARGE. However, your contact person in both cases is your respective case officer.
What is the loan amount?
Due to the strict earmarking of these loans, the loan amount is usually not very high. If a new household appliance needs to be procured or a repair is due, these loans range in perhaps a range of 250 – 400 euros. With a driver’s license or a car, they can also be significantly higher. However, higher lending from the employment agency is more of a rarity, the loan amounts manageable.
If you need more money because you want to get out of unemployment with the step into self-employment, you should seek a start-up loan from intrasavings bank.
Under what circumstances does this loan exist?
As a matter of principle, the awarding of these loans is a discretionary matter – the case officer decides. According to experience, the employment agency is reluctant to grant loans. And one more thing to keep in mind: These loans are strictly earmarked. If you live in the countryside and need a car to take a new job, the agency can lend you the money. However, the salary of the new job must be sufficient to finance your future livelihood. If a young unemployed person needs a driver’s license for a new job, the Employment Agency can also provide a loan for it.
If an unforeseen repair on one of your household appliances breaks your budget, you have rental or energy debts, and if you get into financial trouble due to an accident or property damage, the Employment Agency may help you with a microcredit. Because of §§23 and 42a of SGB II, it is obliged to help you in the greatest need. However, the plight must also be credible. Therefore, the decision is also made by the responsible skilled worker, who knows the respective situation best and knows how to estimate. The credit is therefore not given without hesitation. He is always there only to solve emergency situations purposefully and efficiently.
What about eradication and Private credit?
The repayment installment for all loans from the German Employment Agency amounts to ten percent per annum. However, it can be complicated because getting the ALG 1 can never take more than a year anyway. If you have to change to the ARGE after one year of unemployment, the loan will be taken over. However, in the meantime, if you have accepted a new job that will reliably secure your livelihood, repay the loan immediately. Because they are usually small amounts, this is not a problem under normal circumstances.
Conclusion: Overall, it should be noted that in these “emergency loans” the conditions are kept very fair. A negative Private credit entry plays no role in the award. You may also be one of those people who are embarrassed to apply for a loan, along with auditioning for clerk or clerk.