Payday Loans in Germany

Payday Loans in Germany

Looking for payday loans in Germany? Here is a selection

Germany is the largest economy in Europe with employment opportunities cutting across so many sectors including service, engineering, research, business, energy, ICT and many more. A 2020 household survey showed that the average household income in Germany amounted to 4,715 euros. But the reality is that people employed in Germany earn decent and competitive salaries that enable them to afford a good living. Nonetheless, it is just naïve to assume that once in a while budgets do not work out and a need for some extra penny creeps in. In such a situation, friends and relatives who also have own budgets will be slow to disrupt their plans and come to your aid. Maybe they will do it once or twice but not always. the secret way out of your financial situation in Germany then becomes payday loans.

An increased financial crisis is behind the popularity of payday loans in Germany and Europe in general. Occasionally, life becomes full of surprises; you can fall into the red right in the middle of the month. For instance, subscription expiries, accidents, and home repairs are common emergencies requiring urgent maintenance attention. What can you do then? Asking for money from friends and relatives is null, especially when it involves handsome sums. Therefore, a payday loan saves the day. Remember, you can even take the loan if you want to take your fiancé/fiancée on a date.

Payday loans are a small amount of money borrowed within a short duration. The loans normally charge higher interest than banks and other financial institutions. Although they are considered predatory lending, it is instant and can sort you out within hours. Repayment of the loan is usually a fraction of the next paycheck. Payday loans; commonly known as Kurzzeitkredit in Germany.

When Should You Consider Payday Loans Over Bank Loans in Germany?

Payday loans are less stern on checking credit history and monthly incomes. Approval criteria for the loans are simpler than banks, which only pick on borrowers with good credit scores and steady income. With the payday loans, even the borrowers with bad credit can get loans controversial to banks, which reject such.

In case of default or late payment, many poor creditors fear the risk of using their assets as security. Therefore, payday loans are unsecured, meaning no personal asset for security. However, banks in Germany insist on a private asset for security, such as a private car or house.

Financial emergencies call for prompt attention. For instance, if you get your electricity bill and you need to pay it within 5 days yet you still have more days to payday, you may opt for such loans. Also, payday loans take up to fifteen minutes to apply and additional hours to mature. However, banks involve lots of paperwork and checking, only to mature after a couple of days.

Using a handset, you can make an application of payday loans through the internet. On the other hand, with banks, most of them will require you to book an appointment and go to their physical offices. Therefore, in comparing the two, the payday loans are more convenient.

Basic Requirements in An Application for A Payday Loan in Germany

Application process for payday loans may differ from one financial firm to another. However, the general application requires you to be a German resident. In addition, you need to be above 18 years old just like in Bulgaria with a steady monthly income to stand a chance. Foreigners, however, must produce a resident permit. A bank account detail is also necessary as lenders use it to deposit the loan. Remember to produce recent pay slips, utility bills, and identification such as personalausweis.

Are there loan limits for payday loans in Germany?

The maximum loan amount to borrow varies from one lender to another. First-time borrowers get lower amounts than frequent borrowers are. Financial status plays a big role in the amount limit. However, you should never expect more loans than your earnings. Additionally, creditors with bad credit scores from Schutzgemeinschaft für allgemeine Kreditsicherung (SCHUFA) are disadvantaged. In short, loan limits depend on by the borrowers’ ability to repay. SCHUFA is General credit protection agency that tracks and rates payment behavior of the creditor.

Payday loan companies in Germany

The following are some of the companies offering the payday loans in Germany. The amount lend depends with a company.

BON KREDIT

Bon Kredit is among the largest loan agents in Germany. Up to million Euros of loans are payable daily. It is also an instant moneylender; fast in approving loans online with internet access. These receive documents and approve requirements in the comfort of your home via the internet. At Bon Credit you can borrow between €100 to €300,000. Also, no upfront fees is needed when you make a loan application.

N26

Application and approval in N26 lender are fast through the internet. However, creditors with poor credit history may face denial. Their terms are strict as they check your financial stability and stable income. At the company, you may borrow up to €25,000.

VEX cash

VEX cash is the first short-term lender in Germany, located in Berlin. After the numerous adjustments and regulations created in Vex cash, it began operations with net m-PrivatBank, which offered authorization and funds. Even with poor credit reports, they are lenient in offering some small amounts to needy customers. Their speed on approval of the loan is unmatched, thanks to the internet. As a first timer borrower, you can get up to €3,000.

SMAVA

The lenders ensure loan transparency and fair charges, which are affordable to the creditor. The lenders work hand in hand with the leading banks and renowned investors to support financing projects. Their customer service agents are on another level; swift in offering solutions to customers.

Auxmoney

The cool-off period of a month is attractive. Did you know? Deciding against the loan during the cool-off period is not chargeable, so good. They offer maximum limits of 5000 Euros and 12 to 60 months of repayment. This company offers free SCHUFA queries and a free generation Auxmoney credit score.

Cash per

Residents and foreigners that need a quick loan in Germany can refer to Cash per. It is one of the highest-rated financial online services, with payout days between one and ten. It has a super deal habit of allowing the creditor to pay in two equal installments. The duration period of repayment is 30 to 60 days, with a maximum borrowing of up to 1500 Euros. The company has cheap loan offer and works 24/7. As compared to the other lenders, Cash Per is very unique as it even offers credit advice to the borrowers.