The question of a loan without collateral always arises when a loan seeker has financial problems and therefore does not get the requested loan without collateral from the bank. As a rule, banks are also unwilling to forego loan collateral. In the case of installment credit, the borrower must prove to the bank that he is in an unconditional employment relationship and will generate a garnishable income from which the loan can be repaid.
Occasionally, borrowers get a loan from their house bank without collateral because they are known as reliable customers. Being a reliable customer is also a kind of security, but it cannot be monetized.
Many consumers have heard that there are credit intermediaries who advertise on the Internet and in daily newspapers by promising consumers a loan without collateral. It is not uncommon for promises to be made here that in reality only show up as advertising. Consumers with financial problems should be careful. Credit intermediaries are not a bank, they only pretend to be able to broker loans. They are dependent on banks that ultimately grant the loan. And banks want collateral, whether in Germany or abroad.
If foreign banks partially waive collateral by refraining from obtaining Credit bureau information from their customers, they secure themselves otherwise. While Agree banks can seek credit with negative Credit bureau if they provide a guarantor, foreign banks that offer the loan without Credit bureau cannot do so. Guarantees and other physical collateral are expressly not desired. The only security with these banks is the attachable income from permanent employment. That is why we advise you to ignore loan offers from credit intermediaries who promise credit even in difficult cases.
One of the possible collateral is the Credit bureau information that banks obtain as part of the creditworthiness check. What is then in the credit applicant’s Credit bureau also decides whether a loan is approved or rejected. There are providers in Liechtenstein who grant loans without obtaining the Credit bureau information from the applicant.
Here, the loan seekers with bad Credit bureau have the opportunity to get a loan, but not a loan without collateral, because the bank always wants proof of a permanent position that has existed for at least a year. The loan without Credit bureau is a loan without Credit bureau, but not a loan without collateral, even if dubious credit intermediaries like to claim that. In addition, Credit bureau-free loans are significantly more expensive than comparable loans from banks operating in Germany.
Anyone who wants to borrow money from a bank must be able to give the bank the security that they will repay the loan. If this proof cannot be provided, it is always very difficult to get a loan from the bank.
However, friends and relatives mostly do without collateral. Those who cannot provide collateral for a loan should try to borrow money from relatives or friends.