It is not possible to obtain a loan for unemployed people without a co-applicant from either a German or a foreign bank. Although unemployment benefit is paid on a regular basis, it can under no circumstances serve as security for an installment, consumer or overdraft facility.
The same applies to a car or real estate loan. It becomes very difficult if there are additional negative Credit bureau entries. However, there are some special cases in which it is well worth applying for a loan. This is particularly likely to be the case if the unemployment benefit is very high and if additional material collateral such as a lendable capital life insurance policy, larger cash or securities assets and / or debt-free property exist.
Credit intermediaries and personal loans
Many credit intermediaries promise that they can arrange a suitable loan from home or abroad for anyone who wishes to do so. Such statements should always be viewed with some caution. This applies particularly to unemployed people who do not have the necessary creditworthiness to receive a normal bank loan. Anyone looking for a loan without a co-applicant for the unemployed should never believe any unrealistic promise or transfer the fee for loan brokerage in advance.
Personal loans can be divided into those loans that are made by friends or acquaintances and those that are granted via a credit brokerage platform on the Internet. Both variants have the advantage that the credit conditions can be regulated individually and are not tied to as strict requirements as is the case with most bank or savings bank loans.
Loans from the job center
There is an additional option for Social Welfare recipients to obtain a loan without a co-applicant for the unemployed. If the requirements are met, you can contact your local job center and apply for a loan without a co-applicant for the unemployed. In contrast to a normal installment or consumer loan, this loan is specifically earmarked. Important reasons that would justify lending on the part of the job center would be a broken television, a broken fridge or a broken washing machine.
Proper use of the loan amount must be demonstrated to the job center. Many Social Welfare recipients have rental or energy debts. In order to avoid the risk of losing the apartment or the energy supply, a loan should also be applied for.
In this case, the loan amount is transferred directly to the landlord or the energy supplier. The purpose of this procedure is to avoid misuse of the money. A loan without a co-applicant for the unemployed has to be paid back to the job center in monthly installments. In many cases, it makes sense to withhold the corresponding amount of money from the current Social Welfare service.