Serious loans despite Social Welfare are not advertising ducks. Nevertheless, the expectations of the offers must not be set too high. Social Welfare is not a board member salary from which loans can be secured easily. A Social Welfare income is only intended to ensure survival.
Serious loans despite Social Welfare – bad credit conditions
If serious loans are sought for consumption despite Social Welfare, it will be difficult to convince a local lender. The usual credit institutions are out of the search. Anyone can open an account with a Social Welfare income, but most credit institutions also refuse to do so. Viewed from a distance, this business policy is even understandable. The monthly standard rate with which the needy have to get by is a little more than 350 USD. Of this small amount, no one can ensure repayment without being in need.
This is precisely why there are the garnishment exemption limits, below which lending is extremely limited. The income of a single person must be at least 980 USD net per month. Only unencumbered income above this amount is seriously available for payment in installments. No Social Welfare recipient can prove this income legally. The standard rate is linked to the need and therefore no income that could be considered. If additional income is generated, for example through a part-time job, it is counted towards the standard rate.
If you are looking for serious loans, you have to offer serious conditions yourself
Serious loans despite Social Welfare, not earmarked, are not possible without outside help or pledged collateral. Risk loans are undesirable in the ordinary German banking system. Offers for this can only be found through credit intermediaries and a few special providers. The providers expect the applicant to receive proper Credit bureau information and security. Possible collateral would be:
– The loan guarantee of a solvent guarantor.
– Pledging of the pension savings that have already been saved.
– The pledging of a high-quality asset, such as the vehicle.
If you are serious about the word, you have to offer serious conditions yourself through one of the mentioned credit protection options. Without the credit protection, at most a serious, dedicated loan can be found.
Dedicated education loans and emergency loans
A lot is being done in Germany for fair educational opportunities. Education loans are an instrument. The master BAföG can be seen as the most prominent example of many different offers. It is awarded without a credit check.
It also enables full-time training and family nutrition. Repayment does not have to start until after the training. Additional money can be saved through a reward system. The state already rewards the successfully passed test by partially canceling the debt.
Serious loans despite Social Welfare for emergencies are only offered by non-profit organizations and churches. The need is crucial for these loans.