Many people think that it would be very difficult to get a loan without German citizenship. However, they overlook the fact that Germany is an exporting nation and plays an important role in international trade. That is why there must be funding options regardless of citizenship. In a flourishing economy, these should not only be available to companies, but also to private individuals! Therefore, read more about what the banks look for with this type of loan and what special features there are.
Discrimination against citizenship is prohibited in the EU
First of all, when considering this type of loan, you should start with the legal bases and the political objectives. Banks are prohibited from treating business partners differently on the basis of their nationality. In February 2013, the banks faced caustic criticism of the comparatively simple question regarding the management of a checking account when trying to close account connections with Iranian students.
The situation is similar when it comes to lending: The banks pay attention to the monthly income or the available monthly balance. If there is a high probability of the loan being repaid, the general creditworthiness check can be continued. Basically, there will be no significant differences in the process and approval of the loan compared to a resident’s loan.
However, approval can take a little longer. Not out of bad will, but because, especially in a small one, the credit without German citizenship does not occur every day and the employee only has to familiarize himself with the different documents and variants of ID cards, passports and the like.
What the lender pays attention to
However, banks also have a responsibility towards their own owners and investors. That is why they check every loan application – regardless of the citizenship of the applicant – very carefully. In the case of a credit without German citizenship, this means that, as with any other account opening, a passport or ID card must be presented. In order for the bank to be able to grant the loan in its business area or in Germany, the bank would also like to see the residence permit.
Otherwise, every tourist on vacation could take out a loan quickly and then settle the repayment through the bank branch abroad. Since many banks do not have branches in every country in the world, their lending is usually restricted to customers residing in Germany. If this is available, however, there is nothing standing in the way of credit without German citizenship.
So if you want to get a loan without German citizenship, you will sometimes encounter some ignorance, but you will not have to overcome insurmountable hurdles. For some banks, this type of loan is almost part of everyday banking life, as many successfully granted and repaid loans show for company founders and private individuals.