It is the sudden crises of life that make people desperate, such as: “The washing machine is broken and now?” If you are Hartz 4 recipients (ie ALG II receiver), then you can indeed an application to the Office for help but until the money is there, the family has long been running around in smelly and dirty clothes. This is one of the classic situations where you really need fast money and are interested in an instant loan. But an instant loan with Hartz 4 – is that possible?
The instant loan with Hartz 4: The “Hartz 4-situation”
Not every person is aware why it is ever so difficult to get an instant loan with Hartz 4. The reason is the lack of creditworthiness that one has. Even with all the additional income you can get up to a maximum of 500 euros per month – a sum that makes survival possible, but life is impossible. The bank knows that too. A Hartz 4 receiver can not repay 180 euros per month for a loan. In fact, the state even builds up certain legal barriers to lending to Hartz 4 beneficiaries or the rates they are allowed to pay. If you do not earn any money at all, you have almost no prospect of getting a loan in Germany. Otherwise: The maximum available loan amount is based strongly on the amount that you earn additional monthly and therefore can pay off as a small loan.
The instant loan with Hartz 4 from a German bank
Nevertheless, German banks are not happy with an instant loan with Hartz 4. On the one hand, the additional income is not guaranteed, on the other hand, the Hartz 4 recipients actually need this money themselves and if it only serves to enable them to go to the cinema. It is not guaranteed that the sum required to repay the monthly installment is actually on the account at the time of payment. However, since a Hartz 4 recipient also has no collateral, most German banks suggest that a second person can sign the loan agreement with them and, if necessary, even stand up for repayment. Simply put, the financial institution wants a guarantor with the necessary economic background to ensure that the instant loan is actually repaid.
The instant loan with Hartz 4: more options
In addition to German banks, one can of course turn to foreign financial institutions, which are known to lend more easily loans. The problem remains the same: The foreign banks often refrain from examining the credit bureau entry, but not to the proof of sufficient creditworthiness, which one can not provide here without guarantors. Although it is occasionally possible to get such a loan from a foreign bank, only very small sums. Therefore, the “unofficial instant loan” is easier and much faster. You turn to a private person and ask them for the necessary money. If they are friends or family, they are likely to forego additional interest payments.