Instant Loan In Germany [Sofortkredit]

Key takeaways

• Instant loans are not a different product. They are normal installment loans. Banks use the term instant or express loan for marketing purposes.
• You don’t get a loan in 10 minutes in Germany. 
• If you have a savings account at a bank, you may get a small loan (500 to 3000 €) within a few minutes after applying online.

This is how you do it

• Compare the loan offers on different comparison portals: Smava*, Finanzcheck*, Check24*, and Verivox*.
• Never take too much credit that you can’t afford or repay on time.
• Ask your family or friends for money in emergencies.

Table of Contents

What is an instant loan (Sofortkredit) in Germany?

An instant loan is like any other installment or personal loan in Germany. It’s not a product of its own. 

Many banks and online portals use the term instant loan or express loan (Sofortkredit) for marketing. It doesn’t mean that you’ll get a loan in 10 minutes.

With the help of technology and digitalization, banks can now process applications faster. This allows them to approve and release the loan amount quickly.

However, the banks do their due diligence before releasing the credit.

How do you get an instant loan in Germany?

In 2022, banks lent around 234.8 billion euros as consumer loans in Germany [1].

You can compare different loan offers on one of the following comparison portals.

• Smava*
• Finanzcheck*
• Check24*
• Verivox*

Fill out the required information and get loan offers based on it. Apply to the offer you find best directly on the portal.

To get the loan as quickly as possible, you should provide all the information and proof to the bank while applying. This avoids back-and-forth communication and saves time.

NOTE: You can compare as many offers as you want on comparison portals, but apply for the one that you find the best. Never apply for multiple offers on the same or different portals. It affects your Schufa score negatively.

The fastest way to get an instant loan in Germany

You can get a loan immediately from the bank with which you have a savings account. You can apply for an instant loan directly in the bank’s mobile app or website.

As the bank already has all your information, you can get the money in just a few minutes after applying. However, the loan amount usually ranges from 500 to 3,000 € depending on the bank and your profile.

You should get a savings account if you don’t have one. Nowadays, you can get up to 3.4% (as of Oct 2024) interest on your money in a savings account.

You can compare different savings accounts and the interest you can get on FinanceAds*. 

How can you speed up the loan application process?

Here are the things you can do to speed up the credit application process. 

• Grant access to your checking account: You can allow the lender to access your bank details via a secure API. The lender can easily check your income and expenses and make a decision quickly. If you use this method, you often don’t even have to provide account statements, salary slips, etc. Moreover, you can get the credit amount in your account within 24 hours.
• Use video ident to identify yourself: You can either go to a post office with your personal ID or use the video ident method to identify yourself. Using the video ident method can easily save you 1 to 2 days of processing time.
• Digital signature: Many banks now accept digital signatures. So, you don’t have to print the contract, sign it, and post it to the bank. Again, this saves a lot of time and speeds up the loan process.
• Provide all the information: To speed up the loan processing time, you must enter all the information requested in the comparison portal. We have also created a checklist that you can use to prepare the documents you need for a loan application in Germany.

Again, you can use these methods to speed up any type of loan you want to take out in Germany. It has nothing to do with instant loans.

When does taking an instant loan make sense?

You want an instant loan when you have an emergency and need the money immediately. In this situation, compare loans on comparison portals and apply for the loan online.

Use the methods mentioned above to speed up the process. Prepare all the documents according to this checklist before applying for the loan.

NOTE: You should only take the loan that you can repay on time.

What are the requirements for getting an instant loan in Germany?

As said before, instant loans are not a new product. They are like any other installment loan you take from a bank. So, your eligibility to get one is the same as that of any other loan in Germany.

• You must be at least 18 years old.
• You have a residence in Germany.
• It’s better if you have a permanent residency card.
• You have a stable income (permanent job or self-employment). 

How do banks check your creditworthiness?

Banks consider the following while assessing your creditworthiness.

• Your Schufa score
• Residual income (Income minus expenses)
• Resident status: You have a better chance of getting a loan if you have permanent residence than a blue card or temporary visa.
• The purpose of a loan is also important for banks. If you can give them collateral, it reduces the risk for the bank and increases your chances of getting the loan.

Are there other ways to get an instant loan in Germany?

Yes, there are other alternatives that you can use to get an instant loan.

• Ask for a loan from friends or family: The best and cheapest way to get a loan in an emergency is to ask your friends and family if they can lend you the money.  You don’t need to go through an identity check and the paperwork and can get the money in your account the same day.
• Credit card: Many credit cards offer installment payment options. You can use this option to borrow money on your credit card.
• Short-term loan: You can also apply for a short-term loan via Vexcash*, Cashper*, and Ferratum*. You can get up to 3000 € of loan that you must repay in a maximum of 90 days. Your creditworthiness doesn’t affect the loan terms, and you can get the loan if you have a stable income of at least 400 € to 500 € per month.

How do you save on loan costs in Germany?

• Compare loan offers on comparison portals Smava*, Finanzcheck*, Check24*, and Verivox*.
• Don’t take residual debt insurance.
• Get the option of special repayments. With this option, you can pay an additional amount on top of your monthly installments to repay the loan. As you repay the loan early, you pay less interest overall.
• Check the interest calculation method carefully. We have explained different interest calculation methods used by German banks here.