Read about the exciting opportunity in Germany to get a loan of Euros 1,000 up to Euros 25,000.
Instead of banks, private investors or even funds (!) invest nowadays in this form of “investment”. You can find out how to invest yourself in the second part of the article.
Requirements in order to be able to apply for a loan:
- Main place of residence in Germany
Whether you have another residence abroad, how long you have been living in Germany and what nationality you have, does not matter!
- Regular income
This is a matter of course, because it must be obvious that you are able to repay the loan in instalments. Unlike most banks, also income of the trial period (job change) or of mini-jobs are accepted.
Do you fulfil these requirements?
… then you can go to the website ► www.auxmoney.com and apply for your loan or go ahead reading our page here.
Sequence from the application until the payment of the loan
State loan amount and purpose
Then you come to a page where you can see a loan sample. Loan sample, because your personal information and your creditworthiness rating (comparable with the credit history) is not yet known. The personally-tailored loan offer will be issued after the input of personal information.
Create a user account
Now create a user account; the first steps are the e-mail address and password. Then your personal information follows, so that a loan offer can be created especially for you.
Whether a loan can be granted and at what interest rate is ultimately decided by your own creditworthiness. In addition to your personal information and the Schufa, data is requested from other agencies, such as Credit Reform, Arvato and/or the “Bürgel” (company for economic information).
The loan offer
At the best of cases, you get one or more loan proposals. You have the option to accept or reject them.
If your creditworthiness is not good enough for the automated “Portfolio Builder”, which is the system where private investors automatically participate to give loans – but if is not so bad that you do not have any chance of getting a loan – then you get the invitation to describe your need for loan in the form of a “credit project”. The best way is telling for what you want to use the money and how you can ensure your repayment.
This credit project appears on the “marketplace”. There, investors can individually participate in the financing. The interest rates are generally higher than in the automated loan. However, there are realistic chances for a loan for self-employed persons or business start-ups. Of course, it depends on how convincing you describe your financial plan.
Identifications and possible upload of further documents
If a loan will be granted, the borrower must be identified beyond doubt. For this purpose, you can use the free PostIdent-procedure and, soon to come, the VideoIdent-procedure.
If necessary, you will be asked to upload further documents, such as pay slips or your tax bill.
Sign loan agreement and payment of the loan
The final steps are signing the loan agreement and specifying a bank account for the payment of the loan.
3–4 days from the loan application until the loan payment
If you hurry and implement all necessary steps immediately, then the period from the online loan application until the payment can be only 3 to 4 days.
This is how Auxmoney presents itself to interested parties for loans:
Details and frequently asked questions
1. Can I get a loan even if my bank has refused to grant me a loan?
There are many reasons why banks refuse loans. Sometimes, the loan amount is too low for them. Whether one is granted a loan of Euros 5,000 or 50,000: The processing costs are the same for a bank. However, in the second case, the bank earns 10 times as much.
For this reason, many German banks do not grant loans below Euros 2,500. At Auxmoney, one can get loans already from Euros 1,000. The repayment is about Euros 23 to 30 per month.
Loans from Euros 23 per month
Another reason could be a “bad Schufa”-rating (credit investigation company). Banks trust in most cases in the data source “Schufa”. However, the Schufa does not know enough about people, who live in Germany since only a short time or are relatively young. Few data at the Schufa result in a bad ranking.
Auxmoney uses the Schufa mainly as an exclusion criterion. Therefore, if the Schufa states that someone is in bankruptcy, then no loan will be granted. For the creation of the Auxmoney-Score, other bureaus, such as the Credit Reform, Arvato and Bürgel, have a higher weighting in the creditworthiness rating.
That means: even with a less good Schufa score, you still have chances to get a loan through Auxmoney.
Currently, the positive creditworthiness rate is at 50 per cent!
Every second loan request will be shown at Auxmoney and enters the loan granting process.
This is an above average value – especially when you consider that many people apply for a loan at their banks first and only browse the internet for alternatives, when it comes to a loan rejection!
2. Can I get a loan, if I am unemployed?
In 99 % of cases: No.
Investors want two things: interest and get their invested money back. Therefore, no loans are granted to people, who are either unemployed or have no income.
However – and this is the advantage compared to banks – loans for people, who are
in a trial period (for example, one needs a loan for the move and the refurbishment of the apartment, because of a job change)
low earners (for example, a student, who needs a car to go to the university and at the same time has a Euro 450 job)
3. Can I get a loan being self-employed?
Self-employed and freelancers often find it difficult to get financing at German banks. Even at Auxmoney it can happen that you do not get an immediate loan offer, but the invitation to describe your loan project and place it on the marketplace for investors.
This is a great opportunity!
Describe specifically for what you want to use the money and why this investment is meaningful. Write about how you are able to repay the loan.
Incidentally, this is also an ideal possibility for business start-ups to get an external financing.
A glance at the statistics: Each 11th loan that is granted through Auxmoney is granted to a business start-up!
4. Do I need a bank account in Germany to get the payment of the loan?
Yes, because the loan is only awarded, if you have your main place of residence in Germany and this usually includes a bank account.
Additionally, the monthly instalments will be deducted by direct debit from your German bank account.
5. Who grants the loan?
Not a bank, as mentioned above. Lenders are private investors.
This starts with small investors, who are looking for an interest-strong alternative in the environment of low interest rates and participates, for example, with Euros 500 to a credit project, and goes up to larger firms and funds that professionally invest in the segment “private loans”.
The average yield in the creditworthiness rating categories AA to E is 5 to 6 percent per year, which is considerably more than a savings account interest rate. However, the risk is higher!
Auxmoney cannot do entirely without a bank – due to legal requirements. This is why the loan payment, as well as the debiting of monthly payments is done through the German SWK Bank. For this, there are currently fees of Euros 2.50 per month.
However, this only applies, if you are in the repayment phase of the loan!
6. Are there any other fees?
If you take a look at the website of Auxmoney and compare the information you get, if you sign up as borrower or as a lender, you will notice that there are different interest rates.
Borrowers pay higher interest rates than the investors get. The difference goes to Auxmoney. This includes all costs for processing and technology, employees, advertising and – yes – even the profit of Auxmoney!
Auxmoney indicates that it adds a fee of 2.95 per cent to each loan. This cost will be deducted from each monthly instalment.
Until the successful loan payment, there are no costs for you. Applying for a loan at Auxmoney is free of cost and risk.
No loan = no costs
Auxmoney has already paid more than 45,000 loans. Perhaps yours will be added soon?
7. Can I repay my loan ahead of schedule?
In this case, please contact the customer service of Auxmoney and they will work out individual options.
Basically, there will be a prepayment penalty, since private investors have invested in you and they have assumed that the agreements will be fulfilled as agreed.
Auxmoney for investors
A commitment in the area “private loans” is not comparable to an investment in call money. The yields are much higher. However, there is also a risk of loss. Specifically: If a borrower fails to meet his/her repayment obligations.
As a borrower of the creditworthiness rating “AA” is extremely rare compared to a borrower with the rating “E”, this is also reflected in the interest rates. You can also see this at the current statistics of Auxmoney:
In order to reduce the risk of loss, Auxmoney recommends to invest in many loan projects. For example, one can invest in 100 different loan projects with an investment of Euros 2,500, so Euros 25 each.
Auxmoney indicates that the loss rate on loans is below 3 %. The losses, as well as the 1 % margin of Auxmoney are included in the average yields mentioned above.
Who is interested in an investment at Auxmoney can learn more about it here ► http://info.auxmoney.com/top-rendite.html
For example, you can invest in car-secured loans … or as Gerald Hörhan has told me in a personal conversation, “I have no consumer debt, but I invest in it.”
Who wants to apply for a loan at Auxmoney should use this link:
“Start a free loan application now”
… payment is possible in 3 to 4 days!
Bitte nutzen Sie das Kommentarfeld am Ende der Seite für Fragen zur Kreditbeantragung oder auch für die Investoren-Anmeldung.
You are welcome to tell us about your experiences with Auxmoney through this way too. At best, this commitment will flow into further articles and instructions. Thank you so much that you are here on DeutschesKonto.ORG and we wish you good luck with Auxmoney!
Further articles about the subject loans on this special portal:
- Comparison through loan calculator
- DKB: How the loan is paid
- Successfully apply for a loan in Germany (being an immigrant)