The short answer: a personal loan in Germany as an expat
The short answer
Default pick: a Ratenkredit from a direct bank such as ING or DKB, compared first on smava. ING’s published range is 3.69%–10.99% effective APR with a representative example of 7.54%, and the Deutsche Bundesbank’s average for new fixed-rate personal loans in August 2026 was 7.53% for 1–5 year terms and 9.37% for terms over 5 years. Fallback: your Hausbank (Sparkasse or Volksbank) if you want in-branch advice and already bank there. The rule that decides everything: compare the Effektivzins (effective APR), never the headline borrowing rate — and know that your SCHUFA file and your residence title decide whether you are approved at all.
The Ratenkredit is Germany’s workhorse loan: a fixed amount, fixed monthly instalments, a fixed term, for any purpose — furniture, a car, a wedding, consolidating expensive debt. For expats it is also the first loan most people ever take in Germany, which makes it the loan that builds (or damages) the SCHUFA file every later application depends on. This guide covers what it costs in November 2026, how the rate is set, and what new arrivals need to get approved.
Every figure below is an illustrative figure or a published rate checked on 7 November 2026 — your own rate depends on your SCHUFA score, income, loan size and term. Always compare the effective APR and the total repayment, never the monthly payment alone.
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Cost comparison: what a personal loan costs in November 2026
| Loan | Effective APR | Monthly payment | Total interest |
|---|---|---|---|
| €10,000 / 12 months | ~7.53% (Bundesbank avg) | ~€862 | ~€341 |
| €10,000 / 36 months | ~7.53% (Bundesbank avg) | ~€310 | ~€1,162 |
| €10,000 / 48 months | ~7.53% (Bundesbank avg) | ~€242 | ~€1,613 |
| €10,000 / 72 months | ~9.37% (Bundesbank avg) | ~€182 | ~€3,111 |
| ING Ratenkredit | 3.69%–10.99% (rep. 7.54%) | Depends on amount & term | Depends on rate |
| Credit-card instalment plan | ~17.24% (BaFin: up to 25%) | — | Avoid |
Bundesbank averages for new contracts, August 2026: 7.53% for fixed-rate loans of 1–5 years, 9.37% for terms over 5 years. Monthly payments are illustrative, computed at those averages. ING’s range and representative example were checked 9 October 2026. Credit-card instalment plans average 17.24% and reach 25% effective according to BaFin — never use one to fund a purchase a Ratenkredit could cover.
The pattern is brutal and simple: stretching the term cuts the monthly payment almost fivefold but multiplies the total interest by nine. On €10,000, twelve months costs €341 in interest and seventy-two months costs about €3,111. Choose the shortest term whose monthly payment you can genuinely afford — the monthly figure is the trap, the total is the truth.
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1. ING and DKB — the direct banks
ING & DKB — Ratenkredit
Direct banks win on process: fully digital applications, instant decisions for eligible applicants, and no branch visit. ING’s range is wide — 3.69% to 10.99% — because the rate depends on your credit history, and very few people qualify for the lower end. The number that matters is the representative example: by law it must be based on the rate at which at least two-thirds of the contracts from the advert are concluded, and ING’s is 7.54%. DKB’s Privatkredit runs on the same digital model. Both banks check SCHUFA, and ING asks non-EU applicants for a permanent residence title; a temporary permit tied to a fixed-term contract is harder, and some banks cap the loan term so it does not outlast your visa.
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2. Sparkasse and Volksbank — the Hausbank route
Sparkassen & Volksbanken
Savings banks and cooperative banks offer what direct banks cannot: a person who knows your situation. If you already bank with a Sparkasse, your adviser can see your income history and may approve a loan a direct bank’s algorithm would decline. The trade-off is speed and price — in-branch loans are rarely the cheapest, and the process takes days rather than minutes. For a first loan as a new arrival, the adviser route is often the one that actually gets approved.
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3. The comparison platforms — smava, Verivox, Finanzcheck
Comparison platforms
Platforms such as smava, Verivox and Finanzcheck run a soft-check comparison across more than 20 German banks without touching your SCHUFA score. That matters: every formal application leaves a mark, and several rejections in a row make the next one harder. Run the comparison first, see who will accept your profile and at what rate, and only then apply formally to the winner. The platforms are paid by the banks, not by you — but remember that the cheapest offer on the platform is still only an offer until the bank has seen your documents.
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The rules that protect you
German consumer credit law is unusually borrower-friendly, and three rules matter most:
- Only the Effektivzins can be compared. The borrowing rate (Sollzins) is the “naked” interest rate; the effective rate by law includes all costs known to the bank — broker commission, mandatory account fees and so on. In advertising the effective rate must be highlighted at least as prominently as any other figure.
- Early repayment is capped. Compensation for early repayment is capped by law at 1% of the remaining principal — 0.5% if less than one year of the term remains. No processing fees are typically charged for consumer instalment loans, though optional insurance and prepayment compensation may apply.
- Loan insurance is not in the APR. Restschuldversicherung (loan repayment insurance) is not included in the effective APR, provided it is technically voluntary — so a loan that looks cheap can carry expensive insurance. Ask for the total including insurance before you sign.
- From 20 November 2026, instalment plans count as loans. Payment in instalments via Klarna and similar services, and “0%” dealer plans, come fully under consumer credit law — with a right of withdrawal and a credit check mandatory from €200.
- The SCHUFA score changed. Since 17 March 2026 SCHUFA shows a score on a 100 to 999 point scale built from 12 published criteria, replacing the old percentage Basisscore, with a transition period until the end of 2028.
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Scenario framework: which route fits you?
- Settled expat, good SCHUFA, permanent contract. ING or DKB via smava — the cheapest money, fully digital, about €242 a month on €10,000 over four years at the Bundesbank average.
- New arrival, thin SCHUFA. Your Hausbank (Sparkasse/Volksbank) — in-branch advice and a relationship beat an algorithm when the file is empty.
- Need to compare without risk. smava / Verivox / Finanzcheck — soft-check comparison across 20+ banks, then one formal application.
- Expensive credit-card debt. Ratenkredit to refinance — replacing a 17–25% instalment plan with a ~7.5% loan is the single best financial move most expats can make.
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How we compared: the methodology
How we compared
Rates checked: Deutsche Bundesbank interest rate statistics for August 2026 (average effective rates 7.53% for 1–5 year fixed loans, 9.37% for terms over 5 years), ING Germany’s published range and representative example (checked 9 October 2026), and BaFin’s figures on credit-card instalment plans. Criteria and weights: effective APR and total cost (45%), approval odds for thin-file expats (25%), process speed and digital access (15%), early-repayment terms (15%). Scores are the editorial judgment of the ExpatMoneyEU Research Team — not financial advice. All rate figures are illustrative figures; verify the live offer with the lender before applying.
For expats, approval odds weigh almost as heavily as price: the cheapest rate in Germany is worthless if the lender will not accept a temporary residence permit. That is why the direct bank wins on price but the Hausbank keeps its place as the fallback.
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What to watch in 2027
The ECB raised its deposit rate to 2.50% in September 2026, and personal loan rates will follow it — the Bundesbank average of 7.53% is the number to beat, and it will move with the market. The SCHUFA transition to the 100–999 score continues until the end of 2028, and a clean file will matter more, not less. And from 20 November 2026, buy-now-pay-later instalment plans fall fully under consumer credit law, which should make their true cost visible for the first time. If you are planning a loan in 2027, build your SCHUFA file now — six months of clean history is the cheapest discount available.
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Sources
- Deutsche Bundesbank — interest rate statistics, August 2026 (average effective rates: 7.53% for fixed-rate loans of 1–5 years, 9.37% for terms over 5 years).
- ING Germany — instalment loan range 3.69%–10.99% effective APR, representative example 7.54%, checked 9 October 2026.
- BaFin — credit-card instalment plans average 17.24% effective, reaching 25%.
- German Price Indication Ordinance (PAngV) §§ 16–17 — effective rate and the two-thirds rule for representative examples.
- German Civil Code (BGB) — early repayment compensation capped at 1% (0.5% if less than one year remains).
- SCHUFA Holding AG — new 100–999 point score from 17 March 2026, transition until end of 2028.
Your next step
Compare the live offer, check your eligibility, then apply — the best rate is the one you check today: