No German or foreign bank will grant a loan to Hartz 4 recipients. Contrary statements, such as those made by various credit intermediaries, are dubious and should only be viewed with extreme caution. Many Hartz 4 recipients have no financial reserves and are often even heavily indebted. The latter always results in negative Credit Bureau information.
In addition to the Hartz 4 reference, this is another exclusion criterion for lending. Many Hartz 4 recipients are not unemployed, but are employed or self-employed. However, the wages from this job are so low that they do not cover the ongoing cost of living. Persons who receive Hartz 4 in addition to their wages are also referred to as top-ups. If you apply for a loan from a bank, you will also be rejected. There will hardly be any additional security here. If this were the case, no Hartz 4 benefit could be paid.
Loans from the job center
The only realistic way to get a loan for Hartz 4 recipients would be to apply to the responsible job center. However, there should be a valid reason for this. Anyone who simply wants to go on vacation or fulfill larger consumer wishes for which there is no need will certainly not receive a credit for Hartz 4 recipients. Hartz 4 recipients often have the problem that they not only have negative Credit Bureau entries, but also rental and / or energy debts. Anyone affected by this should act quickly, otherwise the apartment may be terminated without notice or the power supply interrupted. In this case, the job center will check the situation and always pay for the rent or energy debts if there are no good reasons not to do so.
Private or institutional lenders
Often this will only be a loan, which means that the amount of money received has to be paid back to the job center in monthly installments. Other reasons to take out a loan for Hartz 4 recipients are a broken fridge, a broken washing machine or a broken TV. Here too, the loan is expressly earmarked for a specific purpose.
In contrast to many private or institutional lenders, the job center does not charge any interest. For this reason, the Hartz 4 recipients only have to return to the job center the amounts of money that they actually received.