The Social Welfare standard rate is currently 351 USD, which is very little and with which you have to pay for all living expenses, such as food, personal hygiene, telephone and energy costs. In addition to the standard rate, the state also assumes the costs for the rented apartment, which, however, presupposes that the apartment is also classified as appropriate.
What do you need to know about a loan for Social Welfare beneficiaries?
The Social Welfare money is very scarce and therefore only barely enough to buy the necessary for life. For this reason, it is almost impossible to make reserves or pay installments from this money. As a Social Welfare recipient, you have the opportunity to work on the side, but this salary must not be higher than 100 USD a month, otherwise this salary will be offset against the standard rate. All in all, Social Welfare recipients are less likely to meet the requirements to receive a loan. Because a reputable ambassador also has clear and defined guidelines that should be followed.
For many different reasons it is impossible for a Social Welfare recipient to get a loan for Social Welfare recipients from a German bank, even if there is no negative Credit Bureau entry. Because the bank or another credit institution always demands as security when granting a loan that the borrower is in a permanent employment relationship and receives a sufficiently high and regular monthly salary.
Furthermore, it is required that this salary is significantly above the garnishment-free limit, so that the bank also has the option of garnishing income in the event of arrears in installments. However, this option is usually never available for Social Welfare recipients, because even a possible additional income is still significantly below the legally stipulated free-of-debt limit. In addition, the Social Welfare rule set is not intended to be used to pay installments.
What can you do if you don’t get a loan for Social Welfare recipients?
If you don’t get a loan for Social Welfare recipients, you might be able to choose to sell your life insurance policy. If the Social Welfare is still working illegally in order to obtain a loan for Social Welfare recipients, a crime is committed. As a result of this act, the ARGe can cancel all or part of its payments.
Such loans are often offered on the Internet or in different newspapers. But you should be careful here, because if you actually get a loan, you can expect very high interest rates.
These offers are usually untrustworthy, here attempts are made to capitalize on the needs of others. Many loans without Credit Bureau are offered by foreign banks, preferably from Switzerland, but this variant is also not for a Social Welfare recipient. Because even with these loans you should be able to provide a regular salary and proof of your employment. In any case, every lender always looks closely at who it is and what collateral can be offered before a loan is even granted. It might be advisable, as a Social Welfare recipient, to borrow money from a relative or acquaintance.