Granted, Hartz 4 recipients are not on the popularity scale of the banks and savings banks at the top when it comes to the granting of loans. Because this group of people usually has no regular income that can be regarded as attachable. In addition, there is no collateral in the form of assets that could qualify for a loan. The question remains whether and how a loan for Hartz 4 recipients is possible.
No credit without assistance from the bank
Getting a loan for Hartz 4 recipients at the Bank of Trust requires more than persuasion. Bank employees can not be fed up with all sorts of promises and rosy future prospects, because tangible collateral is required. And such can be realized at this point only with the help of third parties. The speech is about the guarantor. A guarantor is a person who, with his or her own collateral, justifies repayment of the loan in full and at the contractually agreed terms.
If a guarantor is included in the contract for a loan for Hartz 4 recipients, the former will demand exactly what is missing from the former: collateral. And these should above all be in the form of a regular income. In most cases, this income can not come from self-employment, which is often too uncertain for the banks given the macroeconomic situation.
Once a guarantor, who is also accepted by the bank as such, has been found, there is basically nothing to prevent the granting of a loan for Hartz 4 recipients. As long as the loan is repaid month by month, the guarantor need not worry about it. However, if the claimant can no longer cope with the debt service, which means the continuous payment of interest and principal, the guarantor is informed of his obligations and must therefore accept these payments, if necessary in full or until the loan has been fully repaid.
Sometimes, however, in the circle of friends or relatives it is possible to find a co-applicant in order to arrange a loan for Hartz 4 recipients. Unlike a guarantor, however, this person is liable from the beginning on his own account, so that he can be prosecuted immediately if the installment payments fail. For the co-applicant, the same restrictions apply as for the guarantor as far as the collateral is concerned. Both, however, require a certain degree of trust, especially in the co-applicant. This is often the spouse of the applicant or at least a close relative in practice.
Credit from the dealer: the trade credit
A loan for Hartz 4 recipients, which is usually granted without further ado, is the dealer loan. However, such a loan is tied to the acquisition of a particular article. Accordingly, the amount of the loan is determined by the price of the purchased goods. Here, unless it is very expensive items, no collateral required. A credit bureau is just as unnecessary as the submission of wage and salary statements.
The only security used by the merchant is the merchandise itself. If the merchandise is not paid within a certain period of time, the merchant may reserve the right to reclaim it in good condition. This type of collateralization is also referred to as retention of title. But sometimes dealers also cooperate with banks to finance certain items. This usually happens in the context of special offers or promotions together with a favorable 0% financing. Here you should ask in advance if the bank requires collateral or not. In most cases, but also offers the chance of a loan for Hartz 4 recipients.