At the moment, interest rates on loans are very low. This means that loans are cheap on the one hand, but also means that banks earn less. Therefore, lending may be less likely to be approved. People who have a negative Credit bureau entry or who are currently unemployed usually have bad cards to get credit. For unemployed people who are in an emergency, the Employment Agency supports.

Who can avail a loan

Who can avail a loan

An important bonus point is that loans from the employment agency are interest-free. Only the borrowed sum of money must be repaid. Of course, with these conditions, this loan is not that easy to get and is subject to certain conditions.

One condition is that the potential borrower must receive unemployment benefit I in order to be able to apply at all. Persons who have been unemployed for more than one year automatically fall into unemployment benefit 2 and can apply for a loan, but not with the employment agency, but with the GARE.

In what amount can the loan be applied for?

In what amount can the loan be applied for?

In most cases, the loan amounts are not very high and due to emergencies. This includes z. For example, the repair of a car, which ensures mobility to a potential job and also previous interviews. Therefore, in most cases, small loans of up to € 1000 will be awarded.

If necessary, higher amounts can be granted, such. B. for a driver’s license or purchase of a vehicle. The sum has a so-called strict earmarking. That is, to get out of unemployment z. For example, to start self-employment does not fall under the criteria, but should be applied for as a start-up loan from KFW (Kreditanstalt für Wiederaufbau).

Award of a loan from the Employment Agency

Award of a loan from the Employment Agency

The award of a loan is a matter of discretion, which the clerk decides. Due to the very favorable conditions, the employment agency is rather reluctant to grant loans.

Due to the earmarking, loan applications are also rigorously checked. Because who z. For example, if you live in the country and need to buy a car to take on a new job, you can apply for the loan; your future earnings need only be enough to earn a living in the future.

Good to know:
In emergency situations, the licenses are granted quickly according to experience. These include z. B. rental or energy debts. If someone is in an emergency situation due to an accident or property damage, the Employment Agency also helps with a small loan. Because of § 23 and 42 a of SGB II, it is obliged to help people in greatest need. However, this emergency must be credibly proven.

For this reason, the decision is made by the responsible skilled worker, who can best estimate the respective situation. The credit is therefore not given without hesitation.

When does the repayment of a loan take place at the employment agency?

When does the repayment of a loan take place at the employment agency?

The repayment installment for loans from the Employment Agency is 10% over one year.

The repayment is again somewhat more complex, since the receipt of unemployment benefit 1 is only a maximum of one year. On further unemployment, the unemployed person falls into unemployment benefit 2, which also means that the loan is taken over by the GARE.

Anyone who has accepted a job in the meantime, with which he can make a living, must begin immediately with the repayment. In general, this is not a problem because the loans are small amounts. Repayments of 5 to 10 euros per month are not uncommon.

The eradication is deliberately set so low, no further burden and to force a next emergency situation. If a work is taken later, an adjustment of the rates is possible.



1. Ask yourself if there really is a need

A situation should always be assessed realistically. For those who are unemployed must give up certain things. Therefore, anyone considering a loan should ask in advance if this purchase is really essential. Also pay attention to the execution within the purchase, something must always be the newest model or is enough for the personal need something else. The loan must be repaid and is not given. The higher the amount borrowed, the higher the repayment.

2. Prepare reasoning for need of credit

As mentioned above, the loan is earmarked. Due to the extremely favorable conditions, applications are, of course, scrutinized. Accordingly, the necessity should be credibly explained.

If the credit z. B. needed for a car, which is needed for the start of a new job, it is not particularly credible that the money is needed for a new car of the upper class with special equipment. If, on the other hand, a moderately used vehicle is proposed, the application is already more credible.

By contrast, a photo of a defective washing machine and a bank statement with no significant credit can already be an entry point for a credible reasoning.

What exactly belongs to credible reasoning, is best to clarify directly with the clerk, because it may vary from case to case.

3. Do not use loans for normal living

Those who are unemployed must also make savings in their lifestyle. Although it is hard to cut corners, savings should be made right at the beginning of unemployment. If, on the other hand, a loan from the Employment Agency is used for exactly that purpose, the vicious circle begins, since the sum would be missing in the event of a later repayment of the subsistence of the livelihood.

4. Credit rejected at the employment office – what now?

The approval is at the discretion of the case officer and can not be rejected in any credible argumentation. If somebody still needs a loan, it can of course also be attempted to obtain it via a bank or credit institution. The way to your own bank is often the easiest. However, portals that specialize in arranging loans can also be used on the Internet.

The most important thing, however, is not to dubious deals, which are great with “credit without Credit bureau” etc. Frequently, interest rates are very high and there are still other costs for the borrower. Also, the amount of a monthly repayment plays a big role. It should always be ensured that the installments can be repaid without any problems.

5. No false shame

Applying for a loan or admitting that you are in an emergency situation is not easy for most people. Many are even ashamed of it and feel like they have failed. Unfortunately, many people do not go the way to ask for help or credit in an emergency situation. This often makes a bad situation even worse, up to escalation, such as eviction of the apartment or cessation of power delivery.

Precisely to prevent these situations, this possibility was created to apply for a small loan from the Employment Agency. Even though it may be embarrassing for the person in the situation, it should still be on the way early to avoid worse.

For the agency of the Employment Agency, it is not an exceptional situation but normal. Therefore, they deal with it differently and will not condemn the borrower with alleged reproachful looks or comments. Since the lending has strict conditions, of course, with many questions to examine the issue to rake. This is normal and should not be taken in person.



The fact that there is an interest-free loan from the Employment Agency is a great help for many people. Above all, if there is a non-responsible unemployment, an emergency situation can be bridged with a small loan. People in such emergencies should use these services to avoid worse.


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