Calculating the maximum amount of your loan in Germany

Are you planning to submit a loan enquiry in Germany? But how do you calculate the maximum loan amount you are entitled to? Here you will find out how high the maximum amount of your loan is. We are also happy to advise you by e-mail or phone.

Loan amounts below 80,000 €:

The budget criteria set out in the German Consumer Credit Act (Verbraucherkreditgesetz) apply to enquiries for an amount below 80,000 €, because higher amounts are not covered by consumer-credit rules in the same way. The idea of the law is to protect consumers from over-indebtedness. In Germany, only loans that borrowers can repay with reasonable ease may be granted. For individuals, their income and expenses are taken into account. For families, the income and expenses of the whole household are used. (more information on this topic: taking out a loan as a couple).

How is the permitted maximum amount of your loan calculated? Very roughly, the formula can be summarised as follows:

For every household: income − expenses = monthly surplus

Maximum loan amount = monthly surplus × 36

Household example: 5,000 € (income) − 4,000 € (expenses)

Available margin per month = 1,000 €

1,000 € (available margin per month) × 36 months = 36,000 € (maximum loan amount including interest). When assessing creditworthiness, the lender must assume 36 months, even if a longer term has been agreed.

With a surplus of 1,000 €, a loan with a total debt of 36,000 € can therefore be taken out.

Complying with this budget calculation is required by the German Consumer Credit Act. Many banks, however, do not use the full legal framework. We know of cases, for example, in which amounts that used only 60 % of the permitted loan size were declined. In addition, most banks do not issue an offer for the maximum amount – they simply reject the application.

Mutuo Gruppe.de, by contrast, is happy to help you optimise the application process and the budget so that you can obtain both the maximum loan amount and the lowest interest rates. You can submit your loan application here directly. The larger the surplus, the more likely it is that you can benefit from Germany’s lowest rates.

By analysing your situation in detail and taking into account income such as your spouse’s earnings, scholarships, apprentices’ wages and other household income, your budget is optimised. On the expense side, premium reductions, for example, should be included. If you already have outstanding loans, it is worth consolidating them – you save interest and increase your surplus. “You kill two birds with one stone.” The best approach is therefore to apply for a refinancing of your outstanding loans via this application and save money.

Amounts above 80,000 €

For amounts beyond 80,000 €, banks are not obliged to apply the same consumer-credit budget formula and can therefore grant amounts that are clearly higher than the maximum determined by the budget calculation. The borrower’s creditworthiness is, however, examined very carefully.

Reasons why loans are declined

Loan amount as a reason for refusal:

Here the application is declined because the surplus in the budget is too small. If your loan application is submitted to a bank with an amount that exceeds the legally permitted maximum, it must be declined. Our calculation tools allow us to determine, with the highest accuracy, the maximum amount that is appropriate for your situation.

Reason for refusal: poor creditworthiness:

Your creditworthiness is also checked. This is verified through enquiries with SCHUFA and public debt registers. If you have several open enforcement proceedings, it will be difficult to obtain a loan. With current garnishments or certificates of unpaid debt, nobody in Germany will grant you a loan.

Conclusion: The maximum loan amount you can obtain is calculated by comparing the household’s income and expenses. For amounts up to 80,000 €, the legislator has defined that the maximum loan size equals the monthly surplus × 36. Mutuo Gruppe.de is a loan provider that is happy to help you obtain the maximum loan amount at the lowest possible interest rates by optimising your budget and your application.

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