Looking for the best interest rates on loans in Germany? Whether you’re planning to finance a new car, your studies, a home, or just need a personal loan, comparing offers from different banks can save you thousands of euros in the long run.
In this guide, we’ll walk you through the loan options available in Germany, highlight typical interest rates, and share how to find the best deal — especially as an expat.
Overview: Types of Loans Covered
- Personal Loans (Kredit / Ratenkredit)
- Student Loans (Studienkredit)
- Car Loans (Autokredit)
- Home Loans (Hypothek / Baufinanzierung)
- Loan Comparison Platforms
1. Personal Loans: For Any Purpose
A personal loan in Germany can be used for furniture, electronics, travel, or emergency expenses. They are usually unsecured, meaning no collateral is required.
Typical Interest Rates (as of 2025):
- Starting from 3.5% p.a. (for good credit scores)
- Up to 9–12% p.a. for lower credit scores or flexible terms
Top Providers:
- DKB
- ING
- Targobank
2. Student Loans: Invest in Your Future
Education can be expensive, especially for international students who don’t qualify for BAföG. Student loans in Germany can help cover tuition, rent, and living expenses.
Typical Interest Rates:
- Between 3.0% – 5.5% p.a.
- Some are interest-free during the study period
Recommended Providers:
- KfW Student Loan – open to both Germans and many international students
- Deutsche Bildung
- Bildungskredit (via BAföG office)
3. Car Loans: Drive Now, Pay Monthly
Need a car to get around? A car loan is often available at lower interest rates than personal loans because the vehicle serves as collateral.
Typical Interest Rates:
- As low as 2.5% – 4.0% p.a.
Where to look:
- Your car dealership’s financing partner
- Your bank
Tip: Compare dealer financing vs. external bank financing — dealer offers may have hidden costs or restrictions. And ofcourse, the best tip is always to get in touch with your financial advisor. We, at FinXpat, could help you manage your finances in Germany and make the best of your life in Germany.
4. Home Loans: Buying Property in Germany
Buying a home is a major decision. Mortgages in Germany often have fixed interest terms (Zinsbindung) of 5 to 15 years.
Typical Interest Rates (2025):
- Around 3.0% – 4.5% p.a. (depending on down payment & credit score)
- Lower if you can offer at least 20% down payment
Top Mortgage Lenders:
- Interhyp
- Dr. Klein
- HypoVereinsbank
- Commerzbank
- LoanLink (great for English-speaking expats)
5. How to Compare Loan Interest Rates (Without the Noise)
You don’t need to rely on large comparison portals to find the best interest rates. In fact, as an expat, those platforms can sometimes be confusing or not tailored to your unique situation.
Here’s how to compare loan offers effectively on your own:
- Visit multiple bank websites directly and check their loan calculators
- Look for promotional interest rates on official bank pages — some offer seasonal discounts
- Talk to an advisor at your local bank branch (especially if you already have an account)
- Review all the costs, including APR (effective annual interest rate), setup fees, and early repayment charges
- Don’t forget to ask questions in writing — it helps avoid misunderstandings, especially in German
💡 At Finxpat, we break down complex financial topics and guide expats to make smarter money decisions in Germany. Bookmark this page or get in touch with us if you want help understanding your loan options.
🔑 Tips for Getting the Best Interest Rate
- Improve your Schufa score before applying
- Compare offers (don’t just go with your primary bank)
- Opt for shorter repayment terms if possible
- Secure income or permanent residency status helps
- Submit all documents correctly to avoid delays
Final Thoughts
Finding the best loan interest rates in Germany doesn’t have to be stressful — especially when you know where to look. Whether you’re a student, expat professional, or family planning for the future, informed decisions lead to big savings.
Want personalized support or an English-speaking advisor?
👉 Contact us at Finxpat — we’re here to help you navigate finance in Germany.
