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Product Overview

Personal Loan – Auxmoney

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Auxmoney is a private German-based peer-to-peer lending marketplace founded in 2007. This online platform eliminates the high cost and complexity of traditional bank lending by offering a transparent marketplace where investors and borrowers can interact directly with each other. Since inception Auxmoney has facilitated over 250,000 loans worth over  € 1 billion to private borrowers. The company’s growth is fueled by investors seeking attractive and predictable returns on their capital as well as borrowers looking for better rates or alternatives to traditional bank loans.

The key benefits of an Auxmoney loan are:

  • Personal loans between €1,000 and €50,000
  • Instant quote/offer
  • An online process with no paperwork
  • Receive the loan within 24 hours of signing contract
  • One time only commission (ø 3.5 % net credit amount)
  • Free generation Auxmoney credit score
  • Free Schufa query
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Interest Rate (Loan)

from 5.40% / year

Auxmoney offers personal loans through its peer-to-peer lending marketplace.

A personal loan is a money borrowed from a financial institution for the borrower’s personal use. It is an unsecured loan and doesn’t require collateral or a co-signer/guarantor to issue the loan. You can use an unsecured personal loan to consolidate debt or finance large purchases. Interest rates and terms can vary based on your credit score and other factors.

Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Peer-to-peer lending companies often offer their services online and attempt to operate with lower overhead, allowing them to provide their services at a lower cost than traditional financial institutions.

Before registration – good to know

  • You can get a loan with a low credit score (Intern or Schufa)
  • A stable income is not necessary, but you need to prove your ability to repay the loan
  • A co-signer/guarantor or an additional borrower cannot be declared to avoid administrative barriers
  • Your personal data are required for registration
  • To conclude the loan your identification (Postident) and the signed contract will suffice

Granting of credit

More than half of all loan requests are approved within 2 hours by private lenders. If your loan is not approved immediately, your loan request will remain on the market for up to 20 days for another private lender to take on the loan. 

 

You might also be interested in credit cards (see overview here):

American Express credit card GermanyGermany VISA free credit cardfree VISA credit card Germany

How to get your personal loan – What to do

Visit auxmoney, enter the wanted amount of money and purpose and press “Wunschkredit anfragen”. Immediately you get a calculation/information on your request concerning the annual percentage rate and the total credit amount (including fee).

Create an account with your email address and your password and you will be led through the application process. If needed there is assistance (helpline or email).

(You may find it helpful to read the list of explanation of german words below: Glossary)

Glossary (German/English technical terms)

German termEnglish translation
AbsicherungsoptionOption on Payment protection/ insurance
AGB (allgemeine Geschäftsbedingungen)Standard business terms, the conditions of a contract
Antrags-, AbschlussgebührApplication fee: the fee charged by a lender to cover costs associated with processing the loan.
Anzahl kindergeldberechtigter KinderNumber of children you get child benefit.
Kindergeld = child benefit, an amount of money that the government gives to families with children
ArbeitslosigkeitUnemployment, job-loss
ArbeitsunfähigkeitSick leave, disability
Ausgabenexpenses
Auskunftei, SCHUFAOrganisation that review your credit information and create credit reports that can be checked by lenders to determine your eligibility for a personal loan. (In Germany, your creditworthiness is most likely tracked and recorded by Schufa Holding AG, Germany’s biggest credit agency.
BankverbindungBank account, bank details
Berufliche Angabenjob data
Berufsverhältnisjob, profession; Selbstständig: employee or self employed/ freelancer Arbeiter, Angestellter Arbeiter, Angesteller: Rentner, Beamter
BeschäftigungsdauerJob tenure; if less than 3 Years it will be sometimes necessary to give additional information
BonitätCredit history, financial standing. It is a record of all the borrowing and repayment transaction an individual has undertaken. It is one of the most crucial factors that determine an individual’s eligibility for a personal loan.
Credit History: It is a record of all the borrowing and repayment transaction an individual has undertaken. It is one of the most crucial factors that determine an individual’s eligibility for a personal loan.
Credit ReportA credit report is a report generated by a certified credit rating agency showing an individual’s credit history.
Credit Score; SCHUFAA credit score is an individual’s valuation and ability to repay a loan. It is computed based on his/her history of borrowing and repaying.
DarlehensnehmerA borrower is someone who takes a loan from a lender. Just you or an additional borrower (“zweiter Darlehensnehmer”)
Dauerauftrag (Automatic bill) paymentIt is one of the repayment options for your personal loan. By choosing automatic payment facility, your monthly EMIs will be deduced directly from your bank account on a particular day each month and you won’t have to do it manually each time.
DispokreditLines of credit  are essentially loans that do not require any kind of security or collateral and are usually offered at variable interest rates.
Effektiver JahreszinsThe Annual Percentage Rate  is basically the overall cost of credit. A loan’s APR is essentially its overall finance charge. It includes the principal as well as the interest component of the loan, and is shown as an annual rate. The APR enables customers to compare various loans with different charges and interest rates.
EinnahmenEarnings; the money that you earn from your work
Erste Rate fällig amThe first payment will be due in ...
Fester SollzinssatzFix borrowing rate
Fixed Interest Rates: Interest rates that remain unchanged over the tenure of the loan are called fixed interest rates.
Fremdverpflichtungen, die man ablösen will.Replacement of old debt by new debt
GebührFee
Gesichertes DarlehenIt is a loan that requires the borrower to pledge assets as security or collateral
Garantiegeber / Bürgschaftsgeber A guarantor is essentially an individual who guarantees that you will repay the loan in full. Lenders usually require guarantors when the credit history of a borrower is not up to the mark. In these cases, guarantors become legally liable for the repayment of the loan.
Interest RateInterest rates are basically the cost paid by the borrower for availing a loan from a lender. It is a percentage of the loan amount that will have to be paid along with the principal amount every month.
KleinkreditThese loans are unsecured personal loans that can be availed based on your job. They are ideal for financial emergencies. In case you run short of money towards the end of the month,  payday loans  can be taken for a few days and the repayment can be done once your salary is credited to your account.
Kredit-/ DarlehensnehmerA borrower is someone who takes a loan from a lender.
KreditantragBorrowing request, request for a loan
Kreditgeber: BankA lender is usually a bank or a financial institution that lends money to borrower
Kreditgebührensee effektiver Jahreszins
Kredithöhe, KreditbetragThe principal amount of a loan is the amount you borrow, exclusive of fees or interest
KreditrahmenIt is the official document representing the terms and conditions of a personal loan. It also includes the rights as well as the obligations of a lender and borrower.
Kreditsicherheit, Pfand, SicherheitSecurity as it is also called, a collateral can be any asset that backs your loan. In case you fail to repay the loan on time or continuously default on payments, the lender has the right to repossess the asset you pledged as collateral for the loan.
KreditwürdigkeitA credit score is an individual’s valuation and ability to repay a loan. It is computed based on his/her history of borrowing and repaying.
LaufzeitIt is the tenure of the loan – the time frame given to you to repay the amount borrowed
NachweispflichtObligation to produce proof, e.g. copy of an employment contract
Nettoeinkommennet income; the amount that remains after everything has been taken away from it ( e.g. taxes) = monthly net income
Persönliche Angabenpersonal data
Persönliches Darlehen, ungesichertes DarlehenIt is a loan that does not require the borrower to pledge any asset as collateral.
Prepayment  FeesIn case you wish to  repay your loan  ahead of schedule, you will be charged a prepayment fee. Not all lenders charge this fee, but those that do levy a charge in order to recover some of the money they were expecting to collect as interest on the loan.
RatenschutzversicherungPayment protection
Ratenzahlungrepay a loan
SCHUFAIn Germany, your creditworthiness is most likely tracked and recorded by Schufa Holding AG, Germany’s biggest credit agency. See also Bonität.
Sicherheit (dingliche -), PfandSomething (physical) pledged as security for repayment of a loan, to be forfeited in the event of a default; collateral
SozialversicherungssystemThe social security system in Germany is funded through contributions paid by employees and employers. The contributions are paid on all direct wages as well as indirect wages up to a ceiling.
Todesfall, Unfall, Arbeitsunfähigkeit, Arbeitslosigkeit (Wartezeit 3 Monate, (ausgenommen Unfalltod))Death, Accident, Inability to Work, Unemployment (special fees for these incidents)
UmschuldungThese are loans that can be taken to combine all your debts into one. These loans come with lower interest rates and are ideal if you have multiple loans to repay in addition to credit card dues to clear. They club all your debts under a single umbrella, thereby effectively ensuring that you have only one loan to clear.
UnterlagenDocuments, records
Variabler ZinsAs opposed to the working mechanism of fixed interest rates, floating interest rates are those that keep changing over the tenure of the loan.
Vertrag/ unterschriebener Vertragcontract, deal, here: loan / signed in person
Verzug, verspätete Zahlung, SäumniszuschlagWhen you delay your monthly payments, it is called late payment and lenders usually charge a late payment fee to customers who do not make their payments on time.
WohnartRental flat = Mietwohnung; Wohneigentum = home ownership; living with your parents = bei den Eltern wohnen
Wunschkreditcredit amount
Wunschlaufzeitlife/period of a loan
Zahlungsverzug, Säumnis, AusfallIn case a borrower does not meet the legal obligations of a loan, he/she is said to be defaulting on the loan
ZinsenInterest rate: refers to the annual cost of a loan to a borrower and is expressed as a percentage