What is the garnishment-free limit (Pfaendungsfreigrenze) in 2026?

From July 1, 2025, the garnishment-free base amount is 1,559.99 EUR per month for a single person without dependents. With one dependent, this increases to approximately 2,145 EUR.

Can I get a loan on minimum wage in Germany?

It is possible but difficult. With minimum wage (around 1,500-1,700 EUR net), your income is often close to or below the garnishment limit, which banks see as a risk. Smaller loan amounts may still be possible.

How can I improve my chances of getting a loan?

Add a co-borrower with stable income, choose a smaller loan amount, opt for a longer term (lower monthly payment), specify a clear purpose, and reduce existing debts first.

Social Responsibility / Soziale Verantwortung

Low Income Loan in GermanyUnderstanding the Garnishment Limit

Q: What is responsible lending?

Banks are legally required to check if you can afford a loan. They cannot approve a loan if it is foreseeable that you would run into payment difficulties. This protects consumers from over-indebtedness.

Q: What alternatives are there to bank loans?

Debt counseling (free), social loans from welfare organizations, KfW education loans, employer loans, or family support. These options often have better terms or are interest-free.

What is the Pfaendungsfreigrenze (garnishment protection limit) and why does it matter for your loan chances? A responsible guide for low-income earners.

2025/2026 Limits

Social Alternatives

Debt Protection

Important Notice

A loan is not always the best solution.
If your income is close to the garnishment limit, a loan could put you in financial difficulties. We also show you alternatives and when you should seek debt counseling instead.

Debt counseling: free & confidential

Key German Terms

Pfaendungsfreigrenze = Garnishment-free limit (income protection)

Geringverdiener = Low-income earner

Mindestlohn = Minimum wage (Mindestlohn)

Schuldnerberatung = Debt counseling (free service)

Sozialkredit = Social loan (non-profit)

Ueberschuldung = Over-indebtedness

What Is the Garnishment Limit (Pfaendungsfreigrenze)?

The Pfaendungsfreigrenze is the portion of your income protected from garnishment. If you cannot repay a loan, the bank cannot seize this amount. It is your legally protected minimum for living expenses.

Current Limits 2025/2026

Valid from July 1, 2025 to June 30, 2026 (next adjustment on July 1, 2026)

Single, no dependents1,559.99 EUR

1 dependent2,145.22 EUR

2 dependents2,471.26 EUR

3 dependents2,797.30 EUR

4 dependents3,123.34 EUR

5 dependents3,449.38 EUR

Why Does This Matter for Loans?

Banks are reluctant to approve loans when your income is close to the garnishment limit. Reason: In case of default, they cannot recover the money because your income is protected.

Why Do Banks Have Minimum Income Requirements?

Legal Obligation

Banks must verify you can afford a loan (creditworthiness check per EU directive).

Risk Minimization

Lower income means higher default risk. Banks protect themselves from losses.

Consumer Protection

Responsible lending protects you from over-indebtedness. Not every loan is good for you.

Beware of Predatory Lenders!

Providers promising "loans for everyone" without checks are often predatory. Watch for: high upfront fees, no banking license, high-pressure sales tactics. When in doubt: Ask a debt counselor!

Realistic Options for Low-Income Earners

Smaller Loan Amounts

Under 1,500 EUR often possible
Short term (6-12 months)
Low monthly burden

Co-Borrower

Partner/spouse with income
Combined household income
Better terms possible

Employer Loan

Often interest-free or low-cost
No Schufa check
Repayment via salary deduction

Family Loan

Often interest-free
Flexible repayment
Document it in writing

Social Alternatives to Bank Loans

Before taking an expensive bank loan, consider these often cheaper or free options:

Debt Counseling (Free)

Caritas, Diakonie, AWO, and municipal counseling centers offer free help. They assist with debt restructuring and show alternatives.

German: Schuldnerberatung - Available in most cities

Social Loans from Jobcenter

For certain essential purchases (e.g., washing machine, refrigerator), you can apply for an interest-free loan from the Jobcenter. Repayment is in small installments.

KfW Education Loans

For studies or further education: State-subsidized loan with low interest rates. Independent of current income.

Foundations and Emergency Funds

Some foundations help people in need with interest-free loans or grants. Ask a debt counselor about possible options in your area.

Compare Loan Offers

If a bank loan is right for you, compare different offers. Rate inquiries are Schufa-neutral - comparing does not affect your score.

* Representative example: Net loan amount 10,000 EUR, term 84 months, effective annual interest 3.99% - 9.99% (credit-dependent). This is a brokerage offer.

How to Improve Your Loan Chances

Choose a Smaller Amount

The smaller the loan amount, the higher your approval chances. Under 1,500 EUR is often possible.

Longer Term

Longer term = lower monthly payment. This improves your household budget calculation.

Specify the Purpose

Car, moving, or education are understandable reasons. Avoid "free use" (freie Verwendung).

Pay Off Existing Debts

Consolidating old loans can reduce monthly burden and improve your overall situation.

When You Should Seek Debt Counseling

You already have multiple loans

Receiving reminders and collection notices

No money left at month's end

Taking loans to pay off other loans

Overdraft constantly maxed out

Fear of opening mail

Debt counseling is free and confidential.

It helps you get an overview, negotiate with creditors, and if necessary, prepare for personal insolvency. No shame - smart decision!

Frequently Asked Questions

What is the garnishment limit in 2026?

From July 1, 2025, the garnishment-free base amount is 1,559.99 EUR monthly for single persons. With dependents, the amount increases accordingly.

Can I get a loan on minimum wage?

It is difficult but not impossible. Smaller loan amounts under 1,500 EUR are often possible. A co-borrower can significantly improve your chances.

What is responsible lending?

Banks are legally required to verify you can afford the loan. This protects you from over-indebtedness and financial hardship.

What alternatives are there to bank loans?

Debt counseling (free), social loans from Jobcenter, KfW education loans, employer loans, family loans. Often better terms or interest-free.

Need Help?

Compare loan offers or use free counseling services.

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