Microloan for Side Businessin Germany 2026
The Mikrokreditfonds Deutschland hands out loans from 1,000 to 25,000 euros to small businesses that banks turn away. If you are running a Kleingewerbe or starting a side hustle (Nebenerwerb), this federal program might be your best shot at financing, even without a perfect credit history.
Loans come in stages, not all at once
The Mikrokreditfonds does not hand you 25,000 euros on day one. You start small, usually between 1,000 and 5,000 euros. After six months of on-time repayments, you can apply for the next round. The total across all rounds cannot exceed 25,000 euros. And you need more than just an idea. The microfinance institution reviewing your application will want a business concept that holds up on paper.
How the microloan works
You build trust with the program step by step. Each successful repayment unlocks access to higher amounts.
Starter
1,000 - 5,000 EUR
Your first loan as a new applicant
Processing fee: 150 EUR
Growth
5,000 - 10,000 EUR
After 6 months of on-time repayments
Processing fee: 150-200 EUR
Expansion
10,000 - 25,000 EUR
With a proven repayment track record
Processing fee: 200-250 EUR
Current conditions (as of March 2026)
Loan amount
1,000 - 25,000 EUR
Interest rate
8.1% p.a.
Processing fee
150 - 250 EUR
Tiered by loan amount
Loan term
12 - 48 months
Up to 54 with grace period
Source: German Federal Ministry of Labor (BMAS). No legal entitlement to funding.
Side business (Nebenerwerb) in Germany: what the numbers say
According to the KfW Gruendungsmonitor 2024, nearly two thirds of all new business registrations in Germany are now side businesses. Out of 568,000 startups in 2024, about 363,000 were Nebenerwerbsgruendungen. That is a significant shift from a decade ago, when the split was much more even.
For side business founders seeking financing, the Mikrokreditfonds is one of the few programs that does not require full-time self-employment. But there are conditions:
How to apply for a microloan
The process runs through a microfinance institution (MFI), not a bank. Here is what to expect.
Find a microfinance institution (MFI)
Go to mein-mikrokredit.de and search for an accredited MFI in your area. There are around 30 active institutions across Germany.
Prepare your documents
You will need your business concept, a revenue projection, your Gewerbeschein, bank statements from the past 3 months, and your ID or Aufenthaltstitel.
Meet with your MFI
Schedule a consultation. The MFI reviews your business idea and checks whether the concept is financially viable. This is the core of the process.
Submit your application
Your MFI forwards the application to the partner bank (usually GRENKE Bank AG). Most decisions arrive within 1 to 4 weeks.
Receive your funds
Once approved, the money goes directly to your German business bank account. First-time borrowers typically start with 1,000 to 5,000 euros.
Where to find an MFI: Visit mein-mikrokredit.de for a list of accredited institutions by region. The site is maintained by the BMAS.
Documents you will need
Requirements can vary between MFIs, but these are standard across the board.
Business concept or plan
The MFI needs to understand what you are building and why it can work
Revenue and cost projection
Shows you have thought through the numbers, not just the idea
Gewerbeschein (trade license)
Proof that your business is officially registered in Germany
Bank statements (last 3 months)
Gives the MFI a picture of your current financial situation
ID or Aufenthaltstitel
Standard identity verification for any financial application in Germany
BWA or recent tax assessment
Some MFIs request this for existing businesses with revenue history
If you are an expat or newcomer, your Aufenthaltstitel (residence permit) type matters for loan eligibility. A permanent or long-term residence permit strengthens your application.
German terms you will encounter
Knowing these words will save you time when dealing with the application process and your MFI.
Who qualifies for a microloan?
The Mikrokreditfonds is designed for people who fall through the cracks of traditional banking.
Good fit for the microloan
- +Small or micro businesses without bank access
- +Side business owners (Nebengewerbe) with a solid concept
- +Young startups in their first 1-2 years
- +Women-led and migrant-led businesses (priority group)
- +Founders with limited Schufa history
Probably not the right fit
- -Active personal insolvency (Privatinsolvenz)
- -No business registration at all
- -Need more than 25,000 EUR (consider KfW startup loans instead)
- -No viable business concept (just an idea)
- -Can already get a bank loan at better terms
Microloan vs. personal loan: which one fits?
Both can fund a side business, but they work very differently.
| Mikrokreditfonds | Personal loan (Ratenkredit) | |
|---|---|---|
| Amount | 1,000 - 25,000 EUR | 1,000 - 100,000+ EUR |
| Interest rate | 8.1% fixed | From ~3% (depends on credit) |
| Schufa required? | Checked, but not decisive | Yes, strong impact on rate |
| Business purpose? | Yes, designed for it | Usually personal use only |
| Collateral needed? | Usually no (80% of cases) | Depends on bank |
| Speed | 1-4 weeks | 1-3 days (online lenders) |
| Best for | No bank access, low Schufa | Good credit, need money fast |
Bottom line: If your Schufa is clean and you just need a quick cash injection, a personal installment loan will often be cheaper and faster. If banks have already turned you down, the Mikrokreditfonds exists precisely for your situation. Compare personal loan rates here.
Compare loan offers
The Mikrokreditfonds is not the only option. Personal installment loans can sometimes offer lower rates with faster disbursement. Free comparison, no obligation, Schufa-neutral inquiry.
Other ways to finance your side business
The Mikrokreditfonds covers up to 25,000 euros. If you need more, less, or something different, here are your options.
Personal installment loan
With solid creditworthiness, you may find rates well below 8.1%. Banks like ING or Barclays offer fully online applications with payout in 1-3 days.
Compare loan ratesKfW ERP-Gruenderkredit
Up to 125,000 euros through your house bank. KfW covers 80% of the credit risk. Available for part-time self-employment too.
KfW websiteLoan with a guarantor
A Buerge (guarantor) with good credit can unlock better terms and higher amounts. Common path for newcomers building their first Schufa history.
Loan options without guarantorState-level programs
Some German states offer their own microloan programs. NRW.Mikrodarlehen goes up to 50,000 euros. Check your state's Foerderbank for options.
Funding databaseWhat if your application gets rejected?
Getting turned down is not the end. The Mikrokreditfonds has a roughly 90% approval rate, which means about 1 in 10 applications do not make it. If yours is among them, you still have options.
Try a different MFI. Each microfinance institution evaluates applications independently. A rejection at one does not prevent you from applying at another.
Strengthen your business concept. The most common reason for rejection is a weak or incomplete plan. Take the feedback, revise, and reapply.
Consider a personal loan instead. If your Schufa is decent, banks may approve you for a personal installment loan at a lower rate anyway.
Look into P2P lending. Platforms like Auxmoney (now an online credit intermediary, not peer-to-peer) accept applications that traditional banks might decline.
Frequently asked questions
We work with partners including Tarifcheck. This comparison is free and non-binding. Last updated: March 2026. This is not financial advice. The Mikrokreditfonds Deutschland is a federal program administered by the BMAS. There is no legal entitlement to funding. Interest rate and fee information sourced from the German Federal Ministry of Labor.
Ready to find financing for your side business?
Compare personal loan rates alongside the Mikrokreditfonds. The right option depends on your credit, your timeline, and how much you need.