P2P Lending in GermanyPeer-to-Peer Loans for Expats & Foreigners 2026
P2P lending lets you borrow money straight from private investors instead of going through a bank. Platforms like auxmoney and smava match you up with people who have money to invest and want to earn returns.
Key Takeaways
- P2P lending hooks up borrowers directly with private investors - no traditional bank in the middle
- Interest rates in 2026: auxmoney starts at about 4%, smava typical rate around 5.99% (your credit profile decides the exact number)
- Works well for: freelancers, people still in probation, foreigners who have not built up a German Schufa record yet
- All platforms fall under BaFin supervision so you have consumer protection
- Getting funded usually takes 1 to 7 days - so this is not the right choice if you need money urgently
What is P2P Lending?
P2P stands for Peer-to-Peer, which basically means person to person.
Instead of walking into a bank and asking for a loan, you get money from ordinary people who want to grow their savings. Think of it like borrowing from a friend, except the friend is actually a group of investors and a website handles all the paperwork.
Platforms like auxmoney and smava handle the matching, the contract, and the repayments. They make money by charging a small fee for their service. The whole setup is regulated by the German financial authority BaFin, so you have the same legal protections as with a traditional loan.
German Terms You Should Know
How Does P2P Lending Work in Germany?
Submit Your Loan Application
You sign up on a P2P platform and tell them how much you want to borrow, how long you need to pay it back, and what the money is for. They will check your creditworthiness through Schufa and then publish your profile so investors can see it.
Your Loan Project Goes Live
Once your application is approved, it appears on the platform where private investors can browse through it. Investors can chip in starting from as little as EUR 25 each, which spreads the risk across many people rather than one bank carrying the whole loan.
Multiple Investors Fund Your Loan
Several different investors contribute to your loan until the full amount is reached. This usually takes anywhere from a few hours to a couple of days, depending on how attractive your profile looks and overall market activity on the platform.
Money Arrives Through a Partner Bank
Once your loan is fully funded, the money gets transferred to your German bank account via a partner bank. You then pay it back in monthly installments over a period that typically ranges from 12 to 84 months.
P2P Platforms in Germany - auxmoney vs smava
auxmoney
Germany's biggest P2P lending platform, up and running since 2007
Min.
EUR 1,000
Max.
EUR 50,000
Rate
From about 4% (representative example)
What works well
- Works even if your credit score is not perfect
- Freelancers and self-employed people can apply
- Entire application process happens online
- Borrow anywhere from EUR 1,000 to EUR 50,000
What to watch out for
- You will not see the interest rate until after the credit check
- The platform charges brokerage fees
- Not ideal if you need very large loan amounts
smava
Loan comparison platform that also offers P2P lending options
Min.
EUR 500
Max.
EUR 120,000
Rate
Median rate for 2026: about 5.99%
What works well
- Shows you both P2P offers and regular bank loans side by side
- No brokerage fee for P2P loans
- Works with a large network of partner banks
- Loan amounts up to EUR 120,000
What to watch out for
- It is not purely P2P - bank offers show up too
- Bad Schufa record can still get you rejected
- If you have good credit, a bank loan might actually cost less
Watch out: Vexcash stopped operating in 2024, so do not bother with them. With both auxmoney and smava, there are no fixed APR ranges published - the rate you get depends entirely on your personal credit assessment.
How Platform Fees Work
auxmoney Brokerage Fees
Auxmoney charges a one-time brokerage fee that gets added to your loan amount. This fee varies based on your credit profile and the loan size. The better your credit, the lower the fee tends to be. You pay it once at the start along with the first repayment, not separately.
smava No-Fee P2P Model
Smava does not charge a separate brokerage fee for their P2P loans. The platform makes money differently, mainly through partnerships with banks whose loans appear in your results. If you end up choosing a bank loan through smava rather than a P2P loan, the bank may compensate smava for bringing the customer.
Managing Your Loan Through Mobile Apps
Digital Convenience
Both auxmoney and smava offer smartphone apps that let you handle everything from the initial application to making extra repayments. You can track your funding progress, view your repayment schedule, and make one-off payments directly from the app. This comes in handy if you want to pay off your loan early and save on interest.
For expats who are used to managing everything on their phones, this digital-first approach feels natural. There is no need to visit a branch or deal with paperwork by post.
P2P Loans for Foreigners in Germany - No Schufa History Needed
If you have just moved to Germany, you probably do not have a Schufa record yet. German banks tend to reject loan applications when there is no credit history to go on. P2P lending platforms work differently. They look at your current income and employment situation rather than obsessing over your past.
What you need to get started:
- A German bank account - a free checking account at any German bank will do
- Registration in Germany - you need to be officially registered at a German address
- Regular income - from employment, a pension, or similar steady source
- At least 18 years old
Keep in mind: Even without a German Schufa history, platforms may look at international credit records. Having a steady German income and a valid residence permit makes a big difference in your approval chances. The longer you have been employed in Germany, the better your application looks.
Read our full guide to loans for foreigners without Schufa history
How P2P Lending Affects Your Credit Score
Schufa Entries from P2P Loans
When you take out a P2P loan, it gets reported to Schufa just like a bank loan would. This means your repayment behavior affects your credit score. Paying on time builds up a positive record, which can help you get better rates on future borrowing.
Missing payments, on the other hand, will hurt your Schufa record and make it harder to get other loans or even rent an apartment in Germany. So before you commit to any loan, make sure the monthly repayments actually fit your budget.
Rate Inquiries Are Schufa-Neutral
Here is something that many people do not realize. When you compare loan offers on platforms like smava, the rate inquiries do not go onto your Schufa record. Only when you actually accept an offer and sign a contract does a Schufa entry get created. This means you can shop around for the best rate without worrying about damaging your credit score.
P2P Loans: The Good and The Not-So-Good
What makes P2P attractive
- Higher approval odds: You can get approved even with a weak Schufa record or no German credit history at all
- Works for freelancers: Income verification is more relaxed than what traditional banks require
- Handles probation periods: You can still apply even if you are in a trial period at work
- Fully online: No need to visit a bank branch or deal with stacks of paper documents
- A genuine alternative: Often the only lender willing to say yes when banks keep saying no
The drawbacks you should consider
- You do not know your rate upfront: The actual interest rate only appears after the credit check
- Platform fees apply: Depending on which platform you use, brokerage costs can add up
- No guarantee of funding: Your loan project might not attract enough investors to reach the target amount
- Patience required: It can take up to 7 days to get funded, so this is not suitable for emergencies
- Public loan request: Your loan project is visible to investors on the platform
What to Do If P2P Lending Does Not Work Out
Sometimes a P2P loan does not get fully funded, or your application gets rejected. This can be disappointing, but it is not the end of the road. Here are practical steps you can take when P2P lending does not work for you.
Try a Different P2P Platform
If auxmoney did not work out, smava might offer better terms, or vice versa. Each platform has its own investor base and risk assessment methods. What one platform rejects, another might accept.
Consider a Traditional Bank Loan
If you have been in Germany for a while and have built up a relationship with a bank, your local Sparkasse or Volksbank might give you a better rate. Some German banks offer special accounts for newcomers that come with loan options.
Look Into Government Loan Programs
Germany has several government-backed loan programs. Apprenticeship loans (Ausbildungskredit) through the federal program offer fixed low rates. If you are in vocational training, this could be an excellent alternative.
Improve Your Application and Retry
Sometimes the best move is to wait. Build up a stronger Schufa record by using a prepaid German phone contract or a small credit card. Pay everything on time for six months, then reapply. A few months of positive payment history can make a big difference.
Low-Income borrowers: Know Your Protections
If you have a low income, German law provides special protections through the Pfändungsfreigrenze (garnishment exemption limit). This means certain income amounts cannot be seized if you fall behind on repayments. Our guide to low-income loans in Germany explains these protections in detail.
Consumer advice centers (Verbraucherzentrale) also offer free consultations. They can review your financial situation and suggest the best path forward, whether that involves a P2P loan, a bank loan, or a debt advisory service.
Be cautious with payday loans: Avoid high-interest short-term loans that target people with poor credit. These often come with effective annual rates above 100% and can quickly create a debt spiral. German consumer protection laws are stronger, so use German-regulated options first.
What Independent Testers Say
Stiftung Warentest Findings on P2P Lending
Stiftung Warentest, Germany's leading independent consumer organization, has examined P2P lending platforms. Their testing focuses on transparency, contract terms, and how clearly platforms communicate fees and conditions.
According to Stiftung Warentest, both auxmoney and smava performed well in terms of providing clear information about interest rates and total loan costs. The platforms scored points for their digital application processes and the speed of decision-making compared to traditional banks.
One area where Stiftung Warentest advises consumers to pay attention is the difference between the advertised representative rate and the rate you might actually receive. Your personal rate depends on your credit profile, and borrowers with weaker credit should expect rates at the higher end of what P2P lending typically offers.
What Should Your Loan Contract Include?
If you are borrowing from family, friends, or through a P2P platform, a written contract is not legally mandatory but is strongly recommended. For loans above EUR 500, getting it notarized is a smart move because it makes the agreement legally enforceable if things ever go wrong.
Your loan contract should spell out:
- The loan amount - the exact figure you are borrowing
- The interest rate - whether there is interest and how much, or explicitly note if it is interest-free
- The loan term - when and how the money gets paid back
- The repayment plan - monthly installments or a single bullet payment
- The loan purpose - optional but helpful for keeping both parties clear on the goal
- What happens if you miss payments - the default clause protecting both sides
- Signatures from everyone involved plus the date
Legal basis: Private loans in Germany fall under BGB section 488. For loans under EUR 200, there is no legal interest requirement. For larger amounts, written form is required for the agreement to be valid.
Tax Aspects of P2P Lending
Earning Interest as an Investor - But There Is an Allowance
If you put money into P2P loans as an investor and earn interest on it, that interest counts as capital gains and must be declared on your tax return. The good news is that Germany gives you an annual allowance of EUR 1,000 (EUR 2,000 if you are married and filing jointly). If your interest income stays below that threshold, you pay nothing.
What Borrowers Need to Know
As someone borrowing through P2P lending, you do not pay any taxes on the loan amount you receive. The interest you hand over each month is not tax-deductible in most cases. The exception is if you borrowed the money for real estate or self-employment purposes, in which case you should talk to a tax advisor about your specific situation.
Platforms Do Not Report to Tax Authorities Automatically
Unlike bank deposits where your bank withholds tax automatically, P2P platforms in Germany generally do not report your interest income directly to the tax office. This means you are responsible for adding it to your annual tax return. Keep records of all interest you receive as an investor so you have everything ready when tax season comes around.
Compare Loan Offers Now - Including P2P Options
Compare different loan providers - including P2P platforms. Rate inquiries are Schufa-neutral and do not affect your credit score.
* Representative example: Net loan amount EUR 10,000, term 84 months, effective annual rate 3.99% - 15.99% (depending on creditworthiness). This is a brokerage offer.
When Does a P2P Loan Make Sense?
P2P could be the right choice when:
- You have been knocked back by traditional banks
- You work as a freelancer or self-employed
- You have no Schufa record yet
- You are still in your probation period at work
- You want flexible lending criteria
A regular bank loan might be better when:
- You have excellent credit and want the lowest possible rate
- You have a permanent employment contract with good income
- You need the money right away
- You want to avoid any fees entirely
- You need a very large loan amount above EUR 50,000
Real User Experiences with P2P Lending
"As a freelancer, getting a loan from German banks felt impossible. Auxmoney actually came through for me. The interest was higher than what a bank would have charged, but the money arrived in my account within a week and I could actually run my business."
- Markus R., Freelance Designer, Hamburg (2 years in Germany)
"Something worth knowing: interest rates are definitely higher than what traditional banks charge. But when you are still in probation and need funds urgently, P2P lending is often one of the few options that will actually say yes."
- Sandra K., Marketing Specialist, Berlin (6 months in Germany)
"I received several different offers through smava, including from regular banks. In the end, a bank loan turned out to be cheaper for me, but I appreciated being able to compare everything in one place."
- Thomas M., Civil Servant, Munich
"My funding took 5 days, longer than I had expected. Not ideal if you are in a rush. But it worked out in the end and the platform was transparent about the timeline from the beginning."
- Lisa W., Graduate Student, Cologne (part-time job)
P2P Loan vs. Traditional Bank Loan
| What to compare | P2P Loan | Bank Loan |
|---|---|---|
| Interest Rate | About 4-6% typical (depends on your credit) | 1.9-12% typical |
| Approval Chances | Higher - more flexible requirements | Lower - strict criteria |
| For Self-Employed | Well suited | Often difficult to get approved |
| Time to Get Money | 3-10 business days | 1-5 business days |
| Extra Fees | Brokerage fee possible | Usually none |
Frequently Asked Questions
What exactly is a P2P loan?
Are P2P loans legitimate and safe in Germany?
Can foreigners get a P2P loan without any Schufa history?
Are P2P loans more expensive than bank loans?
How quickly can I get money from a P2P loan?
What should a loan contract contain?
Do I need to pay taxes on P2P lending interest?
What happens if my P2P loan does not get funded?
Related Loan Guides for Expats
Compare All Loans
Bank loans, P2P lending, and other options in one place
Compare nowLoans for Foreigners Without Schufa
Options for newcomers who have not built credit history yet
Explore these optionsLow-Income Loans and Garnishment Limits
Understanding German protections for low-income borrowers
Learn about protectionsApprenticeship Loans with Employment Guarantee
Government-guaranteed loans for vocational training students
Read moreDeutsche Version: P2P Kredit Erfahrungen
Dieser Artikel auf Deutsch lesen
Zum deutschen ArtikelTurkce: P2P Kredi Deneyimleri
Bu makaleyi Turkce olarak okuyun
Turkce okuReady to Compare Your Loan Options?
Whether you are considering P2P platforms or traditional banks, compare all options for free. Rate inquiries are Schufa-neutral and take just 2 minutes.
Written by meinetarife24 Editorial Team - Finance Expert for Expats
Last updated: May 2026