No reputable bank in Germany or abroad grants the unemployed a loan without further security. This should work, the bank is only interested in the risk that you will not be able to repay the loan. Can tap multiple sources and hopefully get around a loan. The education loan can also be granted for study abroad, also outside the EU.

Foreign Currency Loans – Buildings from abroad

Foreign Currency Loans - Buildings from abroad

The reason for this is that they take up a loan not in USD, but in the national currency of the respective country. Foreign currency loans usually pay off only if the interest rate level abroad is lower than in Germany. Interested parties should therefore carefully investigate whether a loan is still pending in a currency other than the USD. They should also pay attention to a fixed exchange rate.

For example, foreign currency loans in the form, which are disbursed in USD. With lower interest rates on loans from Switzerland or Japan than in Germany, the lower interest burden will make the loan volume more favorable to the consumer. In addition, if the exchange rate develops in its favor, the credit burden will be reduced as well.

Foreign currency risk of a loan

Foreign currency risk of a loan

If the franc or yen is higher against the USD, the loan amount will be higher as the USD has become less important than before. The borrowers then have to spend more money on repaying the loan. Example: The foreign currency risk of a loan is determined by the Swiss franking. Those who wanted a loan of USD 100,000 in April 2014 had to borrow around USD 121,000,000 as a foreign currency loan.

The year after, the USD lost significant value and the price fell. For the payment of the amount in USD instead of USD 1.000,00 more than USD 117.000,00 are required. The customer only pays the loan interest during the entire period of use. However, there are no repayment installments because the loan is repaid in one blow at the end of the contract period.

As long as interest rates are low or even falling further, this is not a hindrance to the debtors. In general, it is better suited to the risk-conscious investor, who can afford it if the loan is made more expensive by increased interest rates or exchange rate fluctuations.