The credit criteria are hard: If the earnings are too low, the loan application is largely rejected. There is no point in offering better prospects of earning, not even the promise that the loan installments will be repaid in time despite a small income. And so one often reads in the media that trying to obtain a loan is repeatedly done by providing incorrect personal data, falsified proof of income or identity documents.
One might think that these are the very desperate who come up with the idea of falsifying documents because of a loan approval. It’s not like that. According to statistics, there are around 65,000 forged documents in banking transactions in Germany every year. Most of them are professional counterfeiters, but there are also enough private individuals who keep trying to get loans using such methods.
Banks' approach to lending
There are now several thousand direct banks in Germany. There is no direct contact with customers at the banks, so it is often sufficient to scan the required documents by email. Of course, the banks are checking document authenticity, and up to 95% of the counterfeit will be discovered. And then you move in a criminal area.
As a private individual, you violate Section 263 of the Criminal Code if you falsify documents, and if you are assessed, you will be sentenced to imprisonment of up to five years or a fine. Even an attempt to defraud is considered a criminal offense. In the case of commercial fraud, the prison sentence can be up to ten years.
The banks are tough when it comes to exposing fraud: it will not only be a judicial process, but there will be an entry in the system, so that for a long time virtually all banks will save you at least as "unworthy of credit".
Of course there are difficult situations where you need money immediately, are in despair and come up with an unwise idea. But every crime is far worse than lack of money at the moment. And often the situation is not as black as you see it from your own perspective. In the case of low earnings, it often pays to ask several banks, because the credit criteria are strict but slightly different. Many simply reduce spending to the desired loan approval.