Consumer Credit Contract Template for Germany

The Consumer Credit Contract (Verbraucherkreditvertrag) is essential for any credit institution operating in Germany that provides loans to consumers. This document is used when extending credit to individual borrowers for personal, family, or household purposes, excluding business loans. It must strictly comply with §§ 491-505 of the German Civil Code (BGB), the German Banking Act (KWG), and EU consumer credit directives. The agreement includes mandatory pre-contractual information, detailed credit terms, consumer rights including withdrawal rights, and data protection provisions. It's designed to ensure transparency and consumer protection while providing legal certainty for credit institutions. The document is crucial for various financing purposes, from personal loans to specific consumer purchases, and must be updated regularly to reflect changes in German consumer protection and banking regulations.

1. Parties: Identification of the credit institution and the consumer borrower with full legal names and addresses

2. Background: Brief context of the credit agreement and its purpose

3. Definitions: Clear definitions of key terms used in the agreement, including technical financial terms

4. Credit Amount and Purpose: Specification of the total credit amount and intended use of the credit

5. Interest Rate and Charges: Detailed information about interest rates (nominal and effective annual rate), fees, and other charges

6. Term and Repayment: Duration of the credit agreement and repayment schedule including installment amounts and dates

7. Disbursement Conditions: Conditions that must be met before the credit amount is disbursed

8. Right of Withdrawal: Information about the 14-day right of withdrawal and its exercise procedure

9. Default and Consequences: Consequences of missed payments and default scenarios

10. Early Repayment: Terms and conditions for early repayment and any associated compensation

11. Data Protection: Information about personal data processing in accordance with GDPR

12. Communications: Methods and requirements for official communications between parties

13. Governing Law: Specification of German law as governing law and jurisdiction

14. Signatures: Signature blocks for all parties and date of execution