Rentenbank is a public law institution based in Frankfurt am Main

Its full name is Agricultural Rentenbank. It was founded on 11 May 1949 by law (Law on the Agricultural Rentenbank) and had at that time the goal to support the agricultural sector by cheap loans and to refinance the agriculture and food industry.

Today, Rentenbank is an important partner in low-interest lending for agricultural investment. Its total assets in 2016 amounted to more than 86 billion euros. As an institution under public law, the Confederation is the bearer of the financial burden. Since 2014, the Rentenbankgesetz has also stated that the Confederation is liable for all liabilities of the Bank. The legal supervision of the Landwirtschaftliche Rentenbank is carried out by the Federal Ministry of Food and Agriculture.

After its founding in 1949, the capital stock was raised by German agriculture and forestry until 1958. Balance sheet profits are used to support agriculture and rural areas.

The Rentenbank has nothing to do with the pension

Even if the term “Rentenbank” suggests otherwise, the Rentenbank has nothing to do with the payment of pensions in the modern sense. Rather, the term goes back to the “pensions”, so easements, the farmers had to pay earlier to the landlords. As part of the liberation of peasants in the 19th century, these easements were dissolved. In order to reduce the losses for the landlords, so-called “pension banks” were created. These banks issued bonds to the landlords. The farmers, in turn, paid fixed sums of money to the bank. The bank was then able to pay interest and repay the bonds.

Target groups and objectives of Rentenbank

Target groups and objectives of Rentenbank

In general, Rentenbank defines its products as “loans for a variety of agricultural investments”. Accordingly, the following actors belong to the target groups of the bank:

  • Farms
  • Forestry operations
  • Farms in the fish industry and aquaculture
  • wine producers
  • horticulturists
  • Manufacturer of agricultural inputs
  • Traders or service providers with close links to the agricultural sector

In addition, the Landwirtschaftliche Rentenbank is also active as a financing partner for municipalities and municipalities and supports innovations and investments in renewable energies. As a promotional bank for the development of rural areas, the Federal Financial Institution is also active. In this sense, private individuals are also among the target groups of Rentenbank, if they make investments to improve and develop living conditions in rural areas.

One of the main objectives of the Landwirtschaftliche Rentenbank is to refinance the further development of the agri-food sector. All players involved in these sectors can take advantage of the Bank’s soft loans. In this way, the state, as the “owner” of the bank, ensures sustainable investment in rural areas as well as renewable energy and innovation.

How does the Rentenbank work?

Rentenbank differs from a conventional private bank in that it is a public-law institution and part of the federal government. The federal government is also responsible for the financing of the credit institution. Similar to the Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation), Rentenbank does not lend money directly in its own branches; instead, these loans are offered to savings banks and Volksbanks in a competition-neutral manner. This means that customers receive the loans from all the participating banks on the same terms.

One of the main tasks of the Landwirtschaftliche Rentenbank is to lend money in order to promote investment in the agri-food sector. Since the bank is managed by the federal government and the federal government provides the necessary collateral for the bank, it can refinance itself very cheaply via the capital market and thereby issue even cheap loans.

Subsidy and interest

Subsidy and interest

Eligible for funding is all borrowers who belong to the target groups of Rentenbank and who are directly or indirectly involved in agriculture or the food industry. The focus of the promotion is on farmers. Here Rentenbank even offers special programs for young farmers up to age 41.

Creditworthiness and collateral

Creditworthiness and collateral

As with any other loan, a loan from Rentenbank will use the creditor’s credit rating from the lending bank for lending. In addition, the value of the collateral provided is included. On the basis of this data, the applicants are divided into certain “collateral classes”, corresponding to the scoring of the house banks.

Based on the respective collateral class and credit rating class, the corresponding annual percentage rate is determined. As a rule, Rentenbank’s loans also increase the chance of a loan with higher creditworthiness and higher collateral.

Maturities at Rentenbank

Since the loans requested at Rentenbank are usually larger investments, it is also possible to use very long terms. Possible terms of up to 30 years with fixed rate fixation. Upon request, individual terms can also be agreed on site.

Loan calculator of the Rentenbank

If you would like to receive detailed conditions on loans from Rentenbank, you can contact a savings bank or Volksbank in your area. To get the first indication of credit costs and installments, the free loan calculator Rentenbank is available.

A loan with negative interest

Loan with negative interest

Due to the ongoing low-interest rate policy and the top ratings with the federal government as the bearer of the Anstaltslast, Rentenbank also benefits from the conditions on the capital market. Since the federal government issues bonds for which buyers have to pay interest, it is possible for the Rentenbank to grant loans on very favorable terms. The development on the capital market has even led to Rentenbank theoretically spending its loans with negative interest rates.

However, since Rentenbank’s loans are issued through the house banks, there were technical as well as legal objections for a negative interest loan. For example, such a loan would violate competition rules. For this reason, Rentenbank has been offering loans with a so-called subsidy since April 2017. For certain financing products, this subsidy is one percent of the loan amount and will be offset against the installments and interest.

In this way, it is possible that short-term loans with a smaller volume, at least in the first repayment phase, theoretically have “negative interest” or are repaid without interest- same or the next How long there will be the subsidy from Rentenbank is open. Presumably, this particular form of loan depends on the base rate of the European Central Bank. If this interest rate rises, so do the refinancing costs, and thus the Rentenbank would also have to raise its lending rates.




As with private banks, refinancing also takes place at Rentenbank via the global capital markets. This allows the federal-backed bank to provide fresh capital, which it passes on to its clients in the form of loans. The usual refinancing methods of the Landwirtschaftliche Rentenbank include issuing bonds or securities. It is up to the promotional bank whether it issues covered or unsecured securities.

Today, mostly uncovered bonds or securities are issued. This means that the bonds of the bank are not covered by mortgages to public debtors. The financial power of the bank alone is enough to cover. Rentenbank can proceed in this way, as it has been rated by rating agencies with the highest grade Triple-A for many years.

Advantages and disadvantages

Advantages and disadvantages


advantages disadvantage
  • Interest rates are based heavily on the key interest rate and are therefore currently very low
  • Lending is easy via the participating house banks
  • The loan amount can be repaid over many years
  • There are many different variants of development and investment loans
  • Banks can charge processing fees for the loans
  • The loans are always earmarked
  • Lending is only possible for a limited circle
  • Private individuals benefit only slightly from the offer

possible alternatives

If you are looking for funding opportunities for your company or your investment, you can also take advantage of potential funding programs offered by KfW or the BaFa. Both institutions are also operated by the federal government and offer, for example, favorable loans when it comes to sustainability in the energy industry.

Regional support is often possible through special regional subsidies via districts, federal states or municipalities. Here the interested parties have to turn directly to the respective administrations.

What is an instant loan?

An instant loan is, in principle, a normal installment loan, but the credit check is simplified so that the loan can be approved and paid out very quickly- There can only be 1. In addition, the loan amount is usually limited to 5,000 euros. After the payment, an instant loan no longer differs from a regular installment loan. Before that, however, there are clear differences.

How fast do I receive the money?

The loan payment is possible 24 hours after the credit check. But even if one speaks of an instant loan, from the first application to the payment is more likely two to four days realistic, due to identity verification and maturity in the mail order.

Here is a more detailed breakdown that includes rough times:

  • Non-binding commitment: Immediately
    As a borrower, if you file all the required documents in full, you will actually receive a commitment directly, provided that your loan is approved. In most cases, however, this commitment is not binding, especially if you have applied for the instant loan online. The commitment is subject to the credit check, which also includes a query of the Schufa data by default. An instant loan for the unemployed and other persons without a regular income is therefore excluded.
  • Credit check: approx. 1 workday
    The credit check is usually completed on the same day or the next working day at the latest so that you receive a binding commitment from the bank.
  • Payment: Approx. 1 to 2 business days
    With a branch bank, an immediate payout is then possible, with online banks you usually have to take into account the usual terms of credit transfers – but some banks also offer lightning transfers, which are in any case received the same day. In the case of a branch bank, in the ideal case, you can actually receive the money on the same day; however, it usually takes one to two days to disburse.

Is there an instant loan without Schufa?

In principle, instant loans are also possible without Schufa query, but only a few German banks refrain from such a credit check. Such loans are therefore often offered by foreign banks, for which the Schufa data plays only a minor role. However, a sufficient credit rating is also a prerequisite for a payout.


In addition, the banks usually require a much higher interest rate and the payment takes more time than German banks. An instant loan without a Schufa query should therefore only be an emergency solution if the money is really needed urgently, but there is no other possibility of financing.

Why can an online instant loan be faster than via a branch bank?

Why can an online instant loan be faster than via a branch bank?



The biggest advantage of an online instant loan is the immediate provisional commitment. For a branch bank, on the other hand, you would only have to arrange a consultation appointment, which only rarely takes place on the same day. As time sweeps into the country, you have already submitted all documents online and possibly received your confirmation.

And even if the payout in the online process can take between one and two working days, the branch bank rarely recovers the time difference that arose during the consultation.

What advantages and disadvantages does an instant loan have?


One of the biggest advantages of an instant loan, of course, is the short-term commitment and the quick availability of the borrowed money. It enables earlier planning of projects. On the one hand, strong competition among providers increases the likelihood that they will generally receive an instant loan. On the other hand, it increases the chances of a low loan rate.

However, instant loans also involve risks. Most of them are based on the applicant’s situation: those who need credit immediately sometimes forget, given the urgency of scrutinizing all conditions and making comparisons. This can cause the loan rate to be unnecessarily high or other conditions inappropriate. In addition, comparatively many dubious providers take advantage of this circumstance. Finally, the instant loan is not suitable for larger sums and long-term planning such as those required for mortgage lending.

Is not it easier to overdraw the account instead of applying for an instant loan?


Basically yes, but you should not ignore the high disposition and overdraft rates. Sometimes you pay 12 percent and more for the overdraft – as an instant loan is often considerably cheaper.

Does the instant loan affect my Schufa badly?

Does the instant loan affect my Schufa badly?


With the conclusion of a loan, this is communicated to the Schufa and other credit bureaus. A structural deterioration of the entry thus does not occur automatically. Although banks now learn that you are repaying a loan with part of your income, if you successfully repay the instant loan, this will also be noted positively in the Schufa entry.

By the way, there is no difference between a regular loan with an instant loan, because the speed of the payment is irrelevant for the Schufa entry.

Is it possible to dispose of the instant loan freely?

Is it possible to dispose of the instant loan freely?



In principle, yes, because similar to a regular installment loan and the instant loan is free for the purpose. However, if you have already decided on a loan application for a fixed purpose, and for example could benefit from more favorable interest conditions, this must be adhered to.