Credit for Horse and Riding Equipment: Your Path to Financing
8 Jul 2025
5
Minutes
Katrin Straub
CEO at nextsure
Purchasing a horse is an investment that can quickly exceed 20,000 euros. A well-planned loan can make this dream a reality without jeopardising your financial stability. Learn how to realistically calculate the costs and find the right financing.
The topic in brief and concise terms
The total cost of a horse includes not only the purchase price (from €4,000 to over €15,000) but also monthly maintenance costs of €400 to €1,000.
An instalment loan with no restrictions on usage is the most flexible form of financing for horses and equipment, with terms ranging from 12 to 84 months.
A horse owner liability insurance (§ 833 BGB) and a horse surgery insurance (from 22 euros/month) are essential to protect oneself against high financial risks.
Realistically calculate costs: What your horse truly costs
Many underestimate the total costs associated with owning a horse. A recreational horse can cost up to 6,000 euros to acquire. For the initial equipment including saddle, bridle, and blankets, you should additionally budget at least 2,500 euros.
The ongoing monthly expenses are a crucial factor in your financial planning. These consist of various items and can vary greatly. Expect monthly expenditures between 400 and 1,000 euros.
Here is an example breakdown of the monthly costs:
Stable rent: Depending on the region and service, between 200 and 700 euros.
Feed: In addition to hay, costs for concentrated feed and minerals often range from 20 to 100 euros.
Farrier: Every six to eight weeks, this costs between 30 and 150 euros.
Insurance: Liability and surgery insurance together cost at least 40 euros per month.
Veterinarian: Budget at least 33 euros monthly for routine care (vaccinations, worming).
Careful budgeting is the foundation for any loan application. With a clear overview of your income and expenses, as depicted in a proper budget calculation, you'll persuade any bank. This precise calculation is the first step towards successful financing.
Choose the right credit for your project
For financing a horse, a traditional installment loan is most suitable. Banks often offer loans for free use in this regard. This means you can flexibly use the money for the purchase price, equipment, or even initial veterinary bills. The loan amounts typically range from 1,000 to 50,000 euros.
The terms for such loans are usually between 12 and 84 months. While a longer term lowers the monthly payment, it increases the total cost through interest. An effective annual interest rate can start at around three percent with good creditworthiness.
Always compare the annual percentage rate (APR), as it includes all costs associated with the loan. A loan with no specific purpose offers you the necessary flexibility. This way, you can also cover unforeseen expenses, like an expensive surgery.
Choosing the right loan model lays the foundation for sustainable financing, but banks have clear requirements for borrowers.
Meeting Credit Requirements: How to Convince the Bank
Banks in Germany carefully check your creditworthiness before granting a loan. The basic requirements include being of legal age, having a permanent residence in Germany, and a German bank account. A regular and sufficient income is also essential.
Your creditworthiness is primarily determined by your Schufa score. This score predicts the likelihood of a timely repayment. A negative entry can significantly hinder a loan approval. Banks also assess your income and expenditure situation to check your financial resilience.
Our expert tip: A clean Schufa record is crucial. You can request a free self-assessment once a year to check your data for accuracy. Incorrect or outdated entries should be corrected immediately.
An indefinite employment contract significantly increases your chances of loan approval. With an online calculator for your loan rate, you can check in advance what burden your budget can bear. Once the financing is in place, the focus shifts to securing your valuable animal.
Mitigating Risks: Essential Insurances for Horse Owners
As a horse owner, you are liable for any damages your animal causes, without limit, with your private assets. This is regulated in § 833 of the German Civil Code (BGB). Therefore, liability insurance for horse owners is essential, as it protects you from the financial consequences of personal injury, property damage, and financial losses.
The costs for such insurance start at about 70 euros per year. Another important coverage is the horse surgery insurance. Veterinary procedures can quickly cost several thousand euros. For example, a surgery for colic can cost between 6,000 and 10,000 euros.
A good surgery insurance is available from 22 euros per month and covers the costs of operations, aftercare, and medications. The following points are important when choosing the insurance:
Coverage amount: It should be sufficiently high to cover expensive operations.
GOT rate: The insurance should reimburse at least double the rate of the fee schedule for veterinarians (GOT).
Deductible: A low deductible of, for example, 250 euros is often sensible.
Free choice of veterinarian: You should be able to choose the clinic or veterinarian freely.
Our expert tip: Make sure that foreign rider risk is also included in your liability insurance for horse owners. Comprehensive horse surgery insurance protects you from financial ruin. With these coverages in place, you can approach the loan application process with peace of mind.
The Loan Application: A Step-by-Step Guide
A well-prepared loan application significantly speeds up approval. The process can be divided into five clear steps. First, create a detailed financial plan that considers all one-off and ongoing costs. This plan should cover at least the expenses for the first year.
Next, compare different loan offers. Use online comparison portals to find the best interest rates. Pay attention not only to the interest rate but also to flexible repayment options like free special repayments.
In the third step, prepare all necessary documents. These usually include:
The last three pay slips
Bank statements for the last three months
A copy of your ID card
Your employment contract
A complete and orderly submission of your documents shortens the processing time by several days. After you have submitted the application online or at your bank, the legitimisation check follows, usually via the VideoIdent or PostIdent process. A loan with a long term can reduce the monthly burden. However, there are also financial pitfalls you should be aware of.
Avoiding Costly Mistakes: What to Look Out for in Financing
A common mistake is taking out an expensive residual debt insurance. This insurance is intended to cover unemployment or incapacity to work, but it can increase the loan costs by up to 13 percent of the loan amount. Often, benefits are severely restricted by long waiting periods and exclusion clauses.
A separate term life or disability insurance is usually the cheaper and better alternative. These offer more comprehensive protection at significantly lower premiums. Carefully check whether residual debt insurance is really necessary.
Caution is also advised with enticing offers of extremely low interest rates. These often apply only to borrowers with excellent credit. The interest rate offered to you individually can eventually be significantly higher. Therefore, always obtain several binding offers.
Avoid loans without a credit check, as these are often associated with extremely high interest rates of over ten percent. Should unforeseen veterinary costs arise, it's good to know how a loan for veterinary bills works. Solid financing and security are the key to untroubled enjoyment of your horse.
Request a personalised risk analysis now
The dream of owning your own horse is achievable with careful planning and the right financing. A well-thought-out strategy protects you from financial surprises and ensures long-term enjoyment with your animal. Our mission at nextsure is to offer you tailored and comprehensible insurance solutions.
Have your insurance situation checked for free and receive specific optimisation suggestions. We help you find the right insurance for yourself and your horse, so you can fully focus on the joy of being on four hooves. Request your individual risk analysis now.
More useful links
Deutsche Reiterliche Vereinigung (FN) provides facts and figures about equestrian sports and horse keeping in Germany.
Statista includes a survey in Germany on personal horse ownership and offers insights into its prevalence.
Federal Ministry of Food and Agriculture (BMEL) provides an article on horse husbandry, addressing agricultural and environmental aspects.
Animal Welfare Hessen informs that buying a horse is just the beginning of the responsibility and outlines the associated duties.
Statista offers comprehensive statistics and information on the topic of loans and debts in Germany.
Deutsche Bundesbank publishes interest rates and yields for consumer loans to private households, especially installment loans.
Wikipedia provides a detailed article about the Deutsche Reiterliche Vereinigung (FN), its history and tasks.
German Veterinary Chamber provides information on the law from the perspective of the veterinary profession, relevant for horse owners.
FAQ
Can I get a loan for a horse even with not so optimal creditworthiness?
Yes, some providers do offer financing even with less than optimal creditworthiness. However, the interest rates may be higher in such cases. A second borrower with good credit can significantly increase the chances of approval and better terms.
Does the loan also cover the costs for riding equipment?
Yes, a personal loan for free use can be applied flexibly. You can use it to finance both the purchase price of the horse and the costs for the saddle, bridle, and other accessories.
What happens to the loan if I have to sell the horse?
Most loans can be prepaid at any time through special repayments or full repayment. If you sell the horse, you can use the proceeds to settle the loan. Check the contract terms for any early repayment penalties.
What loan term should I choose for a horse loan?
The term depends on your financial situation. A shorter term (e.g., 36 months) means higher payments, but lower overall costs. A longer term (e.g., 84 months) reduces the monthly burden, but makes the loan more expensive overall.
Why is equine liability insurance so important?
According to § 833 BGB, as an animal owner, you are liable without limitation with your personal assets for all damages caused by your horse. Liability insurance protects you from potentially existentially threatening compensation claims.
Can I also finance an expensive veterinary bill with a loan?
Yes, an installment loan can also be used to finance an unforeseen, expensive veterinary bill or surgery. Some providers specialize in such cases. However, a good horse surgery insurance is a better precaution.
