If you receive a citizen's allowance, a lump-sum amount of money is taken into account for your standard needs. In addition to regular needs, this lump-sum amount also includes needs that arise irregularly or at long intervals. The amount of the standard need depends on the respective standard need level assigned to you, which depends on your age and your family situation.

The standard need covers the following needs in particular:

• Food,
• clothing,
• personal hygiene,
• household goods,
• household energy, excluding heating and hot water production, and
• personal needs of daily life (including participation in social and cultural life in the community).

If, due to special circumstances, you need more money for your daily needs at short notice than the standard need for your individual case provides for, and you can neither pay for these costs yourself nor postpone them, the Jobcenter will grant you an interest-free loan for the unavoidable need upon application.

An unavoidable need exists

• it cannot be postponed and therefore a loan is unavoidable to avoid an acute emergency situation and
• it cannot be expected that you will be able to compensate for this need with the next benefits to cover the standard need.

Examples include:

• necessary repairs,
• necessary purchases (for example, new winter clothing for growing children),
• the threat of disconnection of electricity supply (household electricity) because of so-called "new debts, unless you can avert the disconnection in another way, for example by agreeing to pay in installments with the utility company,
• theft or loss, and
• Apartment or house fire.

You must apply for the loan separately, and you must generally prove the unavoidable need. If you have assets, you must first use them to finance the expenses. Depending on the circumstances, the Jobcenter may also assign its field staff to determine the need.

The Jobcenter may also decide that you receive benefits in kind instead of money. The amount of the loan then corresponds exactly to the value of the required need.

You must use the loan for the intended purpose. The Jobcenter may demand proof of this (for example, proof of purchase).

You must repay the loan. If you continue to receive benefits under SGB II in the future, the loan will be offset against your benefit entitlement on a monthly basis:

• In the case of one loan: in the amount of 10 percent of your standard need (the relevant standard need level).
• In the case of several loans: a total of no more than 30 percent of your standard need (of the relevant standard need level).

How the loan will be offset in your specific case will be explained to you in writing. Repayment begins in the month following the disbursement of the loan.