When you’re in education, many think you can not get a loan credit. This is not true, however, as apprentices can apply for a loan from a bank. Whether or not this is then approved by the BA Word depends on various factors, which must be taken into account by the applicant, who is in the training.
The amount of the loan
What is the sum of the loan, which is granted to the trainee by the bank, depends entirely on how high the remuneration during the training fails. From the creditworthiness of the trainee then the fixed costs are deducted and on the basis of what remains at the end, decided on the amount of the loan and the amount of the installments to be paid.
Since a trainee usually does not earn as much as a worker already integrated into the labor market, one can not expect too high sums.
A guarantor for security
Banks only grant loans if they can be sure that the loan granted can be repaid reliably and at the rates previously agreed. This not only has the background of the low salary of the trainee, compared to an already trained worker, but also the safety of the training place.
As the bank can not be sure that the trainee will retain his apprenticeship or possibly opt for another apprenticeship, this will require a guarantor. Because with the loss or the change of the training place, also the creditworthiness of the borrower changes and he can not repay the rates in certain cases to the bank.
Therefore, trainees who request a loan from a bank often find that the bank requires a guarantor. He will be held guilty by his signature and must pay for the entire sum, including interest, if the trainee does not pay the installments as agreed.
The term of the loan
Trainees should also be aware that a bank may only grant the loan for the period of training. This means that the installments that have to be repaid are chosen to be fully paid off upon completion of the training. This has the background that it is never completely certain that the apprentice will also be taken on by the employer after his training or find a job directly.
Accordingly, it also concludes that the loan can not be particularly high, as it could not be fully repaid in a short term.
Use of the loan
Whether a loan is granted to apprentices depends, among other things, on what the loan should be used for. Banks do not like it when you apply for a loan to party or care for your personal pleasure. As a rule, a loan is only granted to apprentices if there is an important reason and the trainee wants to finance a meaningful object with it.
For the trainee, the same conditions apply as for other people who want to take out a loan from a bank. Important is a good credit rating, seriousness and the credit bureau information. The best way to be a trainee is debt-free, or can prove that you have paid off the debt and still has enough credit available to pay off the rates of the borrowed credit.
Under these conditions, and with a guarantor willing to blame himself, trainees can also take out a loan.
5 tips on credit despite training
1. Calculate exact loan amount
The basis should always be the exact calculation of the required capital. An unnecessarily high sum is in turn associated with a higher burden and possibly also with a longer duration. Since apprentices have access to a limited monthly budget, only amounts between 1,000 and 3,000 euros are usually eligible.
Unnecessary, not necessarily required financial investments should therefore be postponed so that the shortest possible duration can be maintained. This is usually between 12 and 36 months. The shorter the term, the higher the monthly burden can be. However, with a speedy repayment of a possible debt trap for the loan for trainees can be escaped.
2. Compare according to purpose
For what purpose should the financial resources be used? It is advisable, as long as you are in training, to have the money for a purposeful purpose. Larger investments can thus be best handled after training. Just as lenders can see that. Thus, the chance of acceptance is much higher for a trainee supporting project. These include, for example, the purchase of a vehicle, as this can be used to reach the workplace. Furthermore, all costs associated with the training are positive.
In order to make the start in the professional life more pleasant, there are special loans and subsidies. Lower chances of acceptance can eg be given to the purchase of a new television or a game console.
3. Increase the odds with a few tricks
At best, the probationary period should be successfully waited. This is advisable for two reasons. For one thing, it would be fatal to take out a loan and then lose the apprenticeship during the probationary period. Finally, the repayment must be continued unrestricted.
Furthermore, it is a positive argument to show the lender, the trial period is over and it can be confidently with a liquidity of the trainee expected. A look at your own credit bureau, which can be viewed once free of charge, worth in advance in any case to any negative entries to take note or clarify.
4. Guarantee creates trust
A guarantee can have several advantages. On the one hand, this creates increased confidence for the lender, since in the case of non-repayment of the trainee, the guarantor can or must step in. As a rule, these are the parents or guardians. They usually have a solid income and a secure job. Both are indicators that are very much appreciated by a guarantor.
Thus, the chance of a commitment usually increases considerably. The second advantage is that, in the worst case, the guarantor can act like a safety net and can take over the rates in extreme situations. Thus, a possible seizure by the lender is prevented.
5. What documents are needed?
In order to provide support for a swift commitment of the required capital, it is advisable to organize all required documents carefully before applying. These are usually standard documents such as identity card, proof of income, training contract and possibly.
Proof of identity of the guarantor mentioned in the application. At the end, the actual loan application is processed. This is filled out either at a local bank or online, which can speed up the process even more. Within a few days or hours usually an acceptance or refusal is granted. In some cases, this can happen immediately within a few minutes.
An education, a further education or even a study is not always free, but often associated with high fees. For young people, this can be a financial burden. Even with support, such as BaföG, it often happens that the cost of training is not covered – or, you have no claim to the money, if the parents have earned too much.
The training loan – what exactly is that?
The training loan describes a special form of credit, which is aimed primarily at people who want to complete a course of study or training, but receive no financial support from the state or the parents. This loan is also interesting for those who are looking for a paid training in order to have better chances in the job market.
Young people benefit particularly from the training loan, because the interest rate level is relatively low and the repayment does not have to be started immediately: you can wait until you have completed the training and achieved a regular income.
One should keep in mind: Education is always a sensible investment, because ultimately it is about your own future. It is always an advantage to take out a training loan if you do not want to work while studying or training to finance it. So you can fully concentrate on the subject matter and be sure that the costs are covered.
Thoughts about repayment are only made after successfully passing the final exam. This can then be flexibly agreed with the bank so that it fits into the individual budget as best as possible.
Training credit and education credit – where is the difference?
Many people wonder where the difference lies between a training loan and a state-sponsored educational loan. This is particularly evident in the loan amount : While there is a maximum of 7,200 euros per annum for the education loan, there is no limit to the training loan, but you can even agree with the bank on how high the payout should be. The loan can be used both for study and for training or further education of anyone who wants to invest in their education. This contrasts with the educational loan, which can only be used by pupils or students as a result of state funding.
It is important not to decide on any offer before taking a training loan, but to first calculate whether the investment really pays off. Meanwhile, many banks offer appropriate loans – so it is only logical that the terms of each loan offers are sometimes very different. Above all, therefore, compare the effective interest rate for the same loan amount and term.
How do you find the best offer for a training loan?
Not only branch and online banks but also savings banks are currently offering special training credits for young people and all other people who would like to finance further education. Basically, it is advisable to always perform a credit comparison as a first step, which works the easiest over the Internet. Not only is the comparison absolutely free, it also provides an excellent overview of all available offers on the market.
Take into account both the effective interest rate and other details, and check to see if there are any additional fees. Everything else can then be discussed individually with the bank. Once you have decided on an offer, you can be forwarded directly to the bank’s website and can request all the documents required for the application, which are subsequently examined.