Credit for apprentices and trainees

Apprentices and young professionals often do not have much money left to fulfill their personal wishes. Some apprentices may wish to take out a loan for apprentices. A loan for apprentices is fundamentally not impossible. However, apprentices and young professionals are not necessarily preferred bank borrowers. Most banks make sure when granting loans that the prospect can meet certain requirements. This includes, for example, a regular income. Although apprentices mostly have a regular income, this is often too low to be able to conveniently pay a loan installment. In addition, many banks only start lending from a certain minimum income. If you still want to take out a loan for apprentices, you should consider a few things.

Where can apprentices get a loan?

Where can apprentices get a loan?

If young professionals want to take out a loan for apprentices, this is usually not possible with the various online banks. The online banks grant their loans using a standardized process. These standards usually include a minimum income that apprentices can rarely meet. Anyone who is in the last year of training and already receives a higher training salary can also try an online bank. At many banks, the minimum income for a loan is around 1,000 USD. Those who earn significantly less as an apprentice and still want to take out a loan for apprentices can contact a branch bank on site with this request.

Some banks are willing to grant an apprentice a short-term small loan. The short term is intended to ensure that the loan can be repaid even during the training period. The bank cannot assume that the apprentice will be taken on after his apprenticeship or will find employment immediately. It is therefore a risk for the bank to grant a loan that extends beyond the training period.

Another option is to offer the bank collateral. Apprentices who own a property can offer this to the bank as security. However, only a few young professionals have their own property, which is why this option is out of the question for many. Alternatively, apprentices can use a guarantor. For example, a parent can act as a surety. The guarantor signs the loan agreement with the apprentice and steps in if the apprentice can no longer pay the installments. Of course, only a person can be used as a guarantor who has a sufficient income and a good credit rating. The guarantor’s income situation is carefully checked to ensure that he can also pay the installments in an emergency.

Requirements for a loan

Requirements for a loan

Anyone wishing to take out a loan for apprentices must be able to show a sufficient amount of regular income. In addition, apprentices who want to take out a loan must be at least 18 years old and reside in Germany. German banks work with private credit checker and obtain private credit checker information about their borrowers. For this reason, the private credit checker information should not contain any negative entries.

If you want to take out a loan for apprentices, you should only do this in an emergency. A loan is only recommended to apprentices if they are to be invested in important things such as training. Young people should not take out a loan for a vacation, a television or a cell phone. The risk of over-indebtedness is simply too high.

 

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