It is not easy for trainees to get a loan. You are young and still have a lot of time to repay a loan. But they are still in training, earn little and cannot repay large amounts.
A trainee also has no fixed employment contract, it is not clear whether he will be taken on by the training company after completing the training and passing the exam. This means that neither the duration nor the amount of income can be planned for trainees, two major hurdles when it comes to a loan request.
Increase credit opportunities
Banks like to see apprentices in particular if the applicant improves their financial situation through a part-time job. This makes lending more realistic as the overall budget increases and there are better options for servicing the loan taken out. The trainee can influence the amount of the credit rate by choosing a longer term. As a result, the rate fits into a monthly budget and makes a loan affordable for trainees.
At the end of the apprenticeship, one of the employers will surely be able to confirm whether a transfer to a normal employment relationship will take place. Should an employer make such a commitment, the trainee will have no further problems with the desired loan for trainees. Extending the loan application to another borrower, such as a parent, increases the chances of getting a loan.
As an alternative to another borrower, the trainee can also name a guarantor. As soon as the bank has a joint and several guarantee for a loan for trainees, which in the event of the borrower not paying the debtor’s obligations, this will, subject to creditworthiness, approve the loan application.
If the trainee does not need a large sum, an overdraft facility may also be considered as a solution. Banks generally tolerate such overdrafts up to a maximum of two or three monthly salaries. Such overdraft facilities are always a very expensive proposition, but can be an acceptable solution for smaller sums.
If the trainee has his own vehicle that has already been paid for, the applicant can transfer the vehicle as security for a trainee loan. He can continue to use the vehicle. By depositing the vehicle letter with the bank, however, the bank has access to the vehicle if the borrower does not meet his payment obligations. In this case, ownership of the vehicle is transferred to the bank, which can use it to satisfy its outstanding credit claims.
Cheap trainee loans on the Internet
So there are certainly opportunities for trainees to get loans. However, this financing option should only be tackled carefully, if at all. With the low income during training, repayment can quickly become a problem.
If it is absolutely necessary to take out a trainee loan, it is important to compare the various conditions before concluding a contract. The Internet offers a variety of options for this via the corresponding comparison portals. These relate the effective interest rates to each other and take into account the additional costs for the individual banks. As a rule, loans for trainees are granted up to USD 10,000 with a maximum term of 120 months and an interest rate of 4.1% to 8.0%.