In addition, the probationary period must be completed before the loan is taken and the apprentice must be in training for at least six months. Before accepting a loan for apprentices, you should inform yourself about the conditions at the local banks and on the internet. Apprentices applying for a co-applicant loan or with a guarantor can increase their chances of obtaining a loan and improve their conditions. You want to take a loan as an apprentice? Installment credits of the Bank for apprentices are usually provided without interest and allow the apprentice to take out a loan.
Lending and financial support for apprenticeship
Trainees often find it difficult to obtain loans from banks. Your income is not high enough to pay off. However, should the vehicle require urgent repair, or should other costs not be paid out of the reserves, a loan may be required. How can trainees work in this case and what financial support is available to them?
Credit institutions are even more checking whether they comply with the conditions for granting loans. Minor trainees may not receive any funding for legal reasons. Here, both the parent or legal guardian must have consented to the conclusion of the contract. Therefore, the signature of the parent or guardian alone is not enough. At first glance, this sounds like unnecessary bureaucracy to protect teens and their families.
Aim is to protect the trainees against enormous financial problems and over-indebtedness
The aim is to protect the trainees against enormous financial problems and over-indebtedness during the training period and in the initial phase of their professional life. Often, they can not fully meet the high demands that a house bank places on the creditworthiness of the debtor. This includes an ongoing remuneration from a fixed employment relationship.
Even if the juvenile borrower has such benefits, he may not borrow. In addition, the probation period must have expired before the loan and the trainee must have been in training for six months already. This also applies to every other borrower in the Federal Republic. Thus, the demands on the juvenile borrower are quite high.
They are hardly met by many trainees and therefore not recognized. Ultimately, the credit institutions certify a bad credit rating for a young person. Thus, the repayment of the loan is not secured in the long term. However, there are several ways to increase the chance of obtaining a loan. The main problem for apprentices is the proof of a temporary employment relationship.
Important stage of his professional life
A apprentice often does not know what to do after this important stage of his professional life. The training company is not obliged to hire the skilled worker after the training. In case of confusion, what happens after the final exam, the house bank often refuses to grant a loan.
In this case, a regular salary after the training is not guaranteed. The repayment of the loan is therefore not guaranteed. The trainee can help by submitting a written certificate from the training company about his attitude. This gives the young borrower and the house bank the necessary early protection to ensure a long-term return.
If this certificate is not issued by the client, the loan should be sufficient to be repaid without risk during the training period. This will increase your chances of getting a license. Of course, low ancillary acquisition costs and additional income can be used to increase creditworthiness and generate loans.
A short-term and low loan amount are further key parameters for lending. If there is only a short-term payment obligation or should it be a manageable amount, the credit institutions are able to approve the loan application. With a maximum duration of 12 years or a financing amount of up to 5,000 EUR, the trainee often receives relatively cheap bonds.
Increases his creditworthiness
Also, who has provided a guarantor or competitor for his loan, increases his creditworthiness. The creditworthiness of the partner must, of course, be ensured by a regular salary and impeccable work of the company. In the case of a directly enforceable guarantee, the guarantor is responsible for the repayment of the loan to the house bank if the trainee is in arrears with his provision of services.
This provides assurance for the principal bank that the payment obligations are reliably met. If apprentices can not live with their families during the apprenticeship period, a training allowance (BAB) is possible. It is interest-free and increases the monthly income. A qualification under the Vocational Training Act may be available in vocational training if the apprentice is under the age of 30 and is attending a vocational school, a technical college, a technical college or a vocational school.