A loan for training can distinguish between two cases: either a loan during vocational training or academic training. The latter would affect the well-known student or student loan. Both apprentices and students find themselves in a situation where it can be quite difficult to get a loan. However, both offer even one or the other possibility of financing despite weak creditworthiness.
Loan for apprentices
Apprentices are less fortunate than students in terms of credit rating, because they have a wage or salary that is a regular income, albeit of a limited amount. However, it is important when borrowing that you are no longer in the probation period, because only then is the regular income recognized as such.
Nonetheless, finding a loan for or during training is not one of the easiest tasks. The regular income is often not high enough to absorb a debt service, ie interest and principal payments. It is best to refer to the help of friends and relatives in such a case, if in this circle someone agrees to co-applicant or guarantor.
A co-applicant is involved in the contract from the outset and must ensure that the credit obligations are fully met. A trainee would be most likely to question their own parents or grandparents. The situation is similar with a guarantor. In contrast to the co-applicant, the guarantor only has to provide support if the actual applicant can not or no longer wants to handle the debt service. However, both co-applicants and guarantors need the collateral required by the bank: a regular income in sufficient amount and, if possible, no negative credit bureau entry.
Loan for the education of students
Since its first introduction, a separate market has been established for student loans. Although the number of banks that offer such a loan is still manageable, but a conscientious comparison is urgently required. First of all, it should be made clear what should be financed at all. For some borrowers want to finance only the tuition by credit, for others, this forms the total monthly income.
A student loan should also be as flexible as possible. This is above all tied to the possibility of being able to vary the monthly payout amount according to one’s own income situation, without having to accept any major bureaucracy.
Another important factor is the interest rate. Again, as with any other loan, the effective interest rates should be compared to get an idea of how expensive such a student loan will eventually become as a loan for education. Furthermore, tied interest rates are advantageous because the maturities are often very long.
These are a loan for training in three phases. The payout phase, in which the student monthly amounts are transferred, is logically at the beginning. This can, depending on the conditions offered, be extended several times during the term. However, this is possible only until a certain maximum amount has been reached. The second phase is called the qualifying phase.
No money flows here, neither to the bank nor to the borrower. This time is used by the student to establish themselves on the job market or to find a job. The payment of the loan then takes place in the repayment phase. Here, very small redemption amounts can be agreed for the beginning. The duration of each phase depends on the final amount of the loan and the provider who awards the loan for training.