Trainees in particular often need start-up capital, since in most cases they want to finance their livelihood, their own apartment or a car from the start of their working life. But banks are usually very reluctant to lend to apprentices. But it is not hopeless, because a loan for trainees is available under certain conditions.
The branch banks usually only approve a loan for trainees that serves a fixed purpose, such as for the purchase of a car or motorcycle. Here, the crediting bank requests the vehicle registration certificate as security. However, the loan amount is often limited to 4,000 dollars and is limited to the duration of the training period.
Online banks, on the other hand, create special offers for loans that have a free use. Small loans of up to 2,000 dollars are often possible without special collateral or guarantees. Proof of income and a training contract are sufficient for submission. Credit inquiries that go beyond the security-free amount mostly require a guarantor.
Another alternative is training credits. These are considered financial support for living expenses if no other social benefits or payments are expected from the parents. This form of credit is only for trainees, students or paid training courses.
State-sponsored educational loans offer a credit line of USD 7,200, while independent banks do not set a fixed amount. The advantage of a training loan is the low interest rate and the option to repay the installment only after completing the training. It is advisable to compare the individual offers here, since the interest rates and conditions vary considerably depending on the provider. Interest rates of three percent or more can be expected.
Solutions for higher loan amounts than trainees
Anyone who wants to have their application approved as a trainee with a higher loan amount or longer terms that extend beyond the duration of the training should either have sufficient security or be able to provide a suitable guarantor. Like the borrower, the guarantor also has to undergo a credit check.
Branch banks always check credit for possible negative entries by both the loan applicant and the guarantor. If there are no concerns on the part of the banks, there is nothing standing in the way of a loan. However, it must be borne in mind that the guarantor is liable for the repayment of the loan with his entire assets if the trainee fails to meet the monthly repayments on time.
The trainees who already have a comprehensive employment contract have the advantage. If the trainee can prove to the lending institute that an employment relationship will continue after the training period and that future income is documented, the trainee has a good chance of getting a higher loan amount approved, which will be repaid over the duration of the training with longer terms.
Credit for trainees despite without credit registration
In this case, too, the loan for trainees is quite possible. Providers advertise with small loans without credit query. There, the interest rates range from 4.9 percent and are thus much higher than the cheapest offer of regular loans or training loans. Here it is urgently advisable to compare the different providers. Otherwise, a loan for trainees with credit registration can also only be enforced by a solvent guarantor without credit registration.