Credit During Training.
The financial framework is often limited and therefore very limited, especially during the training. But when larger purchases have to be made, such as a car, a new computer or the like, this usually goes beyond the financially available framework. To solve this situation, a loan is the best way. The money you need will be provided immediately and paid back in installments.
Can I get a loan as an apprentice?
Contrary to popular belief, it is not impossible to get a student loan. Every trainee can meet the requirements for a loan during the training period. First of all, it is important to have a valid employment contract from which the bank can see how long the training will continue. In order to apply for a loan during your training, you have to collect all the documents proving the monthly income you have to present to the bank. This also includes income such as child benefit or an orphan’s pension.
If you have these documents together, you should think carefully about how much money you need for what and think about how much you can spend monthly to repay the loan by installments before the consultation. It is of no use here if you set the monthly amount too high, otherwise it can quickly lead to complications.
The loan application
With the documents on the income and the identity card, you then go to a consultation with the bank to apply for the loan. If you do not contact your own bank, where you also have an account, but a foreign one, you should always have the bank statements of at least the last three months with you.
In this consultation, the bank employee is then given his or her loan request and the bank employee then checks with the applicant the financial requirements for a loan during their training. The most important point here is that the bank will almost always adjust the installment payment to the training contract, i.e. if the trainee is still in training for 24 months according to the employment contract, the repayment plan will be limited to a maximum of 24 months. This repayment plan, together with what you can pay monthly for the installment, shows how high the loan can be for the trainee.
The applicant’s creditworthiness
It goes without saying that every bank and every credit institution will check the creditworthiness of the applicant, in this case the trainee. This is done by asking Credit Bureau or a similar institute. If the creditworthiness is not sufficient due to perhaps previous problems with payments, there is still the option of using a guarantor to make the loan application. The guarantor does not have to be related to the applicant. Of course, this must have an adequate credit rating. He will be asked to repay the loan if the applicant no longer pays the installments on time.