When you talk about an apprenticeship loan, you mean a loan that is used to finance an apprenticeship or further education or university degree. The training loan has nothing to do with government grants such as Credit Aid etc. The banks grant the training loan regardless of parental income and assets.
The loan is independent of parents and can only be used by schoolchildren. The training loan has to be paid back 100%, that’s different with the Credit Aid. You can design your training loan very flexibly and individually, which is a very big advantage that also makes you think about this type of loan.
You must find out more information about the requirements and modalities with the bank or credit institution.
Most people opt for a training loan because they have high expenses themselves and other financing options are available. Most budding pilots take advantage of the training loan because the training course is very expensive. The credit also makes sense for university studies.
Nowadays, paid training and additional qualifications have to be paid for yourself. Since people can use the training and further education opportunities and cannot do it only because of the money, it is advisable to find out from the bank.
What if Credit Aid is not enough?
There are many providers of such training credits on the Internet. Since tuition has made studying expensive and training and further education also more expensive, this can lead to financial bottlenecks. Applying for Credit Aid can be a solution, but if the maximum rate is not sufficient to pay the training costs or you are not entitled to Credit Aid, you will need to raise money elsewhere.
A training loan is therefore so lucrative that you have cheaper interest rates on repayment than on normal loans. Another advantage is that the repayment can only be started long after completing the training. Unlike with state loans, there is no fixed loan amount with such a training loan.
The loan amount depends on the respective bank. Before you finally decide on a training loan, you have to carry out a cost-benefit calculation very precisely.
You have to compare the different loan terms in any case, but the loan amount and the term must be the same. If the test is positive, you can safely apply for a loan at the bank. It is possible that the banks require collateral. This can be, for example, a property or life insurance.
A surety is another option, which means that the guarantor insures that if the borrower has payment difficulties, he will hold his head and pay his debts.
Credit as an apprentice for other purposes
Borrowing money from a bank, i.e. taking out a loan, can sometimes be useful or necessary. As the name suggests, the instant loan is the bank’s immediate promise to give the customer a loan. The loan is usually paid out very quickly to the customer account once all the required documents have been submitted.
Of course, it is also possible for trainees to apply for and take out an instant loan.
Nowadays, you can take out an instant loan in a variety of ways, both via the Internet, in a bank branch or, for example, directly from a dealer.
In order to be able to negotiate successfully, the principle also applies to the immediate loan for the trainee – well informed, which saves hard cash, for example through a low interest rate.
Degree on the Internet?
The differences here are sometimes very serious. Loan offers from banks on the Internet are often much more attractive than if you did the same in a bank branch. If the trainee is planning to purchase a special item, such as a car, a comparison between a house bank and a car dealer is also worthwhile. The advantage of a car dealer is usually a lower interest rate than that of the bank.
If the trainee takes out the loan from the house bank, he appears at the car dealer as a so-called “cash payer” and can certainly hope for a discount from the car dealer or request it if necessary.
Good preparation for discussions by the trainee is also essential for taking out an instant loan. This is recommended in order to be able to negotiate with the bank at eye level, if possible, in order to achieve the best possible credit framework.
In the credit discussion, the bank will first use an income statement to determine whether and how high a possible monthly charge with a loan installment is.
In advance of this, the trainee should already note his regular income and, of course, regular expenses such as rent, electricity, gas, etc.
What information and documents
Other important information that the bank needs is information on assets – if any – and on other obligations, such as monthly installment payments for insurance and building society contracts.
The trainee must also provide this information to the bank. The bank usually requests 3 wage certificates, unless the wages are already in an account with the bank where the loan is applied for.
Regarding existing liabilities and other financial conspicuities, the bank will start an inquiry with credit bureau, which must always be approved by the borrower through his signature.
Credit clearly possible despite training
In order to be successful in the interest rate negotiations, the trainee should keep in mind that the bank advisor does have room to negotiate the interest rate. So it’s worth asking. Options for a free special repayment or early loan repayment or the option of an installment break are also important.
However, credit protection recommended by the bank for cases such as illness and unemployment should be viewed critically, since these are often expensive and unnecessarily raise the interest rate.
If these points are taken into account, nothing should stand in the way of the trainee taking out a cheap instant loan.