Reasons for a tense financial situation of trainees
Many apprentices who are in vocational training want to take out a loan. This can have very different reasons. While many of the young people actually budget for the loan only to buy expensive branded clothing or to book expensive travel, other trainees need the money to set up their first home, get a driver’s license, or pay for a paid education.
In particular, the last three points are usually directly related to training: trainees often have to start training in another region where they have no friends or family members. Also, in the context of many application procedures, even for applications for apprenticeship places, proof of an existing driving license is required.
As the purchase of a driver’s license in Germany today usually costs between 1,000 and 2,000 euros, many young people are unable to pay for them only by means of school or summer jobs.
Loans for apprentices – The problems
Especially if parents or siblings can not or do not want to help financially, young apprentices ask for loans from banks. However, since the monthly income in an apprenticeship is very low and the trainees are only in the probation period for three to six months after the start of the apprenticeship training, many banks refuse loan requests from trainees from the outset.
In addition, young people generally can not prove that they are looking for financial security, such as their own real estate, vehicles, jewelry or assets, in the checking or savings account.
The help of the parents
Although the parents themselves can not or do not want to help the trainee financially, they still have the opportunity to influence the credit decision of the bank in a positive way : parents can be included in the loan agreement and vouch for their offspring.
If the trainee does not repay his liabilities or only unreliable, the parents have to step in and pay for the debts of the child. In particular, if the parents, or at least one parent, can demonstrate a regular monthly income or have collateral, banks tend to lend to the young trainees, despite their tense financial situation. This is also the reason that the banks are of course interested in customer loyalty and satisfied customers.
Good to know:
Given that young people in vocational training can be expected to work regularly in the future, this group of people is particularly attractive to the bank, and they enjoy being part of it when they start their careers meets far.
The educational loan
Trainees who have been eligible for training under the Bafög Regulation in recent years can also receive a reduced education loan for the duration of their training.
Requirements for taking out a loan
In order to take out a loan, young trainees in Germany must be at least 18 years old and have a permanent residence in Germany. If there is already a negative credit bureau entry, this usually leads to a rejection of the loan request by the banks.
In addition, banks almost always require proof of regular monthly income. As a rule, the most recent salary statements must be submitted. The training allowance is accepted as salary.
Especially apprentices, who still live at home and do not have to pay rent, usually get a problem without a problem, despite the low salary, because they are not confronted with enormous financial burdens due to the non-necessary rent payments.
Bafög payments and child benefits are generally not accepted as a monthly income.
Before the request
Before submitting an application, trainees should get a detailed plan of their monthly income and expenditure and analyze specifically where there is still potential for savings. Often, in a somewhat more modest way of life, no credit whatsoever has to be taken if it is only to be requested for a small loan amount.
Parents can often be of great help in planning monthly income and expenditure, as they have the appropriate experience based on their age.
Cheap loans for trainees by co-applicants
Trainees in particular, who do not just take out their loans but do so with a so-called “co-applicants”, often benefit from particularly attractive contract terms. Not infrequently, the inclusion of parents as co-applicants in the loan can cause the trainee to get a loan at all.
Parents should be able to prove that they have a regular monthly income or collateral that can be proven in writing.
Even life partners or siblings are often included in the loan agreements as co-applicants. As long as they have a regular income or collateral, this too is not a problem.
Many banks require approval for a trainee loan to prove that they have a regular monthly income and are no longer in the probationary period. Some banks even require employment to last for at least six months, even if the probationary period was initially limited to three months or spontaneously reduced due to good performance.
This is often particularly problematic, as apprentices primarily in the initial phase of their training set up their own apartment, pay a security deposit or make a driver’s license.
Proof of the takeover after the training
In addition, many banks require a positive application that the apprentice can already prove in writing that he / she will be taken on after the apprenticeship.
On the other hand, many companies find it very difficult to issue the corresponding proof, because in the long term the economic situation of the company is difficult to assess in advance and it is not even certain that the trainee will even pass his final examinations.
The bank always assumes that, if it is not possible to present proof of the transfer, the apprentice will be unemployed after completing his training and, as a result, will have problems reliably repaying the loan and installments.
Trainees who can present the required proof generally have a better chance of obtaining a loan even during their training. The employment contract in this case should not be limited in time, as in such a case it is also assumed that a later unemployment will take place.
The search for a provider on the Internet
Many credit companies advertise very offensively on the Internet by giving low-cost and fair loans to apprentices. Trainees can simply enter the desired loan amount and the planned term in an input mask for the search. Fast and often even without taking into account a negative credit bureau score, possible loan offers are displayed to the trainee. In the selection of the trainee should always be particularly good for the companies and its conditions research.
Often, credit companies are “black sheep” who want to take advantage of the distress situation of their creditors and demand completely overdrawn interest. Since trainees are usually still very young and have little experience in financial matters, they should necessarily before the mandatory acceptance of a loan to seek the help and advice of a somewhat older and experienced in such matters person.