The time of teaching and education is the first big step towards independence for many young people. Earn the first money, maybe enjoy the first apartment and a hitherto unimaginable degree of freedom. But that also means that the apprentice or trainee also has to assume a great deal of responsibility.
With the financial freedom gained through the first salary, many young people also want to fulfill a few dreams. But usually a apprentice’s salary is not enough. So the question arises whether apprentices receive a loan during apprenticeship.
How trainees get credit during apprenticeship
Basically, it is possible to get a loan during the apprenticeship. With such a credit, however, a lot should be considered. For example, the lenders always look at the age of the borrower and the loan amount. In order to be able to take out a loan during apprenticeship, the borrower must be of legal age and thus fully capable of acting. Incidentally, teaching can be started before the age of 18. The higher the fixed income of the trainee, the higher the loan amount will be. That is, those who are in their first year of apprenticeship will probably only receive a smaller loan than an apprentice in their third year of apprenticeship.
Another basic requirement for a loan during apprenticeship is a positive private credit statement. This is regularly requested by lenders. If you already have a negative entry, you should take care that the entry is removed as soon as possible. For a premature cancellation of an entry, only the creditor itself can provide. It is important that under no circumstances should the complete private credit profile be deleted. Whoever does this will probably never get a loan again.
Increase opportunities with guarantees
The chances of a loan increase, for example, through a guarantee from the parents. The guarantors assume the interest and repayment installments in the event of a default by the borrower. Guarantors are included in the credit agreement and are generally welcome at any bank. The advantage of guarantors is that this can reduce the conditions for the loan during the apprenticeship, since the risk of payment default by guarantees significantly decreases. For small sums, apprentices also receive a credit during apprenticeship without the inclusion of guarantors in the loan agreement (eg, for the purchase of a smartphone or a laptop).
What should be considered in a loan during apprenticeship
With a loan not only comfortable consumer wishes can be met, but borrowing also means accepting responsibility. That is, through a loan, apprentices make commitments at an early age, which they must fulfill through their first earned money over a period of time. Therefore, a loan should never be taken lightly. Too fast it happens to young people in particular that they are in debt because they can no longer fulfill the obligations with their low apprenticeship salary.
Nevertheless, it can be quite important to take a loan during the apprenticeship, for example to finance the driver’s license or to buy the first small car for the commute. In such cases, however, young adults should first listen in their personal environment to see if there are no other options (such as an interest-free loan from grandparents or parents) before making their way to the bank.
Under no circumstances should apprentices live beyond their means. Therefore, it is important to learn the right way to handle money early. In addition, while most young adults receive reimbursement during training, only a few are now guaranteed to be recruited after training. If a loan is taken during the apprenticeship, the repayment – depending on the repayment term – continues even after the apprenticeship.
It may be that the duration of the loan during apprenticeship was set so that the liabilities could be settled upon completion of the apprenticeship. Apprentices should only opt for a longer duration if they also have a guaranteed job after completing training in order to be able to continue serving the installments. A credit during apprenticeship is in most cases a double-edged sword and above all young adults underestimate the consequences all too easily.
If the education costs money
There are many training occupations that do not belong to the state-funded training occupations and must therefore be completed at private training institutes. If such a training costs a lot of money, a credit during apprenticeship can be a very good alternative to finance. For such credit demands many banks provide special training loans on favorable terms. The repayment of such a loan usually begins after the end of the training with the start of a full-time job.