In contrast to the conventional installment loan, the training loan is often paid out over a longer period of time. Each month, the borrower receives money, which he then receives as a substitute for the current shortfall or low income. In addition, the training credit can only apply for who is actually in a school, university or vocational training or further education.
What do I have to offer the bank to receive a training loan?
The conditions for obtaining a car loan http://www.uppersevier.net/vehicle-title-loan-your-vehicle-will-be-the-key-for-your are comparatively low. It is important to be able to prove that you are really in an apprenticeship. For this purpose, the bank may, for example, submit registration certificates from the university or the training contract. If the loan is intended to finance expensive acquisition costs for training materials, a corresponding receipt must also be submitted for this purpose.
What are the repayment terms generally speaking for the training loan?
In general, the repayment of a training loan usually takes place according to the following scheme:
- The apprentice receives monthly loan repayments from the bank over a longer period. Often, the payout amount can be flexibly adjusted to use as little credit as necessary.
- After the last payout, a repayment break is agreed with the bank. After all, it is not always possible for the trainee to be taken on directly and, for example, only have to do an internship before he enters his professional life.
- After expiry of the grace period, the loan is then repaid like a conventional loan. Monthly, a fixed annuity flows to the bank, which contains interest and principal payments.
Are there alternatives to the training loan?
The aim of the Federal Government is that every citizen can finance a vocational training or a degree. Even if your own parents may not be able to raise enough money for this. For this reason, the first alternative to the training loan is the state BAföG. This is available to students as well as students, trainees, and prospective masters. Although part of the BAföG is also paid out as a loan, half of the debt is issued upon successful completion of the training.
Can personal loans also be used as training loans?
Theoretically, it is possible to use personal loans for education. However, this is not recommended. Because the trainee has little or no income, hardly any bank will award a regular loan. Because the current income serves as the number one loan security. An exception to this is only made by banks when the described training loan is taken up.
What are the advantages and disadvantages of a training loan?
The biggest advantage of the training loan is undoubtedly its low catalog of requirements. Even without a guarantee or personal income, many banks grant the loan. However, the loan can be relatively expensive, because an interest already accrues during the monthly payout phase and in the subsequent repayment-free phase. In addition, apprentices start with debts in their professional life, so that the loan should only be taken if the training cannot be financed otherwise.