Which requirements have to be met
Credit is credit and, by law, the borrower must be of legal age to borrow. In addition to the age of majority, creditworthiness and regular income are among the important conditions that must be met by the borrower. With a negative private credit bureau entry, apprentices do not have good cards in credit questions. The requirements for income vary depending on the loan offer.
For example, some providers only grant online credit to trainees if the apprenticeship has existed for several months, usually beyond the probationary period, others are satisfied with the fact that an apprenticeship contract exists and other providers explicitly set the minimum income level. In the event of creditworthiness problems as well as insufficient proof of income, collateral, guarantors or co-applicants can increase the chances of the loan approval.
Apprentice loan with third party guarantee
If one of the important basic conditions for lending (secure income, income level, takeover guarantee, creditworthiness) does not exist, a guarantor can tip the scales. The guarantor is a person of full age who is legally competent in terms of jurisdiction. This can be a legal guardian, but also a relative or another person with whom the borrower has a special, trusting relationship. The guarantor undertakes, in the event that the borrower is unable or unable to repay his liabilities on time, to perform the service to the bank.
Specific trainee loans are characterized by tailored conditions. Direct banks in particular address various target groups with loan offers, which means that the terms and conditions for the special loan are based on the individual requirements of the target group. This includes the loan for trainees, which is also offered under this name. The conditions are tailored to the target group. The loan interest is much lower than, for example, a loan for employees or employees, the loan amount ranges between 2,000 and 5,000 USD and the term is limited to a few years.
Online loan portals for personal credit for personal credit
Online loan agencies, where private lenders and borrowers meet, also create an incentive for trainee online loans. Portals like Auxmoney or Lendico are known and trustworthy. Loans with creditworthiness problems are also possible in principle, although it is ultimately up to private investors whether they realize a loan application or not.
The loan interest is determined according to the creditworthiness of the loan seeker. The human component counts very strongly on these credit marketplaces, which is why the online loan for apprentices is often also less bureaucratic and easier to obtain. The understanding of difficult life situations and the interest in help have a higher priority than the purely economic aspect.
Short-term credit / smallcredit for trainees
Smallcredit is characterized by its small loan amount, which can vary from 200 to 1,000 USD. They are also known as short-term loans if the repayment takes place within a few weeks or months. However, this is primarily an interim financing or a short-term bridging, ie the borrower should really be able to repay the money quickly.
Tips to find the right online loan for apprentices
The low income and the uncertainty regarding a permanent position after the training and thus regular income should not be lost sight of with the online loan for trainees. Untrustworthy providers who advertise with large amounts of credit or loans with poor credit ratings only have their own financial interests in view and can be a way into the debt trap. So here are some tips on what loan seekers should look for in online loan comparison:
- Favorable loan interest
- Comparison of borrowing rate and effective annual interest rate
- Total cost of the loan for trainees
- Residual debt insurance yes / no
- Short terms
- Manageable loan amounts (small loan)