Most trainees have a low income, which is usually no more than a few hundred USD. For this reason, it is difficult to finance larger purchases with your own savings. If you are currently in training and want to fulfill a wish, you can take out a loan. However, you should not forget that a loan with an education is not readily available – you can only benefit from a cheap loan if you meet certain requirements.
What Are The Difficulties With Loan With Education?
In order to be able to take out a loan, you usually have to show a good credit rating and regular income. If you have no debt so far, the credit check will be relatively unproblematic. The situation is different with regard to income – although you receive a fixed training allowance every month, this is rather low. Large amounts of credit are therefore not possible during training. Small loans are also not available from every bank, as trainees pose a higher risk as borrowers.
After all, it may well be that the training is terminated prematurely or the final exam is not passed. In addition, it is not certain whether the trainee will be taken over by the company after the examination. All of these are major risk factors for banks that rely on loan repayment.
Under what conditions is a loan with training possible?
Even if borrowing is not easy during your apprenticeship, you shouldn’t give up prematurely. It is important that your income is sufficient to repay the loan and that you do not run any risk of over-indebtedness. The easiest way is of course small loans, where the monthly payment is not too high. Apart from that, it is advantageous if you can offer the bank collateral. Whether savings books, valuables or guarantors – there are many ways to secure the loan with training and to instill the trust of the banks.
If you don’t want to spend too much on borrowing, you should do a comparison in advance. Most online banks offer very cheap loans for trainees – long terms and low monthly rates are, of course, a matter of course. With the right bank and a realistic financial plan, the loan no longer has to remain an unfulfilled dream during training.