Financing for Apprentices
Financing for apprentices is undertaken by almost every bank. Banks have adapted to trainees and know that the educational salary is not very high. So there are numerous offers that are tailored to trainees. However, to be eligible for funding, the applicant must meet the bank’s terms and conditions. The credit default risk should be kept as low as possible, so there are strict guidelines.
What does the trainee have to consider?
In order to provide funding for trainees, conditions must be met. Thus, the applicant should be of age, because in Germany is usually only then awarded a financing. If this is not the case, the parents can help to improve the credit rating and sign the contract. This way, the bank can be sure that the financing is covered by the parents’ salary. The prerequisite here is that the parents have an attachable income. The trainee must agree that the bank is examining the private credit.
Banks cooperate with private credit on financing so that they can verify the applicant’s creditworthiness. Here mobile phone contracts, credits and payment delays are registered. The trainee may no longer be in the probationary period if he wants to take out a financing for trainees.
In the first three months of training is the probationary period. During this time, the employer as well as the trainee can decide whether he fits into the company. The employment relationship can end at any time, so that there is an increased credit default risk here.
Conditions of financing
Banks pay close attention to apprentices, because these are the really good customers later on. So they do not want the applicant to be too indebted. The funding therefore has a duration that is as long as the training period. So in this period, usually three years, the funding must be repaid. The bank is giving a small loan to young people. The sum depends on the income and how high the installment payments will be.
The interest rates are quite low, so that the financing for the trainee is not very expensive. The installments are deducted monthly from the account, so you can always expect a fixed cost. Once the application has been approved, the borrower can expect to find the amount in the account within one week.