Credit in training – what makes it useful?

A training loan is only available from a few banks and savings banks. Banks often find the risk that the trainee is completing his apprenticeship, failing the exam or later not being accepted into his training company is simply too great. For this reason, additional prerequisites must always be met for a loan during training.

Requirements of the loan

Requirements

The training allowance is usually very low. Under no circumstances will it be so high that it exceeds the garnishment allowance applicable in the country. Therefore, the training allowance cannot serve as security for the loan. This applies even if the trainee has faultless credit information. A loan in training will therefore only be possible if a guarantor is found. This could be done by parents, for example.

Conditions for the loan

Conditions

A loan in training will usually be a small loan of between USD 1,000 and a maximum of USD 5,000. The term should be approximately 24 months. Under no circumstances is it advisable to extend the loan for longer than 36 months, since in this case the uncertainty would be too great for the future.
A loan in training is generally freely available to the borrower and can be used, for example, to finance your own home furnishings, a car or a driver’s license. In most cases, the loan in training is an installment loan that must be repaid in equal monthly installments.

Line of credit

Line of credit

The bank can also grant the trainee an overdraft facility on his checking account upon presentation of a certificate of earnings. However, the condition for this is that the training allowance is received on the relevant account and that there are no negative credit entries.The amount of the disposable is agreed individually between the trainee and his bank. Usually two or three months’ salary is usual. The money can be used at any time and then flexibly repaid. The repayment is also made through regular payments on the account. However, it is not advisable to keep the account in the debit permanently.
The trainee should always endeavor to compensate for their dispos at short notice.

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