Loan for trainees: guide for trainees

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The trainee salary is usually not sufficient for larger purchases. In this phase of life, however, there are often larger blocks of costs. If you move into your own apartment because of your job, you have to pay for moving and furnishing costs. If parents and relatives cannot help here, a loan for trainees can help. Getting this isn't always easy, but it's possible. The article will help you to improve your chances. In our article about Banks that lend easily you will find a top 10 tableau of banks and credit intermediaries that are particularly easy to grant loans to trainees and other people ("Yes banks").

Credit for trainees
Credit for trainees

Credit for trainees: the most important things in brief

  • Apprentices get a loan more easily with collateral:
    • as security can for the bank Guarantors, mortgages, or a loan agreement for two to serve
  • trial period: Are you out of your probationary period? Good. Have you even received a takeover offer? Excellent. This improves your chances significantly.
  • Regular salary: As an apprentice, you usually receive a regular salary.
  • Apprentices should have a good Schufa available to get a trainee loan. There can be negative entries for unpaid mobile phone bills, for example.
  • It is worth comparing the interest rates of several providers online.

Read more here: Apply for free SCHUFA information

Get credit as an apprentice

The most important concern of banks is to ensure that the loans granted are repaid. Apprentices have disadvantages here, as they may not be able to repay the loan due to low income. Due to the increased risk for the bank, it requires additional collateral in return. In order to get a loan anyway, a colorful bouquet of measures can help:

  • A home, car or rental income is additional security for the bank
  • Short terms are more likely to be approved. The loan term should not be longer than your contract term.
  • A second borrower significantly increases the chances. After all, he can repay the loan installments, which reduces the risk for the bank.
  • One residual debt insurance (RSV) covers the risk of non-payment and thus increases the chances.
  • One positive credit bureau information and a regular income of sufficient amount are other points that lead to the green light from the bank.
Credit for retirees: a bouquet of measures helps.
A bouquet of measures helps to get a loan as an apprentice.

Regular income

Banks love regular income. If the disposable income is more than 1,000 euros, this increases the chances significantly.

Positive credit bureau

Banks obtain credit bureau information before approving the loan. Even if a positive credit bureau is not absolutely necessary, a high credit bureau score noticeably improves the chances of a loan for trainees.

trial period

After the end of the probationary period and with a job offer in your pocket, your chances increase significantly.

TIP
TIP*: Offering additional collateral can also be used to lower the interest rate. The banks often accommodate borrowers here, especially if it is known that an active comparison has been made and alternative offers are available.

The advantages and disadvantages of loan collateral for trainees

Credit Security
✅Advantages✅
for borrowers

❌Cons❌
for borrowers
land charge / mortgage
Loan collateral car real estate
property
➕High loan-to-value ratio for hedging

automobile
➕Possibility if you don't have your own home
➕In the event of damage, the bank receives compensation from the insurance company.
property
➖ Costs for land charge registration
➖ Not possible if the property is already encumbered with a land charge higher than the lending value.
➖ The bank acquires the right to foreclose on the property if the loan installments are not paid.

automobile
- Fully comprehensive insurance required
➖ The value of the vehicle must be appraised by an expert.
➖ If the borrower defaults, the car becomes the property of the bank.
guarantor
Credit collateral guarantor
➕ The loan is often approved with a guarantor with a good credit rating.
➕ Your own children or good friends/relatives are suitable as guarantors
Your own children will inherit the debt anyway, resulting in no further disadvantage for you as a guarantor.
➖ the creditworthiness of the guarantor is also checked.
➖ the citizen is liable for the loan amount.
➖ Spouse cannot be a guarantor.
second applicant
Loan collateral co-applicant

➕ The loan is often approved with a second applicant with a good credit rating.
➕ Your own children or spouse are suitable as second applicants.
Your own children will inherit the debt anyway, which means that there is no further disadvantage for you as a second applicant.
➖ The creditworthiness of the second applicant is also checked.
➖ the second applicant is liable for the loan amount.
Residual debt insurance (RSV)
Loan collateral RSV
➕ In the event of death, heirs are not burdened by residual debts
➕ high acceptance by the banks
➖ Credit rates increase
pledge
Loan collateral jewelry
➕In addition to the mortgages on cars or real estate mentioned above, mortgages on other valuables such as jewelery or similar are also possible.➖ Little acceptance by credit institutes as special storage is required.
➖ High effort for the bank.
savings balance
Credit collateral Savings balance
➕ Liquid security with good bank acceptance
➕ Savings are recognized as security at 90 - 100 %
➖ Credit may only be partially recognized.
➖ As a rule, the lack of savings is the reason for the loan application
Wage and salary
Credit collateral Savings balance
➕ Wages and salaries from permanent employment are one of the best forms of security
➕ Also recognized by foreign banks
➖ The self-employed find it more difficult to provide proof of salary and usually have to prove 2-3 years of salary
securities
Loan collateral Securities
➕ Liquid security with good bank acceptance
➕ Securities can be pledged up to 90 % depending on the type
➕ Favorable conditions (see Securities Loan Comparison)
➖ Dynamic calculation
➖ Margin calls

The loan security land charge and mortgage

A land charge or mortgage is security with a real, material value. For this purpose, the land charge is entered in the land register of the property. If the borrower defaults on payment, the bank has the right to put the property into foreclosure. The bank is entitled to the registered land charge regardless of the sale price. So if the property is sold for more than the remaining debt on the loan, the excess goes to the borrower. However, if the remaining debt cannot be recovered at the auction, the bank is still entitled to reclaim the land charge.

Mortgages and land charges are similar. The terms are often used interchangeably. There is the following difference:

  • land charge: A land charge remains in the land register even after the loan has been repaid. Their value does not change. In addition, it must be actively deleted.
  • mortgage: The value of the mortgage decreases as it is repaid. In addition, the mortgage expires automatically once the loan has been repaid in full.

The loan security: guarantee

The guarantee by a guarantor with a good credit rating represents a high level of security for the bank. Therefore, a loan application with a solvent guarantor is often approved. Since the children or other heirs will inherit the debt anyway, it can make sense to name them as guarantors.

TIP
TIP*: Self-enforceable guarantee. With this guarantee, the guarantor is liable as if he were a debtor himself. Therefore, this form of guarantee represents a very high level of security for the bank. In return, the risk for the guarantor is also higher. However, it is possible to distribute the amount of the guarantee to several people (e.g. your own children). In this case, the guarantors are only liable up to the proportionate amount.

Acquaintances, relatives or business partners are also suitable as guarantors. On the other hand, spouses are not accepted due to the close emotional bond with the applicant.

Important: The creditworthiness of the guarantor must be right. This is checked by the banks on the basis of documents to be submitted, such as proof of income. However, with a regular medium-level income and a positive credit bureau, the chances of good credit conditions are excellent. Also important to know: If children or heirs act as guarantors, they are liable for it. You can then no longer turn down the debt, as would have been possible without a guarantee.

Loan for trainees without a guarantor

Even without a guarantor, a loan can be obtained as a trainee. For example, you can use your parents as co-applicants insert. A good Schufa score (read more here: Apply for free SCHUFA information ) and a takeover offer or the end of the probationary period can greatly improve your chances of getting a loan without a guarantor as a trainee.

Parents are suitable as co-applicants for a loan for trainees

The situation here is similar to that of a guarantor: a second or co-applicant with good creditworthiness represents a high level of security for the bank. That is why a loan application with a solvent co-applicant is often approved. In contrast to the guarantee, a co-applicant cannot limit liability , but is always liable for the full amount. Another difference to the guarantor is that a co-applicant can also be the spouse.

In addition to your own parents, acquaintances, relatives, possibly children – and – spouses are also suitable as co-applicants.

Important: The creditworthiness of the co-applicant must be correct. This is checked by the banks on the basis of documents to be submitted, such as proof of income. However, with a regular medium-level income and a positive credit bureau, the chances of good credit conditions are excellent. Also important to know: If parents appear as co-applicants, they are liable for this.

Liens on valuables are rather unsuitable for credit for trainees

A lien on movable property such as jewellery, art or valuable antiques can also serve as security. In order to serve as collateral, these items must:

  • Possess adequate liquidity, i.e. easy to sell.
  • Be easy to handle, i.e. as compact as possible and without special storage conditions.

A prerequisite for the right of lien is that the item is handed over to the bank. Only then does the creditor have a legal claim. In addition, there must be agreement on the value when the valuable is handed over. Since the lien creates a lot of work for the bank overall, This type of security is rarely used.

Residual debt insurance for the loan for trainees

One residual debt insurance is an insurance that pays loan installments in the event of death, illness or unemployment. The RSV charges fees for this service, which often have a noticeable effect on the overall costs.

Liquid loan collateral: savings and deposits

Savings and share accounts can also be pledged and used as security. A loan is taken out with an existing credit balance. This is useful when the borrower receives more interest on the balance than they have to pay on the loan. In doing so Savings on giro, day or time deposit accounts often to 100 % accepted. Securities such as shares, ETFs or bonds, on the other hand, are only partially recognized as they are subject to price fluctuations. There is at domestic defaults a loan-to-value ratio of 60 % of the current market value. In the case of foreign shares, on the other hand, only 40 % of the current market value can often be traded be encumbered.

Important: compare loan offers!

With the three adjusting screws term, loan amount and collateral, the offer can be tailored precisely to the specific application.

The comparison of several loan offers usually brings a significant interest rate advantage! When comparing several offers, it is very important not to be put under time pressure. After all, taking out a loan often involves a lot of money. This can be done with the three adjusting screws Term, loan amount and collateral tailor the offer for the specific application. Try it out in the comparison calculator below!

Apply for a loan for trainees – how does it work?

Applying for an installment loan is easy. Therefore, even people with less good computer skills can follow the process. Enter the following data into the calculator:

  1. the desired net loan amount, e.g. "5,000 euros"
  2. the desired term, e.g. "60 months"
  3. the intended purpose, eg "furniture".

Then click on the button "Calculate installment loan". You can now choose a suitable provider from 20. Particular attention should be paid to the monthly loan installment. After all, this must be covered by freely disposable income. Furthermore, the gray text below the respective offer is important, because here interested parties receive information about the interest rates that 2 out of 3 borrowers actually receive. Visit the bank's website for a binding offer. To do this, click on the field "to the provider„.

Once you have decided on a suitable bank, you need the following documents to take out a loan:

  • Identity card or passport and registration certificate
  • Your last three pay slips
  • If there is further income from capital assets or rental income, appropriate evidence of this
  • Evidence of your monthly expenses such as bank statements. This allows the bank to determine your freely available funds using the formula 'sum of income' – 'sum of expenses'
  • If the loan is taken out with a guarantor or co-applicant, they must also have ID and proof of disposable income ready.

When applying for a loan online, you must identify yourself. There are two ways to do this: The easiest and fastest way to determine personal details is via the built-in video camera of your smartphone or laptop. The procedure is called Videoident. Alternatively, you can be identified with a PostIdent coupon in a post office of your choice. For both procedures you need a valid ID document. It should also be noted that depending on the bank, both methods are not always available.

After successful identification, the loan amount will be paid out to the specified account within a few days.

Helpful links – further information

>> The big checking account comparison << Click here
>> Test winner accounts awarded in 7 categories << How do you like the account in category 3?
>> May it be a few more interest? << To the overnight money comparison
>> Depots for every type of investment << To compare depots
>> Robo advisor comparison << Invest smartly with minimal effort!
>> Apply for Schufa information free of charge << How do I do that?

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*Image source exclamation mark “Pro-Tip”: Pixabay.com. User: Maklay62. CCO Creative Commons License

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