Loan for students: With and without KFW funding

5
(1)

Calculate the loan installment for your student loan

Student loan: what are the options for taking out a loan as a student


1. BAföG ✅


2. Student loan from KFW ✅


3. Installment credit from banks or privately ✅




Credit as a student with no income?


at ferratum* you can get a loan as a student with no income. Cost: around 5 euros for a 600-euro credit for 30 days.

1. Possibility for a loan as a student without income: For short-term money needs, you can switch to mini-loans with a maximum term of 62 days. In the guide Loan without proof of income I have described that you ferratum* you can get a loan even without proof of income. Without an express option, the Ferratum loan will cost you about 5 euros for 30 days.



For one longer-term credit did you through one Second applicants or guarantors but also without an income of 600 euros the possibility to get a loan for your studies. Another way to get a student loan with no income is collateral to offer. With a credit broker such as smava* you can quickly and without further obligations find out what options you have for one Credit as a student with no income stand open. The purpose of the student loan is "free use".



✅Loan for students without SCHUFA or despite negative SCHUFA:



for Loans up to 1000 euros should you as a student with a negative SCHUFA mini loan Select. Recommended providers for mini loans are ferratum*, cashper* or Vexcash*.



for Amounts above 1000 euros are credit intermediaries like SMAVA* a realistic way to get a student loan despite a negative SCHUFA entry.



As is the best way to finance a degree? If the BAföG is not enough and the parents cannot cover the costs either, another source of money must be found. In addition to a part-time job or a scholarship, there is also a credit for students in question. In contrast to a normal installment loan, the Student loan from the KFW in monthly installments paid out. And the repayment is also different: When student loans Installment payments only become due after a one- to two-year grace period.

Alternatively you can as a student also a conventional one Loan with a one-time payment record, tape. If you only need short-term money to bridge 1 to 2 months mini loans the means of choice. For a fee of around 10 euros, you can stuff your household budget with it. A credit intermediary or loans up to 62 days is also possible Credit as a student with no income, as well as a Credit for students without SCHUFA possible. You can also find it in this article Advice on what a student loan is suitable for is, and what you, as a student, should not finance with a loan.

What you need to know about student loans to study without worries

As a student, you have four options for financing your studies with a credit or student loan:

  1. BAföG: Through the Federal Training Assistance Act, students receive greatly reduced credit conditions and subsidies for repayment. The prerequisite is that the funding conditions are met.
  2. Student loan from KFW: Anyone who does not receive BAföG can take out a KFW student loan. With the KFW student loan, you cannot receive any repayment grants. The amount is paid out monthly and must be repaid after the end of the course plus around 4 % interest pa.
  3. Installment credit from banks or private: As a student, you can get a loan from a bank or privately. In contrast to the KFW loan, you will receive the payment all at once and not monthly. However, there is a chance that you can even get a student loan with a one-off payment through a bank more favorable conditions than you get from KFW. For the best student loan conditions, you should collateral can offer or one guarantors to have. You can about this one computer create a request and see if this can save you interest on student loans. But also if you need a student loan and Neither BAföG nor the KFW loan are available for students with a one-off payment via a bank or a private person open minded.
  4. if you only one small cash injection during your studies, you can access a mini loan for a maximum of 62 days and 1,000 euros record, tape. (Existing customers up to 3,000 euros). Is recommended as a loan for students ferratum*. The provider does not require a minimum income. Alternative mini loan providers are Vexcash* (from 500 € income) or cashper* (from 700 € income). The cash injection Student loans without proof of income from Ferratum cost you about 5 euros for 600 euros and 30 days.

1. BAföG

“BAföG is often the cheapest alternative to finance a degree. This is due to the subsidy by the Treasury.
To the provider: Bafög.de

2. KFW student loan

KFW offers student loans with monthly payments of up to 650 euros. The conditions are less strict than BAföG. In this way, the KFW loan can be applied for regardless of the income of the parents. The conditions for the KFW loan are not necessarily outstanding: So 4 % interest have to be shelled out annually. The advantage of the KFW loan is that no collateral or second applicants are necessary.
To the provider: KFW.de

3. Installment loan "for students"

As a third option, installment loans can be used for studying. In contrast to BAföG and KFW loans, these loans are paid out once. Although installment credit on the private credit market has to do without government subsidies, it is possible better conditions than the KFW loan to obtain. This requires second applicants with a good credit rating (e.g. parents) or collateral (car, property, ...).
here Calculate credit rate

4. Up to €1000/ 62 days: mini credits

For short-term money needs, you can switch to mini-loans with a maximum term of 62 days. In the guide Loan without proof of income I have described that you ferratum* you can get a loan without proof of income. Without the express option, the Ferratum credit will cost you about 5 euros for 600 euros and 30 days.
To the provider: Ferratum.de

Credit as a student with no income

Without income, a student loan from a bank is often rejected. If you want to take out a loan as a student, your income should over 600 euros net be. But even with an income of less than 600 euros, you have 2 other options in addition to BaföG or KFW credit.

1. Possibility for a loan as a student without income: For short-term money needs, you can switch to mini-loans with a maximum term of 62 days. In the guide Loan without proof of income I have described that you ferratum* you can get a loan even without proof of income. Without the express option, the Ferratum credit will cost you about 5 euros for 600 euros credit for 30 days. For a not quite cheap surcharge is the small credit in under 1 hour on the account without Schufa.

2. Possibility for a loan as a student without income: For one longer-term credit did you through one Second applicants or guarantors but also without an income of 600 euros the possibility to get a loan for your studies. Another way to get a student loan with no income is collateral to offer. With a credit broker such as smava* you can quickly and without further obligations find out what options you have for one Credit as a student with no income stand open. The purpose of the student loan is "free use".

You can also find more information in the article credit without income and "Which bank gives credit for low income?"

Credit for students without SCHUFA or despite negative SCHUFA

Students can do one too Credit with negative SCHUFA obtain. for Loans up to 1,000 euros should you as a student with a negative SCHUFA mini loan Select. Recommended providers for mini loans are ferratum*, cashper* or Vexcash*. The little one can Credit in 30 minutes on the account – Assuming express payment. For Amounts above 1000 euros are credit intermediaries like SMAVA* a realistic way to get a student loan despite a negative SCHUFA entry.

Credit for students
Credit for students

Credit for students: the most important things in brief

  • Students only get a loan with collateral:
    • as security can for the bank Guarantors, mortgages, or a loan agreement for two to serve
  • Students should have a good Schufa available to get a student loan
  • It is worth comparing the interest rates of several providers online.

Read more here: Apply for free SCHUFA information

Student Loan: How Do I Get It?

The most important concern of banks is to ensure that the loans granted are repaid. Students 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 of up to 36 months are more likely to be approved
  • A second borrower significantly increases the chances. After all, he can repay the loan installments, which reduces the risk for the bank.
  • A residual debt insurance (RSV) covers the risk of non-payment and thus increases the chances.
  • A positive Schufa report and a regular income of sufficient amount are further points that lead to the green light from the bank. student loans are popular: in 2020, 74,000 loans are in the disbursement phase*.

Regular student loan income

Banks love regular income. If the disposable income is more than 1,000 euros, this increases the chances significantly. With a part-time job for about 15 hours a week, you drastically increase your chances of getting a student loan.

Positive Schufa on student loan

Banks obtain a Schufa report before approving the loan. While a positive Schufa isn't strictly necessary, a high Schufa score significantly improves student loan chances. Especially if no other collateral or only a low income is available. In the article "Which bank gives credit for low income?" you can find more information on loans for people with low incomes.

Loan security for student loans

The loan collateral mortgage and mortgage for student loans

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.
Students can also get a loan with appropriate collateral

Loan security: guarantee for student loans

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.

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.

the Pros and cons of loan collateral on student loans

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

Parents are suitable co-applicants for student loans

The situation here is similar to that of a guarantor: a second or co-applicant with a good credit rating represents a high level of security for the bank. Therefore, 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.

The comparison of several loan offers usually brings a significant interest rate advantage! When comparing several offers, it is very important not to let yourself 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 student loan – 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„.

Documents required for student loans

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
  • Proof of your last three salaries from a part-time job, if you have one.
  • 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.

____

*That goes from the Student Credit Test of the Center for Higher Education Development (CHE).

How useful was this post?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 1

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

1 thought on “Kredit für Studenten: Mit und ohne KFW Förderung”

Comments are closed.

en_US