Trainees are not that easy at banks, but they don’t have to leave without a loan either. The problem is usually that the income is far too low to get an installment loan. It then also plays a rather subordinate role whether the income flows in regularly or not.
Especially for trainees who are looking forward to the end of their apprenticeship, it can get tight again with a small loan for trainees. Because not many companies guarantee takeovers. And if so, the training goal must first be achieved in the form of final exams. These are uncertainty factors that banks are reluctant to accept.
Possibility 1: guarantee
To put it straight away: The apprenticeship doesn’t allow for big leaps, which is why a small loan for trainees is usually the greatest feeling. At least not on my own. If you have financially strong parents, you can possibly use them as guarantors.
Since they have the necessary creditworthiness to be able to service the loan in an emergency, the bank can talk to you. The parents (or other persons used as guarantors) would then have to take over the debt service until the borrower is able to do so again. If necessary, this continues until the loan has been repaid in full.
Possibility 2: the overdraft facility
If you can be satisfied with smaller jumps, you should try an overdraft facility. This type of loan is particularly flexible. The overdraft facility enables “below zero” or, to put it more specifically, an account management in the debit.
But be careful: As flexible as overdrafts are, they are also expensive. Interest rates between 8 and 15 percent are not uncommon. The maximum amount of this loan is determined by the credit line. This usually corresponds to a multiple of the monthly income. If this limit is exceeded, one speaks of an overdraft. Then the interest rates are increased drastically again.
Option 3: The framework or on-demand credit
It is a mixture of overdraft facility and installment loan, which is also suitable as a small loan for trainees. A certain credit line is made available, similar to the overdraft facility. However, a minimum monthly repayment is required here. Once the framework has been approved, it can also be used flexibly. Only a constant repayment – usually around 5 percent of the loan amount – has to be guaranteed.