An apprenticeship can take the form of a course of study, company apprenticeship or a technical school visit. The type of income depends on the type of training chosen. In the case of dual vocational training, this consists of the training remuneration to be paid by the training company, while university and school-based courses basically result in a Credit Aid entitlement. In all cases, the borrower must be of legal age to grant a loan during the training.
Ordinary loans during initial training
As a first loan in training, many young people receive a small amount of credit from the bank holding their current account. Some issuers generally issue a credit card to students, apprentices and technical schoolchildren with a usage limit of initially $ 1,000 without any further requirements being met. These loans are practical, but more expensive than installment loans, so that their use is not useful, especially for low-income trainees.
Whether financial institutions grant a regular loan to trainees depends on the nature of their household accounts. If children live with their parents during their training, they hardly need any money for their living expenses, so that their entire income is available to them as pocket money or for loan repayment. Appropriate special cases are not taken into account by all financial institutions when making a credit decision, since they require manual application processing.
The parent’s guarantee for a loan in training is an alternative, but it does pose a risk for the bank that it will not stand up in court if the guarantor takes over financially due to emotional attachment and this fact must be recognized when the loan is paid out. It is easier for young people to get an apprenticeship loan than with a bank through a personal loan brokerage platform.
Special promotional credits for training
A promotional loan can be taken out through Lite Lender as well as through some commercial banks during the training. In this case, the income to be expected after the end of training serves as a guarantee for repayment. The main advantage of a promotional loan is that the recipient does not have to repay this loan during training, but only after it has been completed.