Young people are at the beginning of their independent lives and expect great things. You want to get a driver’s license or buy the first car. The list also includes your own apartment, home furnishings or a trip. Since young people do not make much money, many of the wishes have to wait first. In such situations, it may well happen that young people are borrowed. The training salary decides how high the loan amount will be.
Borrowing is not possible at every bank
Young people cannot take out a loan from every bank. The risk of default is too high for some credit institutions and reject a loan application. So it is best if the loan seeker turns to his house bank, where the current account was opened. Those who still live at home have a clear advantage. There are no costs for rent and the monthly costs are not as high as for someone who already lives in your own apartment.
What are the requirements for trainees?
Young people who are not yet of legal age cannot take out loans for young people on their own. You need either the signature of the parent or guardian so that a contract can be concluded. In addition, the trainee is no longer allowed to work during the trial period. During the trial period, employers and trainees can also quit at any time. Thus, the salary is not certain in time.
The Credit bureau is checked, which provides information about the creditworthiness. If there are too many negative entries, such as unpaid cell phone bills, a loan or the like, it will be difficult to apply for loans for young people.
Loans for young people – conditions
Banks see young people as good customers of the future. As a rule, you can issue a loan that is also inexpensive without any problems. In most cases, the bank grants a small loan to trainees, the sum of which can be up to USD 2,000. This prevents too much debt from being incurred and the trainee has no problems with repayment. The amount is only increased if an employment contract can be presented so that it has a permanent job after the apprenticeship.
The term is as long as the training period. This means that the loan will be paid back during this time. The monthly installments are correspondingly high or low, depending on the loan amount and term. As soon as all documents have been checked by the bank, young people receive the loan amount in their checking account.