Many banks are reluctant to lend to apprentices, even if the loan amount is not that large. The surety of a parent is usually required as additional security. However, some online credit brokers advertise that they also work with international banks and that lending to a trainee is quite possible. To do this, the trainee has to make a credit request and the credit agency then checks the creditworthiness of the customer in advance; it carries out the so-called budgetary calculation. Many trainees receive a very good remuneration, which they often have at their free disposal if they still live with their parents. Then it is quite possible that the budget statement is positive and that nothing stands in the way of lending.
Trainee loans – more expensive?
If the credit agency has also checked, the trainee will receive an email with a preliminary decision. Here he is informed that the existing credit request is fulfilled or cannot be fulfilled, only then is a request made to the banks. However, it can generally be assumed that these loan offers are somewhat more expensive than those offered by German banks, because the effective annual interest rate is higher due to the higher risk of default and because the credit broker also receives commission for his brokering activities which is ultimately included in the rate. If a trainee needs a loan, be it to acquire a driver’s license or to finance a used car after acquiring a driver’s license, it is always advisable to grant a guarantee to one or both parents in the back apply.
The bank then checks the parents’ creditworthiness and makes a decision accordingly. In these cases, the guarantee provided by the parents of the bank serves as security, but the parents also receive information if the trainee was unable to pay the installments and can act accordingly on their child. Young people often have to learn how to deal with money and where the priorities are. The whole thing may also have an educational value. For credit negotiations on a trainee loan, it always makes sense if the consultation in a local bank branch is best used at the parent’s or child’s house bank.
Do you have a guarantor?
If the parents are not eligible as a guarantor, for example because they are unemployed or have to fulfill some obligations towards the banks that they are using, the trainee can of course also use other solvent guaranties from nearby Teach relatives or close friends, these are also accepted by the bank. A problem can arise if some of the grandparents want to take over the guarantee and also receive a corresponding pension. Here, too, the banks react rather cautiously because they see the so-called biological risk again for pensioners. In such cases, it always depends on the age of the grandparent, as a guarantor it should never be older than 70 years.