Financial independence with a loan as an apprentice

If you look at the typical training allowances in vocational professions, it quickly becomes clear that they rarely allow for any major financial leaps and that an apprentice loan is often necessary. Income during vocational training in Germany is, for the majority of professions, below €500 per month in the first year of training.

But especially as a young and aspiring person during training, many wishes naturally arise that require a certain financial leeway and make an apprentice loan necessary. It is therefore certain that apprentices also have increased financial needs for a variety of reasons. When entering the working world as a trainee, the needs of young people often grow.

Initial purchases for your own apartment or the deposit for it usually cannot be paid in one go. However, it is possible to obtain a loan amount that covers these costs even as an apprentice.

Training allowances are generally meagre and unfortunately do not keep pace with these desires. Therefore, a special apprentice loan can be a way to bridge financial bottlenecks or fulfil long-held wishes.

Taking out a loan as an apprentice is not only useful for buying a car, but also for financing furniture, clothing or mobile phones. A special training loan can also be applied for. For example, funding through the KfW is conceivable. An online loan for apprentices with particularly favourable conditions provides relief and ensures the necessary financial leeway throughout the training period.

Of course, age at the time of concluding the loan is an important factor. Many apprentices are already 18 years old or older at the start of their training and are therefore fully legally competent and suitable as borrowers. In this case, it is not necessary to inform the parents in advance about an apprentice loan.

If parents or relatives cannot provide the necessary funds for something like a driving licence, a loan can also help. With small, manageable monthly instalments, the loan can be comfortably repaid over the training period, and often at surprisingly favourable terms.

Applying for an apprentice loan online

The house bank is often not the right contact when it comes to an apprentice loan; the internet, on the other hand, offers good possibilities for a loan comparison and is not bound to rigid bank regulations.

A reputable online loan broker will work out a plan together with the apprentice that fits within the applicant's means so that there is no financial overextension. After all, a lending institution has an interest in the loan being repayable and in avoiding defaults that would be unpleasant for both sides.

For all financial wishes, it is therefore important that apprentices who are considering taking out a loan do not financially overextend themselves. Reliable loan advice is therefore of enormous importance beforehand.

From application to payout, everything can be handled conveniently online from home. Required application documents can be submitted online or by post.

Existing questions about a loan for apprentices can usually be clarified quickly in a phone call. For apprentices who are not yet of legal age, it can also make sense to include a solvent guarantor or co-applicant in the loan contract. This significantly increases the chances of getting an apprentice loan.

Parents, siblings or other close relatives have proven particularly helpful as guarantors for apprentice loans in the past. Even if the young person is over 18, guarantors can play an important role, for example when the trainee salary only just covers the living minimum.

Considerations before applying for an apprentice loan

As preparation, it is sensible for you as an apprentice to create a list that compares income and expenses. After deducting a small financial buffer for unforeseen expenses, at least a small amount should remain for repaying the loan. This breakdown then gives a feeling for the maximum monthly instalment.

Another consideration should be the intended repayment period (loan term) and the required loan amount.

A loan calculator can be used here to quickly estimate the instalment amount depending on term and loan amount. Also consider the effect of the term on interest. The interest rate can be lower for longer terms, but the total interest amount can also be kept low by repaying quickly. Weigh up what is feasible and relevant for you as a borrower during your training.

Finally, advice from the bank or loan broker can lead to a final decision. Requesting an offer is essential if you want to know what interest rate would apply in your specific case for a consumer loan.

Increasing the chances of a positive loan approval

Although the money from a loan as an apprentice is of course available for general use, it should preferably be tied to a specific project. In addition, the amount borrowed by an apprentice should be manageable and repayable within a reasonable period.

Loans are not granted lightly to apprentices and are naturally subject to certain securities that usually cannot be derived from the low income alone. Therefore, guarantors or assets that can be included in a contract play a major role when taking out a loan.

An apprentice will also be subject to a credit check when applying. For German banks, this means querying the data at the Schufa. For so-called Swiss loans or other special loan forms from abroad, however, no special additional credit check is required. It may therefore be of interest to apprentices to take advantage of such loan offers.

The hurdles for an apprentice loan are therefore not that high, and many apprentices have already benefited from such loans during their apprenticeship and probationary period and fulfilled one or two extra wishes. Some employers are also open to the topic; if an apprentice has a good relationship with their employer, the employer can of course be included in considerations for a loan. If it is already clear at the time of application that the apprentice will be taken on into a permanent employment relationship after training, this further increases the chances of a positive loan approval considerably.

Overall, it can be assumed that loans for apprentices will always be small consumer loans in the form of instalment loans, which on the one hand do not exceed certain amounts and on the other hand can be repaid over a short term with low monthly instalments.

In summary, it can be said that a loan can be applied for if the borrower is at least 18 years old. Another requirement for a loan without guarantors is a net income of at least €850. If income is below this, co-applicants or guarantors are necessary. Furthermore, the minimum amount for a loan from MAXDA is €1,500.