For young people, taking a loan is the hardest part.
You not only need the consent of both parents or legal representatives but also of the family court. This applies to installment loans, credit cards and also disposition loans. Since most underage students do not have their own income, the question of how the student wants to settle his loan must also be clarified. Severities may only be accepted with the consent of parents or legal representatives of banks.
Loans for adult students with income
Full-time students no longer need these consents. However, regular income students need proof of income. Many banks also expect an indefinite employment contract . A good credit rating or a Pantaloon information without negative entries is also required by many banks. Possible positive effects also impact on the security of a loan application.
Loans for low-income students
If you only have low income, as is often the case with trainees, you will encounter some problems. Apprentices have the best chance of small loans. These are awarded on the basis of the training salary and the installment duration is calculated on the basis of the duration of the training contract. However, if a trainee needs a larger sum, the parent should act as a guarantor, or even better, as a co-borrower.
A commitment to take over after completing the training also improves the chances of a higher loan amount.
Loans for students without income
Retirees often only have public funds as income. These can not be seized so almost no bank would lend. In order to receive a loan without your own income, further collateral is necessary. These may be either physical security or personal security .
Anyone who wants to resort to a security of security, must remember that the subject matter must have the value of the desired loan amount. In addition, the object or property may only be attributed to a creditor as security of security.
Credit for the purchase of a car
If the loan is a car loan, special rules apply. When buying a car, the car letter can be used as a hedge . This is given to the financing bank, so this has direct access to the vehicle in case of insolvency. The vehicle can be easily sold by the bank to settle the open balance.
What requirements must be met in order to obtain a loan as a student?
Basically, if you are not at least 18 years old, regardless of whether you are a student or not, you will not receive a loan. As a result of this statutory age restriction, a student is only eligible as a sole borrower if he or she has already reached the age of 18. Otherwise, the pupil needs the consent of the parent or guardian.
Another possibility is the so-called change of debtors, whereby the credit of the student is first financed by the parents and then can be taken over by the student when he reaches the age of majority.
Furthermore, the student’s initial financial situation also determines whether and to what extent a loan can be granted. The proof of a regular income alone is often not enough.
Most banks and credit institutions also require that the borrower be in permanent employment and have possibly already passed the probationary period. Thus, a corresponding credit rating is also essential for borrowing as a student.
If, as a student, you have fulfilled the legal age limit and can provide certain security, the taking out of a loan is basically no longer an obstacle. However, the amount will usually be rather low and only move in the order of a small loan.
If you have a regular income as a student, you have a good chance of getting a loan. A monthly allowance, which is paid monthly by the parents, would probably not be counted by a bank. However, if the bank’s existing monthly income is still too low, a student still has the option to hire another borrower (eg a relative). He must also be of legal age and should also have a regular income at a reasonable level.
Alternatively, a guarantor would be eligible for the loan. However, this is also associated with a corresponding risk, since the guarantor has to compensate for the student’s financial difficulties alone. In that case, one could alternatively consider whether it would not be appropriate to directly borrow some kind of credit through a family member. This could save you not only high interest rates, but also the additional debt with a bank.
In addition, a loan for students, of course, often much more expensive than if, for example, the parents take out a loan. These will be offered by a better credit rating correspondingly better terms.
The reasons for borrowing as a student
Often it is advantageous to give his exact reasons for borrowing when applying. For the credit institutions, the reasons for borrowing should always be understandable. In this context, it is also true that one can be a student, as long as one is compulsory and aspires to the first school degree.
On the other hand, one is still considered a student, if you just completed his first education and goes to vocational school. If you are already in training, you also have the option of resorting to state-subsidized loans. These loans pay off especially by the good conditions, but also require that you are in training and can present a corresponding employment contract.
However, this form of credit is only available to students who need to finance their own vocational training and who need help. State-subsidized loans serve only the purpose of the maintenance support and are therefore granted only for this purpose.
Proof of the current financial situation as well as the financial situation of the parents is a prerequisite.
Use credit facilities
Provided that the requirements for borrowing as a student are met, the Bank will deduct default amounts from the existing monthly income to determine whether the student can afford the monthly repayment and interest charges without any problems. If, as a student, you still live at home with your parents, these amounts will be very small. If the remaining amount is still insufficient to pay off the installments for the desired amount of money, no credit will be granted.
If, as a student, I still need a bit more money than is currently available to me, some financial institutions offer special student accounts. If the account holder reaches the age of eighteen, it is also possible to set up a dispolimit. Within this limit provided by the bank, a so-called credit line is granted, which gives you the opportunity to charge your account in the negative range.
However, some caution is advised, because when using the Dispos banks usually require high interest rates. Therefore, you should only fall back on it in an emergency.
Compare worthwhile, even as a student
It is clear that a student is not considered a customer of choice when it comes to taking out a loan. Nevertheless, banks and credit institutions also earn money with a student. It is worthwhile, then, as a student to compare offers for taking a small loan. In any case, one should make sure that the lender is a reputable and trustworthy provider.
To compare the individual offers and above all the individual providers, offers various comparison portals. There you often have the additional possibility, if at the end of a credit agreement has come to receive certain premiums and benefits. A comparison is also worthwhile to be able to determine possible differences in the various loans directly. Thus, loans differed not only in the amount of money and interest, but also in terms of repayment options and the term.
Alternatively, of course, you can also go to a bank branch on site and get advice on the different types of credit. Especially as a student, one should definitely consider how the personal situation will change in the next few years and, accordingly, also adjust the credit to these developments.
Basically, before borrowing, you should create a plan that shows how much your monthly income and expenses, such as current rent or mobile phone contracts, are. Furthermore, this plan should list what the future repayments will be in order to ensure that borrowing is sustainable even before borrowing.