Training loan: costs, application and requirements

Important to the training loan

  • A training loan usually requires no income of its own
  • The credit for the training can be paid out monthly
  • The eradication does not begin before the first permanent employment
  • Borrowers can use the training loan freely

With a training loan, you can finance your vocational training or study as cost-effectively as possible. The credit requirements of such a loan are usually low, and the repayment modalities can be chosen flexibly.

The perfect loan for training

Are there alternatives to the training loan?

During vocational training or study, personal income is low. Just when your own home needs to be financed, the income is not enough to make a living. The remedy is a credit in education, which many banks – unlike conventional loans – to almost all borrowers. In order to find the right loan, a credit comparison is advisable. The decisive factor for the bank is:

  • Education: The borrower must be able to prove that they are currently actually taking part in vocational or university education or training.
  • Collateral: Virtually all credit institutions do without typical loan collateral, which is required for normal installment loans. Both personal income and possible assets are not explicitly checked by the bank.
  • Private credit: Even the so-called Private credit score has hardly any influence on lending. The important thing is that borrowers do not have so-called negative entries.
  • Age: Age plays a role in that underage students or apprentices are sometimes not given credit. Under certain circumstances, however, they are entitled to participate in the Federal financial aid program of the state, which explicitly exists for pupils. There is no basic upper age limit for the training loan, but many banks restrict the granting of the loan to persons who are not older than 25 to 35 years.

Receive training loan

Anyone currently in education has a good chance of getting credit for this training. Because the credit requirements are low and usually do not even require current income, there must be no negative entries from the borrower in the Private credit.

What can a training loan be used for?

There are two different cases when using your training credits:

  1. Current payments: Traditionally, continuing education credits are paid out over several years on a monthly basis. This loan is specifically designed to cover the cost of living. You may therefore use the sum freely.
  2. One-Time Payments: Certain vocational training or university education costs extra money. You can therefore agree with the bank that it will pay out part of the loan as a one-off, one-off payment.

It has already been suggested that the “training credit” can not only be used for vocational training. Depending on the bank, the following financing purposes can be achieved with the loan:

  • vocational training
  • School education
  • Education
  • Private education
  • training materials

rule of thumb

As a rule of thumb, you can use a training loan to finance all academic, professional or university education.

Education loan of the Federal Government

Education loan of the Federal Government

A certain special role in the training loans takes the education loan of the Federal Government. It can be applied for via the state-subsidized KfW Bank and is particularly low-interest. For up to two years, the bank pays 100, 200 or 300 euros a month to borrowers who are currently undergoing training.

Especially for the financing of expensive work materials up to € 3,600 can even be paid in advance as a one-time advance payment. This loan is awarded regardless of their own income and also the income of the parents. The repayment is made four years after the first payment, the interest is variable and is always based on the 6-month EURIBOR.

Do not confuse with Federal financial aid

The education loan of the Federal Government can be applied for in addition to Federal financial aid. These are expressly two different funding programs that can be combined, but not necessarily.

Step by step to the training loan

In a first step, apprentices have to compare conditions of different banks that grant a training loan. About comparison calculator or search on Google is researched for banks that have such a loan for education at all in the program. The most important comparison criterion is then the annual percentage rate that banks charge after the loan has been paid out.

Education loan of the Federal Government

Basically, it shows that the education loan of the Federal Government offers the most favorable conditions for trainees. If you meet the credit requirements, you should always first inform yourself about this loan.

  • Popular types of credit
  • car loan
  • Bike financing
  • License-financing
  • Student loan
  • Further credit types

This must be considered when applying for a training credit

This must be considered when applying for a training credit

The training loan should ideally fit your own financial needs. It is important to first define the following three characteristics:

  1. Loan amount : The loan amount should be chosen as small as possible. Because the higher the loan amount, the higher the credit costs. As a trainee you should calculate with the monthly income so that you get along well – luxury should not be financed with the loan.
  2. Term : The payout period of most monthly loan installments varies from bank to bank. For example, the state educational loan may only be paid out for 24 months; private banks may take several years.
  3. Usage: If you need the loan for the acquisition costs of expensive training materials (laptop, tool or similar)? Or are the payout rates used to finance a living?

In this course, you also set the repayment period. Usually, however, this can still be adjusted if you then earn the first salary in the “right” working life and know exactly how much capital is left for loan repayment on a monthly basis.

In addition, it is often necessary to opt for a variable interest rate or a fixed interest rate on the repayment. The variable interest rate changes until the repayment of the loan and is linked to the general interest rate. On the other hand, with the fixed interest rate you can already plan today with the future repayment interest rate, but you pay a premium on today’s market interest rate. The advantage: If the market interest rates rise between the time of the borrowing and the time of the first repayment installment, the fixed interest rate still remains unchanged; the variable interest rate would now rise. The disadvantage: If market interest rates fall, you are better off with the variable loan interest rate.

Expiration of the loan application

Expiration of the loan application

Once the credit framework has been established, it is important to compare offers. This is possible with so-called credit calculators, which automatically calculate the conditions of different banks with freely adjustable maturities and loan sums. Then proceed as follows:

  1. A so-called loan request is made to the bank, which from your point of view is still completely non-binding. Although it is already stored as “request conditions” in the Private credit, here but deleted after a few days.
  2. If your professional situation really fits the bank’s training loan, it will in turn submit a written offer. If you accept this, a binding credit agreement is closed. Therefore, take sufficient time to re-examine all conditions. Incidentally, at the moment of acceptance, your “request terms” in the Private credit is actually a real “loan request” that may be stored longer.
  3. If you choose to borrow from an online bank, you must now use the Postident or Videoident procedure to verify your identity. For this you need your identity card, all further instructions are available directly from your bank.
  4. Once the identity confirmation has been successfully completed, the bank pays the loan either as a lump sum or in monthly installments.

Training credit and Private credit

Like any other loan, the current training loan is automatically stored in the Private credit. It affects your Private credit score, but you generally do not have to worry about losing a mobile phone contract, for example.

Whether your application for the training loan was accepted, you will learn (without obligation), if you ask the pure request to the bank. The system automatically checks whether your wishes and the current professional situation really fit the requirements of the training credits. The bank then examines the data more closely to finally confirm the request. Depending on the bank, you will receive an answer by e-mail, telephone or post within about one to five business days.

questions and answers

How is a training loan different from a normal loan?

How is a training loan different from a normal loan?

In contrast to conventional installment loans, the training loan is often paid out over a longer period of time. Every month, the borrower receives money, which he then receives as a kind of substitute for the currently missing or too low income. In addition, the training credit can only apply for who is actually in a school, university or vocational training or further education.

What do I have to offer the bank to receive a training loan?

What do I have to offer the bank to receive a training loan?

The conditions for obtaining a training loan are comparatively low. It is important to be able to prove that you are really in an apprenticeship. For this purpose, for example, admission certificates from the university or the training contract can be submitted to the bank. If the loan is intended to finance expensive acquisition costs for training materials, a corresponding receipt must also be submitted for this purpose.

What are the repayment terms generally speaking for the training loan?

In general, the repayment of a training loan usually takes place according to the following scheme:

  1. The apprentice receives monthly loan repayments from the bank over a longer period. The payout amount can often be flexibly adjusted to use only as little credit as necessary.
  2. After the last payout, a repayment break is agreed with the bank. After all, the apprentice can not always be taken on directly and, for example, only has to do an internship before he enters his professional life.
  3. After the repayment-free period, the loan is then repaid like a conventional loan. Monthly, a fixed annuity flows to the bank, which contains interest and principal payments.

Are there alternatives to the training loan?

The aim of the Federal Government is that every citizen can finance a vocational training or a degree. Even if your own parents may not be able to raise enough money for this. For this reason, the first alternative to the training loan is the state Federal financial aid. This is available to students as well as students, trainees and aspiring masters. Although part of the Federal financial aid is also paid out as a loan, half of the debt is issued upon successful completion of the training.

Can personal loans also be used as training credits?

Can personal loans also be used as training credits?

Theoretically, it is possible to use personal loans for education. However, this is not recommended. As the apprentice has little or no income, hardly any bank will award a regular loan. Here, current income serves as the number one loan security. An exception to this is only made by banks when the described training loan is taken out.

What are the advantages and disadvantages of a training loan?

The biggest advantage of the training loan is undoubtedly its low requirement catalog. Even without a guarantee or personal income many banks grant the loan. However, the loan can be relatively expensive, because interest already accrues during the monthly payout phase and in the subsequent repayment-free phase. In addition, apprentices start with debts in their professional life, so that the loan should only be taken if the education can not be otherwise funded.