Financial independence with a loan as an apprentice

If you look at the typical apprenticeship payments in vocational training occupations, it quickly becomes clear that they do not allow for any major financial leaps, and often a loan as an apprentice is needed. Income during training in Germany for the majority of professions in the first year is under €500 per month.

But especially as a young and aspiring person during training, many desires naturally arise that require a certain financial leeway and make a loan as an apprentice necessary. It is therefore certainly the case that apprentices also have increased financial needs, which are based on very different reasons. It is always the case that with entry into working life as an apprentice the needs of teenagers or young adults grow.

Initial purchases for your own flat or the security deposit for it usually cannot be paid in one go. However, a loan amount that covers these costs can also be obtained by an apprentice.

Apprenticeship payments are generally meagre and unfortunately do not keep pace with these desires, which is why a special loan for apprentices is suitable to bridge financial bottlenecks or to fulfil long‑cherished wishes.

Taking out a loan as an apprentice is not only sensible for buying a car, but also to finance furniture, clothing or mobile phones. It is also possible to apply for a special education loan. 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.

When it comes to a loan, age at the time of contract signing is of course an important factor. Not infrequently, apprentices are already 18 years old or older when training begins and are therefore fully legally capable and suitable as borrowers. In this case, it is not necessary to inform the parents about a loan as an apprentice in advance.

If parents or relatives cannot provide the necessary funds for, for example, obtaining a driver's license, a loan can also help. With small, manageable monthly instalments, the loan amount can be comfortably repaid over the course of the apprenticeship, and often at surprisingly favourable conditions.

Applying for an apprentice loan online

A local bank is often not the right contact when it comes to a loan as an apprentice; the internet, on the other hand, offers good opportunities for a loan comparison and is not bound to rigid banking requirements.

A reputable online loan broker will work together with the apprentice to develop a plan that stays within the applicant’s means so that there is no financial overextension. After all, a lending institution has an interest in a loan being repaid and avoiding defaults, which would be unpleasant for both parties.

For all financial wishes, it is therefore important that apprentices who are considering taking out a loan do not overextend themselves financially. A reliable loan consultation is therefore of enormous importance in advance.

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

Existing uncertainties about loans for apprentices can usually be cleared up 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 agreement. This significantly increases the chances of getting a loan as an apprentice.

In the past, parents, siblings or other close relatives have proven particularly helpful as guarantors for a loan as an apprentice. But even if the young person is over 18, guarantors can play an important role, namely when the apprentice’s salary would only cover the subsistence minimum.

Considerations before applying for an apprentice loan

As preparation, it is still sensible for you as an apprentice to create a list that compares income and expenses. After deducting a small financial cushion for unforeseen expenses, there should at least be a small amount left to repay the loan. This statement then gives a feeling for the maximum monthly instalment height.

Another consideration should be how long the loan should be repaid (loan term) or how high the required loan amount is.

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

Finally, a consultation at the bank or with the loan broker can lead to the final decision. Obtaining an offer is indispensable if you want to know which interest rates would apply to an instalment loan in your specific case.

Improving the chances of a positive loan decision

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

Loans are not granted to apprentices lightly; they are of course also tied 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 have to undergo a creditworthiness check when applying. For German banks, this means a query of the data at the Schufa. However, for so‑called Swiss loans or other special loan forms from abroad, no additional special credit check may be required. It may therefore be of interest to apprentices to take advantage of such loan offers.

The hurdles for a loan as an apprentice are therefore not that high, and many apprentices have been able to benefit from such a loan during their apprenticeship and probation period and fulfil one or two additional wishes. Some employers are also open to the topic, so if an apprentice has a good relationship with their employer, this person can of course be included in the considerations for a loan. If it is already clear during the application for a loan as an apprentice that one will be taken on into a permanent position after the training, this further increases the chances of a positive loan decision.

Overall, however, it can be assumed that a loan for apprentices will always be a so‑called small loan in the form of an instalment loan, which on the one hand does not exceed certain amounts and on the other hand can be repaid within a manageable term with small monthly instalments.

In summary, money can be applied for by means of an instalment loan if the borrower is at least 18 years old. Another requirement for a loan without a guarantor is a net income of at least €850. For incomes below this, co‑applicants or guarantors are necessary. Furthermore, the minimum amount for a loan from MAXDA is €1,500.