Apprentices often need a small loan at the beginning of their training. Many apprentices move to their first small apartment. There is then missing furniture and other household items. The trainee usually does not have enough money to afford these things. The trainee now has to think carefully about which of the things he really needs right away. Is it perhaps better to realize one or the other acquisition later? As a trainee you should think carefully about whether a microcredit now makes sense. If trainees need a small loan, we have summarized the following tips.
Trainees do not get credit from the bank
Apprentices often receive no credit from their bank, with the exception of an emergency loan, which nobody can be surprised. As a rule, their training allowance is quoted under the seizure-exemption limit, so that no single creditor receives a loan from a German financial institution without further ado. A guarantee could help here, with trainees would question the parents. But sometimes they do not want to or can not vouch for this, sometimes the young prospect does not want to ask them. Are there alternatives for the loan request?
P2P portals as lenders for trainees
P2P portals are “peer-to-peer” portals. That means “equal to the same”, even if the acronym sounds like “private to private” and actually meant that way. In plain English: on a P2P portal, private individuals give loans to private borrowers. The P2P portal organizes the awarding and the repayment, integrated is a bank for the technical handling. The interest rates are freely negotiated between borrowers and lenders. This variant works well under certain conditions and on certain portals.
How is the lending of the well-known credit market places in detail?
The prospective loaner takes certain steps up to his loan, which are also explained in detail on the portals:
- Registration with a personal profile (free)
- Setting the loan request (free)
- Interest rate offer to the lenders
- Adjusting the interest rate offer in a 14-day auction phase (termination possible at any time)
- Credit is paid on reaching the total investment
- Repayment in the agreed installments
Why is there a loan for apprentices on a P2P portal, but not at the bank?
The bank must adhere to certain risk management guidelines. These guidelines have been tightened in the last five to seven years as part of the great financial crisis of 2007/2008. These guidelines also include that an applicant with an income below the seizure limit can receive at most a small loan, and this only with the help of a guarantee and / or strong collateral (life insurance or similar). The private money lenders on a P2P portal are of course not bound by such policies, they can give anyone a loan if they trust him and if the interest rate from their point of view is in order. In addition, a major advantage is the diversification of the risk: the investor usually invests several small sums in several loans, the borrower receives from many investors in smaller sums all the money. Both sides spread their risk, the whole thing is called “Crowdfunding” (swarm financing).
What is important to me as an apprentice on the P2P portal?
Of course, credit applicants are wondering what exactly matters to get the loan they want. These things are hugely important to lenders for lending:
- The profile of the trainee must inspire confidence
- A good and detailed description of the loan project helps the lenders with a decision.
- A photo raises your attention (pay attention to license for photos)
- Income and assets must not be lied to
- Use the credit certificates
- Respond to inquiries from lenders quickly and honestly