A loan in training is an installment loan that can be used for any purpose

Banks offer a variety of different standard loans for all customers. However, there are also loans that are tailored to a specific customer group. This also includes the loan in training, which is referred to as student loan or training loan. A loan in training is an installment loan that can be used for any purpose. The particularly favorable conditions are particularly interesting for this type of loan. The trainee receives a very low interest rate on a loan for the training. These loans are mostly so-called “blank loans” that are granted without collateral.

What loans are there as a loan in training

What loans are there as a loan in training

In addition to the installment loan, the banks also offer training loans in the form of overdraft facilities or general loans. However, these are used much less frequently. The credit line is a loan of a fixed maximum amount, which can be used in certain parts or in full.

In addition to the banks and savings banks that can be used for a loan in training, there is also government funding that can be managed through Intrasavings Bank. These are known as so-called educational loans.

The following loans are generally offered to trainees:

• Bank installment loan as a loan in training
• Special credit lines
• The overdraft facility as a loan in training
• State funding through a loan from Intrasavings Bank

What are the requirements for a loan in training?

What are the requirements for a loan in training?

A basic requirement for a loan in training is the legal age of the borrower. Because these people are so-called creditworthy customers, which is not the case with underage trainees. Another important prerequisite for a loan in training is sufficient creditworthiness or creditworthiness, which is certainly not guaranteed by a trainee salary as described on the website. The young customer’s creditworthiness is determined by Credit Bureau information and income or training allowance. Banks are often required to provide a surety.

When it comes to government funding within the framework of a loan during the apprenticeship period, this looks somewhat different. Because the approved loan amount only has to be repaid after completing your studies, with a waiting period of up to two years. This gives the trainee the opportunity to fall back on the sum in order to cover the running costs for training and living without having to think about repaying the loan. Because once real money is earned, the rate and the low interest can be repaid without any problems.

Taking out a private training loan – what are the options? |

Trainees who no longer live with their parents know the problem all too well: they earn their own money, but they cannot make big leaps with it. If there is an unforeseen issue such as the repair or purchase of a washing machine, it can hardly be handled with the meager trainee salary.

These and similar costs, for example for moving, can be paid by trainees with a small loan, which is not so easy to get during the training. On the other hand, the situation is different when a loan is taken out by credit banks to finance the training. The reason is that the rather low salary is not really a security.

Do not rush with the trainee loan

Do not rush with the trainee loan

In general, trainees should think carefully about whether they really want to take out a loan during their training. Because if the expenditure is higher than the income, young trainees run the risk of falling into the debt trap because they may not be able to repay the loan.

A training loan offers this possibility

A training loan offers this possibility

Above all, the graduates of secondary schools are faced with the problem that they must be able to finance an academic education – if they aspire to it – first of all. In most cases, they therefore work alongside their studies, apply for a student loan or a student loan, which is not a problem in most cases. However, there are also various non-academic training courses in which the trainee must first invest money. This applies, for example, to prospective pilots, who can generally take advantage of a financing program in the form of a loan from the respective airline, which they have to repay after their training.

If this route is not possible, the trainees have to finance their training elsewhere with a loan, but this involves a certain risk. Because if they don’t complete the training, they still have to pay back the debt.

A training loan from the house bank?

A training loan from the house bank?

The first way for borrowing naturally leads most trainees to their house bank. However, before borrowing, you should inquire about the conditions that apply to a personal loan. Because very often the conditions with competitors of the house bank or with an online bank are significantly cheaper. However, borrowing is only worthwhile if the conditions are significantly better. If the differences are only minor, borrowing from the house bank is recommended. The reason: Here the borrowers have a direct and personal contact person with whom they can also negotiate directly if difficulties should arise during the day of the loan.

Home loans: the rates offered by banks always lower

 

Home mortgage rates continue to fall, a trend which is partly due to the accommodative policy of the Best Bank.

Back to school is explosive for real estate rates. In September, the banks went on the offensive again, applying significant reductions. In this context, the renegotiation of credit finds interest. It remains to be seen how far the drop in mortgage rates will go.

 

Mortgage Boosted by Rates Below Inflation

home loans

The durations the most significant decline over 20 years. In its last study published on August 29, the Central Finance specifies that these borrowing conditions are exceptional in view of inflation which reached 1.80% in 2018 and should settle at 1.20% this year. With a monthly payment of 950 dollars and a monthly salary of 3,500 dollars which would progress at the same rate as inflation, at 1.50% on average over 5 years, a borrower could thus see his debt drop from 27% to 24%.

The Best Bank unveiled new measures to support the economy on September 12. It reserved the possibility of lowering its rates once again and abandoned any specific horizon to raise them. This announcement shows her determination to support a slowing economy.

 

Rates fall again and again on mortgage loans from 10 to 25 years

Rates fall again and again on mortgage loans from 10 to 25 years

After a fairly calm month of August, mortgage rates continue to fall, whatever the duration and the profiles. The largest decreases can be seen in loans over 20 and 25 years.

According to broker Milerite Finance, average rates are 1.22% over 15 years, 1.27% over 20 years, 1.52% over 25 years. The best files can hope to benefit from a rate of 0.56% over 15 years, 0.68% over 20 years, 0.85% over 25 years. For a few weeks, the rates of assimilable Treasury bonds (OAT) which serve as a benchmark for banks when calculating mortgage rates, have been below 0%, around -0.40%. Against this background, rates should remain at their lowest level.

 

Falling credit rates: the perfect time to renegotiate your loan

home loans

Some profiles have every interest in taking advantage of this lower rate to renegotiate their mortgage. Many borrowers seem to have already seized this opportunity. Indeed, the broker VineSpan Financer notes that requests for renegotiating credit have increased by 40% since March compared to summer 2018. It is now possible to renegotiate loans obtained in 2016 or 2017 for less than 1 %. The big winners are those who have chosen short durations, who can benefit from new rates at less than 0.5% over 7 or 10 years.

However, not all borrowers have an interest in renegotiating their credit. This operation is only interesting if the difference between the old rate and the new rate is at least equal to 0.7%. To successfully renegotiate a loan, you must have more than 100,000 dollars to repay and be in the first third of your credit life. It is also important to take into account the prepayment penalties and the guarantee costs, which correspond on average to 3% of the capital remaining due.

 

Will the exceptional 1% rate excluding insurance be the new standard?

Will the exceptional 1% rate excluding insurance be the new standard?

The real question is whether the decline in property rates will last. Brokers are optimistic on the subject. According to Henry Yarns, Deputy Managing Director at Cream Lending, in view of the political announcements and the market trend, “the banks should align themselves with rates of less than 1% for durations of less than 25 years”.

Esmael Curtis, communications director at Milerite Finance, adds that the banks’ scales could drop again in the coming weeks following the Best Bank’s announcements. “The rate at 1% could become the norm in the coming weeks,” according to the broker’s forecasts.

According to Slyverster Laferre, President of the Central Financing, the measures to support the economy announced by the Best Bank “should prove to be very accommodating and move in the direction of the further reduction in rates”.