Comprehensive training is costly and can often only be financed by taking out a loan, despite government support. Also, the purchase of much-needed consumer goods in the student budget can be made possible in many cases only by a loan. However, this quickly turns out to be problematic: for banks, students are relatively high-risk because they generally do not have a steady, regular income and the prognosis for the future is uncertain. Can a installment loan not even be accepted as a student?
Basics for receiving a installment loan
Even though taking out a loan as a student is comparatively difficult: Basically, an installment loan can also be accepted as a student. For the bank’s decision, however, the individual income as well as the general creditworthiness is decisive – in many cases, therefore, it comes to a rejection of the application. The chances of granting an installment loan, however, can be increased, for example, by the provision of any collateral or by guarantees.
It should be noted when taking the installment loan as a student, however, that their own finances should always be kept in mind: To avoid over-indebtedness, a installment loan is recommended as a student only if absolutely necessary money can not otherwise be procured.
Alternative to the installment loan
If the application for a installment loan is made as a student, a rejection must be expected in advance. However, anyone who is dependent on the granting of foreign funds to finance their studies can accept the offer of a student loan or an education loan. Such a loan can be taken out at many financial institutions and is tailored to the needs of students. Interesting is a student loan mainly because of its comparatively good conditions as well as the fact that the award is not tied to a specific income.
As with the installment loan, the borrower receives a monthly amount, which is usually set at graduation, but can be adjusted by some providers during the respective semester. The repayment of the loan takes place after the so-called qualifying phase, in which the student can only gain a foothold in professional life. The duration of this phase varies from bank to bank. Often it can be determined by the borrower himself.