Loans for students without interest
There are several situations where there is a need for leverage. These are aimed at anyone who does not receive a loan due to a so-called negative feature in their credit bureau. Students can apply for a student loan from various banks. Studying without financial worries is not so easy nowadays. For example, scholarships or subsidies from the local Studentenwerke are possible.
As a student there can be different cases of capital requirements. This is partly because students between the ages of 20 and 30 move into a phase of life where they certainly have needs and needs, and secondly, because of their studies, they are not yet full-time.
But what if a student applies for a loan? The following article deals with the topic “Loans for students” and contains all the important information as well as tips and tricks for lending. Why can students need credit? Many students change places of residence at the beginning of their studies, eg to move from the small town to the big city.
To a certain extent, students can raise the necessary financial resources through government grants such as the Bachelor of Science or the Intrasavings Student Loan. In addition to the cost of the monthly living, but can also cost the installation of a shared living room or the purchase of a notebook, which requires the use of another loan. Of course, loans can also be required if a student decides not to move to the university city, but to travel by car every day (eg because there are no or only insufficient means of transport).
In this example, a student loan can also be used to buy a used car. Likewise, z. For example, a semester abroad or similar can be co-financed by a loan. Since the creditworthiness of students can not be generalized, it must always be discussed individually. This is mainly due to the fact that there are also full-time students, for example, through working students 800.00 USD per month or up to 1.600,00 USD net in the lecture holidays received.
In such a revenue situation, which is permanently regulated by an existing employment contract, there is, of course, good creditworthiness in a certain context. It is also possible, for example, that the guardians act as guarantors or even competitors. In such a case, a positive credit decision can be swiftly taken by most credit institutions, provided the guarantors or co-applicants themselves have an impeccable credit rating.
Already as a student you have to be able to show a good credit bureau information, which usually does not make this requirement an obstacle (“before the beginning of the study most students were still students, which is why there were few or no contact points to the school”). If you want to take out a loan as a student, you should pay particular attention to a low monthly pay.
Due to the monthly earnings situation, high repayment installments are still not possible, which is why, depending on the needs of the respective house bank, a maximum duration is selected. A very important issue that should always be considered in a student loan is the granting of a special repayment right. Full employment leads to a sudden increase in monthly income after successful completion of the program, so that the loan repayment can be accelerated.
Because a subsequent increase in the monthly rate for most personal loan agreements can not be free of charge and above all not bureaucratic, there should always be a sufficiently large special repayment option. Of course, as a student with a relatively low credit rating, it is not possible to expect that the interest on the loan will be high enough for the institutes and institutes to offer them top conditions.
Numerous banks will endeavor to always conclude a student loan with a credit life insurance / risk life insurance. Whether such a security is absolutely necessary is questionable, for example, with a small loan amount of 3,000.00 USD. This should always be discussed with the relevant house bank, as collateral is rarely a crucial decision criterion for the allocation.
If the family situation allows, you should always seek a student loan in conjunction with additional security. Additional collateral may be, for example, guarantees, the participation of co-applicants or the allocation of existing savings credits (which, for example, should remain as “iron reserve”) when applying for a loan.
Often, the additional collateral is the “key” to the desired funding and also ensures much better conditions. For example, the range of interest rates is between 4.00 and 10.00%, especially in the context of free personal and consumer loans. In addition, it is strongly recommended to speak openly and honestly with the house bank from the outset and to prepare the existing credit requirements as comprehensively as possible.
For a student loan even small details can be decisive for a good or bad credit decision.
Conclusion: Since a student does not yet earn a lot, but already has high investments and expenses, a loan application can be made quickly. Loans for students are usually possible, especially as there are also students who already earn an average of 1.000,00 USD gross income during the study visit.
However, as the creditworthiness of students varies from house to house, in practice, a decision must be taken on a case-by-case basis. To be as good as possible, it is strongly recommended to always combine the loan application with additional collateral, such as a guarantee from the parent company or a co-applicant.