Trainees in the dual system receive an increasing apprenticeship remuneration each year, the amount of which is not sufficient for living in almost all apprenticeship courses. It is generally possible for them to borrow as soon as they are of legal age. Lending to minors is prohibited even with parental consent.
Regular bank loans for trainees
As soon as they reach the age of majority, many financial institutions grant a marginal credit line as the first loan for trainees without a co-applicant if they have had their account with them since the beginning of their training. A similar procedure applies to some credit card issuers. However, these lines of credit involve higher interest rates than a consumer loan. Most of the trainees continue to live in their parents’ house, so that the entire training allowance is available as pocket money or they only have to pay a small part of the money into the household budget.
Whether a financial institution grants a loan to trainees without a co-applicant largely depends on their flexibility in the budget calculation. If she takes into account special cases such as free living in the parental home, this usually means that it is possible to grant the apprentices a loan; in the case of banks which do not apply a flat-rate budgetary cost to the individual case, however, borrowing is difficult. Orders in stores for payment by installments, on the other hand, are easily possible for trainees, since the large mail order companies only ask for income if the order sums are exceptionally high.
Low credit rates for a loan for trainees without co-applicants make sense for the secure payment of the loan payments from the training allowance. These can be achieved by a long loan term or by agreeing a final installment, which is due later than the intended end of vocational training.
Promotional loans for trainees
Like some commercial banks, bank grants a discounted loan to trainees without a co-applicant, the repayment of which begins after the end of the apprenticeship. A prerequisite for borrowing is that the apprentice incurs costs due to the apprenticeship, which cannot be covered by the training allowance.
Most promotional loans are provided to trainees if they cannot live in their parents’ home during their apprenticeship and therefore have an increased need for money, but at the same time have less chance of obtaining a consumer loan.