As a student, you rarely have sufficient resources to fulfill all your wishes – the most expensive is often your own PC, driver’s license and your own car or scooter. Can I also get a loan as a student and if so, what are the requirements?
As a rule, loans that are required for a driver’s license, a PC or even a scooter or a used car are consumer loans or installment loans. These are loans that can be classified as low-value since the loan amount rarely exceeds an amount of 1,000 – 3,000 dollars and which are often not earmarked.
There is also a loan for students
To finance the driver’s license or a scooter, but these are usually indirectly linked to the parents. There are two reasons for this:
On the one hand, minors are not allowed to conclude contracts without the consent of their parents – those who are under the age of 18 always need the consent of their parents, who as legal guardians and legal representatives must also be liable for these contracts. So if the child does not properly serve a contract, the parents are liable for it, because strictly speaking, they have concluded the contract by their consent.
However, this does not mean that, for example, the child is “fine” in the event of a breach of contract – if, for example, a loan agreement is concluded to finance a driver’s license, the child receives an entry with Schufa due to the payment default and, if applicable, also the parents if the child subsequently as Guarantee the contract and can not service the debt.
On the other hand, as a student, you do not have a fixed income of a sufficient amount. A fixed income means that you are no longer allowed to have a trial period and that the income must be paid into an account on a regular basis in the form of wages. This is impossible for most students because the protection of minors forbids that a certain maximum amount of working hours, including school time, maybe exceeded per week.
The sufficient amount means
That the net income must be above the garnishment exemption limit – because if the worst comes to the worst, the bank cannot seize the income, which could follow after a repayment failure and a repayment backlog after the loan termination. The bank, therefore, does not have sufficient security.
As a security, a guarantor is usually required, often the parents, who guarantee that the borrower pays the loan properly – if not, the guarantor must pay the loan. Often, however, these are not just the installments, but the full amount at once. In the case of a loan for students over the age of 18, the student is often only pushed forward as a borrower, since due to moral restrictions, close relatives cannot easily vouch for them.
In practice, this means that a guarantor in the form of parents is required as a “co-signer” or second borrower, but this is basically the actual borrower and the loan for pupils is paid to the child and the child has to pay for this for the time being. If the first “co-signer” fails, the second, ie the guarantor, must stand up for his guilt.
A loan for schoolchildren is always to be treated with caution
Not only that an (interest-free) loan from relatives is often cheaper, but also that early borrowing and possible indebtedness quickly deteriorate the credit profile at the bank and the Schufa can. In addition, there are high additional costs in the event of termination.
In addition, a loan for schoolchildren is often much more expensive due to its low creditworthiness and higher risk – for example, if a parent takes out a loan and thus finances the driving license or finances the scooter, they often get much better conditions and thus a cheaper loan than schoolchildren,