Cash Loan for Apprentices
Trainee is the modern term for apprentices and means people who are in dual vocational training in the company and in the vocational school. Some financial institutions refer to any unrestricted loan as a cash loan. However, the term actually stands for lines of credit that bank customers can use at any time after a one-time setup. The prerequisite for granting cash loans to a trainee is that the borrower is of legal age. Minor trainees are not allowed to take out loans, this also applies to the consent of their legal guardians.
Apprentices and the classic cash advance
In the classic sense, cash credit is not unusual for trainees. Many banks grant trainees a cash credit in the form of a credit line in the checking account when they reach the age of majority, if they have held the account with them since they started their vocational training. The overdraft facility for trainees is often between five hundred and one thousand euros. Another option for a cash loan for trainees is to obtain a credit card. In this case, too, the issuers initially give the credit cards a small credit line, which they usually increase after a period of time with regular payment of the monthly statement.
Apprentices and the cash loan as a non-earmarked loan
A cash loan is not paid out as cash, but by transferring it to the student’s checking account. The only exception is if the apprentice takes out a pawn loan in the pawnshop. Given the low income, banks are often cautious when it comes to cash loans for trainees. One option for successful borrowing by the trainee is the decision for a small loan amount, which some financial institutions grant without checking the income. The trainee can also ask his parents to act as co-borrowers. It is not advisable to sneak a cash loan for trainees by providing false information in the loan application, even if some lenders refrain from submitting proof of salary for loans applied for online and low loan amounts. Regardless of the lender’s creditworthiness check, trainees make sure that they do not enter into more credit liabilities than they can service with their low income.