Teaching is the older term that is still used in the craft sector for vocational training in the dual system. The apprentices or apprentices receive a training allowance during their apprenticeship, the amount of which depends on the chosen teaching profession and the federal state of the training center, as well as the year of apprenticeship, and increases annually.
Borrowing while teaching about a commercial bank
Trainees are only allowed to take out a loan during their apprenticeship if they are of legal age at the time the loan contract is concluded, as the granting of loans to minors is excluded by law, even if both parents agree. Many financial institutions grant their existing customers a first loan during their apprenticeship by granting them a first overdraft facility when they reach the age of majority.
In many cases, the taking out of a consumer loan within the apprenticeship period requires the guarantee or entry by the parents as a co-applicant, since the apprentice salary is not sufficient for the repayment of the loan in a classic household calculation with flat-rate values. If financial institutions take the particular situation into account when calculating the repayment ability of the apprentice, they can grant a loan during the apprenticeship, because most trainees continue to live in their parents’ house and can use their entire training allowance as pocket money or to repay the loan. Orders for installment payments are as good as possible for apprentices, since most mail order companies only ask for income from work when the order amounts are high.
With all borrowing and installment payment agreements, it must be ensured that the installments are paid by the apprentice salary. One way to reduce the monthly loan installments is to agree on a final installment, which is only payable after the training relationship has ended.
Special loans for apprentices
Like some commercial banks, KfW Bank grants a development loan as a special loan during the apprenticeship. The prerequisite for the granting of credit is that the apprenticeship completed leads to an increased need for money, which is mainly the case with the necessary accommodation outside the parental household.
The main advantage of granting promotional loans to apprentices is that repayment of the loan only begins after the planned completion of the apprenticeship. Thus, the apprentice does not have to pay the loan installments from his low apprentice wages, but has a sufficiently high income when they fall due.