Students have to pay for their studies, make a living and finance their leisure activities. They cannot always rely on the financial support of their parents. Furthermore, the study only allows a limited number of working hours. Financial support from the state is not always available.
Installment loans for students despite a lack of income
In the past, installment loans were rarely granted to students, because students belong to a group of the population that generally does not have a fixed income and cannot offer collateral either. Accordingly, credit institutions associated with the student profession increased risk of default. In the meantime, however, more and more loans are also being given to students, since the university degree gives them access to better paid jobs.
A maximum loan amount is set in the course of the student loan. This is not paid out to the borrower all at once. Instead, it receives monthly installments. The student can also apply for a one-time payment for the procurement of working materials or other major purchases.
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Pay attention to the repayment modalities
Student loans are usually only repaid after a one-year break. This means that the loan amount does not have to be repaid in the 12 months after it was concluded. Installment loans for students are also not tied to specific courses. However, students of the humanities should pay attention to flexible repayment modalities. The repayment-free period of one year is usually set too short for them, since it has been proven that entry into the job for students of the humanities does not take place until a period of up to two years after graduation.
The requirements of a student loan
If you want to take out an installment loan for students, you have to meet certain requirements. For example, the applicant must not have exceeded a certain maximum age when applying for the loan and must currently be enrolled at a university. Accordingly, the loan amount is only paid out during the standard period of study, up to a maximum of two months beyond this.
Furthermore, the student has to agree to a Credit Bureau query. For borrowers without a negative Credit Bureau entry, the chances of an installment loan for students increase significantly. It is not uncommon for credit institutions to ask for a guarantor who, with his fixed income, vouches for student defaults.