Guarantors are not easy to find
It is different if you do not have a regular income. In the credit check, banks always pay attention to whether a potential borrower is in permanent employment and whether he has a regular income. If neither is the case, they request a guarantee. The function of the guarantor is to guarantee that the lender receives his repayments. If for any reason this is not the case, the bank that granted the loan can contact the guarantor to claim their money. In itself, this is not a bad solution. However, guarantors are not always easy to find or available.
After all, they always take a certain risk with the guarantee. That is why people without a fixed or high income are looking for a loan without a guarantor. The option of a loan for trainees without guarantors actually exists. It is important to know this possibility and to inform yourself about it, because sometimes you just have to spend certain expenses – for example to buy a car or to buy a new computer. But how do you get a loan for trainees without guarantors?
Banks need collateral
In the case of trainees, the regular income is usually not high enough to be able to take out an installment loan, which is often readily possible for other employees. To get a loan for a trainee without a guarantor, for example, a second borrower can take out the loan together with the trainee. Ultimately, the bank’s only concern is to be sure that it will get back the money it lent. A second borrower may offer this security.
Another way to get a loan for a trainee without a guarantor is to offer the bank a so-called security transfer. This means that an item that was purchased using a loan will legally become the property of the bank after the purchase. The borrower can use the property, but it does not belong to him as long as he still owes the bank money. This state can only change again with the last payment rate.
It is clear that trainees can also get a loan without a guarantor. It is of course a little more difficult. But should they find ways to offer the bank that is to grant the loan the collateral that the bank wants, there is actually nothing standing in the way of the loan. It is worth collecting information about the possibilities for borrowing for trainees. Because some investments are simply essential.