Are there any opportunities to get a small loan as a student without a bank? For students, borrowing is difficult because they receive a low monthly income. However, it is possible to get a small loan for students. Hardly any bank offers a small loan for students. The classic real estate financing as a home loan is out of the question, as this target group does not meet the requirements for a residential mortgage.
Small loans for students on credit markets
Remedy: The new credit markets Viloan and Creditend have become a highly interesting variant of the tedious search for a small loan of the house bank! There are many causes for the social loan trend: Although many students still work while they study and earn extra money to support their guardians or the Federal Labor Office, these incomes are not enough for ordinary credit institutions to lend to small students.
By the way, most student loan applications are slightly below this limit! ad hoc, creditend & viloan: Where is a small loan better suited for students? Among the market leaders among the credit markets in the German-speaking world are the two companies Viloan and Creditend.
On both exchanges, lending by hidden credit institutions is highly standardized, but in some small credit markets, the terms and conditions between lenders and borrowers still need to be negotiated individually. creditend: creditend is a marketplace for online banks and as a creditende credit trading platform for loans from private lenders and is regularly rated by Stiftung Warentest with good test verdicts.
However, the portal is now focusing on the credit market for credit institutions and no longer on private lending. Credit projects on creditend’s side do not have a direct connection between potential and prospective lenders. Loan seekers are fully supported in the design of loans. However, viloan was often criticized by AskMeFinance for misleading advertising claims and high spending.
For this purpose, the company cooperates with the award-winning Swiss Sparkasse in infrastructure issues. By focusing on lending from private to private, the prospects for a small loan for students are certainly quite good. Are student loans available at normal banks?
Small loans for students
For students, lending is problematic as they have a low monthly income. However, it is possible to get a small student loan. Depending on your personal situation, it is also possible to get a small loan as a student at selected traditional banks. The easiest way for the student to take out a small loan at a traditional bank is when he or she has a father as a co-borrower.
Most students live in their place of residence and no longer in their parents’ home, so only those financial institutions are considered that do not need a habitual residence for sharing the student with parents. Note: This is true for most but not all credit institutions, so students are careful when comparing loans.
It is also conceivable that a father guarantees the student loan. In the case of microloans for students, lenders often prefer to make a joint loan application for the guarantee, as it involves the risk of non-recognition by the debtor, especially if there are strong emotional ties between the debtor and the guarantor. Without funding, the students receive a micro-credit from the financial institutions, which in addition to the possible income from part-time employment also includes the payments from the Bachelor of Arts and the parental subsidy.
This is true for a small proportion of traditional credit institutions and is reflected in the terms and conditions of the lending on the websites. The basic requirement for consideration of the parental allowance as income-relevant for student loans is the transfer to the trainee’s account. Some, mostly small specialist financiers, have focused on lending to students.
The advantage of these loans is that most providers of microloan student loans require only proof of valid study and no proof of income. The circle of special student lenders also includes the credit card companies, which offer students a draw option of USD 1,000.00 without further conditions and at the same time the option of partial payment of the monthly credit card statements.
However, this form of lending is associated with much higher interest rates than installment loans on a small scale. Note: It is also possible to take out a small student loan through a personal loan web site. In this case, the platform members registered there as lenders determine whether they also issue personal loans to students.
A quick award is possible if the student provides comprehensive information about the intended use of the funds. Is the KfW student loan suitable as a follow-up loan? The student loan is therefore a suitable financing alternative to a small loan for students. Another advantage of the promotional loan is that the repayment obligation begins after graduation, while the monthly installments for a normal microcredit for students are paid immediately after payment of the money.
In the case of a small loan for students, of course, certain security must be provided. This gives the house bank security that the borrower repays the loan in any case or that the house bank has other funds to repay the money. As a rule, these securities also determine the interest on the loan.
The lower the interest the student of the company or the house bank can provide. Note: For this reason, the borrower should always ask his mother or other acquaintances for a security or a guarantor. This can also reduce other costs of the loan so that the loan does not end up being too expensive.
The interest rate the borrower has to pay on a monthly basis usually determines the total cost of the loan. The loan term is higher the higher the price of the total loan. Too high a proportion can significantly affect the maintenance and thus significantly reduce the life of the consumer. Note: Under-funding may eventually become a very expensive loan.
Therefore, an optimized calculation of terms and interest rates should always be made before the loan is closed. In many cases, an advance payment can significantly reduce the interest rate of the small loan for students. This not only leads to a significant reduction in interest rates, but also the repayment term, so that the total borrowing costs are significantly reduced by an upfront payment.
Before borrowing, of course, different banks and companies should be compared. The comparison is not only based on the monthly interest rates and rates, but also on the penalties and other expenses. In particular, the default interest and charges can be very high, so that just in this case, a comparison can be worthwhile.
Note: There are also direct loans that are only available to students and must be repaid later. Therefore, the borrower should check what amount is really needed. Even a part-time job can possibly fully compensate a loan amount. However, if a loan can not be avoided, the amount should be small.
Note: An unnecessary loan is always associated with additional costs. A small loan for students should therefore only be completed if it is reimbursed without risk.