If you want to get ahead in your job or want to specialize in a certain professional field, you cannot avoid further training. Changes in the job often also result in further training. There are several options for further training.
Part-time evening courses, a language study trip or a full-time course are ideal. The desire for change is costly, especially when the employer does not share the cost. Then an employee has to pay the course fees and examination fees themselves. However, many are unable to do so from the current budget and are considering a loan for continuing vocational training.
Regular in-house training courses are often invested by the company. The best known and eligible credit for continuing vocational training is the German state funding, which consists of a combination of a grant and a loan. Not only skilled trades are entitled to this, but also educators or geriatric nurses, for example. If the government allowances are not sufficient, KfW can obtain a low-interest loan for further vocational training. The employee needs if he applies for the funding so that the employee can pursue his professional training full-time. The subsidy from the state amounts to 30.5% of the costs and the low-interest loan is limited to USD 10,266.
There are loans that only have to be repaid after completing further training. There is also the possibility of receiving government grants for further training in order to at least partially cover the costs. However, these grants are often not sufficient to cover the entire further training. If the employee has no savings, a loan for continuing vocational training must be considered. It is not just the fees for exams and courses, often unpaid leave must also be taken. If the training takes place outside the company, the employee must also finance it.
A loan for continuing vocational training can be taken out with an installment loan. These loans are freely available to the customer. Both the house banks and online banks provide the loan. The loan seeker must have a good credit rating, which is reflected in a sufficiently high income and a clean Credit Bureau.
If you are unemployed, want to retrain or if the measures to reintegrate into work are necessary, you can apply to the employment agency for a grant. If the employee has an accident at work and must therefore undergo further vocational training, this is paid for by the statutory accident insurance.
The credit for continuing vocational training
An installment loan is recommended for further vocational training, as this loan is free to use. These are offered by house banks, savings banks as well as online banks. Of course, the banks check the creditworthiness of the customer, such as the income that must be sufficient. The Credit Bureau, which must not contain any negative entries, is also queried. There must be no attachment, oath of disclosure or bankruptcy in the Credit Bureau. The conditions that banks present differ only minimally from one another.
In general, all promotional loans only have to be repaid after continuing vocational training. Until then, the banks defer the installments and the interest, so that the borrower can concentrate entirely on his further training.
The amount of the possible funding is limited, so that the costs incurred are not always covered, also with regard to living expenses. As a guarantee, the promotional loan has the income that the employee can expect after his further training. In the case of an unsubsidized loan for continuing vocational training, payment must be made immediately after borrowing.
For this reason, the current income must be sufficient for a loan and for further training. However, this will only be possible if the employee works at least partially. If this is not the case, the loan can be taken out with a second borrower or a guarantor, both of whom must be solvent, ie they must both have sufficient income.
In most cases, a guarantee is actually warned because it represents a great risk for the guarantor. But with regard to continuing vocational training, the borrower can be expected to meet his financial obligations.
The credit rating
If you have the chance to do further vocational training, you should not give up your secure job if possible. This training will then take longer with regard to full-time training. But the income from work is secured. A high credit requirement arises if the further education also has to finance living expenses. A look into the future shows further education at distance universities. There are only a few important compulsory dates, the time schedule remains free. Even those who work in shift work can undertake further training in distance learning.
As far as the creditworthiness of the employee is concerned, it does not play a major role in the public support programs; the creditworthiness is not even checked. The Credit Bureau, no matter what it says, will not stop the credit for continuing vocational training. However, it looks different if the loan is applied for through banks. The creditworthiness is very well checked here. The employee then has to name a second borrower or a guarantor if the creditworthiness is insufficient.
The credit comparison and the overdraft facility as credit
A worker can find many good deals on a free loan comparison. After entering the necessary loan amount and the term, all providers can see at a glance using a list. The loan comparison is cost and works independently of banks.
If an employee only needs a smaller amount as a loan for further vocational training, the overdraft facility could be used. Banks make this loan available to their solvent customers and freely available. If the customer’s creditworthiness is sufficient, the employee can proceed with the overdraft facility in the same way as with a loan. Depending on how high the income is, banks provide up to three net monthly salaries. If someone earns 3,000 USD, he would get an overdraft facility of 9,000 USD.
The customer does not need to sign a loan agreement and a credit check is not necessary in most cases. The bank has an insight into the customer’s account movements. However, it is an expensive loan. There are banks that charge up to 15% interest on the overdraft facility. If necessary, the employee could change his bank. If the other conditions of the bank are correct, however, it does not make sense to change the bank for the overdraft facility.