There are various reasons for retraining or further training. An accident or illness can result in the profession being learned no longer being practiced. In these cases, retraining is an opportunity to learn a new profession.
Sometimes the cost of this is borne by the employment agency. However, if the retraining takes place through a private provider, no costs will be reimbursed. The costs must therefore be borne by yourself. Since retraining takes place full-time in most cases, income is not regulated or severely reduced for this period.
To compensate for this, a loan can be applied for during a retraining to cover the cost of living. The situation is different during this time with a loan for consumer goods. Such is rarely granted due to the lack of creditworthiness.
Requirements for a loan during a retraining
Confirmation of participation in the retraining must be provided by the training center for such a loan to be granted. In some cases, regular attendance is required to be proven by the retraining institute. The credit rating is another factor that must be considered. A distinction is made between whether the retraining is done full-time, part-time or outside of working hours. If there is no credit rating, a third party can provide a guarantee.
Conditions for a loan during a retraining
The conditions for such a loan fluctuate with the various banks. The interest rates range from 2.90% to 15.90% with different terms. Before applying for a loan during a retraining, it should be calculated for what period of time the money is needed. Once the framework has been defined, the various offers of the banks can be compared. The borrower’s wishes should be taken into account.
With some banks a continuous payment in installments is required, with others one-time payments are possible. The amount of processing fees should not be neglected either. The amount of the loan also influences the amount of the interest rate and the processing costs. Some banks offer loans from USD 2,000 to USD 5,000. For others, an amount of USD 1,000 is already possible. The maximum limits vary between USD 50,000 and USD 80,000.
The Master German State Funding – another financing option
If you want to complete further training instead of retraining, you have another option. The German State Funding is especially for employees who want to continue their education in addition to their job. However, this only applies to further training to become a master craftsman, specialist or certified specialist. In such a case, a grant of 30.5% can be obtained from the Office for Training Support, which does not have to be repaid.
A low-interest loan can be arranged with Lite Lender Company for the rest of the training costs. The maximum amount for this loan is USD 10,266. The repayment begins only after a certain waiting period after completing the training.