Criteria to receive Payday loan as a student
Loans can help in many life situations, for example, to fulfill a long-awaited wish or to bridge a financial bottleneck. Even as a student, you can easily get into a financial situation in which the help of a loan can be not only monetary but also golden. But what about the creditworthiness of a student? How old does a student at least have to be to get a loan in Germany? Is it possible for parents to take credit for their children, even if they are still at school?
Payday loan for students: is there a credit age limit?
Of course, regardless of the actual creditworthiness, each prospective borrower first needs general creditworthiness. This is coupled in Germany to the full business ability. Borrowing in this context is possible at the earliest when the borrower or student has reached the age of 18. Unlimited ability to work is a criterion that has to be fulfilled without exception when borrowing from German banks. In particular, the subject of “credit business” can be carried out in accordance with BGB §2 only with an adult and fully legal capacity.
What other criteria does a student have to fulfill in order to receive a payday loan?
Since there are of course also adult students who attend, for example, the upper level of the high school and go to the 13th grade, it can in principle be natural that a 20-year-old shoulder a loan application. In principle, however, the same “rules of the game” with regard to creditworthiness and security as with general lending apply to lending to students. The student needs in this context a fixed and regular income, which allows him to pay the incurred loan installment easily.
In addition, the income must be consistent with its previous expenditure. A monthly pocket money, which is paid for example by the parents, would not be counted by a bank. This is mainly due to the fact that the payment of a pocket money is not subject to a contractual basis, so that neither students nor bank can plan firmly with the revenue. If a student does not have a fixed income, lending can only be realized with the help of additional collateral. These collateral can be, for example, the surety of the parents or the assignment of savings, which has been paid for example in a home savings contract.
However, even in the case of additional collateral, the bank would like the student to show how the desired loan can be duly repaid. For this the pupil needs in each case a qualifying part-time job, for example an employment on 450-euro basis.
Can parents take out payday loans for their children or for the children?
In particular, in transactions with minors there are many opportunities in German contract law, if there is a declaration of intent or the respective parent or guardian. However, such regulations do not apply to loans. Parents in Germany can not borrow money in the name of their minor children. If anything, a guardianship court needs to be integrated into the application process for the loan, and from the court’s point of view there are, of course, no to few grounds for granting borrowing to the child’s name.
After all, the child’s financial future must not be endangered. The other way around, of course, is the possibility for parents to take out loans for their children. In such a case, however, the loan is not taken up directly in the name of the child, but in the name of the parents. Parents are responsible for their own income and personal security. Of course, after payment of the funds, there is the possibility of making the money available to the child, but on the bank side, the parents are always entered as borrowers.