Student loan on what terms and which banks grant?
Studies are financially very difficult in many cases. The vast majority of students do not work at all or only part-time, relying heavily on family support. However, not everyone can count on such support, and there are many expenses – rent, food, other living costs, not to mention any entertainment or pleasure. In this case, a student loan may be required. What loan can a student count on? Is a student loan possible without income?
Student loan – on what terms?
As has already been mentioned, most students do not have stable, regular and high incomes, and the cost of living only increases year by year. They support themselves through parental funds, occasional work or social or scientific scholarships. This makes them getting a bank loan relatively difficult, though not impossible (having a high creditworthiness, for example, a parent may help). A loan from a non-bank institution is much easier for the student. In most cases, your income is not verified at all – all you have to do is complete an application and perform a verification transfer (or confirm your identity in another way, e.g. by phone), and the money will be quickly on our account.
What requirements do loan companies place on clients (including students)?
- possession of an ID card
- 18 (or sometimes 21) years of age
- having a bank account.
Of course, these are only general principles, and each company can also set its own internal rules and requirements. A student loan is usually not a separate product, but simply a loan or payday loan that is available to everyone – including students.
The amounts that can be obtained under this type of loans usually range from several hundred dollars to several thousand dollars, although there are exceptions – some companies even allow you to borrow several thousand dollars without additional verification or special requirements. In most cases, such a loan for a student must be granted within several dozen days (30 and 60-day loans are the standard, 14-day obligations can also be found), although installment loan offers also exist.
Is a student loan without income possible?
What if a student does not earn, even casual, and does not receive a scholarship? Does it have a chance for a student loan without this type of income? Yes, because, as has already been mentioned, loan companies do not verify income, as is the case with a bank, requiring potential borrowers to present a certificate from their employer. Funds sent by parents (as well as, for example, maintenance) can also be considered as an income, especially if it happens regularly. Therefore, a loan for a student without income from work or scholarship is very much possible.
Student loan – costs
A student loan will usually be more expensive than a loan of the same amount at the bank. This is due to the fact that non-bank institutions take a very high risk by granting loans without a thorough verification of even income or credit history. Therefore, they are compensated by relatively high interest rates and commissions, as well as additional fees (although of course not always). The exception here are the so-called first loans for free, which are offered by a large number of loan companies. These loans are exclusively for new customers, which have zero interest and commission rates, and no other fees. Therefore, if we give them back on time, we won’t pay anything more than the amount we borrowed. Each subsequent loan in the same company will be payable, but nothing prevents you from using the services of different institutions every time.