Banks willingly allocate borrowed funds to their customers, implementing a variety of lending programs. When making a decision on granting a credit line, a financial institution proceeds from the reliability of a candidate for a loan and its solvency. It is rather difficult to get a loan for students, since it is necessary to provide the lender with proof that the funds will be returned to the bank and there is no financial risk. A student loan has its own characteristics when applying, and also takes into account the financial capabilities and needs of this category of citizens.
Can I get a student loan?
It is much more difficult to get a student loan, not only because of the low income level, but also because of the complete absence of any credit history. It is known that the bank, rather, would prefer to meet the borrower with minor delays in the past than to the client, who had never used the services of the lender before.
To increase the chances for consideration of the application will allow the registration and successful repayment of the microloan. After the student repays the funds from the MFI in full and on time, the first positive record will appear in his credit history.
Making a student loan does not involve participation in serious programs with large loan amounts. Mortgage and car loans to take during training in the full-time department of the university is problematic. Most banks for students implement the following credit options:
- issuing a youth card;
- consumer loan;
- student loan for education.
In addition to the usual banking offers, some financial institutions offer to take advantage of special targeted programs with state support, with the lowest possible interest rate per annum – from 5.06%. As part of this proposal, the lender does not require additional certificates of labor income, and the repayment period can last for 16 years. The student will be able to spend the allocated amount to pay for tuition, accommodation at the location of the university. You can repay such a loan with deferred payments on the principal debt for the entire period of study. If the borrower wishes, the first payment is made 3 months after the document on the successful completion of the training is received.
What banks give loans to students
It should be noted that not all financial institutions issue loans to students.
Before choosing one of the programs, it is recommended to send a preliminary online request to several institutions at once and get information on specific credit conditions. Since students do not belong to the category of reliable taxpayers, most likely, borrowed funds will be issued at an increased percentage, in some cases reaching up to 50% per year.
For example, in the Credit Bank a loan is issued to young people from the age of 18 at a rate of up to 23% for 6 months with a repayment of up to 15 years. The Bank pays special attention to registration of voluntary life insurance and registration of additional security within the period specified by the bank. Otherwise, the rate increases by another 5 points.
Student loan in is represented by two main programs: educational and consumer loan. The conditions for issuing and further servicing will largely depend on the purposes for which funds will be spent on the loan:
- Inappropriate expenditure on a consumer loan will require the provision of additional evidence of solvency, attraction of co-borrowers, guarantors, transfer of property as collateral;
- Target education loan implies a lower rate, and the funds are not given to the student, but transferred directly to the details of the educational institution as necessary (for each reporting period of study) with deferred payment of the principal debt.
How to get a student loan
The procedure for negotiating a loan agreement for a student will largely depend on the type of loan program.
One of the most common types of loan is a student loan for urgent needs, not requiring an additional report on the purpose of using money. When applying for a consumer loan for students, an important condition for successful approval of an application is the willingness to provide additional financial guarantees:
- Attracting co-borrower with sufficient work experience and earnings.
- Attracting a guarantor (up to 2 people) who is willing to bear financial responsibility in the event of the creation of overdue loans or the full refusal of the student to pay the debt to the bank. If the student has not yet reached 21 years old, the parents of the main borrower can issue a guarantee for the bank, subject to formal employment and stable earnings.
- Registration of valuable property as collateral, with which the bank will be able to compensate for its financial losses if the borrower refuses to fulfill his obligations.
Thus, a consumer loan allows bank students to take advantage of unemployed students, provided that there are other ways of securing debt.
When applying for a loan, an educational institution receives payment from the bank by bank details in a cashless way. The features of this program are the need to confirm personal income, the inability to receive money in cash, the step-by-step transfer of funds to the university account for each semester. In the event that a student discontinues his studies or finds funds for further independent payment of education, payments from the financial institution are stopped. This allows you to reduce the size of the credit line, and hence the final percentage overpayment.
Credit conditions and student requirements
In addition to the basic requirement to provide other forms of security, except for the borrower’s labor income, each of the programs for students has its own characteristics.
Loans to students are issued upon approval by the bank of the candidacy of the borrower, co-borrower, guarantor. Knowing how to get a loan if the client does not have labor income and sufficient work experience will allow, within two days, to achieve successful agreement on the following contract terms:
- Consumer credit is issued in the amount of up to 3 million rubles. The maximum possible amount depends on the amount of collateral provided by co-borrowers and guarantors with interest accrual – 19.5-24.5 per year. The shorter the repayment period, the lower the loan rate is set. The minimum repayment period is from 3 months, so when applying for a student’s student who has less than 4 months left to study, a consumer loan is not issued.
- An educational loan is issued at a low interest rate (up to 12.0%) with a minimum credit line of 45 thousand rubles and a repayment period of up to several years (up to 11-16 years, depending on the specific program of the bank in question). In order to issue an educational loan to students from the age of 18, it is enough to involve their own parents as guarantors (provided they have official labor income), or to offer their personal property in the form of collateral.
If the security is a security, the transferred property must be insured.
The most convenient loan option for students is the issuance of a youth card for those over 18 years old. Youth credit card allows you to use bank funds on the following conditions:
- rate per year – from 24.0%;
- interest-free grace period – 50 days with non-cash expenses on the card;
- the cost of maintenance per year – 750 rubles., emission – for free;
- a credit limit on a plastic product is set individually – 3-200 thousand rubles;
- participation in the main bonus programs on the card increases the customer’s benefit (for example, when spending money on a credit card, you receive “Thank you” bonuses, which are then exchanged for a ruble discount in the bank’s partner stores).
The advantage of a credit card for young people is the possibility of a gradual increase in the limit, with successful redemption and active use of the card. In addition to the limit of borrowed funds, the student can keep personal savings on it in excess of the established credit line.
To avoid paying interest, it is recommended to fully repay the debt during the grace period, avoiding withdrawing cash. If the student has not only not repaid the loan, but also missed the minimum payment on the card, an increased interest rate of 38% per annum is applied. One of the requirements for registration of a plastic card for young people is the presence of experience of at least 3 months, but it is not necessary to provide a certificate of salary.
Successful obtaining of a loan requires the preparation of a maximum of documents from a list established by a financial institution.
Depending on the type of loan, the list of documents will vary. If it is not possible to confirm labor income, it is necessary to resolve the issue of how to issue a pledge and find guarantors.
To get a loan for urgent needs, in addition to the questionnaire, you will need to prepare:
- passport of a citizen of the Russian Federation;
- employment record or agreement with the employer (if available);
- a document confirming the relationship with the guarantors (if the parents are in their role).
If a student loan is taken with the involvement of guarantors, the documents are prepared according to the same list.
The package of documents for obtaining an educational loan is supplemented by an agreement on the provision of paid services with a specific educational institution, which will include the details of the transfer and the required payment frequency.
Modern lending programs of Russian banks allow us to find the best offers even for borrowers who do not have any labor income. A student loan can be spent on tuition fees or the student’s current needs, but an important condition will be to ensure sufficient financial guarantees that the loan will be returned on time and in full.