Studies represent a significant financial investment : between tuition fees and living expenses, it is estimated that a student today needs € 850 per month to live on average, once the aids received are deducted. is close to the minimum wage.
In this context, more and more students are soliciting the benefit of the personal loan. It is estimated that 40% of students borrow an amount of € 10,000 on average. What are the conditions to benefit from the personal loan when you are a student? We make the point in this article.
A personal loan with no obligation of income
One of the main advantages of a personal loan is not to be strictly subject to a revenue requirement. Thus, banks are often inclined to borrow on favorable terms during the back-to-school period.
As a general rule, the annual percentage rate of charge varies between 0.90% and 1.15%, not counting optional insurance that can be taken in addition. Given the personal situation of borrowers, namely here students, these conditions are very attractive.
However, it should be noted that the bank will most often ask for a parental guarantee. In this case, the parents undertake to repay the personal loan in place of their student child in case it is unpaid.
In addition, another advantage of the student loan is that it is not earmarked for any particular expense, which does not require justification for the use of funds. Thus, the student who benefits from this loan can spend the sum as he sees fit.
Conditions to benefit from a student personal loan
The personal situation of the borrower is taken into consideration by the bank. Like the unemployed or well-known Banque de France , the question arises as to how to demonstrate the solvency of the borrower.
In reality, the bank will seek in particular to be reassured on the side of the parents. The student will then have to provide the income of his sureties and any financial data that may play in his favor. The student must therefore make sure to build a solid file with all the evidence of his course and his bonds.
Student Loan: Deferred Payment Option
The personal loan, when offered to students, is often subject to a deferred repayment , although it depends on the banks. These last allow a staggering of the maturities between 1 and 10 years.
On the other hand, if the State has granted a student loan, the reimbursement can not be for less than 2 years. This grace period allows the student to start repaying the personal loan once they have landed their first job.
In this sense, two options are possible. Either the deferral is total: in this case all the maturities are reported. Either the deferral is partial, which allows the student borrower to repay credit interest initially and then repay the capital once he has completed his studies.