Germany is a rich country with a very high technological level. Although there are no resources and natural resources such as oil, gas or gold in Germany, Germany has something that is admired by many other nations. The art of engineering in this country is almost unique. German products meet the highest standards and are of top quality. However, this position seems to be endangered in the future, since the skilled workers run out in Germany.
Well-qualified employees are becoming increasingly rare in Germany. But what can you do to stop this negative trend? On the one hand, foreign workers can be recruited, and on the other hand, you can build on your own people’s human capital. Unfortunately, good further education and training is very expensive, not everyone can afford such a qualification. Therefore, there are corresponding aids that enable training and further education.
Credit for continuing education as a helpful tool
Many credit institutions can significantly slow down this negative trend because they offer a loan for further training. This loan can be compared to a conventional loan where similar collateral must be proven by the borrower. For example, regular income or other property (e.g. life insurance or real estate) must be proven.
Nor can there be any negative entries in the Credit Bureau database. A guarantor can also step in for a loan for further training if the borrower can no longer pay his installments. The possible parameters for such a loan are disclosed below.
What is possible with a loan for continuing education
The maximum loan amount is around USD 100,000 and is fixed differently for each bank. The terms for such loans can be between one and ten years. So you are relatively flexible in the definition. Ideally, the effective interest rate is currently around 5 percentage points, but this can vary depending on the bank. It is often assumed that borrowers have to pay back monthly installments. However, many banks also grant special repayments that can be made outside of the normal repayment periods.
In general, it is better to inform yourself beforehand, because the differences between the individual banks are not small. In summary, it can be said that the banks created an interesting offer with a loan for further training. In principle, they support the German economy and maintain the high level of performance of German workers. Many borrowers have used this opportunity in the past, but the number will increase again in the future.