After graduation, many academics really want to get started. Now you have the opportunity to apply everything you learned and worked on during your studies. Often, a change of location has to be carried out because the place of study cannot usually find the right job.
In addition, purchases for an apartment and often also the purchase of a car come to the job seeker. All things that are associated with the use of money. However, many former students were unable to build up any reserves during their studies and are therefore financially starting a new life. A credit after graduation must therefore be taken out in order to be able to start working life.
The conditions are difficult
Taking out a loan after graduation can be quite difficult as the prerequisites for this are very poor. This means that the graduate cannot prove any income because he only receives it when he is working. Since he has saved nothing and certainly does not have any valuables or other collateral, the bank sees hardly any reason for lending.
The banks can only be made more positive if they have a fixed employment contract that promises high income. In addition, you improve the prerequisites if you can name a co-applicant who has been working for a long time and therefore has good prerequisites for borrowing.
What will happen if you did not grant a loan?
If this is not possible and if there is a gap in employment between the end of your studies and the start of an employment relationship, it is worthwhile to submit an application for unemployment benefit to the employment office. If the office sees that the loan is absolutely necessary to take up work after graduation, it can happen that the employment office grants an interest-free subsidy and sometimes you no longer need a loan at all. The subsidy from the office can then be repaid in small installments.
You can also see whether you have a chance to get a loan from private donors. In addition, direct banks are always a bit more humane when it comes to lending than traditional banks. You cannot avoid a co-applicant here.