Student status is characterized by the absence of regular income. His only means of subsistence are the payment of a pension by the parents, a scholarship, or even a part-time or seasonal job. How to get a student credit?
A student loan to finance his car
As a student, the borrower is considered by the bank as a potential future customer, hence a new source of income. The latter will tend to trust him by granting him an unallocated student loan. The use of this loan is free: it can be used to finance studies, registration fees, housing, a car… The advantage is that its rate is much more interesting than that of a conventional car loan.
Amounts from 1,000 euros
The amounts granted, starting from 1 000 euros, can become important if the studies undertaken are already advanced. The repayment term is 60 months. Rates vary between banks, ranging from 2.43% to 4% depending on the bank. The method of calculation is based on the future employment of the borrower and therefore its potential repayment capacity.
It is possible to benefit from a franchise, period during which the capital is not refunded. It is intended to cover the duration of studies, but can not exceed 5 years, sometimes 7 years. The deductible can be partial or total. If it is partial, the student only reimburses the interest and the cost of the insurance. If it is total, it does not reimburse anything.
Nevertheless, the total cost of student auto credit will be higher than in the absence of a deductible. Early repayment without penalties is a solution to reduce the cost.
The conditions for obtaining the student credit
The borrower must possess a student card, or provide his certificate of enrollment in a graduate degree course. He must be between 18 and 30 years old. However, some banks do not impose an age limit, only the continuation or resumption of studies is required.
A deposit is required to replace the pay slips. It can be a parent or a relative. Failing this, the student can ask for the state guarantee. In this case, the amount will be capped at 15,000 euros. The student must be less than 28 years old, and the refund will extend over a maximum of 10 years, including franchise.