Students have reduced bus and train fares, but there are situations where the student also needs a car. A car loan for students without a guarantor would then be an option. egokee.com for further explanation
Car loan for students without guarantor – location
If students want to be mobile, they need a car. Since a new car would blow up their already tight budget, many opt for a used car. But this also costs money and wants to be financed. Banks often propose a guarantee for borrowers who do not have sufficient creditworthiness.
Car loans for students without guarantors are unfortunately not available from the state. The guarantor is liable for the loan with his assets if the borrower should default on the loan. A student’s financial situation is somewhat precarious. He often receives Credit Aid, but these government benefits are very tight. If they then want to take on a part-time job, many students do not come to work without a car.
In addition to studying, it is only possible to take on mini jobs that also do not provide sufficient income.
Car loan for students without guarantor – life insurance
If you cannot or do not want to name a guarantor, you should check whether you might have life insurance or a building society contract. The savings contract could be deposited with the bank as security.
Banks recognize these contracts as credit security. The advantage is that students practically borrow their own money. In addition, the contracts do not have to be changed and can therefore continue to exist. In the meantime saved money plus interest remain and will be paid out.
Car loan for students without guarantor – student loan
There are some students who use the so-called student loan. This is provided by the Lite Lender and the Capital Lender.Unlike the classic installment loan, not the entire loan amount is paid out, but an agreed rate every month. The advantage of these loans is that the loan repayment only has to be made after the end of your studies.
Car loan for students without guarantor – private loan
As an alternative to an installment loan or car loan from the bank, the loan would be private. This means close relatives such as parents or grandparents. The terms are freely negotiable, and the interest would be very low, if at all. If there is a financial bottleneck each month, it is easier to ask the parents or grandparents to defer the rate than a bank.
Car loan for students without guarantor – car leasing
Students could also lease a car. The advantage of leasing is that you only have to pay for the actual use of the car. This can result in monthly installments of less than 100 USD. When the contract expires, the student can return the car or buy for the residual value.
However, leasing also requires collateral. A deposit might help here. Lendable life insurance would also be an option. A mini job based on 400 USD could also help here. If the student gets a job as a working student, he could expect an income of around 1000 USD a month. This income would then be enough for a car loan.