Apprentice loan for driving licence & car: 5 steps to financing
07.07.2025
9
Minutes
Katrin Straub
Managing Director at nextsure
The desire for a car of your own or a driving licence is strong during training, but financial resources are often limited. Many banks are hesitant to lend to apprentices. But with the right strategy, you can successfully apply for an apprentice loan for a driving licence or your first car.
The topic in brief and concise terms
As an apprentice, you must be of legal age for a loan, prove a regular income and have a clean Schufa record.
The probation period is a major hurdle; a loan application is significantly more promising once it has ended.
Collateral such as a guarantee from your parents or a second borrower increase the chances of approval and significantly improve the terms.
Check the requirements: The basis for your loan application
Before you submit a loan application, several basic requirements must be met. Banks in Germany generally require the applicant to be of legal age, i.e. at least 18 years old. A fixed place of residence in Germany is another condition required by almost all credit institutions. The most important criterion is a regular income of your own from your apprenticeship.
Many banks set a minimum income threshold, often above 600 euros net. Child benefit or BAföG are not counted as income. A clean Schufa report with no negative entries is also crucial for creditworthiness, the so-called credit rating. The probationary period poses a particular hurdle, as banks shy away from the risk of termination; many institutions only grant loans once it has ended.
Creating a detailed overview of your finances is the next logical step in proving your financial capacity.
Calculate loan amount and instalments realistically
Careful budget planning is crucial to avoid overindebtedness. The costs of obtaining a driving licence quickly add up to €2,500, while a reliable first car is rarely available for less than €5,000. Draw up a precise household budget for the loan application in which you compare all monthly income and expenses. The amount left after deducting all fixed costs determines the maximum possible loan instalment.
The term of the loan has a direct impact on the monthly burden. A longer term does reduce the instalment, but increases the total cost through interest. For example, a loan of €3,000 at an effective annual interest rate of 11.2 per cent results in a monthly instalment of €97.74 over 36 months. Choose an instalment that still leaves you with enough financial room, even in the event of unexpected expenses. A loan with a long term can be an option here to keep the burden low.
A solid calculation is half the battle, but your own funds are often not enough as collateral.
Provide collateral and improve creditworthiness
To increase the chances of a loan approval, additional collateral can be crucial. Banks consider trainees to be a risk group because of their low income. One of the most common ways to provide security is a guarantee from a third party, usually the parents. A guarantor with good creditworthiness and a steady income undertakes to cover the instalments if you become unable to pay.
The following options are available to you to improve your creditworthiness:
Guarantor: A person with a positive Schufa record and stable income guarantees your loan.
Second borrower: You take out the loan together with another person, for example a parent. Both are then jointly and severally liable.
Assignment of collateral: For a car loan, the financed vehicle itself serves as security. The bank retains the vehicle registration document (registration certificate part II) until full repayment.
Proof of an assumption contract: If your training company has already guaranteed you a permanent position after your apprenticeship, this significantly reduces the risk for the bank.
A car loan with a guarantor is often the key to success. With these securities behind you, you can now start comparing specific offers.
Compare loan offers and avoid pitfalls
Comparing different loan offers is essential in order to find the best terms. Pay attention not only to the nominal interest rate, but always to the effective annual percentage rate. This includes all the costs and fees of the loan and is what really makes offers comparable. Interest rates for apprentice loans can vary significantly, often ranging from five to well over ten percent.
Use online comparison portals to get an initial overview. A terms enquiry with Schufa is neutral and does not affect your score. In contrast, a firm loan application with several banks can worsen your score. Read the small print carefully: Are free early repayments possible so you can pay back the loan faster? Is there an option for a payment break in the event of financial difficulties?
A cheap driving licence loan with small instalments is often available from direct banks online. As soon as you have found the right offer, you move on to the formal application.
Master the application process and prepare documents
A well-prepared application speeds up processing and increases your chances of success. Banks require a range of documents to assess your financial situation. Have these documents ready to avoid delays. As a rule, you will need the last two to three payslips and the corresponding bank statements.
Here is a list of the documents typically required:
Copy of valid identity card or passport
Current proof of registration
Copy of the apprenticeship contract
The last two to three payslips
Bank statements for the last four weeks without redactions
If applicable, guarantee agreement or proof of additional security
As mentioned earlier, the probationary period is a common reason for rejection. It is strategically wise to apply for the loan after the probationary period. Today, the entire process can often be handled digitally, including identity verification via the online identification procedure, which reduces the payout time to just a few days. But what if the classic loan is not the right solution?
Check alternatives to a personal loan
A classic instalment loan is not always the best or only option. It is worth considering other ways of financing your driving licence or your first car. A popular alternative is the so-called three-way finance or balloon finance offered by car dealerships. This attracts with low monthly instalments, but requires a high final payment at the end of the term.
Another option is the KfW Bank education loan, which under certain circumstances can also be used for training-related purchases such as a driving licence. The interest rates here are often significantly lower than at private banks. Caution is advised with dealer finance advertised as a “zero per cent finance” deal. The costs are often hidden in the purchase price of the vehicle. A used car financing without a deposit can also be an option, but it requires even better creditworthiness.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete optimisation suggestions.
More useful links
Federal Employment Agency provides information on vocational training allowance (BAB), financial support for apprentices.
KfW provides information on KfW Bank's education loan for students and apprentices.
Federal Statistical Office provides statistics on driving licences in Germany.
Federal Motor Transport Authority (KBA) publishes the annual statistics on driving licences in Germany.
Institute for Financial Services (iff) offers a study on the credit competence of young people and financial education.
German Road Safety Council (DVR) publishes a press release on affordable driving licences.
Consumer Advice Centre provides information on the cancellation of car loans and the options for unwinding them.
FAQ
Which bank offers apprentices a loan?
Many direct banks and online loan brokers offer loans for trainees, as their processes are often more flexible than those of traditional branch banks. The home bank can also be a point of contact, especially if an account has been held there for a long time. In any case, it is advisable to compare options.
Is a loan for apprentices offered without a Schufa check?
Offers for loans without a Schufa check are almost always dubious and associated with extremely high interest rates. Every reputable bank in Germany is legally required to carry out a credit check, which also includes a Schufa enquiry.
Can I also use an apprentice loan for other things besides a car or driving licence?
Yes, most apprentice loans are instalment loans for general use. So you can also use the money for a move, furniture or paying off an expensive overdraft facility. However, a purpose-specific car loan may offer lower interest rates.
What happens if I am not offered a permanent position after my training?
The loan agreement continues and the instalments must continue to be paid. Therefore, it is important to choose the instalment amount so that it would still be affordable even with unemployment benefit I. Inform the bank proactively about your situation; sometimes a temporary instalment deferment is possible.
Does a second borrower improve my chances?
Yes, considerably. A second borrower with good creditworthiness, for example a parent, is fully liable for the loan. This massively reduces the bank’s risk of default, which not only increases the likelihood of approval, but often also leads to better interest rates.
Can I repay the loan early?
With most modern loan agreements, free special repayments or complete early repayment are possible. Before signing, look out for the relevant clauses in the contract so you can remain flexible and save on interest costs.
