The essential information on the credit contract

Any agreement between two parties is sealed by a credit agreement. Credit procedures are no exception. On the contrary, they highlight the major role which links a lender and his debtor.

This file having a legal value, but also a moral value, take the place of consensual agreement. The borrower has the obligation to sign it before to qualify for a loan.

However, reading the credit contract is essential despite its length and letters with very small characters. This step allows you to better understand what you are getting into by signing up for a loan. In fact, all the reimbursement methods are mentioned in the contract, in addition to the total amount, application fees, APR, etc. In the section dedicated to your creditor, you will find his commitments to lend you a capital on such date, repayment deadlines and much more. All details regarding a bank loan are mentioned in the credit agreement.

What does a credit agreement contain?

What does a credit agreement contain?

The plurality of credits on the financial market means that each loan is associated with a specific contract. Whether you take out a consumer loan or a mortgage, you must sign a credit agreement once you have stated its content and you do not see any objection to the terms mentioned. The points that can differentiate a contract are the terms specific to a bank or a financial institution. There is however an established standard for all credit agreements.

A contract must then contain the following points: the type of your credit (consumer or mortgage), your personal information as well as the details of your credit institution. If your contract requires a guarantor, it must also include the information concerning this person.

Then, if it is a mortgage, the titles and information relating to the property must be mentioned in the file. Then, the amount of your loan followed by the mode of use which you have decided for the capital.

The credit contract also details the monthly payments that you will pay in addition to the APR. The monthly payment terms are also written in the contract.

Then, the total sum of the loan with the annual effective annual rate and the costs is also mentioned in the credit agreement. The duration over which you will pay your loan is clearly mentioned in the file. At the end of the credit agreement, you must sign if all that is written is not a problem for you. You are also invited to write “read and approved” at the bottom of your signature.

What are the two types of credit?

There is a varied set of credit, and all of them must be sealed by contract. They are grouped into two major groups, including consumer loans and mortgage loans. In the consumer credit varieties with a loan amounting to more than 75,000 dollars, credit institutions are diversifying their offers. For example, there are installment loans where the borrower is free to use his capital as he pleases. There are also loans intended for works, or loans for the purchase of vehicles (car or motorcycle). The list of credits is therefore very long and each of them is specific to an organization. Besides, if you want to make a comparison use an online loan simulator. With pret-simulateur.be you will get in record time the varieties of loan formulas from Belgian financial organizations.

Another group of loans is mortgage loans. Any loan based on the mortgage of a property can be classified in the mortgage category. In the past, this type of credit consisted only of buying real estate. However, credit institutions have diversified their offerings by allowing individuals to take out mortgages for other purposes. In particular, to finance the purchase of consumer goods or for other real estate. The debtor is free to put under mortgage any property of which he is the owner, on presentation of the title deeds. A loan of this size can also serve as collateral to release funds.

How to benefit from your loan?

How to benefit from your loan?

To qualify for your consumer loan or mortgage loan, you must sign and approve the credit agreement. You just have to choose the lender with whom you plan to sign. Since the signing of a credit contract involves heavy responsibilities. We can help you choose the best offer suited to your financial means with pret-simulateur.be. It is an online credit simulator that performs comparisons of several loan formulas offered by organizations in Belgium. The procedures are free, without obligation and easy to follow. Using our simulator can even help you take out an online credit application on our site.

Credit contract withdrawal period

Credit contract withdrawal period

After signing the contract, you are free to change your mind if the conditions are not satisfactory. You have a deadline of 14 days for yourself even after the lender and you have signed the contract. However, you have the obligation to send a registered letter to your credit institution in the event of a withdrawal. You must also bear the cancellation costs and return the entire loan.

Financial collection by CCP

Financial collection by CCP

The Central Credits to Individuals of the Fine Bank collects all credit contracts two days after their signature. All those who have taken out loans are then listed with the CCP. Contracts in progress are classified in the “positive” section and contracts with problems (unpaid debts, litigation, etc.) in the “negative” section. This system allows people with a risk profile to be filed. It also helps creditors to know all the outstanding loans that you still have to pay. The information communicated by the CCP is also essential in your relations with lending institutions. They guarantee you whether or not you have acquired a loan. Using their system, you will also be able to access this information and make changes if there is an error.

Advice on financing further training, advanced training or retraining | Low-interest loan

Career advancement and a successful career is an important goal for an increasing number of employees. To do this, they put a lot of effort into it and complete further training courses. Some also opt for retraining, which enables them to reorient themselves professionally and to prove themselves in a completely new professional environment.

However, such a measure is always associated with costs, which may be higher or lower depending on the type and duration of the training or retraining and which pose financial challenges for the graduates. One way to reduce the financial burden of further training is to apply for various government grants for further training or retraining.

The education bonus as a financing option

The education bonus as a financing option

This government grant has been available since the end of 2008 and is aimed primarily at low-income workers. The education bonus can be applied for if you are planning to complete a so-called “job-related” training. This must therefore be directly related to the current activity or relate to an activity that is about to begin.

The grant therefore mainly aims to help keep employees up to date on their professional qualifications.

To receive the award, the applicant must meet the following requirements:

  • he has to work for at least 15 hours a week
  • his annual taxable income must be less than 20,000 dollars
  • he may only apply for one education bonus per year

There are two different forms of funding within the framework of the education bonus, the bonus voucher and the savings voucher. Funding through the premium voucher includes 50 percent of the course or examination fees incurred, but only up to a maximum of 500 dollars (as of 2019).

Other requirements

In addition, there is a bonus only if the further training measure has not yet started, the personal contribution to the course fee has not yet been paid and an invoice has not yet been issued. The savings voucher, on the other hand, gives the employee early access to the saved funds in accordance with the Asset Education Act.

The peculiarity is that the applicant does not lose his entitlement to the employee savings allowance by accessing these funds.

 

Funding through the Fine Bank

Funding through the Bildungsscheck NRW

The Fine Bank is a funding program offered by the state of North Rhine-Westphalia and financed by the ESF (European Social Fund), which would like to support employees in continuing vocational training. In addition to employees, the target group of this support is self-employed or people returning to their original job.

The grant includes, like the bonus voucher, the assumption of 50 percent of the course fees up to a maximum of 500 dollars.

The following requirements apply to the approval of this funding:

  • The annual taxable income must be between 20,000 and 40,000 dollars
  • the applicant may only apply for one Fine Bank education check per year
  • Companies based in North Rhine-Westphalia may issue a maximum of 10 educational checks per year
  • a company that issues educational checks may employ a maximum of 250 workers

The education check only promotes further training that promotes professional qualifications and serves to impart so-called key qualifications and technical skills. By the way, anyone who has applied for the education bonus awarded by the federal government and also the Fine Bank education check will usually receive the priority education bonus.

The master German state funding or advancement German state funding

The master German state funding or advancement German state funding

The Master’s German state funding, which has been officially known as the Ascent German state funding since August 2016, is primarily intended for employees who have already completed an apprenticeship and would like to gain further professional qualifications through appropriate further training.

Excursus: The legal basis for this funding is the Promotion Promotion Act (AFBG), in which everyone is granted a right to further vocational training and which stipulates that everyone is entitled to state support in this endeavor if they themselves cannot bear the costs.

In the past, journeyman used the Master’s German state funding to obtain the master’s degree in their profession with the help of special training and further training, thereby improving their chances of advancement. The championship title is still a prerequisite in many areas for training others in one’s own company. What is not eligible is a degree with the desired university degree. Such training can be financed with the help of the classic student German state funding.

Vocational training that can be funded by a master German state funding includes:

  • Business IT specialist
  • Business economist
  • Accountant
  • Controller
  • educator
  • Business administrator
  • Specialist
  • Specialist nurses
  • Industrial master
  • programmer
  • Tax specialist
  • technician

The costs of all measures required for further training as part of the master’s German state funding or promotion German state funding may not exceed a maximum of 15,000 dollars (as of 2019). You get 40 percent of this amount in the form of a grant that does not have to be repaid. The remaining 60 percent can be financed through very low interest loans.

The Meister-German state funding is a state grant that is very much based on the applicant’s individual life situation. This is shown by the very different, monthly rule rates.

Rule sets

  • Single person (without child)
  • Single person (with one child)
  • Spouse / partner of a registered civil partnership (without child)
  • Married / registered life partner (with one child)
  • Married / registered life partner (with two children)

The rule sets applicable to each of these persons or groups of persons are adjusted by the legislator at regular intervals and can be obtained from the various institutions (e.g. from the responsible German state funding office).

The standard rate consists of the following line items:

  • Basic needs of the applicant
  • Housing needs
  • Surcharge for health insurance
  • Surcharge for care insurance
  • Increase amount

The application for Ascent German state funding or Master German state funding can either be submitted in the form of a written application or submitted using an online form. For the purpose of proof, you should also print out and keep the electronically sent online form at least once.

Educational leave for the purpose of further training

Educational leave for the purpose of further training

In order to avoid confusion with recreational leave, educational leave is very often referred to as educational leave. Such a vacation is special because the user receives no direct support from the state, as is the case with other training courses. Educational leave is a period of five days a year during which the employee is released and can use it to continue his professional (or general or political) training.

The costs for courses are borne by the employee, the employer takes part in the measure in the form of continued wages during educational leave. The big difference between in-company training and educational leave is that the content of in-company training is determined by the employer, while with training leave, employees are free to choose how the training is designed.

With two exceptions (Bavaria, Saxony), there is a right to educational leave in all German federal states.

You can use it:

  • Private sector and public service workers
  • Trainees in the private sector and in the public service
  • Employees in sheltered workshops

Officials, judges and members of the armed forces (Bundeswehr), for whom special regulations regarding special leave apply, are not allowed to use it. If someone works part-time, the amount of vacation entitlement is reduced according to the weekly working time.

The right to such leave begins as soon as there has been a continuous employment for more than six months. If the applicant prevents an illness from taking educational leave or if he has to cancel it due to illness, the time of the illness is not taken into account.

However, a medical certificate must be presented to the employer and often also to the provider of the course.

Funding of continuing education through an advancement scholarship

Funding of continuing education through an advancement scholarship

The Foundation for the Promotion of Gifted Vocational Training (SSB) offers a so-called advancement scholarship for particularly committed employees who, in addition to completing their training, also have professional experience. 1,000 scholarships are awarded each year.

These are intended to help students complete their first academic college or university degree and thus further qualify themselves professionally. The Federal Ministry of Education and Research provides the funds necessary for such a scholarship. The foundation takes care of the selection and the support of the scholarship holders during their studies.

A course of study financed in this way can be completed in two different ways, namely as a full-time course or in the form of a part-time course. The desired degree can either be completed at a state or at a state-recognized university.

In order to apply for the advancement scholarship, the applicant must meet the following requirements:

  • Completed vocational training or advanced training
  • Work experience of at least two years (after completing the training)
  • Proof of special achievements during training or at work (diplomas from vocational training or advanced training
  • Proof of German citizenship
  • Proof of the right to permanent residence
  • Proof of a settlement permit

Anyone who has already successfully completed a course of study must not apply for the promotion scholarship. If a first degree has already started, the scholarship may be applied for until the end of the second semester.

Scope of the scholarship

Each scholarship holder who decides to study full-time is paid a lump-sum flat rate of currently 735 dollars per month (as of 2019). There is also a book allowance of 80 dollars. If there are children, the student receives an additional 130 dollars per child per month.

Anyone who completes a part-time course of study will receive a maximum of $ 2,400 in each academic year to finance corresponding study measures.

The best options for professional development

The best options for professional development

If you want to develop professionally, you should consider in advance how this could work most efficiently. This also results in the ideal options from a financial point of view.

If possible, the financial burden of further training should be as low as possible, which is most likely to be achieved through a grant that does not have to be repaid. The Federal Ministry of Labor and Social Affairs, in particular for so-called low-skilled workers, offers opportunities through the Employment Agency to partially or even entirely cover the costs of obtaining a vocational qualification, thereby increasing the chances of finding a job or keeping the existing one .

Further funding

In addition to the classic grant or loan with the guarantee, participation and guarantee, there are also other forms of support. Overall, however, the above-mentioned grants through the education bonus, the education check or the Master’s German state funding are the best methods of financing further training in the professional field.

Although you have to pay back part of the money that you received as a German state funding, the state grants you a relatively long period of time.

What options are ideal for continuing education?

What options are ideal for continuing education?

If the further training is to be completed on the academic path, the best option is to apply for an advancement scholarship. However, the SSB, as the lead institution, has another promotional option in addition to the promotion scholarship, namely the so-called advanced training scholarship. This is intended to promote professional qualification after successfully completing vocational training.

Dual training as a prerequisite

The most important prerequisite for this scholarship is a successfully completed vocational training in the field of dual training. The profession must comply with the requirements specified by the Vocational Training Act (BBiG) or the Crafts Act (HwO).

Training in a specialist profession in the field of health care regulated by federal laws is also considered eligible. However, applicants must not be over the age of 24, so they must be younger than 25.

What about distance learning?

Of course there is also the possibility to apply for funding for part-time distance learning at a distance academy. Funding is possible, for example, with the education check or the education bonus.

You can find more information on the websites of the relevant institutions to find out which options are available to finance distance learning.

Financing further training – a conclusion

Financing further training - a conclusion

The legislature has created numerous funding opportunities that help employees to complete further vocational training without getting into excessive debt. If you are looking for further training or retraining, you can use various state support programs and either receive grants or very low-interest loans, which can cover at least part of the training costs.

How do you go about it?

The first step is to find a suitable training measure. A conversation with the employer should then take place, because such further training also has consequences for him. With some further training courses such as educational leave, for example, he has to provide personnel replacement while the corresponding employee takes the educational leave.

In order to receive such funding, it is above all necessary to find out beforehand whether you meet the requirements for funding. It is also important to submit a corresponding application to the responsible institution in good time. This can be the Employment Agency, the Federal Ministry of Labor and Social Affairs or a foundation that awards scholarships.