{"id":119757,"date":"2018-07-16T15:32:38","date_gmt":"2018-07-16T14:32:38","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=119757"},"modified":"2026-01-29T05:49:05","modified_gmt":"2026-01-29T05:49:05","slug":"apprentice-loans","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/personal-loans\/loans-for-young-people\/apprentice-loans","title":{"rendered":"Loans for apprentices"},"content":{"rendered":"<\/div>

Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.<\/p>

Late repayments can cause you serious money problems. See our debt help<\/a> guides.<\/p><\/div><\/article>

What are the best loan alternatives for an apprentice?<\/h3>

As an apprentice, you may find you\u2019re a bit strapped for cash. While an unsecured personal loan might be suitable if you\u2019re looking to borrow as an apprentice, you might find it hard to be approved for a loan if you don\u2019t have much employment history or are earning under a certain amount.<\/p>

Thankfully, there are several other loan options for apprentices, especially if you can provide evidence that your role is eventually transitioning to a full-time, salaried position. Although it might be better to borrow money from friends or family, this might not always be possible, and it can result in relationship issues if things go wrong. For this reason, you might want to explore these alternatives:<\/p>

Credit-builder credit cards<\/h4>

These are credit cards aimed at people with a poor credit score<\/a> or no credit history, and they can be easier to get accepted for. The credit limits are lower, and the interest rates are higher than with traditional cards, but they allow applicants to build their credit score with each timely repayment. This could help them get access to more credit in the future.<\/p>

Credit-builder credit cards<\/strong><\/a><\/p>

Government-backed schemes<\/h4>

The government offers Advanced Learner<\/a> Loans to help apprentices with the costs of learning at this level. Your eligibility for these loans isn\u2019t based on your income, and there are no credit checks involved. Instead, eligibility is based on<\/a> your age, training provider, nationality and residency status. You must be at least 19 years old on the first day of your course. These loans are a good first step for apprentices looking for financial assistance. The minimum amount you\u2019ll get is \u00a3300, and this is paid directly to your college or training provider. <\/p>

Advanced Learner Loans<\/strong><\/a><\/p>

Guarantor loans<\/h4>

Guarantor loans are when a family member or close friend agrees to be a guarantor and steps in to pay the loan’s balance if the applicant cannot do so. If you have a guarantor to support your loan, lenders are more likely to offer you a loan as the risk is reduced. But it\u2019s also a big responsibility for the guarantor.<\/p>

Guarantor loans<\/strong><\/a><\/p>

Vehicle finance<\/h4>

If you need a loan to buy a car, try striking a deal with a dealership\u2019s finance department. There are a number of different options to explore, but read the small print carefully to be sure you know what you\u2019re signing up to. Some options require you to put down a deposit first.<\/p>


Car loans and finance options<\/strong><\/a><\/p>

Payday loans<\/h4>

These short-term loans are easy to be approved for, but the interest rates are astronomical. Consider these a last resort once all other avenues have been explored.<\/p>

Payday and short-term instalment loans<\/strong><\/a><\/p>

What can I use an apprentice loan for?<\/h3>

You can use an apprentice loan to help pay your course fees, and depending on the type of loan you choose and how large your loan is, you might be able to use funds to cover some of your living costs, too. <\/p>

How to find the best loan<\/h3>

It\u2019s important to compare the loans on offer to find the most affordable deal for you. Check the APR (rate) on the loan and the term lengths available, and find a deal with the lowest rate that offers monthly repayments you can comfortably afford. The longer the loan’s term, the lower your monthly repayments, although you\u2019ll pay extra in interest, so the overall cost of your loan will be higher.<\/p>

Explore all the options listed above and calculate the total payable among the best lenders. This will often be displayed prominently online. Aim to keep your total repayable as low as possible while ensuring you can comfortably meet your monthly repayments.<\/p>

Government-backed loans tend to be the most favourable for applicants, although this is not always the case. Bear in mind that lenders tend to offer better rates if you\u2019re willing to provide a guarantor or some sort of collateral to protect them in the case of missed repayments.<\/p>

What will I need to apply for an apprentice loan?<\/h3>

This depends on the type of loan you\u2019re applying for. But you\u2019ll usually need to fill in an online form, providing some personal details such as your name, date of birth and address. You might also need to give your National Insurance number and provide details about your income, as well as state what you\u2019re using the funds for. <\/p>

On top of this, you could be asked to provide proof of identity, such as a passport or driving licence, and proof of address, such as a utility bill. However, many lenders now verify your identity and address electronically through a credit reference agency (CRA), so this again depends on the loan you\u2019re applying for. <\/p>

Dos and don\u2019ts<\/h3>

Do:<\/h4>
  • Shop around for the most affordable loan<\/li>
  • Check the eligibility criteria before applying<\/li>
  • Pay your loan back on time<\/li><\/ul><\/div>

    Don’t:<\/h4>
    • Apply for a loan you can\u2019t afford to pay back<\/li>
    • Submit multiple applications in a short space of time<\/li>
    • Take out loans to fund unnecessary purchases<\/li><\/ul><\/div><\/div>

      The bottom line<\/h3>

      Your loan eligibility won\u2019t necessarily be affected by the fact you\u2019re an apprentice, but lenders do take into account your annual income, the reliability of your payments and your credit history.<\/p>

      If you can demonstrate a reliable annual income and a history of responsible borrowing, you may still be eligible for a traditional personal loan with a more favourable rate. If you can show evidence that your apprenticeship is likely to transition into full-time employment during the loan’s term, this could also support your application.<\/p>

      Frequently asked questions<\/h3>
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