Career Development Loans

[Piper Warrior Pilot]

I am beginning college in a couple of days and wish to apply for a career development loan when i am 18. Has anyone got any advice on how to write out a business plan etc...

If you could e-mail me it would be great.

Also, would it be worth my while creating a Powerpoint Presentation to outline the facts about the Hour Building and CPL etc...

Any help would be great

[barnaby]

If it's a career development loan that you're after then you don't have to go as far as preparing a business plan. The maximum amount that you can borrow is £8k and that is to a maximum percentage of your course costs (i.e. not 100% but cannot remember the exact figures). Depending on the lender you just fill out a fairly in-depth form providing all your details and the course details and they consider you on that alone. I think that there are about 4-5 lenders currently including Clydesdale, Barclays and others that I can't remember. Speak to one of them and they'll send you a pack that lists all the lenders. I'd give you more info but I'm in the states and don't have it with me.

If you need to borrow more than 8k then you'll have to go to someone like HSBC with a full business plan.

Good luck,
Barnaby

[johnwalton]

Details on Barclays Career Development Loan (£300-8000): http://www.personal.barclays.co.uk/loans/lb_1_5.html
The Government will pay the interest on this loan during you course but you have to start repaying it one month after the course ends.

Details on Professional Studies Loan (up to £15,000):
http://www.personal.barclays.co.uk/loans/lb_1_4.html
This loan gives you a longer payment 'holiday' of 9 months after the course has finished, but there will be interest to repay on this loan.


Hope that helps. I think Royal Bank of Scotland also offer Career Development Loans and Studies Loans, try their website, here (http://www.rbos.com/).

[Say again s l o w l y]

Barclays, Clydesdale, Co-Op and Royal Bank of Scotland are the only 4 that do the CDL.

As said before, you don't need to do a business plan, just fill in a couple of forms. Get your training provider to fill in the dates for the length of course, Upto 3(?) years I think, but I stand to be corrected. Most flying course don't last that long, but if an FTO puts that on the form.....

A CDL is a great Idea, but don't forget you have to pay it back some day!!;)

[Spit15]

Go for the max amount if you think you might maybe possibly need it for a potential just in case scenario.... AND overestimate the length of time you belive it will take to achieve your licences. You don't want to have to start paying back before you've finished,.. and indeed ideally not before you've managed to find employment. Better to have a bit left over at the end than not enough to finish with!


It's better to be wise and perceived to be a fool than a fool and perceived to be wise!;)

[Whirlybird]

Unless it's changed since I got mine two and a half years ago...

The maximum period initially is 2 years. You can then extend it for up to another 17 months (with Barclays anyway), but you need to apply before it runs out, and explain why. I just said that I had my CPL(H), but since there were no jobs available, I wanted to do an instructors course too; they OK'd it immediately.

[pinkpilot]

HSBC will give you everything you need!!! Professional Development loan is specifically for people training for Medicine Dentistry and CPL, check out their web page and call them they are really nice an helpful, not like many others I have approached. You can borrow 100% of training costs plus living allowances and you only start repayments I think it is 6 months after you finish you training! Interest rate is 2% above base which is 4% at the moment. I dealt with the HSBC in Oxford as they were familiar with the flying industry.
Good Luck!!

[Piper Warrior Pilot]

Ive just been browsing through the HSBC website and eventually found a tiny amount of inromation about their Professional Studies Loan. I was suprised that it is especially designed for Pilots (and med students).

But by the sound of things you need to have a degree in order to apply for one.

Is this true. Also how much can one borrow unsecured?

Ive spoken with my family and they dont seem to understand that im not going to get to become a pilot unless i get a loan and take risks.

I also heard that you can borrow up to two thirds of what you earned in wages on the previous 12 months prior to starting your course. What does this mean. and also you can get 5000 living expenses. Is this ontop of what you borrow or included.

Any comments, advice, information about the Pro Studies loan is appreciated.

[camelsnail]

CO-OP bank say Pilot training is not legible for their CDL. One operator told me this--so assume is correct. The other two say its ok.
I had a CDL with the CO-OP once before for something else. It could just have been bad luck--but they kept bouncing checks--even though I had thousands in the account and my checks were for hundreds. And when I paid the loan back back they kept sending my arrear demands for payments. It didnt take too long to resolve though--but why did this keep happening?. I am sure it was bad luck though on my part.

I went to them for their "so called ethical banking"--but was not pleased with their service standards Besides they say they dont do pilots now.
That leaves Royal Bank of Scotland (they say longer processing time than Barclays) and Barclays. Barclays didnt pull out of South Africa in the 80's--so its your call between ethics/history and service!! Shame Lloyds and HSBC dont issue CDL's. Why??
Good luck!

[Andy_R]

Am I correct in saying it is 2% above a variable base rate?

[captainkilner]

I got a professional studies loan from HSBC March 2002.

Hope this helps !!!
I started by putting a proposals document together:
(I dont know if you have to do this but looks the biz !!)

A CV type covering letter then listing every item i needed the money for i.e ATPL ground school , CPL/IR exam fees accomodation etc
Then forcast when i needed the money ie April £ 4000 May £600 June £4000
Then printed off something of where i was going to do the training ie ATA coventry for ground school , Leeds flying school CPL/IR
And then just presented it in an A4 binder

Looks professional and makes the bank manager think that your profesional , remeber your going for a proffessional studies loan !!

then it was off to see the business bank manager in shirt and tie that i only usually wear for funerals and weddings !!!

After several meetings and about 6 weeks later it was agreed a loan of £30k over 10 years £330/month ( house had to be put up for security for this amount but £15k is available un secured )

:O :O

[Mobieus1]

There was a thread on this only a couple of weeks ago. Do a search for HSBC. Someone put quite a lot of useful info down on this subject.

[joniveson]

There is a thread on HSBC already. I'm still having no luck with them at all.

As for the Co-Op they approved my CDL for £8000 a few weeks ago - shame the college suspended operations due to near bankruptcy! Mine is on hold with them at the moment until I find out what's happening with the college.

My experience may have made them more wary. Camelsnail, which flying school are you wanting to go to?

[Northern Highflyer]

cloud

2% over variable base rate is correct