There are two ways to obtain a license: attending a driving school and participating in a license training camp. License training camps tend to be cheaper, so if you want to do it cheaply, we recommend a license training camp.

However, it still costs about 200,000 to 300,000 yen. If you are concerned about the cost, one option is to take advantage of a license loan.

In this article, we will explain in detail the cost of license training camps and the use of license loans.

What is the average cost of a driver's license training camp?

The cost of a license training camp varies depending on the driving school, accommodation, time of year, etc. Especially in rural areas, many driving schools set different fees depending on when they are busy and when they are empty.

If you want to save even a little bit, choose a time when there is no time available, the so-called "off-season", and attend a license training camp.

The crowded "busy seasons" refer to the school holidays from February to April and from July to early September. The "off-season" periods are from April to May and from October to December.

License training camp fees vary depending on the driving school and region, but the approximate prices are as follows.

Furthermore, if you commute to a driving school, the cost will be 320,000 to 380,000 yen during the busy season, and 230,000 to 280,000 yen during the off-season, so you can see that driving license camps are several tens of thousands of yen cheaper than commuting.

Many people tend to think that license training camps are expensive because they involve commuting to school and training camp fees, but they are more expensive because they allow you to work in a concentrated manner in a short period of time, there are many driving schools in rural areas, and you can see multiple trainees intensively. Prices are kept low because of its high efficiency.

Features of License Loans

A license loan is a loan for obtaining a license. I will explain what characteristics it has.

Interest rates are lower than other loans

License loans have lower interest rates than other loans. For example, the average interest rate for card loans is about 18.0% per year, but for license loans it is about 9.0%.

The main reason for the low interest rate is that the purpose of use is limited to obtaining a license. Also, the rates seem to be set low to make it easier for students, housewives, and unemployed people to borrow.

No down payment required

One of the features of license loans is that you can get a loan with zero down payment. Regular loans require a down payment and collateral. However, the purpose of license loans is limited to obtaining a license, and the amount borrowed is not large, so in most cases the down payment is zero.

Even students and housewives can do it.

Even if people with no income try to get a loan for things like a house or a car, there are many cases in which they are not approved. However, the examination for license loans tends to be less strict than other loans, and even people with no income, such as students or housewives, may be able to obtain them.

Another feature of license loans is that you can apply from the age of 18 with parental consent.

Choose your payment method

For driver's license loans, you can also choose to make a ``skip payment,'' which allows you to set the first repayment date after completing your training, or a ``bonus payment,'' which allows you to repay in multiple installments.

By using the skip-payment option, a student could, for example, obtain a driver's license during spring break before starting work and then begin repayment once they start working.

Benefits of taking a driver's license loan to participate in a driver's license training camp

What are the benefits of taking out a loan to attend a license training camp?

You can get your license quickly and at low cost.

License training camps are cheaper than driving schools. You can also focus on getting your license, so you can get your license in a short period of time.

For example, if a student wants to get their driver's license during spring break, they can take out a loan and attend a training camp even if they don't have a lot of money on hand before they start working.

You can quickly get a job that requires a license.

Depending on the type of job, a license may be a prerequisite for employment. In this case, many companies say that even if you do not have a license at the time of job hunting, it is fine as long as you can obtain a license before actually starting work.

By using a license loan, you can obtain a license before starting work, regardless of your financial situation before you start work.

Types of license loans and their characteristics

There are three types of license loans:

• Credit company license loan
• bank license loan
• University co-op license loan

We will explain in detail the characteristics, advantages, and disadvantages of each.

Credit company license loan

This is a license loan from a credit company, a so-called credit card company. Since the driving school is affiliated with a credit sales company, you can apply at the driving school's counter, but you can also apply at an agency or on the website.

Although it varies depending on the credit company, the interest rate is around 10-13% per year.

bank license loan

Some banks have loans available for the purpose of obtaining a license.

You can apply for a bank license loan if you are over 20 years old and have a stable income. The disadvantage is that it is difficult for people under the age of 20, those with no income, students, and housewives to pass the screening.

University co-op license loan

If you are a university student, one option is to use a license loan from the university co-op. It is characterized by a low real interest rate of 9%. Although the screening process tends to be more lenient than that of license loans from credit companies and banks, parental consent is required.

However, it can only be used at driving schools designated by the University Co-op. There are 88 training camp partner schools nationwide. (As of November 2022)

Procedures and required documents for applying for a loan at a driving school

We will explain in detail how to apply for a license loan. The procedure is almost the same no matter where you apply.

License loan application procedure

Here we will explain the steps to apply for a license loan.

1. Book a license training camp
2. carry out the procedure
3. send required documents
4. Examination begins
5. Verify your identity by phone
6. Examination outcome

1. Book a license training camp

First, choose a driving school.

If you are using a license loan from a bank or credit company, you can choose any driving school, but if you are using a university co-op, you will have to choose from among the designated driving schools. License training camps exist in various regions, and the amount varies depending on the plan content and timing of participation. Look for a driving school that suits you by comprehensively considering various factors.

2.Proceed

Use the application form on your bank or credit card company's website. In the application form, fill in the applicant's name, address, contact phone number, and email address and send.

3. Send the required documents

You will receive an email or letter regarding your application from the bank/credit company you are applying to, so you will need to submit the amount you wish to borrow, the bank account you wish to transfer the money to, and your identity verification documents (select from designated documents such as health insurance card, passport, etc.).

4.Start of examination

A review will be conducted based on the information submitted. If there are any deficiencies or questions about the information you have submitted, we will contact you so we can take action. If there are no defects, the examination results will be available in about a week.

5.Verify your identity by phone

A representative from the bank or credit company you applied for will verify your identity over the phone. Be sure to answer the phone yourself. If you frequently miss your call, please call us back.

6. Screening results

Once the identity verification is complete, the screening results will be sent to you. It usually takes about a week.

If you would like to complete the procedures as soon as possible, please complete the preparations in advance, such as deciding on a training camp before applying and obtaining permission from your guardian as soon as possible. However, in the unlikely event that the loan does not pass, you will not be able to attend, so please wait until the loan has been approved before proceeding with the application process.

Required documents

The required documents are almost the same for both applications. Here we will explain the documents required to apply for a license loan.

• Identity verification documents (health insurance card, passport, etc.)
• If you are a minor, consent form from your guardian
• If you already have a job, please submit your salary certificate, bankbook or credit card from the financial institution you use for repayments, etc.

Additionally, in the case of university co-ops, being a member is a prerequisite, so you will need your union membership card or student ID.

Things to note when taking out a driver's license loan

We will explain the things to keep in mind when taking out a license loan.

interest will accrue

Interest is charged when taking out a loan, not just a license loan. Although license loans have lower interest rates than other loans, the more you borrow, the more interest you will have to pay.

When applying for a loan, it is important to simulate the repayment amount and interest rate and check the monthly repayment amount.

It may fail the examination

In order to get a loan, you need to pass an examination. This is an examination to see if you can properly repay the money you lent.

If you do not pass the screening, you will have to cancel the training camp.

If you fail to make payments, you will be placed on a blacklist.

If you fail to make repayments, you will be blacklisted. Once your name is on the blacklist, you will not be able to get any other loans. Also, you cannot get a credit card.

When taking out a loan, be sure to make sure that the repayment plan is within your reach.

If you don't have the funds for a driving school, we recommend a driving school loan.

With a license loan, you can obtain a license even if you don't have the money on hand. Another benefit of some loans is that you can start repayments after you start work.

License loans are relatively easy to use, but be sure to set a reasonable repayment amount and have a solid repayment plan in place. If you take out a loan before you have a job in sight or the details of your salary have not been decided, repayments may be delayed.

The amount you can borrow does not necessarily mean the amount you can repay, so it is important to set a repayment amount that is reasonable and suits your income and lifestyle.