You want to take out a loan on a fixed-term contract. By the way, I have a time contract. Conditions for a temporary employment loan; Special forms; How do I get a loan? Nowadays, it is common for workers to have a fixed-term contract when starting a new job. When lending, the banks demand collateral.
Balances with a fixed-term employment contract
If you have a fixed-term contract and have already taken out a loan, you may have experienced that you are hired by banks if you want to take out a loan with a fixed-term contract. However, this variant of working conditions today is almost more the norm than the exceptions. Anyone who has a fixed-term contract as an employee often agrees today that a permanent job is better than unemployment.
Moreover, today it is common in many areas to employ temporary workers only. Even in research and scientific practice, there are hardly any employment relationships that have been completed from the very beginning. As long as you do not want a loan and can get along well with the fact that the employment relationship is only temporary, that can be fine.
The disadvantages of such fixed-term employment relationships often only become apparent when an employee wants to conclude a loan with a fixed-term employment contract or even wants to build it up. Even if the credit bureau and the financial conditions are in order, need the banks in these cases a citizen, since the employment relationship is limited in time.
There is a good chance of obtaining a fixed-term loan if the repayment period is chosen so that the loan is repaid within the fixed term or expires only a few weeks later. In the case of car financing, a relatively higher advance payment can compensate for the error in the fixed-term employment relationship. Basically, one can only say that the purchasing policy of credit institutions in some cases is in stark contrast to reality.
The trend is clearly in temporary employment. The conditions under which loans can be used should be adjusted accordingly. So that not really creditworthy consumers fail only on the threshold of temporary employment.
Possible difficulties with a temporary employment contract
From time to time it is necessary to take out a loan. Certain life situations can complicate this, eg unemployment or confiscation. Even if you only have a fixed-term contract, it is likely that it is difficult to obtain a loan despite a fixed-term contract. However, because many people are affected by this problem area today, the following discussion will examine how to obtain a loan in spite of a fixed-term contract.
For credit institutions, a firm and high level of returns is a security, while an irregular and low level of return poses a potential risk for any credit institution. First, it should be noted that there are ways and means of obtaining a loan even on a fixed-term contract. However, this is almost always the case only if the repayment term does not exceed the fixed contract duration of the employment contract.
So, if you have a fixed-term contract of two years, you can give your loan a two-year term despite a fixed-term contract. For a fixed-term contract of three months, however, you can only manage for a period of three months. Besides, it should only be a small amount of credit.
The decisive factor for the granting of a loan is therefore, on the one hand, the duration of the period and, on the other, the creditworthiness of the employee. Not only the employee himself, but also the house bank, which he asks for a loan despite fixed-term employment contracts. Because the extension of the contract is not guaranteed and the future creditworthiness of the borrower is taken into account, many banks do not accept this and reject it from the outset.
In the case of larger amounts,
It is essential, if any, that, as mentioned above, the fixed duration of the employment contract and the duration of the loan are congruent. Only with very small amounts of credit, it is sufficient if the affected house bank proves a sufficient wage, which must be presented to the house bank in addition to the contract documents.
Applicants who have already received positive attention from their home bank in the past and who have not caused any difficulties, even if they have a fixed-term employment contract, have a good chance of obtaining a loan. Therefore, it is advisable for applicants to first turn to their own house bank with which they have at most a long history of years or decades.
A good and satisfied clientele is well looked after by the banks. Here, the banks are accommodating and only need a receipt. On the other hand, it can be problematic for customers who apply for a loan but deliberately or unconsciously hide their fixed-term employment contract. Because of the problems associated with the granting of loans under fixed-term contracts, employees often tend to hide their permanent employment.
Because the house bank does not explicitly require it, it is up to the buyer to tackle this unfortunate issue himself. Because the pay slips of the client in addition to the entry into the company also includes the departure date, the secrecy is not possible and in the worst case, even lead to a loss of trust between the client and his house bank.