The taking out of a loan is granted by the banks and savings banks on the basis of certain conditions. These include a fixed income, a permanent residence and a minimum age of 18 years. A credit check is also required. The information is requested from Bank and other credit bureaus such as Infoscore or Credit reform. If information is available that the applicant has not paid in the past, this will result in a negative credit rating. As a result, the loan application can be rejected.
Another criterion that often leads to the rejection of a loan request is the fixed-term employment contract. The reason for this is the lacking prospect of servicing the loan over a term that goes beyond the term of the employment contract. As a rule, borrowing takes place over a period of three to six years. There are small loans that are serviced faster, but a fixed-term contract usually runs for a year. The bank expects that at the end of the year, no secure income will be generated with which the loan can be serviced. Thus, it is difficult to get a payday loan on a fixed-term contract. We show you solutions and ways to circumvent this provision legally.
There are several ways to get a payday loan on a fixed-term contract. A comparison of offers is a first step. Because there is no legal requirement that prohibits lending in the presence of a fixed-term employment contract. The decision as to whether a customer is granted credit lies with the bank. Many banks will reject lending on the grounds that the repayment is not secured over the entire term . In many cases, the applicant can not prove a regular income for the period after expiry of the time limit.
Reasons against taking out a loan are not only on the part of the bank. The borrower should consider carefully whether he would like to bear the risk of borrowing if he has a fixed-term employment contract. This applies in particular if the term of the payday loan exceeds the duration of the employment relationship . The reasons against the borrowing differ with the banks and the applicant.
Risks for the bank
Risks for the borrower
A rejection of the payday loan request will typically affect fixed-term financing. These include, for example, loans for real estate, private homes or expensive vehicles. Framework loans are often granted. This is a type of discretionary credit granted on an external account. It can be claimed and redeemed as needed.
Tip for small loan amounts
For small loans from 100 to 3,000 euros, you have a good chance of a successful payout with a short-term loan of 30 days, even on a fixed-term contract. The scoring system, which is specifically designed for short-term loans, can also be used to obtain loans for medium-credit customers.
In a Bank credit the creditworthiness of the customer is not or only partially checked . Such a loan can be taken without consideration of the earned income . As a result, it is possible to get this loan on a fixed-term contract. The Stage Manager instant loan is optimal because the amount can be paid on the same day. So it is possible to bridge short-term payment difficulties. The repayment will be made within 30 to 60 days. In this case, the fixed-term employment contract will not be an obstacle if the repayment is secured before the end of the employment relationship.
Note There are banks that charge very high interest rates for fixed-term work. Also, the conclusion of additional insurance to secure the loan are sometimes required. For this reason, it is important to consider the conditions in detail when taking out a non-scholar loan.
The inclusion of a second person in the loan agreement is a good solution to obtain the commitment of the bank. If it is a person with a fixed salary and good credit standing, the payout of the credit is usually nothing against. The borrower who has a fixed-term contract is listed. Both borrowers act as joint debtors . If the installments are not serviced, the bank will contact the person with the higher salary. From this person she demands the entire loan amount including the costs and interest. Since the bank can choose which joint debtor to recourse to, it chooses the borrower with the higher income. Thus, the hedge is higher for two borrowers .
tip For the second person getting involved in borrowing, there is a risk that she will have to repay the loan on her own. This is the case if the employment contract is not renewed or no new work is found. Often, spouses and life partners decide to take up a loan together. This also applies to parents and children, very good friends or siblings.
A temporary employment loan can be granted if a guarantor is found who is included in the contract. The guarantor does not act as a borrower . This means that he does not get the payout. First, the guarantor is not responsible for the repayment of installments. The bank arranges the installment payment with the borrower. If the latter is no longer able to pay , the bank approaches the guarantor as a third party debtor . The guarantor then pays the installment or settles the entire loan amount.
If the borrower finds a guarantor, he has the advantage that the financing he wants is granted. The guarantor takes the risk of paying for a loan he has not taken. For this reason, guarantors are usually found in the family and in the very close circle of friends .
A mortgage loan is granted regardless of the financial situation. In a pawnshop, a valuable item is deposited for cash . During a period of a few weeks or months, the money is repaid and the pledged item is triggered.
The risk of the borrower is that he can not raise the money in time and lose his precious object. The lender bears the risk that he misjudges the value and can not sell the item as hoped. In the worst case, there is no buyer and the lender can no longer trigger the pledged item. If you want to protect yourself from a pledge, you should inform yourself about the general conditions of a seizure protection account.
If the borrower has a regular income with the chance of permanent takeover, there is nothing in the way.
Many banks reject a loan on presentation of a fixed-term contract not flat rate . Rather, an examination is made as to what kind of employment contract it is and why the time limit has been agreed. Consequently, a new hiring is tied to a time limit. This has advantages for the employer and the employee. They can get to know each other and test their joint work without being bound by the strict protection against dismissal. Termination is possible from one day to the next. In addition, there are other time limits, some of which may have a positive effect on lending.
It is fundamentally difficult to lend on a fixed-term contract that expires at the end of a season . Seasonal forces in the hotel and restaurant industry are usually affected. If no employment contract can be proven for the period after the end of the season, this is often followed by a rejection of the payday loan.
Time limits are also common at the universities. Anyone who can not prove a permanent position as a scientific assistant or research associate and has only been given a teaching assignment can be refused. In the event that it is already established that the teaching assignment can not continue, a loan approval is unlikely. If the university has sufficient funds and proof to extend the teaching assignment, it is possible to obtain a loan on a fixed-term contract.
Temporary employment contracts, which are concluded with the goal of a takeover into a permanent employment , are rated positively by some banks. Thus, applying for a fixed-term contract may be worthwhile.
Regardless of the type of employment contract, borrowers should meet other basic requirements :
If these basic conditions are not fulfilled, a loan application would be rejected even if a permanent employment contract is presented.
In some cases it is possible that the loan can be paid off before the term of the employment contract expires. This is very easy to realize, for example, with a short-term loan. In the event that the current employment relationship ends and the acquisition takes place in a fixed-term employment relationship , a loan can be granted. If the customer succeeds in proving that he / she is able to service the installment securely despite the time limit for his employment contract , there is a good chance of obtaining a loan.
A secured loan with a fixed-term employment contract may be granted if the term is shorter than the term of the contract. The contractual relationship is considered terminated when the loan is repaid.
If a high income can be achieved from the temporary employment contract and the client is in the position of a new job, a loan approval is possible. The same applies if it can be inferred from the current employment relationship, from life or the situation in the labor market that the borrower will not slip into unemployment.
tip In many cases, the bank is prepared to finance a lesser amount of credit than the one desired. To determine the installment amount, all expenses are deducted from the receipts. Thus, the bank succeeds in determining the loan amount that the customer can afford through the installment.