To get a loan, you need a permanent employment contract. Without a job or regular monthly income from rent or lease, a loan request is rejected. Before the banks agree to a loan approval, however, they are happy to take a look at the employment contract.
This is mainly the case for new customers. A relationship of trust already exists with existing customers, so that the bank advisor only checks the account movements of the last three months in a personal conversation. However, many employees only get a fixed-term contract when they are hired to a new company. However, this complicates the situation when looking for credit, because the banks see it as a great risk. It is not clear what will happen after the term of employment ends.
Loan without permanent employment contract
This is only possible if the loan is applied for at the house bank and the Credit Bureau review does not result in any complaints. At the house bank there is already a relationship of trust between the customer and the advisor. It is therefore not necessary to submit an employment contract. The pure income that goes into the account every month counts. At the same time, this step means that the offers of the Internet banks cannot be used. They offer their loans cheaper than the branch banks, but usually want to see a copy of the employment contract. A loan without a permanent employment contract is almost impossible.
If the loan amount is not high
If the loan amount is a small amount, a loan can also be obtained without an open-ended employment contract. This must be repaid during the employment relationship. That means either a low loan amount or high monthly installments. The repayment must, however, be secured, which is only possible with appropriate income.
Use of the disposable
As an alternative to a loan, the overdraft facility on the checking account can also be used as a loan without a permanent employment contract. The overdraft facility can be used without any consultation. This is a great advantage because it eliminates the annoying questions. But be careful, this loan is very expensive and at some point the current account must be balanced again.