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Employees can avail loan despite temporary contract.

In bad economic times, companies no longer hire permanent employees, but only with a temporary contract. This is limited to a certain period. It can be extended or the employee can be taken on in a permanent job, but this is not guaranteed.

But more and more employees are signing a temporary contract to get a job at all. As a rule, it is formerly unemployed who want to return to work in this way. They promise a unique chance of a permanent employment relationship. Unfortunately, many are disappointed, because there is no new contract in sight after the end of the working period.

What about a loan despite a temporary contract?

What about a loan despite a temporary contract?

Getting a loan despite a temporary contract is difficult. After the termination of the temporary contract, the professional situation is uncertain. In the worst case, the person concerned becomes unemployed. This usually leads to a loan refusal. It is more likely that you will be given a small loan that can still be paid off during your employment. An extension of the temporary employment contract or a permanent appointment would have a positive effect. In both cases, the bank can confirm this with appropriate documents.

Installment payments must be secured

Installment payments must be secured

In addition to the employment contract, monthly income also plays the main role, so to speak, with a loan despite a temporary contract. When lending, it is generally important that the net income is above the garnishment exemption limit. On average, the employee should receive at least 1,100 USD a month in his bank account. This rate is intended for a single person and increases depending on the number of children. More detailed information can be found in the attachment table, which can be viewed on the Internet.

Even if there is a great desire for a loan, you should still ask yourself whether it makes sense to borrow if the economic situation is unclear. Instead, it would be wise to put a little money on the high edge, because if you lose your job, you risk losing money. The unemployment benefit is lower than the previous income, but the monthly costs continue to run in the same amount.

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