When you start with a new employer, it has become completely normal for them to first issue a temporary employment contract. After all, he wants to get to know the new employee better first and not tie himself to them for an indefinite period. The temporary contracts are part of our everyday life and affect many employees. However, they can become a problem if a loan with a temporary contract is to be taken out. This is not so easy.
The requirements for a loan must be right
In order to take out a loan from one of the traditional banks in Germany, you have to be able to meet many requirements. So you have to be able to present an employment contract that is unlimited. This is not a temporary contract because it is only issued for a specific period. In addition – unlike permanent contracts – it can be terminated without notice without giving reasons.
Nevertheless, you can take out a loan with such a contract. An installment loan will not be possible because the banks want to see the employment contract and then notice that it is temporary. But a consumer loan also works with such a contract. The companies that award them are only interested in having an income. And if the repayment of the borrowed money is arranged in such a way that it is within the time limit, taking out a consumer loan as a loan with a fixed-term contract should hardly cause any problems.
A little help never hurts
You can also look for help with borrowing. If the bank encounters the term of the contract for a loan with a temporary contract, a guarantor can improve the uncertainty of the bank with his own permanent employment contract and his good income. The banks will then fully integrate the guarantor into the calculations in the loan.
But he is also liable for the loan and must pay the installments in the event of a delay in payment for the actual borrower. A burden that should only be imposed on close family members or good friends and that every guarantor should think carefully about in advance. Especially when it comes to a large loan amount.