A permanent employment contract is deemed to be permanent, so that borrowers with fixed-term contracts, self-employed and freelancers do not have any. Another group of people without permanent employment consists of people who live from successive short-term employment relationships. In addition, the unemployed and students belong to the people without permanent employment.
The income of people without permanent employment
Even a loan without permanent employment is offset by income that can be used to repay the loan installments. This fluctuates among freelancers and the self-employed, while workers with fixed-term contracts earn a fixed income until their expiry. Employees who live on changing short-term working relationships generate an irregular income, the average of which is usually sufficient for a living.
Unemployed receive benefits from the employment agency, this also applies to short-term unemployment from day laborers. The concerns of financial institutions against a loan without permanent employment relate to the fact that they generate a different, mostly also low income, or may lose it in the foreseeable future in the case of temporary employment.
If the current lack of permanent employment results from a temporary contract, the easiest way to obtain the desired loan is if the bank refrains from submitting the employment contract, since the time limit cannot be recognized from the payroll. The self-employed and freelancers choose a financial institution when borrowing, which does not limit its loan offers to permanent applicants. In the case of changing income, borrowing without proof of salary makes sense, since in this case the borrower can state the average income.
The alternative to bank loans
As an alternative to a bank loan, the use of a platform for private loan brokerage is available for a loan without permanent employment. The private lenders registered there are often based on social criteria and the purposes to be specified in the loan application. Applying for installment payments in the mail order business is also possible at any time as a dedicated loan without permanent employment, since most retailers forego the demand for the income or employment of their customers.
In the case of fluctuating monthly income in particular, it is important that the applicant ensures that he can pay the installments on time for each loan taken out, even without permanent employment. The risk of a rate not being paid on time is reduced if the borrower chooses a long term and therefore a low monthly rate.