One of the most common requirements for a loan is the bank’s request that it be a loan with an employment contract. However, there are several types of employment contracts, all of which have a direct impact on the granting of loans. It can be a loan with a fixed-term contract, a loan with a permanent contract, or a loan with an employment contract during the trial period.
The loan with an employment contract if the working paper is perpetual
The best option is if you want a loan with an employment contract that is perpetual. This means that the income and thus the corresponding creditworthiness is available over the entire loan period. Since creditworthiness is the most important point when it comes to lending, a loan with a permanent employment contract is usually quite easy if the amount you want to have is not completely unrealistic against the background of the salary level.
The loan with an employment contract, which is temporary
It is more difficult if there is a temporary employment contract. One to three-year contracts are common. It would be optimal if the loan expires before the term ends. In this case, the bank will not stand in the way, because the employment contract can then be treated as if it were permanent. It is more difficult if the loan goes beyond the time limit.
The further this is the case, the worse. In such a case, one can call in a guarantor for the lending or offer other security. It also matters which industry you work in. If you are employed in a branch of the economy where there is almost full employment, this simplifies borrowing because you will probably not be unemployed for long.
The loan with employment contract in the trial period
Something the same applies to the trial period, which also applies to the temporary employment contract. If you do not want or cannot provide collateral for the loan, you should try to delay the loan until you know whether you will be taken over after the trial period or not. Again, however, the following applies: If you work in an industry where people are constantly looking for people (IT, medicine), this also simplifies the loan with an employment contract during the trial period.