Loan without a fixed employment contract
Many people get some form of salary, but often cannot get a permanent contract. Be it because you are self-employed or only booked as a freelancer for certain occasions. However, if you want to get a loan without a fixed employment contract, it often looks bleak at the banks.
Get a loan without a fixed employment contract from a bank
You usually need a loan whenever your own cash reserves are insufficient to make the necessary payments. However, since the bank also checks the creditworthiness of the customers when checking the loan application, the loan is usually rejected without a fixed employment contract. In order to avoid this refusal and still get a loan, the borrower must now offer the bank arguments that make a loan approval possible. These are usually collateral.
Standard bank collateral for a loan without a fixed employment contract
Banks understand collateral to be equivalent values that exceed the actual loan amount far enough and can easily be converted into money in an emergency. For this reason, bank collateral is above all long-term values for a loan without a fixed employment contract. Fixed assets, land and real estate, life insurance or building society contracts are covered by these guarantees.
However, a guarantee is also gladly accepted in a loan agreement. This guarantee is a special form of security. An additional person is required to take over the guarantee for the loan. This guarantor must be able to meet all criteria for normal lending: he must have sufficient creditworthiness, have a permanent, permanent job and be willing to join the loan agreement. Because the guarantor bears the risk with this form of security. If the borrower can no longer service the loan amount, the guarantor must step in and pay the loan from his own funds.
Nevertheless, a loan can be taken out without a fixed employment contract, so that collateral offers the ideal opportunity to get a corresponding loan quickly and without problems. If no own collateral is available, only a suitable solvent guarantor for the loan has to be found in order to allow approval.