Banks love to lend – but only if they can be sure that they will get their money back. And in some situations there is reason for doubt. This is especially true if the potential borrower’s employment contract is not permanent. After all, what happens when the paper runs out? However, getting a temporary employment loan is not as difficult as you might believe from these lines. All you have to do is convince your bank that you won’t run out of money halfway.
In these cases, a loan is a temporary employment contract
For reasons of completeness, the first case should be mentioned at the beginning, when a loan with a fixed-term employment contract is completely uncritical, because the bank will not be interested in it at all: if your contract is longer than the loan term, the fact is that the contract contains an expiration date of no interest to the bank at all.
In fact, for most financial institutions, it is also not a knockout criterion for lending if your employment contract theoretically expires before the end of the loan term. Informally, there are loans where this is always the case: If you would receive a real estate loan over 30 years, for example, the bank can hardly be seriously sure whether you will still have the same job as for signing the contract in 17 years – time limit in the contract or not.
There are two important points to get the temporary employment loan when the contract expires before the job:
1. There must be a realistic chance that the paper will be extended. For example, anyone who works in the academic middle class at the university and who comes into conflict with the Science Time Act has a problem.
2. The contract must not end promptly. If it expires in the next one to three months, you will usually already know whether it will be extended or not. If you do not provide the bank with appropriate information, the bank will think its part. At least there should be a remaining term of six months. A year would be better.
How long should you have been in your current job?
One question that people keep asking for a temporary employment loan is: How long should the current job be held? Many people believe that it is an advantage if you have been with the company for as long as possible. This shows that one is actually indispensable for the company.
Even if this logic has a certain charm, you should not be fooled by it. The banks think differently. You ask why you have not yet been hired. Obviously your employer wants to keep the option to replace you. Ideally, you will be employed for at least two years, but not longer than three to four years.