For most banks, a permanent employment contract is an important prerequisite for granting a loan to a customer. So the banks want to minimize their risk of arrears. A loan despite a time limit is usually only given by banks if the time of the loan repayment falls within the term of the employment contract or only slightly exceeds it. Thus, the customer can be granted at least a small loan. It is not recommended to conceal a limitation. Many application forms do not ask if the employment relationship is permanent. At the latest if the earnings certificate is viewed during processing, the time limit will apply. This only leads to unpleasant difficulties.
A guarantor can help
The chances of getting a loan despite a time limit increase if the applicant can provide a guarantor. If this guarantor is creditworthy and is accepted by the bank, some banks also seek to approve loans with higher amounts and longer maturities. However, the guarantor must be aware of his responsibility. If it comes to payment defaults, he must take over the payment. In order for the bank to lend in such a case, however, all other details of self-disclosure must speak in favor of the customer.
There should be no entries in the private credit. Furthermore, no other loans, such as installment loans at mail order companies or the like may run. In addition, the relationship between income and expenditure must be such that the repayment of credit installments for a loan despite a time limit is easily possible. It is also very important that the probationary period is already over.
Offers should be compared
Even if you are happy to have found a bank that gives you a loan despite a fixed-term employment contract, it is advisable to ask the conditions of other banks and to compare the offers. These can differ considerably. The interest on a loan despite a time limit depends on the amount of the loan and the term. It is possible, for example, to get a loan of 15,000 euros with a maturity of 48 months at an effective interest rate of 8.49 percent. Only those who compare the offers of different banks can find the cheapest offer and save so much money.