Fixed-term contracts are common for salaried artists and athletes, while in the past they were for other salaried employees if there was a specific reason for the limitation. The majority of these were pregnancy or illness representatives and only in a few cases were temporary projects.
Today, some employers generally conclude fixed-term contracts for the first two years of employment, which worsens the possibilities of borrowing for the employees concerned. This also applies to instant loans, where the money is paid out within two bank working days after submitting the loan application.
Are you hiding the fixed-term contract?
An immediate loan is possible despite a fixed-term employment contract if the applicant does not disclose the fixed-term contract to the lender. This is possible in principle, since there is usually no corresponding note on the payroll and only a few banks require the additional submission of the employment contract when issuing instant loans. Rather, in order to speed up credit processing for instant loans, they often do without an income certificate and rely solely on the information provided by the borrower.
They must honestly provide all the information required in the loan application and at the same time be sure that they can repay the loan as agreed. Many employees certainly expect an extension of their temporary employment contract, so that the loan repayment appears to be secured in the long term.
However, it is better to choose a loan agreement that explicitly grants the customer the right to change the repayment agreement later. Appropriate contracts are offered by some banks, in other cases the borrower is dependent on the goodwill of the credit institution if he later becomes unemployed and wants to agree on a reduction in credit rates.
Sometimes lending is possible despite a temporary employment contract
The applicant receives an instant loan without any particular difficulties despite a fixed-term employment contract if the loan is repaid within the current time limit. This is most likely to apply to employed artists and athletes, for whom terms of several years are common.
In addition, the bank usually issues an instant loan even if it is aware of the fixed-term contract despite a fixed-term employment relationship if the borrower is a research assistant at a university, because the long-term doctoral positions allow repayment before the employment contract expires.
All employees with a fixed income receive a disposition loan, for the granting of which almost all banks only require a current account that has been in existence for at least three months and receives regular payments without checking for a possible fixed-term contract. The overdraft facility, which is almost always a substitute for an instant loan despite a fixed-term employment contract, is associated with the disadvantage of above-average interest rates.