Many lenders only provide loans to consumers with a permanent contract. But what if you do not have a permanent contract, but for example a benefit or temporary employment contract? Can you still borrow money?
Apply for a loan without a permanent contract
With many lenders it is possible to apply for a loan without a permanent contract, especially when it concerns smaller loan amounts. Credit providers often set additional conditions.
For example, if you are 25 or older and married, that you have worked for at least two years in the past and that you do not have a negative registration with the BKR. If you meet these additional conditions, you can borrow from many lenders without a permanent contract.
Borrow money without a permanent contract
Do you have a temporary contract? Then you increase the possibilities to borrow when you have a letter of intent from your employer. In this statement, your employer states that he intends to continue your temporary employment with an employment contract for an indefinite period. This gives the lender more guarantee that you will also have sufficient income in the future to bear the monthly costs of the loan. On this site you will find an example declaration of intent.
Loan without a permanent contract – Self-employed
Even as a self-employed person you do not have a permanent contract. Your income can fluctuate monthly, for example as a result of the company results and / or investments. And that in turn influences your personal spending space. To see if you as a self-employed person can bear the monthly costs of a loan, lenders often rely on the annual figures for the past three years. Consult this with your bank to see what the options are for a loan.
A loan without an indefinite employment contract is difficult to obtain. One of the basic requirements that banks demand for a loan approval is the permanent employment contract.
The income stated in the employment contract gives the bank the necessary security that applicable installments can also be paid. Therefore, loan seekers must expect difficulties in the loan commitment.