A fixed-term contract does not preclude using a loan for any purpose. Flexible contract terms, as well as the very nature of the commitment, allow the person concerned to apply for a loan.

Can people working under a fixed-term contract apply for a cash loan? Many borrowers think that permanent employment is a condition for using the financial services that are found in popular banks. In this article we will try to better familiarize you with the terms of loan agreements for any purpose. Thanks to this you will learn that even when working for a fixed period or working on the basis of a civil law agreement, you have the opportunity to take advantage of the debt you need. Check what you can count on when applying for a loan, as well as how to choose the best offer for your financial possibilities. In addition, we’ll tell you what you can do to increase your credit standing and have a better chance of getting a loan approval.

Credit offer flexibility

Credit offer flexibility

Cash loans stand out thanks to their flexible conditions compared to other financial services. When applying for a loan for any purpose, you don’t have to worry about not having a permanent contract. Banks honor different types of employment and sources of income differently, an excellent example are:

  • clients working under a mandate contract

  • clients working under a specific task contract

  • clients receiving a pension

  • farmers

  • clients running their own business

  • clients with regular income from the letting of real estate

The bank will be willing to grant the debt, although of course the customer will have to provide documents that will confirm his seniority in the company, as well as determine when his employment contract will be binding. It will be important for the bank to determine whether you have sufficient creditworthiness and whether you will not lose your source of income during the repayment period.

When applying for a cash loan and working for a definite period of time, you can count on the fact that the bank will easily give you a debt that will not be repaid by the date on which your employment contract will apply. However, if you are interested in a loan with a higher amount and want to take advantage of the possibility of spreading the repayment over a longer period, you can check whether the bank will honor the promise issued by your employer and guaranteeing that he wants to extend the current employment contract.

Of course, banks most often provide their services to clients who can provide stable and reliable income that will ensure the institution that the borrower will, throughout the entire period of the loan and the duration of the contract between the parties, have a source of inflows to their account, which will allow repayment of the installments specified in the schedule. Having permanent employment, you can spread the loan repayment even to the maximum available time, which will significantly reduce the monthly cost of the entire loan.

Creditworthiness – what do you need to know about it?

Creditworthiness - what do you need to know about it?

The condition for obtaining a loan, regardless of the form of employment, is creditworthiness, which depends largely on the amount of your income, as well as expenses that you regularly incur. Still looking for the answer, how much do you have to earn to get a loan? The answer is not clear. It all depends on many conditions that will contribute to the entire contract and debt repayment. That is why it is worth calculating your creditworthiness in advance, using the free creditworthiness calculator and see if the bank will actually be inclined to grant you the debt you are planning to apply for.

The creditworthiness calculator works in a very simple way, and to use it you need only a few completely basic information. First of all, you need to specify your monthly income, ie total account receipts that regularly fund your bank account. You will also need information about the fees you have to deal with each billing month, as well as which loan you plan to apply for, specify the amount of the loan, as well as the date when you plan to pay back the loan.

A sufficiently high creditworthiness can ensure that the bank will issue a positive decision to grant you a loan, although of course you must also have a good credit history. These are two basic conditions thanks to which banks can realistically assess the future client, both in terms of financial possibilities and the fulfillment of previously concluded contracts, which also builds the image of the borrower.

Credit for earnings statement

Credit for earnings statement

Do you care about a cash loan without any certificates or documents that your employer would have to write out? For people who are looking for an instant commitment without any unnecessary formalities, the best solution will be loans granted to regular bank customers, which appear as debt offers just after logging into their personal account. Banks are increasingly willing to provide services to their clients in this way, so it is not surprising that they can take out a loan that is already adapted to the monthly inflows to the account, as well as financial analysis from the last few months. By using the debt in this way, not only are documents such as a certificate of earnings omitted, but above all, the client can expect that the money will be paid to his account in just a few minutes, which can certainly compete with the offer of parabanks.

By staying on the subject of loans without income statements, you can also look for such offers at loan companies. Payday loans do not require so many formalities, and the immediate advantage of this type of service is instant access to cash. However, the borrower must take into account that the maximum loan amount is much lower than in the case of cash loans. In addition, as a customer, you also have to consider a much lower repayment period, often parabanks require the borrower to return the cash within 30 days of the conclusion of the contract.

Summary

A fixed-term contract does not preclude using a loan for any purpose. Flexible contract terms, as well as the very nature of the commitment, allow the person concerned to apply for a loan, and shortly after receiving credit approval, sign the contract and top up his account with additional funds. If you have worried about your situation so far due to the type of contract, you do not have to wait any longer, send the application and see that you can use the loan for any purpose.