The employment form most often seen by banks is an employment contract. Best concluded for an indefinite period. It looks a little different in loan companies in which we also receive financial support when we are employed on a civil law contract
Why do banks not like civil law contracts?
People employed on a specific work contract or on a commission contract may have a lot of trouble getting a loan. Especially if for such an injection of cash they go to banks that do not like civil law contracts, treating them as an insecure form of employment.
If we work on any of the aforementioned contracts, the bank will not take into account the entire income we receive. It will be (depending on the specific institution) 50 or 80% of the salary, which actually affects our account.
Unfortunately, the employment contract is not so easy to get. From the employer’s point of view, this is the least profitable (and the most expensive) form of employment. Therefore, both large companies and smaller enterprises most often offer so-called junk contracts. However, they are not attractive to employees who were not protected by the Labor Code. In addition, in their case, applying for a loan is more difficult than for people who have an employment contract. The banks’ reluctance is primarily due to the fact that civil law contracts do not guarantee a reliable and stable income. Sometimes they last until the commissioned work. They are usually concluded for a definite period and do not bind the employee with the employer. Often the first one does not know if he will receive another contract.
A person working on a “junk contract” can be dismissed virtually overnight, and then he will lose his basic source of income. Lack of income may in turn translate into problems with timely repayment of liabilities. Banks want to protect themselves against such situations. Fortunately, even if we don’t have an employment contract, we can receive the financial support we need. There is one condition. We must meet the lender’s conditions.
A loan without an employment contract – how do you get it?
If we are interested in a financial product such as a loan without an employment contract, we should carefully read the terms and conditions set by the lender. Fortunately, unlike banks, private loan companies accept various sources of income, which means that the lack of an employment contract does not translate into a negative credit decision. More important than the form of employment is having a regular and regular income, the source of which can also be a civil law contract.
We can apply for a cash loan when we are the age required by the lender, we have an ID card, we have an account at one of the Polish banks and a permanent address of residence.
You must also have a phone number and email address. Importantly, the lender will not require us to certify our income, or any additional sureties or collateral. We already know what we need to do to receive a loan at the application stage.
As the name implies, installment loans can be split into convenient installments that we pay monthly. The repayment period we decide on depends only on us. All the formalities that we must complete to get a loan can be found on the website of a specific institution. It is also there that you should look for information about how much we will pay for our loan, how the individual costs associated with it are presented, and what may be the reason that the loan, despite the apparent fulfillment of all conditions, will not be granted to us. The reason for issuing a negative credit decision may be e.g. incorrect completion of the application, incomplete data, etc.
A loan without an employment contract – is it possible?
If we meet the conditions set by the lender, we are only a few steps away from receiving the sum we need. First, we need to choose the loan amount and repayment period. Both should be adapted to our financial capabilities. Although loan companies approach potential clients much more favorably than banks, they also look more gently at the issue of creditworthiness, but their commitment is still a debt that we will have to pay back. The lack of timely payment is associated with such consequences as payment requests (they are not free), getting on the list of debtors and difficulties in obtaining another loan in the future.
The amount we are already applying for is also important. Here, we should estimate well how much monthly we can spend on repayment so that it does not become too much of a burden on the household budget. The amount of the installment must take into account how much we earn, how much we spend on life, whether we already repay any obligations, what expenses in our budget are fixed, and from which we can resign, etc.
In addition, the loan should always be taken for a specific purpose, so that we know exactly what amount we need. If the loan is not enough to cover the most urgent expenses, it may be necessary to apply for another commitment. However, we can have considerable difficulties with this (before we pay back the previous ones).
The next step is filling out the application form. Here you must provide true and up-to-date information and carefully fill in all fields required by the lender. What we must provide is, among others our income, telephone number, personal identification number, bank account number etc.
When our application is approved, let’s get acquainted with the contract and the repayment schedule of individual installments. The loan agreement will be sent to us in advance to the e-mail address provided in the application, so that we can read it in the comfort of home. At the moment, because the loan without an employment contract will be granted to us what we should ensure is the timely payment of subsequent installments.
In summary, it is possible to get a loan without an employment contract. However, we should remember that it is much easier than at a bank to get it at a loan company.