How to have loans without a permanent contract 2017
Fixed-term payroll financing
With the economic crisis, I am less and less able to count on a stable job position. This situation has led banks and financial institutions to include loans without a permanent contract in their offer.
These are products that were initially designed to meet the needs of younger people, but can be requested by workers of any age. The main requirement for obtaining access to credit is the presence of a work income.
Atypical and self-employed workers and employees on fixed-term contracts can therefore obtain loans without permanent contracts. The financeable sums can reach up to 15 thousand USD.
In the case of self- employed workers, larger amounts can also be requested. Provided, however, that the person can count on a high working seniority. But let’s see in detail what are the guarantees to be presented to obtain loans without a permanent contract and who disburses them.
Funding for young people 2018
Let’s start by talking about loans without a permanent contract for young people. These are products with relatively low amounts dedicated to subjects who are generally less than 35 years old.
Young people are a very delicate category of customers from the point of view of credit institutions, since they can hardly count on solid economic or income guarantees. Many banks and financial institutions have therefore developed ad hoc credit lines for the younger ones.
In principle, these are loans designed for those who have just started working, but in some cases it is also possible to find loans of honor for students or aspiring entrepreneurs.
But let’s go back to the issue of loans without permanent contracts. The paycheck represents one of the forms of guarantee most accepted by banks and financial institutions. In addition to the presence of a fixed income, however, it is necessary to be able to count on a seniority in order to be able to access credit.
And usually young people hired on fixed-term contracts cannot count on a high working seniority. This is why banks and financial institutions are unwilling to lend high loans to these entities. Loans to young people are in fact characterized by sums generally between 3 and 10 thousand USD.
Obviously, the greater the length of work of the applicant and the higher the maximum amount payable. As regards the purpose of the loan, loans to young people can be both finalized and non-finalized.
In the first case, these are sums paid to meet a specific need. In the second, however, we talk about traditional personal loans, which provide for the granting of a sum that the beneficiary can use as he sees fit.
Who can get them
Loans without a permanent contract to young people require the application of rather strict evaluation criteria by banks and financial institutions. First of all, it is necessary to have a fixed and demonstrable income.
In most cases, a minimum working seniority of 1 year is also required. Requirement that can be reduced to 6 months if the loan request involves a relatively low sum.
In order to access credit, the loan installment must also be in line with the applicant’s monthly income. In fact, banks and financial institutions tend not to grant the loan if the amortization rate is higher than 20% of the applicant’s monthly income.
In other words, if a boy with a monthly salary of 1000 USD net applies for funding, the installment must be equal to a maximum of 200 USD. Obviously this is only a guideline. In fact, there are no precise rules in this regard and the last word therefore always belongs to the lender.
The assignment of the fifth
When it comes to loans without a permanent contract, it is necessary to spend a few words for the assignment of the fifth. It is a form of personal loan accessible only to employees and retirees.
For access to credit, it is essential to have a fixed income, which can be represented by a pension or a paycheck. The presence of a permanent contract is not essential. However, the loan must be extinguishable during the term of the contract.
Loan to the self-employed
Loans for self-employed people also fully include the category of loans without permanent contracts. These are loans accessible to those who cannot count on a paycheck, but still have an income with which to guarantee the repayment of the loan installments.
In this case, the tax return of the previous year must be submitted when applying. In the case of particularly large sums, the bank can also request tax returns for the past three years.
However, lenders often ask for additional guarantees. This is because banks cannot rely on fixed income and require additional guarantees to be presented. In this regard, it is possible to present a life insurance policy to guarantee reimbursement.
Alternatively, it is possible to take out a mortgage on the home, or resort to the signature of a guarantor. In the latter case, therefore, the presence of a third party is expected, which undertakes to guarantee the repayment of the installments in the event of non-payment by the beneficiary of the loan.
For access to credit, however, the person presented as guarantor must have demonstrable fixed income. Income which must be adequate to guarantee the regular repayment of the installments.
However, it is necessary to remember that the guarantor’s intervention is to be considered extraordinary. In fact, this can only intervene if the applicant is in financial difficulties. Not only. The guarantor cannot replace the borrower permanently.
Loans with bills
Obviously banks and financial institutions can request the submission of additional guarantees even if an employee with a temporary contract submits the application. In fact, lenders always have the opportunity to protect themselves from the risk of insolvency as they see fit.
One of the most popular solutions is represented by the signature of the guarantor, which we talked about in the previous lines. Alternatively, loans with bills of exchange can be used. Credit lines that involve the use of bills. Debt securities which on the one hand act as a method of payment and on the other represent a guarantee for the institution.
In case of non-payment by the beneficiary, the bank can in fact request the attachment of the debtor’s assets. The expropriation procedure takes place in a very short time, thus allowing the credit institution to repay the capital granted.