Although many lenders require the current employment certificate to be presented, the loan can be taken out despite the fixed-term contract. Borrowing is easiest if the lender simply asks for a certificate of earnings or even refrains from presenting it because of a small loan amount.
If the loan repayment takes place within the period of the current time limit anyway, borrowing is easily possible despite a fixed-term contract, but employers are more likely to use the option of multiple contract extensions than to immediately award a fixed-term contract of employment with a term of two years.
Opportunities to borrow on fixed-term contracts
In contrast to online banks, which usually only assess facts that can be verified, regional savings banks and Volksbanks also take into account the specific situation of an applicant. You know the employer of the loan applicant and you know the likelihood that they will extend a fixed-term contract after it expires. Furthermore, they assess the borrower’s prospects of finding a new job quickly, based on their professional experience and the local labor market situation, so that in many cases they grant a loan despite a fixed-term contract.
Another option is for the borrower to provide an additional guarantor with a fixed-term contract, provided that the borrower has assets or an open-ended contract. The use of the overdraft facility is also possible with a fixed-term contract, since the bank usually only takes regular payments into a checking account to set it up, without asking about an employment contract. The disadvantage, however, is that the overdraft facility is very expensive; a cheaper alternative is the disposition loan, which is also often available without submitting an employment contract.
Installment payments and dealer loans
Installment payments and dealer loans are easy to obtain even with fixed-term contracts, since no employment contract is usually required for their award; even the certificate of earnings usually only has to be presented for larger loan amounts. For legal reasons, no one is allowed to conclude a loan agreement if they are unlikely to be able to pay the installments properly; However, borrowers usually expect to renew their fixed-term employment after the deadline, so they will not intentionally violate this principle if they take out a loan despite a fixed-term contract.