A loan without a contract – Possible?
Today you need money for many expenses and wishes. Applying for a loan is not difficult at all. If you have a permanent employment contract, a good income and no negative entries in Schufa, you will receive the loan fairly quickly. But it looks very different, should not be an employment contract. If you still want to get a loan without a fixed employment contract, then you have to have one thing above all else: luck. Only in exceptional cases will you get such a loan.
A loan without a contract – Possible?
- Why is an employment contract desired?
- You have to have luck
- What are the possibilities?
- The internet helps
- Alternatives to the employment contract
- Credit without employment contract with mini jobs
- What about self-employed?
- Credit for two
- Credit with collateral
Why is an employment contract desired?
Most banks and credit institutions want a contract of employment for one reason in particular: security. A regular income through a permanent position is considered a guarantee that you can repay the loan and its interest. The higher the income, the easier it will be to get a loan. But even with small income amounts, this is beneficial for the bank.
After all , you can then seize the income if the payments should fail once. But if you look for a loan without an employment contract it will be really hard. Such is one of the basic requirements of almost all banks. These include foreign banks or credit institutions on the Internet.
You have to have luck
If you do not have a permanent employment contract, then it is almost impossible to get a loan. Only in very rare border or special cases, the prospect will succeed in obtaining a loan without an employment contract. This is the case, for example, for a fixed-term employment contract .
At the present time, such an employment relationship is no longer uncommon. That is why banks are also taking action on these cases. Just make sure that the repayment term is no longer than the term of the employment contract.
What are the possibilities?
In addition to the temporary employment contract, there are other ways to obtain a loan without employment. At best, such a loan should not be completed alone . Often, a loan is awarded if a co-applicant appears in the contract and is solvent. Otherwise, you can also specify the life insurance with a surrender value as collateral in the loan.
Good to know:
If you want to get a car loan, then there is the possibility that you can afford a high down payment. This should be at least 30 percent of the price. Often a loan is then approved for the further costs. Good for a loan application is also a positive Schufa information. All these examples are just exceptions. These cases do not have to occur.
The internet helps
The best chances are probably on the Internet. There are not only many and cheap offers, but the conditions are usually a bit “weaker”. So you can get a loan easier. It is best to set up a household bill before applying for credit. In this respect, one can show the credit institution that one can afford the credit also. A comparison helps with the search further.
In this comparison you only have to enter the most important parameters and you are looking for a suitable bank. With this you can then clarify all other formalities. With a bit of luck and reason you will definitely be able to get a loan without a contract. One should only go with the right means to the thing.
Alternatives to the employment contract
Anyone who has no employment contract, but still works, can also submit other documents for granting credit when lending. Banks also accept confirmation from the employer if they are employees or employees.
In addition to the length of service, this confirmation should include a reference to the gross salary and possible allowances.
In addition to this document helps here usually the submission of a bank statement with the transfer of the net salary. Here, the banks would like to see three consecutive months in evidence. Anyone who has a fluctuating salary is well advised to submit the account statements for one year.
Credit without employment contract with mini jobs
Especially with mini jobs, there is often no employment contract. In addition, no payment of wages is made here on the current account. The payment in these forms of work is usually cash. Therefore, you need proof of payment so that it is recognized. In a mini-job deductions for taxes and health insurance are taken directly from the employer, so he can also easily confirm the payout. In addition, you should always be paid when paying the amount. With these receipts then the application for the loan is easily possible. At least three consecutive proofs should always be provided.
What about self-employed?
For self-employed there is no employment contract because they are the employer. In order for lending to work here as well , the bank needs meaningful documents in order to be able to work out an approachable income. As a rule, the banks here want the tax returns and the tax assessments of the last three years, the annual financial statements and the BWA.
So if you want to apply for a loan, as a self-employed person should always maintained his documents and up to date. Likewise, no loopholes should be used for tax structuring, so the bank often can not then determine any disposable income.
Credit for two
Together, it is often much easier. If you do not have a contract of employment and you do not have sufficient income, you should think about a second borrower in the application process. Of course, the second borrower should have a demonstrable income , because only then does it make sense to include this in the application.
However, in this case the second borrower is also liable for the loan if it can not be smoothly returned. Therefore, you should be clear from the start about what this means and whether you really want to enter into this joint agreement.
If in doubt, you should always make another written agreement here.
Credit with collateral
With collateral, smaller loan amounts are also given out by the banks if you have no employment contract. The collateral then serves as a substitute if you can not return the loan debt. Savings made by banks, building societies and investment companies are a welcome asset. In addition, the surrender value from a life insurance can also be deposited as collateral.
Those who have the latter can take a policy loan from the insurance company with little effort. In this case, the credit balance in the life insurance is borrowed directly from the insurance company. There is a repayment in monthly installments at manageable interest rates.