Fixed-term loans are a form of financing that is requested by those who have a temporary (ie expiring) employment contract.
If you want to get information on these personal loans, keep reading this article.
Can fixed-term loans really be obtained?
Being able to obtain a loan without a permanent contract can be particularly complex, although we must say that there are some banks and financial institutions that allow you to take out some solutions, under certain conditions.
- Yes Loan
- Popular loan
There are some important things to know, however.
The first and most important of all concerns the duration of the loan of the loan : it can never be greater than the residual duration of the employment contract.
For example, having a contract with a residual duration of 12 months, this will also be the maximum deadline within which you have to finish paying all the installments.
The second limit can often relate to the amounts : loans for atypical are granted through the assignment of one fifth of the salary and considering the limited repayment term, it follows that the amounts that can be obtained in financing will also be somewhat limited.
The assignment of the fifth
The type of loan with which fixed-term loans are granted is the transfer of the fifth.
Your employer will make the deduction from your paycheck, in the maximum amount of 1/5 of the same, and will pay it directly to the financial company that granted you the loan.
More information on the assignment of the fifth.
An approximate calculation can be done like this: assuming a salary of 1,000 USD per month, the maximum installment payable each month will be 200 USD, which multiplied by 12 months of maximum duration, will give back 2,400 USD. This is the maximum amount that can be borrowed.
Who can request them?
With this concept we mean the loans, in general, granted to those who have an employment contract other than the classic. For example, atypical workers can be defined as all those who have a project contract or who, more generally, work with a fixed-term contract.
Part time workers
Are loans for part-time workers granted, as you can easily guess, to those who have an employment contract with? half day ?, from 4 hours a day to be clear. Considering that those who have a part time job obviously have a lower salary than those who work? full-time ?, the maximum amount that can be requested will also be lower. For other details, read how the assignment of the fifth of the salary works.
Those who generally have a fixed-term contract, or an employment contract with a certain deadline, can easily apply for fixed-term loans.
Temporary workers are another category of people who can apply for this type of personal loan. Specifically, these are workers who seek and find employment using special agencies.
What can you buy?
Certainly the biggest advantage of Fixed-Term Loans is to allow even those who do not have a permanent contract to obtain financing to purchase what they need.
The purposes that can be achieved with these loans are in fact exactly the expenses of classic personal loans or online loans :
- car purchase
- purchase motorcycles
- holiday purchase.
Mortgages for temporary workers, the latest news
Considering the conditions of the labor market, more and more banks are offering home mortgages for those who have an expiry contract. These are solutions that are granted under particular conditions. For example, it is necessary that in the last two or three years you have worked for at least a certain number of months (usually even non-consecutive) and that, when you apply, you have a job with a contract, to expire, which still has a certain minimum number of months.
The conditions for obtaining these loans vary widely from bank to bank, as does the actual possibility of obtaining them. To be able to know more, the best thing is to go directly to the banks of your city (or alternatively through online banks) so that you can apply for your work situation.
They help a lot in accepting the application for fixed-term mortgages even if you are a young age (usually up to 39 years), if the purpose is the first home and if you have an additional guarantee, both real (for example the rent of a property owned) or personal (for example, the guarantee of a relative or spouse).
Best banks and financials
For those looking for a loan despite having an atypical employment contract, this page contains the reviews of some financial companies that give this opportunity.
Remember, however, that the final choice is always up to the financial, so you never have the certainty of the final positive result, even if the application is forwarded to a “specialized” financial.
The guarantees available, the monthly salary, the residual duration of the employment contract and your credit history (have you reported yourself as a bad payer?) Count for a lot and, in the end, make the difference.