The term temporary employment contract is used in two different ways. It can relate to the employment relationship with a temporary employment agency as well as to temporary employment. With regard to borrowing, the two situations differ noticeably. While financial institutions also grant a disposition loan with regular income to account holders with temporary employment contracts, the application for a consumer loan proves to be more demanding.
Loan with an employment contract with a temporary employment agency
The loan with a temporary employment contract in the meaning of an employment relationship with a temporary employment agency should not be a problem, because despite the different job locations, it is a fixed employment contract with a single employer. Nevertheless, few financial institutions generally refuse to lend to temporary agency workers. In the case of a desired loan with a temporary employment contract, temporary workers make sure that the bank they have selected provides loans to employees of the corresponding companies. The lower wages compared to direct employees allow borrowing by a temporary worker if he decides for the longest possible term and correspondingly low credit rates.
Temporary employment loan
Financial institutions often do not approve a loan with a temporary employment contract in the sense of a temporary employment relationship, as there is no income security after the expiry of the time limit. These concerns do not apply if the borrower can repay the desired loan by the end of the employment contract. An alternative is to borrow from a financial institution that refrains from submitting the employment contract, as the time limit does not appear in the payroll.
In the case of instant loans without proof of salary, there is usually no employment contract to be submitted, so that this loan can be taken up despite the temporary employment contract. It is important that the borrower is careful to be able to pay the requested loan installments even if the employer does not renew the employment contract. In this case, it is advantageous to have a credit contract, the paragraphs of which expressly contain the right to change the repayment schedule at the customer’s request.
Borrowing with temporary employment contracts in retail and from private individuals
Payment in installments in retail can easily be taken up as a loan with a temporary employment contract, especially since neither an employment contract nor a pay slip is usually required. This means that both employees of temporary employment agencies and temporary employees can order goods on a partial payment basis at any time. A loan with a temporary employment contract can also be taken out via internet platforms for brokering loans between private individuals, especially since many of the private lenders registered there focus on social aspects in their decisions.