Loan despite probationary period

Most people have desires and dreams. And you might want to be a little bit lucky, have a nice apartment, do a great trip or you want to buy a great new car because the old one is getting old.

Many people can fulfill these dreams, but what do those who have just taken up a job and are still in the probationary period? Do these people get a loan to buy new furniture, to finance a trip or to buy the coveted car? For these people, however, it is somewhat difficult to get a loan despite a probationary period. But why is it like that?

Collateral for a loan

Collateral for a loan

Why are the banks so reluctant to give a loan despite a probationary period? This is actually the job of a bank, they lend their money to earn money again. However, before lending money, they check that the borrower is able to meet his obligations on time. For probationary workers, banks see a high risk of default because the probationary period does not guarantee that these clients will regularly receive wages and salary and thus be able to service their loans.

So the banks are demanding security so they can get their money back. A security is once a permanent employment. But how come workers in the probationary period to one of the desired loans? As already mentioned, in principle it is difficult to get a loan despite a probationary period. However, there are opportunities to get a loan despite a probationary period, as it depends on the amount of the loan. If you only need a small loan, the credit line might be a solution.

So the borrower does not have to go to a lot of effort and yet comes to a smaller amount of money that helps over bottlenecks. But if you need a larger amount of money, then it would be of great advantage if certain collateral exists. In addition, a bank is required by law to keep the risks of losing money as low as possible and to demand certain collateral. If the employee applies for a loan, then the bank has the option of seizing the pay on arrears. But what happens if an employee is not taken over after the probationary period? The bank can not execute a seizure and would sit on the losses. That is why it is particularly difficult to get a loan approved despite a probationary period.

The loan despite probationary period

The loan despite probationary period

It would be different if, for example, a guarantor could guarantee this loan. So you have a real chance to get a loan despite a probationary period. Prerequisite, the guarantor is solvent. Although this is not a guarantee to get a loan, but the possibility exists. Decisive can also be the reason for what you need the loan. Often the applicant can point out that he needs the money for a car purchase, because it can be tied to the fixed position.

Here the banks often agree to a loan despite a probationary period, because they have as security the purchased car, which remains the property of the bank until the repayment of the loan. However, different banks also want a down payment for the loan. Another possibility would be if a home savings contract can be offered as collateral. Of course, a life insurance policy with a corresponding sum insured will increase the chances of getting a loan. The best security, however, would be a condominium or a private house. However, the applicant should carefully weigh the pros and cons of whether the loan amount can justify home and home security.

The last obstacle – the private credit

The last obstacle - the private credit

If there is a guarantor and other collateral can be provided, there will still be an obstacle separating the applicant from the desired loan, the private credit, and the bank will definitely check for any negative entries before granting the loan. If that is the case then no loan will be awarded during the probationary period. If you know about the entries, then you can only ask at various banks if there is a possibility of credit.

However, high interest rates would probably be due to the applicant. Another alternative could be lenders who lend money privately. However, these donors also want collateral, but you can clarify the basic terms with potential lenders internally. So if you do not get a loan on the first request, you have to arm yourself with a lot of time and audition at various financial institutions to get the desired loan.

Leave a Reply

Your email address will not be published. Required fields are marked *