It cannot be clearly assessed whether a loan is possible despite the fixed-term contract. This depends on numerous and sometimes very different factors. It should play a primary role whether the end of the term of the loan extends beyond the end of the fixed-term contract or not.
Credit despite a time limit – often only possible under limited conditions
In most cases, the banks insist that a borrower can provide faultless credit information and permanent employment. If even one of these two requirements is not met, the loan application is rejected. With a loan despite the time limit, there are chances. This applies in particular if the credit information is in order and the loan term is kept relatively short. Since most employees have no further collateral, the regular monthly salary is all the most important for the banks. Otherwise, they would have no guarantee that they would get their money back properly, on time and within the agreed framework.
Loan despite fixed term – additional collateral
If the end of the term of the loan extends beyond the end of the fixed-term employment relationship, the banks will usually insist that the borrower provide additional security or a guarantor. A suitable co-applicant who not only has faultless credit information but also permanent employment as an employee or civil servant could have a very positive impact on the creditworthiness of the borrower. In any case, there must be an income that is so high that it could also be seized if necessary. If other collateral was available, such as a loanable life or pension insurance, the bank would use it if payment difficulties persisted.
Loan in spite of a time limit – application on the Internet
A loan despite the time limit could be applied for both in a local bank branch and on the Internet. If the lender is a purely online or direct bank that foregoes nationwide branch use for cost reasons, online application would even be the only way to get a loan despite the time limit. Online loans are usually very inexpensive and are particularly suitable for people who only have a temporary job and are therefore very cost-conscious. Here too, however, the principle applies that only a term can be chosen that roughly corresponds to the remaining duration of the fixed-term employment relationship.
If you would like to receive an online loan, you would have to go to the website of the desired bank and fill out a special application form, print it out and then send it to the bank by post. To do this, it is imperative that the PostIdent procedure is carried out at a post office counter. This procedure serves to legitimize the borrower and is only possible with an ID card or passport. The counter operator uses these documents to check the borrower’s identity and then sends the application documents directly to the bank. If everything is OK, the loan will be approved and paid out within a few days.