More than 200 domestic and foreign banks are authorized in Germany. Most of them include private installment loans in their product range. Although the conditions for granting an installment loan are almost identical across the industry, the conditions vary greatly from provider to provider. A comparison of the different providers can save the borrower larger amounts of money.
What are the conditions for a temporary worker loan?
Temporary workers generally belong to a group of consumers who find it difficult to get a personal loan. However, it is not impossible to get a loan for temporary workers. The approval depends on several factors. An important point is the information from Credit Bureau, where more than three quarters of all German citizens are recorded. Not only current financial liabilities are registered, but also payment behavior. For example, paying bills late and after several reminders can result in a negative entry at Credit Bureau. Conversely, if the Credit Bureau information is positive, the chances of approval of the loan request increase significantly.
The type of employment is also important. To approve a loan, it should be open-ended and have been with the same employer for a minimum period of one year. It is of secondary importance whether the employer is a temporary employment agency or another employer. The amount of income is also decisive for the approval of a loan. This is an expression of the borrower’s creditworthiness (solvency). As a rule of thumb, a monthly income of around 900 dollars is the minimum requirement to apply for a loan for temporary workers.
What are the alternatives?
If the applicant offers collateral, the chances of the loan being approved increase considerably. Banks accept shares, securities, insurance policies, real estate, certified precious metals or antiques as collateral. The value of the collateral must be greater than the loan amount. Another alternative is a guarantee. The applicant for a loan for temporary workers finds a third person who signs the loan application. If the applicant is no longer able to pay the installments due, the guarantor takes over. The guarantor must meet the minimum requirements for the granting of a loan.