It could be so nice: The employment contract is signed, the salary is higher than before and finally enough money is available to finally get the new seat set by Rolf Benitez, Sugato or Woop! to be able to afford. However not from the petty cash.
For a credit would have to serve. Unfortunately, you are still in the six-month trial period. It means wait, right?
All facts about the guide “Credit in the probationary period” at a glance:
- The probationary period serves employees and employers to get to know each other and the workplace.
- During the probationary period, the borrower can be terminated at any time, which threatens payment defaults.
- The alternatives to a bank loan are family and friends, private lenders and guarantors.
But what opportunities are behind the offer for loans during the probationary period? Our guidebook on the subject of credit during the probationary period reveals it!
1. What is the benefit of the probationary period?
In the meantime, there is hardly an employer who has not previously agreed to a probationary period with his employees. True to the motto “Check who is binding forever!” Employees and employers can get to know each other during the probationary period.
Trial periods usually take three to six months. Cancellations with a shortened notice period of two weeks are possible at any time within this timeframe. In addition, no reasons are required to terminate the employment relationship. This is beneficial for both sides. The employee can also put the workplace, colleagues, supervisors and the work through their paces. After all, a good working atmosphere and the fun at work are just as important as the salary, the number of vacation days and the career opportunities.
Quite a few workers quit their employment during the probationary period, as the supposed dream job proves to be a personal disaster. In interviews both sides try to present themselves as well as possible. The framework conditions are set, but what the internal relationship may look like remains open and is also interpreted differently from person to person.
Therefore, it is important for both sides to use trial periods. However, these may not last longer than six months. During this time, most employees are banned from holidays and some employers do not provide any capital gains and other benefits during this time. Since most employers assume that humans are well able to disguise themselves for an extended period of time for eight hours a day and to hide their true, unproductive self, many companies tend to have fixed-term contracts within the legal framework of two Years.
However, this benefits not only the employer, but also the new colleagues and thus the working atmosphere. During this time it can be determined whether the new employee actually fits into the team. Work takes place in a social setting that should be pleasant.
2. What is the risk for the lender?
The benefits of having a probationary period for all involved parties is also the main problem for the lender. The debtor can cancel or be terminated at any time and has only two weeks to find a new source of income. This will put the lender at increased risk during the trial period. Since the borrower has not been in employment for too long in the event of early termination, the entitlement to unemployment benefits, which could be used to cover outstanding loans, is also eliminated.
The probability of finding a new job within two weeks is rather low. If the termination of the borrower, one can only hope that he was reasonable enough to look for a new job before. The lender therefore risks the loss of loan repayments when granting loans to employees during the probationary period. In the worst case, this can even take on such proportions that the loan can not be serviced in the long run or at least has to be adjusted downwards.
The loan installments at notice during the probationary period
To avoid such unnecessary risks, most major lenders will exclude such clients from the outset. Acceptance of such a customer is presumably only possible with the conclusion of a loan repayment insurance or with a guarantor.
However, one must not forget that these strict regulations also serve to protect the debtor. Of course it is tempting to fulfill a long-cherished dream with credit given the prospect of monthly salary payments. But if the dream has been cherished for a long time, you can wait a few more months to be sure.
Employees who are still in the probationary period represent an increased risk for the lenders. They can cancel or be terminated at any time. This can result in permanent or temporary defaults.
3. The alternatives to the classic bank loan
But now there are cases where taking out a loan seems unavoidable. Especially former city dwellers in rural areas – small towns – find that owning their own means of transport makes life a lot easier. The buses run only hourly, so you either too early or too late to work. The nearest supermarket is a 20 minute walk away and the nearest bus stop is 10 minutes.
The bicycle would be a healthy and ecologically, as well as economically successful alternative, but stupidly there are in Germany the autumn and winter with numerous downpours. And those who still want to change to the bike, suddenly face numerous hills and mountains, which spoil the comfortable cycling.
But even a car can not even pay from the petty cash. Here are several opportunities for the borrower. Car dealerships offer numerous financing options, ranging from cash purchases, through three-way financing to pure credit purchase. It can be assumed that the installment payments lead to a higher total effective interest rate than the financing by a bank loan.
But what happens if the new apartment, which had to be moved due to the change of residence associated with the change of residence, does not contain a kitchen? Even simple kitchens can cost 2,000 euros – open to the top. Here you should contact private lenders. This may mean family members or friends. Family members have the advantage that they usually require a small or even no interest on the repayment.
If the finances of the social environment are also not very good, the path can still be crossed over the guarantor. Often one can not assume from the fact that there are no reserves at the moment that there is no creditworthiness. Furthermore, there are also online platforms where private lenders provide their payment power. Depending on the intended use, the interest rates do not exceed the market interest rates. The provider Auxmoney even offers the possibility to repay a borrowed loan earlier if necessary.
For online loans, however, one has to be aware that the data will be made available to a broad lending public. These decide based on the given information whether a loan is granted or not. The terms are a maximum of 60 months and are not to be understood as real estate loans.
4. The conclusion: This loan needs a strong social environment
Getting credit approved during the probationary period is a difficult task. Due to the uncertainty of the workplace one is sorted out with most lenders. Justified way, because at least it can come at any time to layoffs and thus to loss of earnings.
However, if borrowing is unavoidable, the market offers a variety of opportunities to do so during the probationary period. There are private lenders from the social environment or guarantors who are at the bank’s side.
The social environment determines the creditworthiness
Another increasingly popular financial instrument is social lending. Here one can search on online portals lenders. However, all the information must be disclosed so that the potential lender can get their own impression.
Thus, during the probationary period, financial jumps can be made within a reasonable framework. For this, however, a strong existing or newly created social environment is needed.