The term temporary employment company deters many people, as it is assumed that a temporary work. However, these companies provide workers to companies that have an increased need for labor for a certain period of time. The term “transfer of labor” is therefore much more meaningful, but is rarely used or is unknown to many. Employees of a temporary work agency are taken over like employees of companies after a successful trial period in a fixed or fixed-term employment. After this probationary period, which can last up to 6 months, employees can apply for a loan despite having to work on a temporary basis.
A loan despite temporary work, however, is earnings-related
Depending on the qualifications, the hourly wages for temporary agency employees may vary. In the lower wage groups of companies many employees work at the collectively agreed minimum wages. Low monthly earnings are a credit decision criterion for many banks and credit institutions. Medium-term or long-term loans are therefore rarely given by the banks when income is low. If the applicant has a positive credit rating, however, the inclusion of a small loan is usually possible.
If the branch bank where the salary account is set up has a long and good business relationship, it can also be thought about the inclusion of a disposition credit. As a rule, the amount of this credit line is between two and three months’ salary. Note, however, in this form of credit, the high overdraft rates, which vary from bank to bank and are usually settled on a quarterly basis. In addition, a repayment credit can be terminated by the bank if the requirements are not met by the account holder.
A loan is usually a long-term capital commitment
Before borrowing, it should be checked in each case whether a loan is actually needed. Especially with low earnings, many workers are unable to cope with additional credit burdens, which usually last for a long time. If loans already exist, many borrowers quickly lose track of their monthly obligations and can not meet their payments.
Advice from a bank and a comparison of different loan offers are therefore advisable. Anyone applying for a loan in spite of temporary employment should also have full legal capacity, have reached the age of 18 and have a positive private credit information.