Nowadays, a lot of people are employed on a contract of mandate or a contract for a job regardless of whether they are just starting their work or are already an expert in a given field.
In the majority of cases, these contracts are concluded for a definite period or depend on the performance of the ordered work. As a consequence, they do not have long terms of application and agreements regarding further cooperation are rarely encountered.
However, what if we want to apply for a cash loan when working on this form of employment? Is it possible to get even a small amount of credit at all?
Banks are now cautious about granting loans
Banks, however, are cautious about granting loans, carefully verifying their income. Much more the entire process will unfortunately look in the case of other contracts than the contract of employment. Each bank will approach civil law contracts in a different way, which means that not all offers can always be available.
The most important thing is to specify the date from which you are employed on the basis of a given contract. Most are required a minimum of twelve months, although you can also meet shorter - six months - as well as longer - eighteen months. It is also necessary to meet the condition of continuing employment, showing possible changes to the employer and interruptions resulting from this reason. Periods without a contract, of course, should not occur at all.
The second important issue is the fact that not every bank will accept frequent changes of employers, and what results from civil law contracts concluded for short periods with different employers. Some bank offers require even the continuity of cooperation with one employer throughout the entire period under consideration.
If all the conditions for the abovementioned matters are met, you can submit a loan application.
How is the creditworthiness checked?
Creditworthiness will be calculated here in a manner similar to those doing business. Therefore, it will be the arithmetic average of given time periods. Of course, the stability of remuneration is also checked, although if one of the contracts exceeds the average, one must take into account that the income will be reduced. When it comes to contracts for a specific work, two levels of analysis of tax-deductible costs can be distinguished. The first one will only take into account the amount given by the client, while the second will include 50 percent of the revenue value.
What documents are needed?
The documentation to be delivered to the bank is also greater than in the case of a contract of employment. But the fact of completing it is not burdensome, because it can be done quickly and without problems. The basis will always be concluded civil law agreements with bills confirming payment. It is also possible to present the account history affected by the remuneration.
In the case when the employer has not changed, only the certificate of employment and the amount of remuneration received may be sufficient. Many banks will also expect PIT for last year.
Some banks may also want to see PITs from the last two years. If the civil law contract does not contain information as to who pays the tax on remuneration, a document specifying the payer will also have to be provided.
You do not have to be afraid that if you work on a contract for a work or contract of mandate, you will have a closed route to obtain a loan. The risk may be the fact that we will not be able to meet all the conditions set by the banks listed in their offers.
However, as a result of the verification of several dozen bank loans and non-bank loans, there will certainly be at least one offer that will be fully appropriate and will enable you to fulfill your own dreams and plans.