Loan Commitment in Probationary Phase: Understanding its Functioning

In today's fast-paced world, life can sometimes throw unexpected challenges our way. One such challenge might be the need for financial assistance during your probationary period at work. This article aims to provide a clear and concise guide on obtaining loans during this period.

Firstly, it's important to note that obtaining a loan during the probationary period is possible, but not all banks are willing to do so. To apply, you can submit a credit application to any bank. However, the process may be more stringent, and the terms may be less favourable compared to regular loans.

One of the general requirements for a loan during the probationary period is meeting the usual criteria: being of legal age, having no negative SCHUFA information, having a residence in Germany, and having sufficient income to pay the installments.

During the probationary period, banks often require additional security to approve a loan. This could be in the form of a guarantor, a second borrower, or increasing your equity share. Providing the vehicle registration document for a car loan during the probationary period is also common practice.

In some cases, a guarantor may not be required, especially if you can provide other securities or additional income such as capital income, rental income, income from insurance or pension benefits, or income from self-employment.

When it comes to the loan amount, smaller amounts, such as 1,000 € or 5,000 €, are easier to obtain during the probationary period than larger amounts.

In terms of loan terms, a short term may be worthwhile to refinance the loan soon, as you will likely be out of the probation period and receive better credit terms. The choice of a loan term also depends on expectations regarding interest rate development.

Interest rates for loans during the probationary period are generally higher than favourable loans. However, experts do not currently expect interest rates to rise significantly in the short term. It's essential to be aware that these loans are more expensive and to budget accordingly.

If your credit application is rejected during the probationary period, alternatives include peer-to-peer loans or loans from your employer. Be cautious when considering loans from providers on the internet that offer loans even with a negative SCHUFA entry during the probationary period.

Lastly, if your employer can confirm that they will take you on permanently after the probationary period, this increases the chances of a loan approval. Some banks may agree to a mortgage despite the probationary period, but it is usually paid out only after the probationary period ends.

In conclusion, while obtaining a loan during the probationary period may be more challenging, it is not impossible. By understanding the requirements, the process, and the potential alternatives, you can make informed decisions about your financial needs during this period.