Loan without an employment contract.

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Loans without an employment contract – absolutely feasible

Loans without an employment contract - absolutely feasible

Getting a loan if you have a valid employment contract is not a big problem. The bank therefore has information that it has a regular income and can also service the recurring credit rates plus the interest accruing. But not everyone who needs a loan has an employment contract.

Students, pupils and the unemployed have bad cards if the lender makes this a requirement. But not only these three groups are affected. This also includes freelancers and the self-employed. However, lending to all of these groups is not an impossible undertaking.

Collateral as a way out

Collateral as a way out

In order to get a loan without an employment contract, the borrower needs something else that he can offer the lender as security. These include, for example, valuables in the form of real estate, which, if the customer can no longer carry out the repayment, will necessarily be claimed by the lender.

The bank can also recognize valuables such as life insurance or valuable jewelry and thus grant a loan. It is important to know that these valuables, which are intended to serve as collateral, can also come from third parties and the borrower does not have to be the direct owner.

If you do not have any material possessions that could serve as security, it is possible to use a person with their consent as a guarantor. In the event of a delay in payment or in the event of a complete payment default, the latter takes over and assumes the remaining liabilities.

For students and the unemployed, as well as pupils, this is often the only way to get a loan at all. If the loan is offered in the form of financing, there is still the option of providing security with an extremely high down payment. Good to very good Credit Bureau scoring makes lending easier in any case.

Be careful when looking for providers

Be careful when looking for providers

If you belong to one of these groups and need a loan, you have to look for a lender. There are innumerable offers everywhere, which attract unemployed people, social welfare recipients and the like with promises for a loan and do not require Credit Bureau scoring or any security. This sounds very tempting to many, but caution is needed here. The conditions of such a contract are extremely bad, interest from 5 percent upwards without a limit and other extreme conditions, which are often not immediately recognizable at first glance, can be part of these contracts.

These people in particular then find it difficult to get out of such a contract, especially since they have to service liabilities that are far beyond their possibilities, which are already very limited. Here you have to ask yourself whether a loan that is granted entirely without collateral can be a serious offer at all.



In summary, it can be said that a loan without an employment contract is possible, but needs to be carefully considered. The self-employed and freelancers can in most cases offer sufficient security and are able to pay the credit installments plus interest. The situation is different for the unemployed, social welfare recipients, schoolchildren and students. They can also get loans, but mostly only with the help of third parties.

This creates not only a dependency on the lender but also on the third person, whom they have to answer in case of doubt, which can be very uncomfortable. It is therefore important to weigh up whether a loan is necessary at all. Credit offers that do not require any collateral and are given to everyone should be avoided, as these are almost always dubious offers that can cause problems.

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