In the present reality, Poles depend on various incomes. Studies show that only 57% of Poles are employed under an indefinite employment contract. As you know, this form of contract allows you to take out a bank loan. If you earn income from other forms of gainful employment or another source of credit, a problem may arise. Where to look for a loan without stable employment? Do such people have creditworthiness?
Creditworthiness and payday loans
Poland is slowly ceasing to be a country of junk contracts, but these are still the basis for the employment of millions of Poles. 9% of employees work on a commission contract. According to recent reports of the National Labor Inspectorate, undocumented employment concerns less than 3,000 Poles, and these are only disclosed cases. Meanwhile, requirements for borrowers are increasing due to EU directives. Recently, the provisions of the T Recommendation have been widely heard, which translated into a limitation of the liberal approach of banking institutions in granting loans. Not everyone has the credit standing to get a bank loan. In the case of payday loans, the financial institution must also assess the risk of borrowing money. It is influenced in particular by:
- amount of income,
- monthly cost of living
- current debt, i.e. the amount of liabilities.
For the bank, a source of income is important and the easiest way to get a loan is by working under an employment contract. Loans are less common in the case of a mandate contract. The duration of such a contract may be shorter than the loan repayment period. Then it is easier to get the ability calculated by the loan companies. A non-bank loan under a mandate contract is an alternative to loans.
Income accepted by loan companies
Not everyone can boast of a permanent employment certificate. The basis for maintaining many Poles are income not documented or paid for other than work. On the non-banking market, payday loans without fixed income no longer surprise anyone. Such loans are granted for a short period, relatively small amounts. In this case, the risk of borrowing money is not as great as for loans. Therefore, different loan companies can accept income:
- from the commission contract,
- from a contract for specific work,
- from retirement and disability pensions,
- from alimony,
- obtained on the basis of self-employment,
- and even from a 500 plus benefit.
These non-standard sources of income allow you to apply for a loan. Nevertheless, the borrower should be aware that such payday pay without fixed income can be associated with threats. So it’s good to be prepared in the event of loss of income to be able to settle your liability on time.
Loans for people without a contract of employment – risks
An employment contract definitely gives a sense of financial stability. Other forms of contracts do not provide such stability and there is a risk of losing financial liquidity in the home budget. The loan on the basis of a mandate contract or other income offered by loan companies must be tailored to the borrower’s financial capacity. Otherwise there is a risk of debt. A big nod to the lenders from the non-banking sector towards consumers is the lack of the need to submit an income certificate. This does not mean that you can fool the lender. The loan application contains a part which constitutes the borrower’s statement about his financial situation. If the lending company suspects the accuracy of the data, it may require a formal certificate from the workplace or institution paying the benefits. Ultimately, however, payday loans with no fixed income well suited to the needs of the borrower should not be a source of trouble and can be a difficult solution. If you have problems paying it back, you can take up employment and settle your debt quickly.