The trial period enables an employer to explore the strengths of the new employee, identify weaknesses and thus assess him more precisely within a certain period of time.
An employee who relies on a loan during the trial period is unlikely to be able to get that loan approved by most banks during the trial period. Two points are extremely important for credit approval. First, the so-called Credit Bureau information has to be positive. Secondly, regular income must be demonstrated.
Where can problems arise?
Even a temporary employment relationship can pose problems for borrowing companies. However, the prospect of success for the applicant is even more unlikely, especially for a loan during the trial period. This is because the required salary statements cannot yet be attached. Furthermore, the notice periods on which the trial period is based are very short. With a six-month trial period, they are only two weeks. And for most banks, this is the reason for the rejection: the risk is too high, since there are fears that the monthly installments can no longer be paid.
What solutions are there?
Despite this risk, it is still possible to get the loan during the trial period. The banks offer different models for this.
A conventional installment loan is possible if the applicant can prove either one or more guarantors or collateral. If the borrower is then no longer able to pay the installments, the guarantor must take over these payments. The bank therefore does not take any risks with the lending despite the trial period.
But what happens if there are no guarantees or collateral?
For this there is the possibility, which everyone knows, to increase your own overdraft facility. So you have the credit line increased on your own checking account and get the money from your own bank without further ado. The overdraft facility is generally set at two monthly salaries. However, the interest on an overdraft facility is far higher than that of a normal installment loan.
After the trial period, borrowing is an ordinary business. You then take out an installment loan and can then simply replace the overdraft facility with the installment loan and repay it in monthly installments.