It is not easy to borrow money during the probationary or notice period. Yet there are ways to do this. Remember that if you need to borrow during such a period, it should be the money you really need.
The truth is that most banks will not lend you at notice. This protects you, the consumer (Act No. 257/2016 Coll.), From lending money, which you will then have a problem to repay. However, under certain conditions, some institutions will lend you even in such a situation.
So when can you get a loan?
- If you are in the probationary period but not in the notice period.
- If you have a fixed-term contract, it must not end within 3 months of signing the loan application.
- If you submit additional income to the bank.
The aim of these conditions is again to protect the client. No one wants you to get into financial trouble when your income goes down. The bank thus assesses your creditworthiness when applying. This means that you will submit your fixed income when applying. If you have any income other than employment, such as rental income, do not hesitate to tell the bank. It can help you get a loan.
Keep in mind that banking and non-banking companies consider applications individually, and a number of factors are decisive for approval or rejection. The client’s past payment discipline, creditworthiness, current credit exposure (debt) are of great importance and that these facts can offset the fact that the client is in probation. Similarly, if the client is on notice but already has eg signed a new employment contract, then there may not be an insurmountable reason to approve the loan.
Borrow at the bank where you have your current account
You can get a trial credit more easily from a bank with your current account. If your account regularly receives a sufficiently high income, your bank may not always ask you for a current receipt.
While reading this article, you may have thought of non-bank loans. Such an institution will often be willing to lend you during the probationary period and often even on notice. However, it should be acknowledged that non-bank loans can also carry risks and disadvantages. It should be recalled that the rules laid down for granting loans have their merits and are intended primarily to protect consumers. Non-banking institutions have more freely set rules for lending. But they can be redeemed by certain risks that you have to take into account when arranging such a loan. In addition, you should take into account that the interest rates on these loans are higher than those for bank loans.
Therefore, first ask your bank if it would lend you in such a situation. Another option is various alternative ways such as loan from family or acquaintances. Also, consider carefully whether you really need the money now and not wait until your work situation changes.