Do you have a part-time job and still look for a loan? In principle, a loan for part-time work is not a problem. The same rules apply as for a loan application for full-time employees.
Applicants must be of legal age, apply for the loan in their own name, live in Germany and have a checking account with a domestic bank.
The same evidence is required for a loan for full-time employees
First of all, there must be an employment relationship as an employee in the private sector or in public service. Many banks expect this employment relationship to have existed for at least six months.
A fixed-term employment relationship must have been concluded for at least twelve months. In addition, the time limit cannot end within the credit period. If you are in the trial period, you will not receive a loan from a direct bank.
To check whether your income is sufficient to be able to repay the loan applied for, banks expect wage and salary certificates and, as a rule, the current account statements from the last one to three months.
When filling out the loan request, you need to provide information not only about your earnings but also about your personal circumstances and liabilities.
The bank will obtain Credit Checker information and include the results in the credit check. Your score is not affected by part-time employment. Credit Checker and other credit agencies have no information about their employment.
With poor scores, many banks, as well as full-time employees, will find it difficult to get a loan. Negative features preclude lending or making loan lending much more difficult. So far everything is the same as for a loan application for full-time employees.
Adjust credit request to income from part-time employment
You cannot avoid adapting your credit request to the lower-income from your part-time job. You either have to choose a lower loan amount or choose a longer-term. Both may also be required.
In addition to the usual assignment of salary, additional security may have to be provided. This can be the loaning of life insurance as well as the transfer of ownership of a motor vehicle or securities holdings.
Caution! Don’t get involved in taking out residual debt insurance. Residual debt insurance does not improve your creditworthiness. They are designed to protect banks against loan defaults when a creditworthy person gets into an emergency.
Residual credit insurance does not increase your economic performance and your ability to pay the monthly loan installment. Your net income remains the same and the same applies to possible pre-obligations and maintenance obligations.
Widespread security for online loans is the co-obligation of a third person. As a rule, the spouse becomes a co-signer. Usually, this is only required from a loan amount of around 10,000 dollars. In the case of part-time employment, the co-obligation may become necessary even with smaller sums.
Part-time work and loan terms: sample invoices
In the case of part-time employees, the income decreases in accordance with the agreed number of hours. The lower income can have a significant impact on the maximum possible loan amount.
Here’s an example:
An employee decides to go from full time working 40 hours a week to part-time working 30 hours a week.
The original gross salary was 3,000 dollars, at 30 hours it is 2,250 dollars. In the case of income tax class III, the net salary is reduced from approximately 2,200 dollars to approximately 1,800 dollars.
Let us assume that the spouse earns part of the income and that there is no maintenance obligation. A minor child should be subject to maintenance.
The effective interest rates should be 5% up to a term of 60 months and above 7%. These are realistic average interest rates at the time of writing this article.
In our example, the attachable amount with a net salary of 2,200 dollars is 329 dollars. This amount can only be used for the monthly loan installment.
With a reasonable term of 60 months with an effective interest rate of 5%, this means a loan amount of up to 17,000 dollars.
With a net salary of 1,800 dollars, approximately 119 dollars per month are subject to the attachment.
This amount is sufficient to cover the installments for a loan of 6,300 dollars (term: 60 months, effective interest rate 5%) or for a loan of 8,000 dollars (term: 84 months, effective interest rate 7%).