Credit for a mandate contract? It is possible! Just as important as the form of employment is our financial stability and regularity of income received
Can you get a loan while working on a mandate contract?
Currently, many professionally active people work on a commission contract. This form of contract, although it has its good sides, can raise many problems. One of them is the issue of obtaining a loan.
The commission contract is beneficial for the employer and much cheaper than the employment contract. In addition to access to the lack of health services, the mandate contract may cause us to have a problem applying for financial support. It turns out that the form and stability of employment, and creditworthiness, are closely related issues.
Banks willingly grant loans, but the most reliable clients are persons employed under a contract of employment. Preferably, it is a contract of indefinite duration. In addition, earnings continuity increases our chance of getting a loan. Is a loan based on a mandate contract possible? Of course! Banks are adapting to market realities and are increasingly accepting revenues from civil law contracts. These should, however, be properly documented. Continuity of employment and received orders will also speak in our favor. Good preparation is the key to success! Therefore, even before meeting with a credit advisor, obtain the necessary documents and required certificates. If we have such an opportunity, let’s take care of building a positive credit history in advance. In a situation where we work for more than one client,
Credit for the mandate contract – conditions
It is accepted that people working on a mandate contract have no chance of a cash or mortgage loan. This is not entirely true. Currently, most banks accept income from this form of contract. Let us remember, however, that the mere fact of receiving a salary is one thing, and its amount is another. Income affecting our account should be roughly equal to what we would get if we were employed under an employment contract. However, if you have just signed the mandate contract, then you probably have nothing to count on for the loan. We usually have to work for at least a few months for the bank to process our application.
The conditions we have to meet to get a loan depend on the financial policy of the particular institution. Each bank sets its own minimum contract period. In addition, shorter contract periods usually mean worse credit conditions.
Continuing employment and regular earnings are also important when applying for a loan. It is important that we can show the least interruptions in receiving remuneration. If our income has been irregular so far, we must take into account the issue of a negative credit decision. For the bank, it is a sign that due to the lack of regular income, we may have a problem with timely repayment of loan installments. And such situations banks try to avoid at all costs.
What documents do we need to prepare when applying for a loan? First of all, we must submit certificates confirming the amount of our earnings. We will have to attach to the loan application confirmed by the PIT tax office for the past year. In most cases, you will also need to make copies of contracts and copies of bills issued. It is also necessary to attach to the application a statement about the real costs of the contract being carried out by the contractor.
It is also worth remembering that banks will not take into account all of our income. Most banks will only take part of them and reduce them by tax deductible costs. Thus, the differences in the calculation of creditworthiness can be up to several dozen percent.
Contract loan facility – summary
As long as we meet the conditions set by the bank, we can receive a loan under the mandate contract. The list of banks that accept this form of contract is getting longer. Individual financial institutions, however, differ in requirements for potential clients. They mainly concern the continuity of employment. Some banks require employment for a period of 3 to 6 months, while others extend this time to 12 months.
Properly documented income, good credit history, stable employment and selection of an attractive offer will increase our chances of getting a loan. The more that these are offered by more and more banks.