The employment contract can be a determining factor when seeking funding. Indeed, borrowing is generally more difficult than a person on a CDI, especially when it comes to providing financial guarantees. So how do you borrow on a fixed-term contract?
Borrow with a fixed-term contract
Whether for a consumer loan or a home loan, borrowing can sometimes be difficult or even impossible, especially when it comes to presenting financial guarantees.
Indeed, a loan commits the borrower to repay it. Consequently, the lending institution (generally a bank) wishes to ascertain the latter’s repayment capacities before deciding on the loan agreement.
Therefore, a person wishing to borrow must imperatively present the necessary resources allowing the bank to judge the good repayment of the credit.
Home loan and fixed-term contract: a contribution can make the difference
Realizing a home loan generally requires significant financial resources but also a stable professional situation. In fact, a person wishing to borrow has very little chance of obtaining satisfaction, unless he has a co-borrower with a long-term contract (CDI, holder, retired).
In order to encourage loan demand, the constitution of a contribution representing between 10% and 15% of the value of the property can allow the bank to secure the resources of the borrower. Also, an impeccable account maintenance without bank overdraft can work in favor of the borrower, especially when the latter has an account in the same bank for a long time.
It is also possible that a person wishing to borrow already has one or more credits that do not allow them to go into further debt.
In this situation, the borrower can resort to a credit repurchase transaction. This operation will make it possible to combine all of the borrower’s debts into a single loan comprising only a single monthly payment. This monthly payment is reduced to be adapted to the financial situation of the borrower, in particular when the latter is on a fixed-term contract, but certain guarantees will be compulsory, such as in particular the presence of a borrower with a long-term contract.
Also, the borrower carrying out a repurchase of credit can release a sum of money allowing him to finance a project. However, this financing must imperatively be allocated and will be added to the credit that the borrower will reimburse after its operation.