Every employee who starts a new job works during the trial period. Depending on the company, this takes three to six months. During this time, both the employer and the employee can terminate the employment relationship at any time. This serves as protection for both sides, because it often happens that the employee has imagined the job differently and prefers to do another job.
But employers also want to take a look at the new employee and check whether they are up to the task. Employees often want to take out a loan during this time, because many purchases cannot wait and invoices cannot be left behind. Especially with this group of people there will be difficulties to apply for a loan.
Bank often refuses the loans
Banks generally do not grant loans despite a trial period because they see the applicant as a risk person. Since the trial period lasts only three or six months and no one knows whether the employment will continue afterwards, there is no guarantee that money will be earned or that the employee will fall into unemployment.
This risk is too high for banks and therefore do not grant loans despite a trial period. The collateral is simply not given because it is always important when lending that there is a secure income. Since people have only a limited amount of this secure income during their probationary period, they are rejected.
What alternatives can be used?
There are not many alternatives to still get a loan if banks refuse loans despite a trial period. It would be possible to find another borrower who would be willing to apply for a loan and provide the loan amount. Here, however, there is the same risk for the borrower as for the bank, so that not many are ready to take this step.
A loan is a big obligation and always associated with costs. If the consumer really does not work after the three or six months during the trial period, then the second borrower has to bite the bullet and may not get his money back. Another alternative would be to ask the family or a friend to borrow a little money. This personal loan would be interest-free and would not have to be repaid immediately.
Banks are unlikely to have a loan during the probationary period, so it should be considered whether someone in your family or friends would be willing to lend money, or a loan will have to be waived until the trial period expires and in the near future permanent employment will exist.