Fixed Term Loan
The unemployment rate has been extremely high for years, and as a consequence has generated a wave of emigration. Primarily, this wave is led by young people who, in countries such as Germany, Ireland and, increasingly, Canada, are seeking salvation for the future. This is not surprising given that young people cannot get a permanent job. It is estimated that every fifth worker in Croatia works on a fixed-term contract and more than 60 percent of young people. Part-time work has become the most common form of employment. Young people do not have the opportunity to show all their knowledge, which means that they are not able to start a family and secure a home because banks do not want to give them loans. Namely, because of the type of employment they pose a risk, which means that their opportunities are greatly reduced.
Workers with a fixed-term contract are easier to fire. The employer simply does not renew the contract or ask for a notice period, which means that he does not have to pay. As a result, many part-time employees do not even dare to apply for a loan. Fear of cancellation prevents them from building their future, and banks, for the same fear, refuse to allow them loans, especially for longer repayments. The inability to repay them is too great a risk.
Banks have rigorous conditions for a fixed-term contract loan
Only recently have banks provided a fixed-term loan, but only for those employees who have been employed by the same employer for a minimum of 12 months. Given that contracts for three months are extremely popular in Croatia, a large number of employees are unable to obtain credit regardless of the more favorable conditions.
But even this is not enough, but banks are also seeking a limit in the form of real estate or real estate to insure themselves against any risk of fixed-term clients. Again, a good number of employees are prevented from obtaining loans because they do not have the conditions for acquiring the aforementioned.
Credit houses offer loans regardless of type of employment
But unlike banks, credit institutions licensed by the Croatian National Bank have recognized clients regardless of their type of employment. They offer term loan.
The most important thing for them is that the client has regular income, settles his debts and that his account is neither blocked nor protected. They are not as rigorous as banks and provide an opportunity for all workers who satisfy the above beliefs.
Credit companies lend a fixed term loan in small amounts and with a short repayment term.
This means that the cost of repayment is kept to a minimum and the client will be able to re-borrow the fixed-term contract in the short term.
Clients can apply for a fixed-term loan with a credit institution online. Only basic documentation is required. The loan repayment of the fixed-term contract is made within 15 minutes and no later than 24 hours after the successful application and submission of the application, which is extremely important in situations requiring an urgent cash inflow.