Can I take a loan under a mandate contract?


Fears of rejection of a loan application often paralyze people with financial needs. The main reason for refraining from submitting documents is the lack of a stable type of employment contract. Can I take a loan under a mandate contract? It’s worth checking out.

Flexibility of working time and the form of settling obligations towards the employer can be a key factor in choosing a mandate contract. However, there are times when the contract of employment becomes the object of desire. Awareness of the advantages of this solution comes with time, and especially when in the near future the prospect of starting a family appears. Buying a flat or a car is a considerable expense, so you have to think about taking a mortgage or cash. Can people employed on a mandate contract forget about the loan?

Contract and mortgage

Contract and mortgage

Meeting the housing need is still identified in most cases with the need to buy a flat. Banks willingly grant mortgage loans, but before paying several hundred thousand dollar s they have to verify both history and creditworthiness. In such cases, the type of contract is an important indication for the person considering the solvency of the potential borrower.

The lender identifies the employment contract with the stability of employment, while the mandate contract as a flexible solution can be associated with an uncertain financial situation. For this reason, applicants working “on behalf” are more thoroughly verified by the bank. Often, the amount of remuneration is derived from the specifics of the industry, while the commission contract alone does not exclude the possibility of regularly obtaining high income. In the case of a mortgage contract under a mandate contract, this systematicity probably needs to be demonstrated in order for the bank to be able to believe that the applicant is able to pay the installments over the long term.

Cash loan and mandate contract

Cash loan and mandate contract

The situation is similar in the case of examining applications for a cash loan under a mandate contract. Creditworthiness is also taken into account, although due to the amount of amounts transferred to the borrower, the verification process is not so insightful. Among other things, because the probability of adverse circumstances during the repayment period of the cash loan (accident, illness, loss of job) is relatively low.

In connection with the grant of a cash loan under a mandate contract, the bank may suggest reducing the amount of a single installment while extending the loan repayment period. This is a convenient formula for both the institution and the borrower. When the number of orders in a given month will be small, it is much easier to find a smaller amount. If the bull market arrives and the orders arrive – then the entire loan can be repaid from the excess income. The bank suggests this solution especially for people employed in industries where seasonality is a key factor in shaping the economic situation.

To sum up, it is possible to take a loan being on the commission contract. This requires greater verification of the bank and depends on the borrower’s compliance with the required parameters. In such situations, the key aspect may be the help of a financial expert who will ensure the successful finalization of the application and clarify all incomprehensible formal issues. We encourage you to take advantage of free meetings with our experts.

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