Is it possible to get a loan while permantly working on Contract?

[Wong]

Hey , I know someone who is wanting to buy a car , he works out of the country most of the year - however he works on contract (permantly) - is there anyway to get a loan from a bank ?

Please note: the company he works for uses contracts for legal reasons as the clients change from time to time depending on what their requirements are

They also do have a previous history with some banks as they bought a few cars while working in SA a few yrs ago though ;O

Any advice ? suggestions ?

 

[deweyzeph]

Banks don't normally look at your employment contract when issuing a loan, they normally only look at your last few months worth of payslips.

 

[JStrike]

Hey , I know someone who is wanting to buy a car , he works out of the country most of the year - however he works on contract (permantly) - is there anyway to get a loan from a bank ?

Please note: the company he works for uses contracts for legal reasons as the clients change from time to time depending on what their requirements are

They also do have a previous history with some banks as they bought a few cars while working in SA a few yrs ago though ;O

Any advice ? suggestions ?

If he works on contact he isn't a permanent employee. He might have some difficulty

 

[douglash24]

I am currently on a contract (fixed term for 1 year then month to month - started April 2010) and I have gotten vehicle finance and a couple loans since then.. with the latest being for 30k 6 weeks ago...

so yes, it's possible. just provide all information and bank statements to backup a steady income. Shouldn't be a problem.

 

[Jase]

Banks don't normally look at your employment contract when issuing a loan, they normally only look at your last few months worth of payslips.

^^ This

I have been working on contract for the past few years and have financed two vehicles without any problems.

Requirements were Payslips x 3 months, bank statements x 3 months, proof of residence (I used my Telkom account).

Does he receive a regular monthly salary or is he paid for time on contract?

 

[Venomous]

you say he has a history of bad payment a few years ago...

He'd need to clear that first.

 

[xrapidx]

If he works on contact he isn't a permanent employee. He might have some difficulty

BS... I haven't had a problem in 10 years of contracting, not a single loan declined, personal, retail, credit, vehicles, bonds...

 

[marco79]

you say he has a history of bad payment a few years ago...

He'd need to clear that first.

He didn't mention a bad payment history.

If your friend has had a steady income over the last 6 months then it won't be a problem.

The bank would require 3 months bank statements and 6 months payslips.

 

[Wong]

Thanks for input guys/gals - will relay to my friend - ye no bad history :>

 

[noxibox]

Hey , I know someone who is wanting to buy a car , he works out of the country most of the year - however he works on contract (permantly) - is there anyway to get a loan from a bank ?

Please note: the company he works for uses contracts for legal reasons as the clients change from time to time depending on what their requirements are

I am currently on a contract (fixed term for 1 year then month to month - started April 2010) and I have gotten vehicle finance and a couple loans since then.. with the latest being for 30k 6 weeks ago...

so yes, it's possible. just provide all information and bank statements to backup a steady income. Shouldn't be a problem.

If you've been on contract like this for an extended period, then as far as the law is concerned you're effectively a permanent employee if you are under the company's direction. Either way it's not something banks check.

 

[AdrianH]

If you've been on contract like this for an extended period, then as far as the law is concerned you're effectively a permanent employee if you are under the company's direction.

Just if you're interested, heres a nice article discussing fixed term contracts.

BTW www.labourguide.co.za is a good site to get info relating to labour laws in South Africa.