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Credit without asking the employer

Borrowers occasionally express concerns that the bank would seek information from the employer before paying the money. Such a request is extremely rare in reality, because in most cases banks accept that almost nobody wants to inform the boss about borrowing.

Can the bank ask the employer at all?

Can the bank ask the employer at all?

In most cases, the loan applied for is granted to the customer’s employer without asking, as the data protection regulations only permit information in strictly regulated exceptional cases. The bank requires the applicant’s express consent to consult the employer and may not state the exact reason for the request. The mere indication of the address of the employer does not meet the requirements for queries from the bank to the employer.

The bank receives the amount of income from the submitted salary statements. If she wants to know the status of the employment contract, she can also request that it be presented to the loan applicant. This shows whether the employment contract is temporary or permanent. For large amounts, lenders are more likely to ask the applicant to provide a certificate that the employment contract has not been terminated than to make a time-consuming request.

According to widespread stories, some banks call the employer and are put through to the loan applicant. Neither the switchboard nor the employer find out the reason for the bank call, but corresponding control calls are only possible if the borrower has an extension, which is almost never the case with production employees.

In most cases, the bank grants a loan to the employer without asking, even if the appropriate right is granted in the loan application. However, if the bank customer deleted the relevant passage in the loan application, he would raise doubts as to the correctness of his information and risk rejecting his loan request. The passage of a possible query to the customer’s employer is no longer listed in many loan applications.

Inform the employer about the borrowing

Inform the employer about the borrowing

If, with exceptionally high sums, a loan is not granted to the employer without asking, the customer should inform his boss about the expected bank request. This is especially true when it comes to building finance or real estate to be bought. In these cases, it is advisable to talk to the employer anyway, since many companies offer the option of taking out an employer loan.

This naturally only covers a small part of the costs of real estate financing, but is associated with extremely low interest rates and is regarded by most banks as part of equity. Even if there is a passage in the employment contract stating that the activity requires regulated financial conditions, taking out a loan in an appropriate amount is usually not a problem.

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