Loans to new hires are financing solutions that have been taking hold for some time by virtue of the fact that today the permanent employment contract is granted much less than in the past and therefore more and more employees are working for a few months, both at public and private firms and then, unless a renewal of the contract itself, they must seek another job.
Until recently, banks and finance companies used to grant loans mainly to those who had a certain length of work, usually at least 3 – 6 months depending on the type of company where you work. Considering the greater mobility of the labor market, the proposals for loans to new hires are multiplying today and Good Finance, of E-Money, makes one of these proposals.
Good Finance and loans to new hires
Good Finance makes a fine example of loans to new hires. In practice, they say banks usually agree to grant up to $ 12,000 without considering severance indemnity (TFR) provided that:
- the employment contract is for an indefinite period
- the length of service is at least 3 months or if the trial period has been successfully passed
- the hiring company has at least 30 employees and the financial statements in order
The type of loan that is granted is the assignment of the fifth, as usual, and the maximum net sum that can be obtained is approximately $ 8,500. This is because there are a whole host of costs to consider, such as expenses, interest, and insurance. In this regard, the interest rate to be repaid could be higher than that of an employee with higher seniority for the higher insurance cost.
Loans to new recruits, main stakeholders
Undoubtedly, loans for new hires are interesting for young people who have just entered the job market but who want to start making the first important acquisitions, such as a car. These loans can be a source of good liquidity to meet the expenses of any kind.
The trial period
In order to successfully apply for loans to new hires, it is important that the hiring is final. This means successfully passing the trial period. How can this overcoming be attested? There are basically two ways:
- permanent employment after being hired for a certain trial period, which means that it has been passed
- written declaration by the employer confirming that the initial trial period has been passed