Personal Loans for Casual Employees

The Difference Between Casual Employee and Part-Time Employee

Part-time and casual employees are not committed to working the full 8-hour shift. Part-time employees are those that work regular hours and have benefits like leaves and redundancy payouts. On the other hand, casual employees have no guaranteed hours of work and no recurring workload. They usually receive casual loading in addition to their hourly base pay.

Casual Employee Loan Challenges

For casual employees, getting a personal loan from big company lenders can be difficult. There are lesser options compared to those with full-time employment.

Irregular Hours and Source of Income

Lenders need to know you can pay off a personal loan. Since your income is not permanent, this a major reason to be disapproved. Regardless if you have an impressive hourly rate, lenders will prefer a regular stream of income since that will indicate a capacity to pay off the loan.

Lack of Paid Leaves

Without paid leaves and holidays off, casual employees are always on call. Not having paid entitlements means that you will not be paid in case of unforeseen events and this can affect your ability to pay for the loan.

End of Termination

Employers of casual employees can easily end the contract at a day's notice. This is another concern for lenders since getting a job might take longer and you may not be able to fulfill the payment.

Casual Employee Lenders

There are smaller banks and other lenders that will approve personal loans of casual employees. The eligibility criteria will vary for each lender but here are the basic things needed:

• The requester must be 18 or above
• Must pass the minimum annual income as dictated by the lender
• Must have regular employment
• Must have a minimum of 3-12 months continuous employment with current employer
• Excellent credit rating
• Must be receiving payment in a bank account
• Proof that requester has excess income after expenses to pay for the loan

Interest Rates and Required Documents

Casual employees are considered high-risk borrowers. To compensate for that, lenders usually put a higher interest rate on their loans. Interest rates can also depend on how much you will be borrowing and how long you plan to pay for it.

Prepare the following documents for a smooth application:

• Government-issued proof of identity such as a passport or driver's licence.
• Income proof such as most recent payslips and tax returns.
• Financial status documents such as credit card statements and bank statements.