Croatian workers have been unable to reach the green branch for several years. Despite the constant emigration and departure of more than half a million people, workers are by no means in a more favorable position. Employers who do not stimulate those who remain are not stimulated by some special measures, but rather by contractors with permanent contracts.
More than 20 percent of Croatian workers are employed on a temporary basis, with the fact that women of a more beautiful gender are in a worse situation. A larger proportion of them get a fixed-term contract and employers are free to give them a different contract for fear of pregnancy. As a result, most of them are forced to postpone their pregnancy or work for three years on a part-time basis until they are eligible for permanent employment.
Loans to part-time employees present too much risk to banks
The contract of indefinite duration gives the banks some assurance that the client will be able to repay the loan, while the fixed term contracts are constantly “hanging in the air” because their employment contract can be terminated at any time. Loans to part-time employees are therefore not something the bank is willing to take risks with. This is especially true for loans with a longer repayment period, as it is also one of the most common forms of borrowing, a home loan.
The business climate is unlikely to change, and so does the financial market. The most vulnerable are young people up to the age of 24 who receive short-term employment contracts, which is why banks do not consider them to be the best candidates for loans. Part-time banks pose too much risk to the business. The fear that a customer will not be able to repay a quick loan is simply too great and the bank does not want to risk it if it does not.
Loans to fixed-term employees only on limited terms
A smaller proportion of banks, however, listen to market needs and provide loans to part-time employees, but under strictly controlled conditions. Only workers who have been employed for a minimum of 12 months on a part-time basis can apply, but this applies only to those who have spent the same time in the same company. Strict conditions limit the number of workers who can apply for part-time loans.
This makes it easier for workers to apply for part-time loans. Especially those who, in the past, have been forced to turn to family or friends for help. And this way of borrowing money rarely when done well.
Credit houses don’t care about the type of employment
Credit companies that have established themselves on the Croatian financial market in recent years have special loans for fixed-term employees. Credit houses credit workers regardless of their type of employment. Unlike banks, they rely on the creditworthiness of the client, do not check his employer or limit his offer to only those employees for an indefinite period of time. The most important thing for them is that the client regularly settles his debts and has regular incomes.
Credit companies issue loans to fixed-term employees in small amounts and with a short repayment period. The client does not have to interfere with his employer in submitting his application, but most often he needs only a copy of his ID card and current account card. Everything can be done in just a few minutes via the internet. There is no more unnecessary walking around the offices and long queues, and the money sits in the account as soon as possible.