Credit during parental leave

A loan during parental leave is not impossible, even if the timing is poor. Parental leave should have a relaxed time frame and should not be characterized by financial worries. But the reality is often different. When a child is born, some purchases are due.

There is the children’s room, the stroller, the initial equipment for the child, to name just a few. Parental leave is meant to make friends with the new life situation and to manage it. The state pays bridging money so that it can be devoted entirely to the next generation and also to recreation. Money, you should think, doesn’t matter. But if you look closely, the savings book is rather poorly filled by young families. A loan during parental leave is being considered, which will provide financial scope. Parental leave is an exceptional period, but special credits with parental allowance are not granted.

The loan during parental leave

The loan during parental leave

For a bank, the loan during parental leave is a normal loan, which is checked according to the prevailing rules. However, these rules do not apply to many couples. The parental allowance is a so-called wage replacement benefit from the state and does not contribute to securing credit. It is a state welfare payment that cannot be attached. Only the existing labor income is relevant for the loan applied for. Due to the changed situation regarding the partner’s income and family growth, the total income is often not attachable.

The seizure allowance increases with each family member who is supported with the income from work. A loan during parental leave often does not fail because of the willing repayment ability, but because of the lack of credit security. The parental allowance cannot be attached, but can certainly be used as repayment. It is not only state benefits that prevent parental allowance from being paid for income, but also the duration of parental allowance benefits. If the partner goes back to work after parental leave, income comes in again, but in many cases the partner stays at home and looks after the offspring.

The possibilities

The possibilities

A regular loan during parental leave is often offered by the banks as a short-term loan. With a lot of good will, the existing overdraft facility remains and can possibly be expanded. But in the case of long-term installment loans, the bank is looking for loan collateral that could be settled by pledging real assets or providing a guarantor. A guarantor is the favorite loan protection for banks. But how to find a surety. You can ask friends and family and with a little luck you will find a solvent guarantor.

But the guarantor is also subject to certain conditions. He must have a regularly incoming and high income, a permanent job and a clean Credit Bureau, and he should know that his guarantee is entered in the Credit Bureau, which reduces his creditworthiness. If he needs a loan himself, his creditworthiness cannot be sufficient and he himself needs a guarantor. In addition, a guarantee is only legal if the guarantor does not take over the guarantee financially.

Just like the guarantor, a co-applicant can also be included in the loan agreement. It could be the parents who help the young couple with the loan. The same conditions apply to the co-applicant as to a guarantor. He is also liable in the event of a loan default.

alternatives

alternatives

In the large department stores that have been delivering to customers for a long time and that are in installments, there is also an option to borrow or pay in installments. If the invoices have always been paid on time, the internal credit check will respond positively and deliver the ordered goods in installments. This alternative is also reserved for single mothers. If they are regular buyers of the department store, they are also offered installment payments. However, it has to be said that such a credit is not a free ticket for unlimited shopping. If the goods credit amount is more than 1,000 USD, the mail order companies or department stores check very carefully.

If the aforementioned options do not bring the solution, then a loan from private donors remains. There are some portals on the Internet that bring borrowers and creditors together. All you need to do is create a meaningful profile and properly formulate the loan request. The processing of these loans is very serious. It is always worth trying. In spite of parental allowance, private investors can grant loans.