Can you get a loan from the bank despite parental leave?
Borrow money during parental leave.
When parents are on parental leave, income levels have mostly worsened. The parental allowance is lower in amount than the income was before – but children cost a lot of money. The parental allowance currently amounts to 67 percent of the net income received before parental leave. Some purchases, such as a family car or a nursery are necessary at this time and do not tolerate any delay.
Although parental allowance compensates for part of the lost income. But it is a non-attachable social service. This significantly limits the creditworthiness of young parents. As a result, most banks do not lend to parents currently on parental leave.
Parental benefits are not included in the budget
In principle it is the case that wage replacement benefits, which include sickness benefit and parental allowance, are excluded from the budgetary accounts that banks use as part of their creditworthiness check. These are temporary payments that are therefore not permanent. Therefore, parents can assume that it is difficult to get a loan during parental leave. Unless the main earner has an exorbitantly good income.
Banks also base their negative attitude on the fact that it is unpredictable whether the parent who receives parental allowance returns to the previous job after the educational period. Many young moms work after parental leave only part-time because they have to reconcile work, children and family.
In principle no problem. A problem usually arises only when parents want to have a loan during parental leave from the bank. There are always exceptions if the term of the loan complies with the length of parental leave.
Where can I get a loan during parental leave? – Borrow money alternatives for young parents
In the meantime, it is no longer just banks where the loan seekers can borrow money. There are some platforms where credit is available but the money is not from a bank. Here, the lenders are private investors who decide according to other criteria, to whom they lend their money.
On these platforms, payday loan seekers can present their project, there is also a credit check, but no one sets up a household bill. The chances of getting credit for a nursery or the new family car are significantly greater on these credit marketplaces. It is worth a try if the purchase can not wait until the end of parental leave.
Credit despite parental leave of relatives or acquaintances
Of course, not only foreign donors come into question. Of course, young parents also have the opportunity to borrow money from friends or relatives. This even has the advantage that no interest has to be paid.