Anyone applying for parental leave receives around 60% of their last net income for a year. This is 40% less in income, which means a not inconsiderable reduction in monthly income. As the family grows, expenses increase, which often leads to a financial bottleneck and necessitates borrowing.
But the banks are not very cooperative on parental leave. Parental allowance is counted as a temporary income and ultimately there is fear that a parent will not return to work. The result would be a drastic drop in family income.
If a parent has a high income that is sufficient for the entire family, there is no problem with a loan during parental leave. If a parent can prove that employment will resume after parental leave, the chances of getting a loan are increased. An employer certificate is sufficient for this.
General criteria for a loan during parental leave
If a small loan is applied for that has been paid for a term of twelve months, the bank will count the parental allowance. However, the loan must be applied for at the beginning of parental leave. With a loan during parental leave, regular and sufficient income must always be shown. For example, if you can include a guarantor in lending, you will improve your chances of getting a loan.
However, the guarantor must be solvent and also be able to provide clean Schufa information. Another option is to register a second person as a borrower. Both incomes are added together so that the bottom line is higher income, which improves creditworthiness.
Credit from private to private is another option
Here, there is a demand among friends or acquaintances, but also the Internet. Individuals offer loans on certain credit portals. You can address your loan request with a reliable manner and an optimal presentation to a private investor.
Since, from the banks’ point of view, a loan during parental leave is associated with increased risks, it is advisable to deal with a small loan amount if there is an urgent need for money. Banks are more willing to approve short-term loans, as short loan terms have fewer defaults during parental leave.