Apply for a loan during parental leave


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

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

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.

Credit with BWA

January 24, 2020