After the birth of a child, the expenses increase, while the parental allowance replaces only part of the falling-out income. It is, in most cases, sixty-five to sixty-seven percent of the average net income of the past twelve months, and increases in reconciling labor income of less than $ 1,200. Minimum and maximum amounts of 300.00 Euro and 1800.00 Euro apply.
The upcoming parental leave can already be planned at the beginning of the pregnancy. At this point, both parents still have their full earned income. It is therefore possible with early planning to avoid the loan during the parental allowance by the early application for a loan. This is due to the low willingness of many banks to lend during parental leave useful and perfectly fine, when the budding parents in the choice of repayment term and the associated installment rate after her birth reduced total income into account.
Lending during parental allowance
Many banks are extremely reluctant to grant a loan during parental leave. They do not count the parental allowance as a relevant income in their budget statement due to the temporary payment. Mothers and fathers have the right to return to work after parental leave. However, a lender can not predict whether his client will make use of this opportunity or opt for a longer break. The conversion of the employment contract to a part-time job is also widespread. Due to the uncertainty as to what income the recipient of the parental benefit will receive after the end of the reference period, many banks do not include this benefit in the budget. If consumers need a loan during parental allowance
That applies to a small part of the commercial banks. If parental benefit recipients continue to work part-time, the banking institutes will, of course, count on their continued earned income as a full-fledged cash receipt. For the borrower are important in a loan during the parental allowance as low as possible interest rates and flexible repayment modalities. Because of the unexpected expenses that are likely to occur in a young family, low duty rates coupled with the possibility of free special repayments are ideal.
Especially in the case of a loan during the parental allowance, flexible repayment rules justify an interest charge over the cheapest in terms of price, but rigid in terms of repayment. A careful credit comparison can be used to find affordable as well as flexible loans for parents.
The borrowing by the still fully working parent or twosome
With married couples or unmarried living together parents, the borrowing during the parental allowance by the still fully working parent offers. This earns a regular income and is therefore considered creditworthy. Single parents can also take out a loan during the parental allowance relationship with the second parent, even if they live in their own flat. Only a few banks require a matching address for lending to two people.
It is also conceivable that the grandfather or the grandmother of the child acts as a co-borrower. Guarantees are also possible, but less popular with many lending banks than common borrowing. This is understandable, since guarantees with a strong emotional bond between a guarantor and the borrower run the risk of being judged by a court to be immoral and therefore ineffective. This legal risk does not exist for a joint credit application.
Easier loans than bank loans
The easiest way to obtain credit as a parental allowance is to pay part of the trade. When shops offer a partial payment, they often accept one without proof of salary and sometimes even without income demand. The interest rates are attractive when financed by the trade, often even a partial payment without interest calculation is possible. The disadvantage of the installment payment in the business is that customers often refrain from comparing prices for the goods due to the installment offer. A second option for getting a loan on a parental-benefit basis on favorable terms is through lending platforms between private lenders and private borrowers.
Unlike banks, most private lenders pay less attention to the usual credit rating. On the contrary, they largely decide which loan request they want to support with their money. Young families are among those who willingly help private lenders. For a quick loan on a platform for private credit mediation, it makes sense to describe the reason for the loan request as accurately as possible. Another alternative to a directly requested bank loan is the application submitted via a loan broker.
Thanks to their excellent knowledge of the market and good contacts with the banks, the service providers can in many cases successfully arrange a bank loan during parental benefit payments. Most credit intermediaries are reputable and do not charge any initial costs, but only a reasonable success fee.