What options you have with a loan during parental leave

When a child is born, everyone involved is usually extremely happy. Because giving life to a little creature is still the greatest miracle there is. Many parents therefore want to offer the new earthly citizen a successful start in life and prepare everything very carefully. Everywhere is bought and purchased so that the child is not missing anything.

But all these purchases don’t just cost a lot of time and nerves. They are not possible without the appropriate financial feedback. Many young families therefore have to take out a loan in order to be able to make all purchases. However, this is not that easy if it is a parental leave loan. Because, as everyone knows, this is accompanied by a parental allowance that relates to the parent who is on parental leave. And since parental allowance is a social benefit and not an income in the strict sense, it is only of limited use as collateral for a loan.

We would therefore like to show you once what options you have with a loan during parental leave, where and how you can implement it and which requirements you should absolutely fulfill.

What are the options for a parental leave loan?

What are the options for a parental leave loan?

Parental leave is a nice time. You have enough time for your offspring without having to worry too much about financial matters, since the parental allowance paid is to ensure that no serious financial cuts have to be planned. Despite all of this, the parental allowance is lower than the income earned in advance. It is also a social benefit, which limits the amount of credit you can take out.

If you want to take the loan on parental leave alone, then only the consumer loan or your overdraft facility would be suitable. While the overdraft facility is connected to your checking account and is practically always available as a demand credit, you have to apply for the consumer credit in a regular manner. It is offered by many retailers and enables you to finance your purchases. For example, if you want to buy a stroller or a car seat for your baby, you can do so with the help of a consumer loan. Even if you are on parental leave and receiving parental allowance.

With consumer credit, it is not the income that counts, but only the income that you generate each month. It is therefore not a bad thing that parental allowance is a social benefit, since it is considered a security for consumer credit. You only have to make sure that you have a positive Credit Bureau and can take out a consumer loan in a relaxed manner under the conditions mentioned.

On the other hand, if you are looking for a traditional installment loan, because you want to have the money at your disposal, it becomes a little more complicated. In such a case, you cannot simply take out a loan on parental leave alone. Here it is the income that counts and not the income. And you are unlikely to earn any income while on parental leave.

Therefore, look for a loan partner who either takes the loan for you on parental leave or with whom you can realize the loan together. Maybe your life partner or spouse can take out the loan. Or ask your parents for support. As long as they are not yet retired and have a good income, they are ideal as a credit partner.

Despite the support, however, always make sure that you do not overestimate the loan amount. You can never predict exactly when and to what extent you can go back to work. Too many factors intervene in this decision, so that there is hardly a reliable forecast for the future. However, be modest in your loan requests, as the repayment of the loan is possible even if you will not go back to work straight away.

Make sure you have a good credit rating

Make sure you have a good credit rating

If you take out the loan during parental leave, you should always make sure that you have a positive Credit Bureau. Also make sure that your credit partner has a good income. You will only find worthwhile loan offers if the creditworthiness is good. Otherwise, the loan will become unnecessarily expensive and may not be worth it.

Do not get involved with dubious credit intermediaries or offers that promise you a loan even in “difficult cases”. If a traditional bank cannot grant you a loan, you can assume that you will not find it elsewhere. In such a case, it is better to ensure that your conditions improve than that you accept offers that are not serious and that only pull the money out of your pocket.

Credit despite overdraft | Take out a loan


Overdrawing your own account – for most consumers, this has long been part of everyday life. If the overdraft facility grants this, it enables you to live above your own circumstances without having to take out a loan. If the overdraft can also be quickly compensated for, the topic is quickly forgotten and only the increased interest that had to be paid for the overdraft is a reminder.

However, it looks a little different if the account is overdrawn over a long period of time. If you can no longer manage to get out of the red numbers on your own to keep the current account in credit. Then it can make sense to think about a loan despite an overdraft. Because this not only takes the load off the checking account. He also ensures that the expensive, interest, which must be paid when using the dispos, does not put an additional burden on the household budget.

The creditworthiness decides

The creditworthiness decides

Whether a loan is possible despite an overdraft depends on the creditworthiness of the borrower. Overdrafting the account does not automatically mean that the credit rating is not good. In the first step, she always says that the account holder is currently handling their finances somewhat lightly and is indulging in more than the budget actually allows. Whether the overdraft will eventually lead to debts that can no longer be controlled and therefore have a negative impact on the Credit Bureau is a completely different issue.

However, if you only have the account in the red by then, can prove a good job with a decent income and meet all payment obligations, you will also have a positive reputation and have no concerns that the bank could refuse a loan despite overdrafting. We recommend using a simple installment loan that is not tied to a purpose and whose loan amount can be customized to balance the account. The interest on an installment loan is significantly lower than the interest that banks and savings banks charge for using the overdraft facility. With rescheduling and using a loan despite overdrafting, a lot of money can be saved. In addition, this loan brings some financial relief, since the account is more usable through the settlement and can be much better reacted to unforeseen expenses.

If the debt is already causing problems

If the debt is already causing problems

However, if the overdraft has already had a negative impact on the Credit Bureau, this negative entry will make it somewhat more difficult to take out a loan despite overdrafting. Even if this is not impossible despite all of this.

In such a case, only a little preparation needs to go into borrowing to make the right decisions and take advantage of the best possible loan offer.

In principle, with a negative Credit Bureau two ways lead to the desired loan despite overdraft. On the one hand, this can be applied for with the help of a guarantor or a second co-applicant. Again, the traditional and inexpensive installment loan would be recommended, which with its low interest rates and perfect adaptability guarantees all the conditions for easy repayment. However, if a second person is not at hand, a private loan or a loan from abroad must be considered. Both options are possible and do not require Credit Bureau to query them. However, the interest rates for both variants are not quite as low as for a classic installment loan. It is also important that a wide variety of offers are compared with one another in order to keep costs and fees as low as possible.

By the way: We recommend that you do not take out the loan with the bank that maintains the account that you want to balance, despite having an overdraft. It could be that the bank overdrafts your credit rating less than it may be. As a result, borrowing is difficult and you have to pay more interest than if you had a positive credit rating.