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?
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
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.