With the birth of a child arise for parents different costs. The initial equipment for the baby, the interior of the nursery and prams and car seats for cars can be very expensive. If the savings are not enough, usually only one loan helps. However, a parental leave loan is only available under certain conditions.
A loan during parental leave can be requested at the house bank
Young families often have a good relationship with their house bank. This bank usually keeps all accounts and is responsible for all payments. Therefore, it makes sense to ask for a loan from the house bank. If the loan is requested during parental leave, at least one parent should be fully employed. The full salary can be used to calculate a higher credit rating. If a loan is requested from the house bank, the administrator of the institute will always ask for credit bureau information. The credential parent’s information should not contain any negative characteristics.
If the child’s parents are married or live in a registered partnership, the partner is usually included in the loan agreement by the bank. As a result, both parents are jointly and severally liable until full payment of the loan amount. Single mothers or fathers who are on parental leave are unlikely to receive high levels of credit from their home bank. Since the parental allowance for a period of 14 months approximately 65 percent of the normal salary, the credit rating is limited. Whether and to what extent a loan is granted is dependent on the business relationship with the principal bank. If you apply for a loan, it should be a small loan that can be repaid within parental leave.
With sufficient creditworthiness, a loan can be requested from a direct bank
Cheap loans are provided by the direct banks on the Internet. These banks distribute their financial products exclusively on the Internet. However, this means for a loan seeker that no counseling session takes place and also personal customer contact is not possible. However, the favorable conditions of the direct banks are reserved only for loan seekers with a good credit rating and a positive credit bureau information. In the case of negative or limited credit ratings, a parental leave loan can not be granted by a direct bank.
A parental leave loan should be requested by the parent who is employed full-time. The parent who receives the parental allowance usually has a limited credit rating. In addition, government benefits such as parental allowance or child benefit are not considered by the banks as income from employment. The loan application will include the most important personal data of the applicant. If the application is completed completely, the entries are checked again. The completed loan agreement will be printed out, signed and sent to the direct bank with the required documents. If the information is correct, the loan is transferred to the current account of the applicant after a short time.
Credit agencies often help with parental leave, even with limited credit ratings
There are many different types of credit available on the internet. Borrowing is also possible with many financial service providers with slight negative features and a limited credit rating. However, it is important for a credit intermediary that the applicant is employed in a permanent employment relationship. The employment relationship must be substantiated with current payslips and account statements. Unemployed applicants can not receive parental leave credit from these financial services providers.
If the credit bureau information contains slight negative features, a non-credit bureau credit may also be requested. These loans are popularly known as Swiss loans because they are mostly provided by Swiss banks. Up to a loan amount of 3,500 euros these banks do not require credit bureau information. The creditworthiness of the loan seeker should, however, be so high that the due credit installment can be paid punctually every month. Debt-free credit is relatively expensive due to the increased risk of the bank and the provision for the credit intermediary.
Parents can request a loan during parental leave on a credit marketplace
If you do not want a traditional loan from a house bank, a branch bank, a direct bank or a credit intermediary, you can apply for a loan during parental leave on a credit marketplace. The most famous German credit marketplaces are creditend and Eicredit. Private individuals receive loans from private investors on these portals. A bank is commissioned by the credit marketplaces for contract matters only. When registering a credit bureau information is obtained. If there are no serious negative features, the loan can be applied for.
The credit during parental leave is applied for in writing in a loan project. Here, the parents or even a single parent can present his loan request in detail. The loan will be paid out when the desired amount has been fully funded by the private lenders. A bank takes over the contractual arrangements and takes care of the payment of the loan. A so-called residual credit insurance is available as an option. Loans from credit marketplaces are also relatively expensive.
Parents and single parents have several options for a loan
With a good credit rating and a positive credit bureau information, a parental leave loan is available from all banks and financial service providers. With a negative credit bureau and a low credit rating the selection becomes smaller. Often, the house bank does not like to help. For this, loans are available from many credit intermediaries and credit marketplaces. However, these loans can be relatively expensive. The monthly repayment of loan installments can be a financial burden for young families.