The birth of a child is a joyous event, but also associated with additional expenses. These are higher for the first baby than for later children, because then the equipment is already partially available. Ideally, prospective parents apply for a loan early, avoiding the difficult situation of finding a loan despite parental allowance. It is legal to take out a bank loan during the first month of pregnancy, if the bank still carries out its budget with full income.The only requirement is that the prospective parents make sure that their future financial obligations are met with the reduced income during parental benefit payments. Another way to avoid the bank loan despite parental benefits, offer installments in shops, where young parents buy the baby equipment. Most traders give it away without any salary and often even without interest. The interest-free and easily available credit should not be misleading, however, to renounce the price comparison for the children’s equipment and other purchases.
Purposefully search for a suitable bank
The amount of the parental allowance is based on the previous income. In addition, the return to the previous job is regulated by law, so many parents expect that the bank willingly grants them a loan despite parental allowance. However, the behavior of most financial institutions in their accounts deviates from this assumption. The banks usually rate the parental allowance as a temporary income, which is therefore not creditable for the credit check.That the loan applicant after returning to his occupation returns, they see as not sufficiently secure. In fact, the employer must keep the workplace clear while receiving the parental allowance, while the employee can optionally continue to take a leave of absence for a total of three years or to terminate the employment relationship. It is also common practice for fathers, and especially mothers, to work part-time for a longer period of time – often until the child is enrolled – and receive a correspondingly reduced income after receiving the parental allowance.The view of most banks is therefore annoying for the borrower, but quite understandable. Some financial institutions are willing to give a loan in spite of the parental allowance being paid in parental allowance and to take the corresponding amount into account in the budget statement. These can be displayed in a credit comparison targeted. In addition to favorable interest rates, the most flexible possible repayment of a loan despite parental benefit. This allows parents to choose a long term and associated low loan installment while providing free special repayments when there are no unexpected costs.In the case of unplanned special expenses, it is useful for the credit bank to allow an occasional installment suspension in the contract. Even without a corresponding contractual rule, most financial institutions allow a change in the loan repayment plan if the borrower asks for a goodwill decision because of a financial shortage. Binding contractual commitments regarding the flexibility of the repayment, however, are in any case better than the hope of the lenient approach of the loan agreement partner.
Co-borrowers and guarantors
The easiest way to obtain a loan is to have the parental allowance provided by the parent who continues to work full-time if his or her income suffices to earn a livelihood and repayments. It is also possible that the working partner acts as a co-borrower. This is also possible with most banks if the parents do not live together, because only a few banks require an identical address for the loan application from both borrowers.For this reason, parents with a sufficiently high income can also become co-borrowers. Although guarantees are possible, they are less popular with financial institutions than joint borrowing. The reason is the case law, which places high demands on the effectiveness of loan guarantees, especially in the case of emotional ties between the bank client and the guarantor.
A personal loan despite parental allowance
Easier than a traditional bank loan, parents on a financial intermediation platform between individuals receive a loan despite parental benefit. Private lenders decide on their own lending criteria. They pay less attention to the classic credit-quality features, but primarily to whether they want to promote the specified loan purpose.The willingness to support parents with young children is high among private lenders, so they draw the application for a loan despite parental allowance in a short time. Eligible for a quick lending is the exact information in the loan request for which purchases the loan seeker wants to use the money. While banks are only interested in the concrete use of funds in a few exceptional cases, this is the decisive award criterion for private loans.