Parental leave is an exemption from work that parents can claim during the first three years of their child’s life.
Loan amount during parental leave
Children bring joy, but at the same time causes the birth of a child and costs. In addition to the purchases for the newborn such as clothing, toys and strollers are in many cases also finishing work in-house or the move to a new and larger apartment required. If borrowing before the birth of the child is not sufficient for all purchases, another loan must be requested during parental leave.
Loans for parents are not easy to obtain during parental leave because of the reduced income. This is even more true for single parents than for married couples, where in most cases a partner remains employed.
The income during parental leave
If mothers and fathers want to apply for parental leave, the bank checks the couple’s income. In principle, the leave from work is unpaid, but is entitled to the state parental allowance for a period of fourteen months. During parental leave, employees may choose to work part-time instead of full time off work.
In this case, of course, they receive income, the amount of which is calculated according to the actual working time. While the bank naturally takes account of the salary for the credit check for a parental leave loan, most financial institutions generally do not expect the parental allowance paid by the state.
How can a loan be successfully applied for during parental leave?
The easiest way is to apply for credit during parental leave if the partner continues to work full time or with the exception of the two months relevant to parental benefit. In this case, the working partner concludes the loan agreement as a borrower. His credit rating deteriorates compared to the time before the birth of the child, since he now has to care for a whole family; However, an average skilled worker’s salary or an average salary is usually sufficient for the successful application for a loan.
Single parents or mothers or fathers with an unemployed partner can usually only apply for a loan during their parental leave if they provide additional security. Other safeguards include providing a guarantor, which in many cases is suitable for the child’s grandparents.
Another way to get parental leave credit is through private small loan lending platforms. These are formally settled for legal and organizational considerations also via a bank, but the concrete lending decision is made by the individual investors, who accept loan requests of young families above average often at favorable credit conditions.