Parental leave is probably the most intense time you can spend with your child. Because it is the time that directly follows the birth of the child and offers sufficient time and space for intensive care of the offspring. The birth of a child represents a completely new phase in the life of everyone involved. And not just because as a parent you suddenly have responsibility for another small person.
A child, even if it is as small as a baby, costs a lot of money. This is noticeable very quickly in the household budget, which is significantly more burdened than was otherwise the case. The initial equipment alone can cost several thousand USD if desired. If you then consider that only a parental allowance is paid during parental leave, which only represents a fraction of the actual income, everyone quickly realizes that financial bottlenecks are not uncommon during parental leave.
The special status of parental allowance
The parental allowance is a state benefit that is paid for 12 or 14 months after the birth of a child. The employer must allow the child’s mother or father to be released from work during this period. There is even protection against dismissal for the parent who is on parental leave.
If a loan is to be taken out during parental leave, the fact that parental allowance is a social benefit can have a negative impact on borrowing. Because in the eyes of the banking houses, social benefits are not an income and, on top of that, cannot be attached. A loan during parental leave with parental allowance can therefore not be taken up easily.
Despite all of this, there are plenty of options for a loan during parental leave. We want to tell you which these are.
Without frills and a lot of effort – the consumer loan
The easiest way to get a loan during parental leave is through a consumer loan. The type of loan that retailers are happy to offer when it comes to financing the goods on offer. No matter whether at the technology market, in the furniture store or at the textile seller on the Internet – consumer credit is available everywhere. And they work great as a loan during parental leave.
A consumer loan does not matter whether there is an income and how high it is. Rather, the dealer inquires about income. And social benefits such as parental allowance are income and therefore entitle to take out a consumer loan.
For you as a borrower and recipient of parental benefit, this means that you can take out a loan during parental leave in the form of a consumer loan whenever you can show a positive Credit Bureau. Because this is always a basic requirement for taking out a loan.
So before you buy a stroller, nursery, or clothing for the next generation, check whether these and many other things can also be financed with the help of a consumer loan. You will be amazed at what is possible in this regard and the advantages of this type of financing.
The classic installment loan as a loan during parental leave
You can also take out a simple installment loan as a loan during parental leave. But not alone. Because the parental allowance is – as already mentioned – not an income.
However, if you apply for the loan together with your partner, who at best has a decent income, you will not find a bank that will deny you the loan. Because then you will again meet the most important requirements for borrowing and the banks will make you corresponding offers.
With these offers, however, make sure that the loan amount is not too high. You can usually not estimate when you can go back to work during parental leave. Therefore, you do not know how your financial situation will develop. Therefore, only take up the loan amount that you can also afford and that can also be paid with an income if necessary.