The birth of a child is usually a joyful affair. This not only extends the family by a new member, but also symbolizes the togetherness of two people. The parental allowance was introduced by the Federal Government to give the mother or father the opportunity to look after their offspring. It allows you to leave your job temporarily without having to completely forego the income earned there and without having to limit your personal standard of living too sensitively. The free time thus acquired can be invested in looking after and caring for the new family.
Parental allowance is paid in the amount of 67 percent of the last net income earned. And for a maximum of 14 months. It represents a state temporary benefit that cannot be seized and therefore does not count as income. This can lead to problems, especially when taking out a loan despite parental allowance.
The financial needs must be met
The traditional banks are always very skeptical when it comes to granting a loan despite parental allowance. Blocking is very quick, especially if only the parental benefit recipient wants to take out the loan. The financial situation is too uncertain. In addition, no one can predict how the child will develop and when it will return to work. And since parental allowance is a social benefit, it must not be recognized as income.
Despite all of this, young parents face major financial expenses, especially in the first weeks and months after birth. Because in addition to a bed, strollers and children’s clothing, a car seat and many other things are required. Nothing that can be bought with little money. In many cases, a loan despite parental allowance is the easiest solution to meet the financial needs.
How a loan can be possible despite parental allowance
In order to be able to obtain a loan despite parental allowance on reasonable terms despite the restrictions in liquidity, it is important to offer the bank some security.
So it is always unwise for the parental benefit recipient to apply for the loan alone. It is better if the earner in the family does this or if both parents apply for the loan together. If this is not enough, a surety can also be consulted. The grandparents of the offspring – as far as they are still working – would be ideal guarantors.
If this does not seem to be enough, it should be considered whether a consumer loan as a loan despite parental allowance would not be a better choice. A consumer loan is a loan that is linked to the purchase of a specific consumer item. The stroller and the cot can be financed with the help of a consumer loan as well as the baby clothes. The advantage of a consumer loan lies in the fact that this type of loan does not ask about income. Only a good credit rating and income of at least 400 USD per month should be available. The source from which this income comes is initially secondary.
The overdraft facility is also available for short-term liquidity production. For small amounts of money, which can be quickly settled again, could be applied by “overdrawing” the account. But be careful: the overdraft facility is only worthwhile if the account can be quickly settled again. Otherwise, high interest payments threaten, which unnecessarily tarnish young happiness.
Where a loan can be taken despite parental allowance
When looking for a loan despite receiving parental allowance, you will most likely encounter various obstacles. But with the right preparation and an optimal financial plan, it can work. Even if the house bank is skeptical about such a loan and does not want to grant it, this does not mean that such a loan is completely hopeless. So don’t just ask at the house bank, but also look for suitable offers on the Internet. Most of the time it is the direct banks that offer worthwhile offers and, especially with small loans, like to turn a blind eye.
And if it is not enough for a classic loan because of an unfavorable credit rating, there are still private donors who are happy to help out with a loan from private. Simply describe your concerns on one of the platforms and explain why you need a loan. Donors will certainly contact you and make offers regarding your application.