A cheap loan is hard to find during parental leave, so anticipating borrowing at the beginning of the pregnancy is ideal. In this case expectant parents pay attention to low rates, so that they can settle even during the receipt of parental allowance without difficulty.

Parents like to avoid applying for a bank loan during parental leave by making installment payments directly at the point of purchase. This is not least due to the favorable interest rates offered by most retailers. However, the retail payment installment agreement can easily lead to additional costs if competitors without a point-of-sale option sell the same products at much lower prices.

The recognition of parental allowance as income

Parental allowance is paid for a limited period of time and is therefore not considered by most credit institutions to be a relevant source of income when making the application. After receiving the parental benefit, however, the claim is to resume full employment. It is unpredictable, however, whether the loan seeker actually makes use of it, or in future prefers a part-time employment relationship, or at times looks after the child exclusively. The chances of obtaining a loan during parental leave increase if the applicant can show the bank an agreement with the company about the subsequent assignment. In addition, one of the preconditions is to choose one of the few credit banks whose parental allowance is included in the budget.

Couples apply for a loan during parental leave, either jointly or on their own, by the one who works without restriction at the time of application. Single parents can also ask their former partner for help with borrowing in the form of a two-letter loan application. Other conceivable co-borrowers are the child’s grandparents. One limitation in choosing a bank of credit is that few banks accept credit applications submitted by two people only if they live in the same household. A guarantee instead of the co-application is conceivable, but is rather cautiously accepted by banks. The reason for this is that courts often rate private credit guarantees as not valid,

When direct bank borrowing encounters difficulties, young parents hire a trusted intermediary to look for a loan during parental leave. The service provider has excellent contacts as well as comprehensive market information. In addition, it bundles a large demand for credit, so that in most cases it can successfully convey the desired installment loan during parental leave. Parents hire a credit intermediary if they do not charge any initial costs, but only a reasonable performance fee.

Pay attention to low rates and flexible repayment

Unplanned additional expenses are almost certain for young parents. To deny them, the rates of credit taken during parental leave should not be excessive. The choice of the longest possible repayment term together with the associated low monthly installments is even more attractive for a loan during parental leave than for other consumer loans. If the loan agreement provides for the right to special repayments without charging a prepayment penalty, in the absence of additional expenditure, parents pay special repayments to the credit account so that they settle earlier than originally planned. Another advantage of the allowed special repayments without cost calculation is the possibility of a replacement of the current loan by a cheaper loan,

The contractually regulated eligibility for an occasional break in pensions makes it possible to settle the loan installments during parental leave, even at high additional expenses. An alternative to this is a clause in the loan agreement, according to which the bank will accept a later modification of the repayment plan on customer request binding. Less meaningful are customer reports about the voluntary and favorable approach of the financial institutions to corresponding customer requests. Although these are predominantly true, there is no guarantee that the current goodwill rules will be upheld.

The main criterion when choosing a specific bank loan during parental leave is the most effective annual interest rate possible. A cheap loan can be found by parents by conducting a thorough credit comparison easy to carry out online.

The personal loan during parental leave

The personal loan during parental leave

It is easier than a bank loan to take out a private loan during parental leave. The minimum entitlements to the current income are significantly lower on the online credit exchanges than with banks, and recognition of all income components, including the parental allowance, is common.

The inclusion as a loan seeker is the first step on the online loan exchanges to the desired loan. In addition, it is required that a specific loan request is drawn by one or more lenders. The members of the private lending exchanges as investors take into account a great deal of social criteria in their decisions more than traditional creditworthiness features and agree to a desired loan during parental leave very quickly. The likelihood of earning money quickly increases when the parents describe as accurately as possible which purchase they would like to finance with the personal loan requested.