MonthNovember 2019

Credit during parental leave

There are various reasons why families in particular need a loan. A family always costs a lot of money, bills have to be paid and if an important repair is due or a school trip, then the money can become scarce. In such a case, a loan can be applied for during parental leave.

Requirements for a loan during parental leave

Requirements for a loan during parental leave

Families have to meet different requirements at the bank in order to apply for a loan during parental leave. These conditions must be met in the same way as for a disposition or installment loan. A spouse must have a fixed and permanent employment contract. It would be ideal if both are in an employment relationship, because then the chances of getting a loan are twice as high.

In practice, however, it often looks different, so that only one partner works and the other takes care of the children. So there is often a salary and parental allowance.

Parental allowance and child benefit do not count towards income, which many think. Child benefit is urgently needed every month and all important bills such as rent and electricity have to be paid from the income. Often there is not much left, so it can be difficult to get a loan during parental leave.

Conditions of the loan

Conditions of the loan

If the income is high enough and there are no negative entries in the Credit Bureau, a loan is quickly granted during parental leave. The borrower does not have to specify what the money is used for. A budget is drawn up to see how much is left at the end of the month. A rate can then be agreed with this sum.

Can promotional loans be used?

Can promotional loans be used?

Families with children can take advantage of various government grants, including a loan. Lender is the right point of contact for this, which can determine the financial requirements and then make a proposal for a loan. The loan is specifically designed for families, so interest rates are often very low and the term can be adjusted. Here, however, at least one member must have a fixed income.

Sources of income accepted by loan companies – family benefits, pensions, pensions

Most lenders, regardless of whether it is about getting a loan online or traditionally require the same documents to approve the loan. Make sure you take care of these documents before meeting the lender to speed up the tracking of the loan application. Here is a general list of possible sources of income that are accepted by loan companies, so some of the documents may not apply to you. The selected lender will definitely confirm the documents you need.


Sources of funding


What will be the best depends on the required capital and the time when it is needed. A bank loan is the amount of funds borrowed for a specified period in the agreed repayment schedule. The repayment amount will depend on the size and duration of the loan and interest.

Many people use bank loans as part of their financial structure. In fact, bank loans are more accessible to well-off people, but as it turns out – not only an employment contract is the only source of income accepted by loan companies. They can also include:

  • family benefits (such as a 500+ program or other benefit)
  • pensions
  • survivor

There are also many other additional financing documents. For example, it could even be documentation of an existing loan, including the start date of the loan, the loan period. The last six months’ benefits regarding income statements are also good proof.


The borrower’s credibility

borrow money

Lenders look at how our creditworthiness lies – based on simple things – clear documents. We should also remember about a good credit history, because in the eyes of the insurer, exceeding the credit limit is a cardinal sin. It is better to have two accounts at the half-limit level than one used per max. The length of your credit history also matters. It should be remembered that at an early age you can start working to obtain maximum creditworthiness by opening a visa account and faithfully paying off the balance each month. You can never borrow money, but if you do – you can consider a car loan. A two-year payment record of this type will significantly increase your position among potential lenders.

It is also preferred to use different types of loans, such as mortgages, credit cards, car loans and personal credit lines. A diverse mix is ​​characteristic of someone with a long credit history.

Proof of income

Note the two key words ‘proof’ and ‘income’. Your hard work is starting to pay off right now. Even at a time when contracts and freelancing are widely accepted, regular employees with regular payments have an advantage over someone who is self-employed with financial instability – although, of course, entrepreneurs who submit relevant documents can also apply for a loan.