For many couples, their happiness in life is a child. Then it is time, the child announces itself, the woman is pregnant. In addition to all the joy, there can also be financial worries. So much has to be considered, how should the children’s room look, the initial equipment for the child is due and also the stroller or bassinet must be selected. These are all costs that affect the little luck to be expected. But there are other costs for the couple. You want to move in, another car has to be bought, as well as the new furniture for the interior. Many couples then think of a loan despite maternity leave.
The couple should know that a regular income, an impeccable Credit Bureau and a permanent position are the criteria for approval at the banks. Due to the uncertainty that arises when the woman is pregnant, the creditworthiness drops. Because the bank and often the mother do not know whether the profession will be carried out again after the birth. There is parental allowance after the birth, but this is limited to 14 months. The parental allowance is also lower than the previous net income. A loan in spite of maternity protection is unsafe for banks.
No problem should arise if the loan is repaid by the end of the parental allowance. Depending on the amount of the loan, this could also be feasible. It takes a few months for a child to be born. During this time, the expectant mother still draws her entire income. But banks think ahead and classify a loan with a higher risk of default.
If the loan is taken out by both despite maternity protection and the father-to-be has a full-time job with a sufficient income, there is a chance of a loan. The husband or partner can then sign as the borrower. If a single woman has a child and has no partner, she will only receive a loan if she can name a co-applicant or a guarantor. The guarantor is then liable for the loan with his assets. The joint and several guarantee offered by the banks equates the debtor and the guarantor.
In other words, if the borrower can no longer pay, the guarantor must do so. For this reason, he must have excellent solvency. Often you don’t want to ask a stranger as a guarantor, but in most cases the parents step in. That would also be a good guarantee, because there is absolute trust between borrowers and guarantors. If the borrower can only pay the loan under difficult conditions, the parents will step in.
The credit comparison
The young mother will receive parental allowance after birth, but this is noticeably less than the last net salary. In addition, parental allowance is a social benefit that cannot be seized and is therefore not counted as income by the bank. If only a small loan is applied for, for example for a stroller or the like, a short term could be chosen, with the result that the loan remains affordable despite maternity protection. In this way, the loan can be repaid in full during the term of the parental allowance.
In order to get an overview of the banks that grant a loan in such a situation, a credit comparison is worthwhile. The young couple not only sees the best providers, but can also see the chances of approval (given as%). The lower the percentage, the lower the chances. If you keep an eye on this characteristic from the start, you will save time and patience. In many cases it will then be found that the interest rate for offers where the chances of approval are high, the interest rate is also somewhat higher. But that is always better than not getting a loan at all despite maternity leave.
What exactly is maternity leave?
Maternity protection is a generally statutory period during which the expectant mother can prepare for childbirth. Normally, maternity leave begins six before the due date of birth and ends eight weeks after the birth. During this time, the woman is not allowed to work, but she still gets her previously earned net income. This is no longer paid if the mother switches to parental leave and receives parental allowance. This is a government benefit and is not seen by banks as income.
The time after birth is an exciting time for the whole family. Not only is it also an expensive one. There are costs that have not been considered before. Many see this as a reason to apply for a loan despite maternity leave. It is not uncommon for costs to amount to a few thousand dollars. If the money was not saved and the family cannot contribute anything, then a loan is due despite maternity protection.
A way out?
If the mother-to-be takes out the loan online, the bank does not look at the pregnancy and cannot use it as a rejection. There are many online retailers on the Internet where you can buy a lot of things the child needs. Think of the stroller or the cot here. The dealers offer reasonable financing, so that the children’s furniture can also be bought through the dealer.
If the couple goes into the loan agreement together, the chances of getting a loan despite maternity leave increase, but only if the partner has a full-time job with a corresponding income. He could then take the loan in his name if necessary. So nobody needs to know about pregnancy and maternity leave. Since the parental allowance follows, there is a mutual income at least during this term, which is somewhat reduced.