That a child costs money is known. However, parents who are just about to become or have become new often do not have sufficient savings to pay for all new and necessary purchases, such as initial equipment and changes such as moving, right away. They therefore use a loan.
This parents’ credit guide shows parents how to find and borrow their credit safely and cheaply.
Credit during pregnancy
Currently, there is no legal regulation on whether a pregnancy in the loan application must be specified. In the early stages of pregnancy, from the point of view of the banks, there are no special rules for expectant parents. The creditworthiness of the borrowers does not initially suffer from the unborn child.
If a pregnant borrower takes out a loan in a bank branch, if the baby bump is already clearly visible, it is to be expected that their default risk will be assessed worse.
The background of the evaluation is the factual risk assessment as the basis for each lending. The bank wants to protect itself against the risk of a loan default. As a rule, child benefit and parental allowance as an income base are not enough to repay a loan in full. In this case, it makes sense to take the loan in pairs – provided the creditworthiness of the (spouse) partner is sufficient.
Credit for pregnant women – what documents are required?
Like all other borrowers, expectant parents must present the last three proofs of income. In addition to the amount of the salary, these also usually show how long since the employment relationship has existed. This is relevant because loans are granted only with a guarantee within the probationary period or fixed-term employment contract.
For a loan to be granted, net labor income must be above the seizure limit. In addition, the revenue and expenditure account must have a plus, so that after deducting all fixed costs, sufficient money is available for the monthly installment.
Credit despite maternity protection
As a particularly big challenge, the loan turns out to be despite maternity protection. At the latest, if the maternity protection is recognizable for the bank, the borrower is more difficult to accept their desired credit. The information about existing maternity protection can be found in the payroll or account statements.
If maternity protection is not obvious, the loan can provide parents with a short-term source of income despite maternity protection. The bank then proceeds from a normal loan application from a couple or singles and grants correspondingly more favorable terms.
Credit despite parental allowance
A parental leave loan is associated with many grant problems for the masses. A particularly good income of a parent or both parents can provide the necessary compensation.
For normal earners, the loan turns out to be a problem despite parental benefit. The main foci for granting parental leave credit are:
- Amount of attachable labor income
- Unnecessary social welfare benefits
- Impundability of additional income
- Re-entry after parental leave into the profession is uncertain
With a loan during parental leave, the lender runs the risk that parents will not return to work after the break or at least not work full time. If the parental allowance disappears, the family only lives on an income that would not be attachable by the bank in case of cases. To hedge against this loss, the bank takes this risk into account. The result: an expensive loan for the parents.
If you need a loan despite parental allowance, you should specify a second borrower in your application. This is considered positive by the Bank – potentially reducing the overall cost of the loan. For example, the second borrower may be the partner or another person of trust.
Credit for single mothers
Those who want to take out a loan without a second borrower as a single person will encounter difficulties unless they can provide the lender with a high income. The second borrower acts as a guarantor for the claimant, and is thus recognized by the bank as a form of collateral security available in the event of a loan default.
Single mothers benefit particularly from a guarantor because they are not sufficiently working from the perspective of the banks.
A loan for singles – this includes the loan despite child support, the credit for the housewife or the loan despite parental benefit – is always associated with banks with an increased risk of default. In addition, many single mothers have low incomes or need government support. This income is solely for the livelihood of the family and is in most cases too small to cover the cost of a loan. Without a guarantor, many single-party lenders will have few credit options left.