What are the requirements for parental leave credit
The birth of a baby is a nice event, but unfortunately it involves a lot of costs. Renovation work, clothing, strollers, insurance, etc. can put a heavy strain on the household budget. This is mainly due to the fact that one parent leaves the working life for a while after the baby is born.
As a result, at least three people have to live on a salary. Of course, in the first year you receive the so-called parental allowance, which is 67 percent of the last salary. In most cases, however, this is not enough to finance expensive purchases and big wishes. If you urgently need money, you can apply for a parental leave loan – provided you meet the strict requirements.
Parental leave credit – what are the problems?
Subjectively, parental allowance is an income, even if it is limited to twelve months. Unfortunately, the banks see it differently and value parental benefits such as sickness benefits, unemployment benefits and other social benefits. If you apply for a loan, you won’t get very far with parental allowance alone. After all, at the time of application, it is not yet clear whether you will return to your job. You only have a chance of taking parental leave if your partner earns enough and could repay the entire loan in an emergency. If you are a single parent and have no additional income, there is the option of appointing guarantors. This gives the bank more certainty that the loan will be repaid as agreed – whether by you or your guarantor.
Parental leave – the best conditions at the best price
Since money is scarce most of the time during parental leave, you should try to save as much as possible. Of course, this also applies to borrowing – low interest rates, reasonable monthly installments and long terms are a must. It is best to carry out a credit comparison on the Internet, which gives you a good overview of all conditions. This makes it easier to choose the right provider and save money in the long term.