Loan despite parental allowance.
Parents receive a parental allowance for a maximum of fourteen months after the expiry of the maternity leave, the amount of which depends on the loss of earnings, which is at least 300 and at most 1800 USD.
Banks behave differently when considering parental allowance, often because of the time limit they do not recognize it as income and thus make it difficult to borrow. However, young families in particular are often dependent on loans to make all the purchases for their child.
Choose the right lender
If you want to apply for a loan despite parental allowance, choosing a suitable lender is important. The fact that parental allowance is not taken into account as income in the household account, which is common for many banks, is justified by the limitation on the payment of benefits. However, this argument is not valid, since after the parental allowance has been received, the previous income from work is again achieved, so that the repayment of the loan is secured.
The only exception is if a parent chooses not to return to work immediately after the parental allowance payment ends. While such a decision is possible, it is unlikely to be expected from responsible borrowers.
If the submission of the work assignment were transferred to other loan applicants, no bank could ever pay out a loan, because the termination of the employment relationship by the employee is always possible. Since protracted discussions with a lender rarely lead to success, parents are best advised to choose a bank that evaluates parental benefit payments as income and thus approves a loan despite parental benefit.
Corresponding preliminary information can be found in part on a bank’s website, but more frequently, experience reports published on consumer platforms. Basically, the probability of lending during parental leave is greater at the local Agree bank or at the house bank than at a direct bank with which there is no customer relationship.
Other ways of borrowing
The easiest way to obtain a loan, despite parental allowance, is for unmarried couples to act as borrowers alone. This procedure is also possible for married people if the income of one parent is above average and sufficient for the cost of living and for the repayment of the loan.
It is very easy to take out a loan required to finance purchases for the child in spite of parental leave, by the parents agreeing installment payments for orders in the mail order business, because most mail order companies only inquire about the customer’s income if the order value is high.
Despite parental allowance, a loan can also be successfully applied for via platforms for brokering loans between private individuals, since many registered private lenders base their lending decisions on social criteria and consciously support young families.