If a salary is lost during parental leave, it is often more difficult to obtain a loan. The parent who applies for parental leave only receives 67 percent of the previous net income for a period of 12 months. In addition, due to the newborn child, of course, expenditure increases accordingly.
Of course, it can also happen during this time that a loan is required despite parental leave due to an urgent purchase or an additional payment for the additional costs. In this case, it is important to carefully examine the available loan offers to find a bank that offers a loan despite parental leave.
Why banks often refuse a loan despite parental leave
Since parental allowance is limited in time, many banks do not count this as actual income. This is especially true if the term of the loan is longer than the promise of parental benefit. Since the mother applies for parental allowance in most cases, many credit institutions fear that she will not return to her previous job after the twelve months. This would drastically reduce the income available to the family after parental leave, which means a significantly higher risk for the bank.
Who gets a loan despite parental leave?
In the event that the term ends within the time limit for the parental allowance, the bank will in any case also recognize it as income. If the amount of the parental allowance is sufficient, the bank will usually also approve the requested loan. Of course, there is also the option of including the spouse as a second borrower in the loan agreement. Its income is then also taken into account. Single parents, on the other hand, find it much more difficult to get a loan despite parental leave.
In order for the loan to be approved, the payment of the parental allowance must be proven in any case by submitting appropriate bank statements. Evidence must also be provided of the period for which the parental allowance was approved. If the recipient of parental benefit then resumes his previous work, an additional certificate from the employer stating that the employment relationship has continued after the parental benefit ends.e now