Mothers and fathers who are subject to compulsory social insurance are legally entitled to parental leave, in accordance with section 15. It is not relevant whether the employment relationship is full-time or temporary. Parental leave enables employees to take care of the child. The amount of the parental allowance depends on how much income you earned before the child was born. So if you have previously earned little, a loan during parental leave can help. You can find out in this article whether you get a loan during parental leave.
When do you receive parental allowance?
Basically, the application for parental allowance depends on the personal situation of the couple. It is recommended that the application be made when the child reaches the third month. Parents should know that the state pays three months retrospectively. Parental allowance was introduced to increase family income after the child was born. The parents are also given the opportunity to look after the child for 14 months without the stress of work. With the LightPlus Credit, which has been paid since 2015, you can have parental benefit for 36 months. In this way, mothers and fathers can fully adapt to the new situation and thus pay the necessary attention to their child. In addition, parental allowance can make it easier to distribute tasks within the family.
The parental allowance is not only paid to employees, but also:
In exceptional cases, the money can even be paid to relatives up to the third degree.
However, certain requirements for the payment of parental allowance must be observed. So the parent must be resident in Germany. The child lives in a household. The child is cared for and cared for by the parent.
A little tip: The parent who will look after the child should quickly switch to tax class III. This increases the net income that serves as the basis for parental allowance.
Why banks don’t count parental allowance as complete income
Especially during parental leave it is found that some purchases are necessary. The reserves have been used up so that a loan during parental leave can make sense. However, a parental allowance loan is not easy to obtain. With the birth of the child, the income has changed and with it the attachment limit. Often there is only one person left to make a living. Parental allowance is only paid for a certain period of time. Child benefit cannot be attached. The same applies to parental allowance, up to $ 300 per month. So with a fixed amount of parental allowance is not taken into account when applying for a loan.
Apply for credit before parental leave
Many employees decide not to start their job after parental leave or to only work part-time. As a result, income decreases. However, you do not have to tell your current employer. If the credit requirement is determined at the beginning of the pregnancy or during it, it is advisable to apply for the loan during this period. During this time, the lender still calculates your full net income. The higher the household income compared to the income during parental leave, the prospect of a loan is more promising. If you apply for a loan during parental leave before the birth, you should find that the future installments can also be paid with a reduced income.
What options do you have to get a loan during parental leave?
However, there are various ways to still get a loan with parental allowance. The simplest solution that is available is a loan guarantee. A solvent guarantor or co-applicant with a guarantee can significantly increase the chances of a loan during parental leave. As an alternative to a guarantee, securing a loan through real estate can increase credit opportunities. However, insurance with a corresponding surrender value can also offer the prospect of a loan during parental leave.
Can you pause the loan installment?
Many lenders advertise that they offer improved conditions for a loan during parental leave. For example, in addition to the monthly repayment of the loan amount, free special payments could also be made. A loan would be paid off faster. However, if there is a financial shortage during the loan period, it should be agreed that the loan can be suspended during parental leave. It is important that you announce this deferral to the lender in good time. If this does not bring the desired financial relief, an extended term of the loan could be considered. This reduces the monthly installments, but makes the loan more expensive overall.