The parental allowance supports parents if they do not work or only work to a limited extent due to the upbringing of children. It is at least 300 and at most 1,800 dollars, within these limits it replaces between 65 and 100 percent of the lost income.
Loan with parental allowance
Due to their income calculation, financial institutions are reluctant to grant a loan despite receiving parental allowance. They do not take parental allowance payments into account as regular income because it is not available throughout the credit period.
At the same time, they do not consider it sufficiently secure for the lending that the applicant receives the previous work income again after receiving parental benefit. The likelihood of receiving a loan from a commercial bank despite receiving parental allowance can be increased by jointly borrowing with the partner, provided the partner receives a fixed income.
Various institutes accept the submission of an agreement with the employer on the practice of work after parental leave as an indication of future wages and carry out the household calculation with current and future income. Expectant parents simplify the process of taking out a loan intended to co-finance parental leave by making the loan application at the beginning of their pregnancy.
At this point, they are earning normal wages. When deciding on a loan term and the resulting credit installments, they make sure that they can continue to repay the early loan despite the parental allowance.
Loan through private individuals
In spite of parental allowance, it is easier to take out a loan in the form of an organized private loan than with a traditional commercial bank. Internet platforms for private loan brokerage bring credit providers and loan seekers together. The private lenders registered there deliberately do not invest their savings in banks because they want social considerations to be taken into account when lending.
On the website for personal loan brokering, each investor decides which loan inquiries he supports with his financial means. A need for money while receiving parental benefit makes most platform members willing to lend, especially since the promotion of young families is one of the most important social tasks.