There are many reasons to take out a loan, such as necessary purchases or repairs, bridging financial difficulties etc. The most joyful reason is surely the addition of a family.
However, just like sudden repairs, you cannot plan a pregnancy and sometimes the time is just awkward because you may be in financial trouble right now. And even some purchases such as prams, cots, a larger car or moving to a larger apartment cannot be started until there is enough capital available. One way to avoid the financial bottleneck is to take out a loan during pregnancy.
Inform about credit during pregnancy
Obtaining a loan during pregnancy is actually hardly a problem. If the pregnant woman – as the sole applicant – and possibly her partner – as a joint applicant – fulfills the requirements for a loan, such as a clean Credit bureau and a regular income, also stands nothing in the way of a loan during pregnancy. However, women wishing to apply for a loan during pregnancy should be aware that they must be able to meet their monthly commitments in installments at all times, even after pregnancy.
Therefore, it is imperative to calculate whether you can afford the rates even after the birth and with a lower income. In principle, every woman is initially entitled to parental benefit for the twelve months after birth; if the man also takes parental leave, it is a total of 14 months. Parental allowance is limited to a maximum of 67 percent of the average monthly net income before birth.
Don’t hide your pregnancy
Not to mention the pregnancy is not recommended. With the birth of a child, even with a regular income, the financial situation changes suddenly, above all because the parental allowance is significantly lower than the previous regular income.
Reputable credit institutions always include this aspect in their advice in order to be able to assess whether the monthly installments can also be afforded after birth, how high they should be and whether other agreements such as suspension of repayment or installments during parental leave may be agreed can be.
How to get the much needed capital
If you can name a second borrower (e.g. the child’s father) for a loan during pregnancy, the amount of the loan depends on the income and security of the second (not pregnant) borrower. The better the conditions, the higher the loan will be.
Single parents who cannot name a partner for borrowing have the option to provide guarantors for the loan (e.g. their own parents). Pregnant women in need are also supported by social institutions mostly with immediate financial aid, which usually does not have to be paid back. However, the money is earmarked. This means that it must be proven that it was actually issued for the baby (stroller, cot, changing table, clothes etc.) or for pregnant women (eg maternity wear).
Private lenders can also be considered during pregnancy. Such lenders can be, for example, the parents, relatives, friends or sometimes the employer.