Borrowing for mothers varies depending on their specific life situation. While banks grant loans to working single mothers without hesitation, the perception of parental leave is a hurdle to borrowing. Mothers living in a stable partnership are best off taking loans together with their partner. Read for a critique

The peculiarity of the household bill for mothers

The peculiarity of the household bill for mothers

Banks use their current income as part of their budgetary accounts, although parental allowance is usually not counted as such. The reason for this is that it is a temporary state payment; However, if the parental allowance is not counted, it will be overlooked that the mother will again receive earned income once it has been abolished. The child allowance, as well as the maintenance of the child, are among the fixed income recognized in a household bill.

If, as a result of the revenue and expenditure statement, the bank finds that it can not disburse the desired loan for mothers, it often helps to extend the repayment term due to the reduced monthly credit installments. Alternatively, grandparents may appear as guarantors or co-borrowers.

If a loan for mothers is used to finance items that are necessary for the child, even lone mothers should objectively seek to borrow together with their fathers. Mothers even foresee unanticipated expenses when planning their repayment, so that they will not be forced later on to borrow further or to make a costly change to the repayment agreement with some banks.

Assistance from the state and payday loans

Assistance from the state and personal loans

If mothers receive Hartz IV benefits, they can apply for an interest-free loan to the Job Center for necessary purchases, with installments withheld in small amounts from future benefits. In temporary emergencies, social services can also provide interest-free credit for mothers, even if they cover their own livelihood. Many universities have a Student Mutual Loan Fund, which is managed by either the Student Union or the Student Council.

Another way to successfully apply for a mothers’ loan is through websites for private individuals. The official operator of the respective websites is one licensed bank each, while the credit decisions are made by private individuals. After looking for a loan mothers describe on the corresponding websites their life situation and indicate what they want to use the credit sought.

The lending is sometimes done by a single lender, usually provide several people the desired loan in each case partially available. The actual loan transaction takes place via an account of the bank which operates the credit intermediation website. Since many of the registered private lenders are strongly guided by the personal situation of a borrower in their decisions, loans for mothers can be easily taken up through a private mortgage lender.

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