Taking out a loan during parental leave is now possible at many banks and savings banks. The offer for private borrowers is not limited to the few loan offers of banks and savings banks in the immediate vicinity. The borrower can also choose between a wide variety of loan offers on the Internet.
The selection for the borrower has increased enormously, above all due to the numerous loan offers from the Internet. Not only in terms of interest rates, there have been significant changes for the borrower in recent years, especially in terms of contract design, many lending banks are trying to differentiate themselves and offer the borrower flexible repayment, individual terms and loan amounts. Before taking out a car loan during parental leave, borrowers should always consider a comparison on the Internet, only then is it possible for the borrower to determine the best loan offer today.
Take out car loan during parental leave – Favorable conditions are definitely possible
Anyone who takes out a car loan during parental leave should above all take into account the changed financial options. People on parental leave generally have 60% of their income at their disposal, which must of course be taken into account when planning the repayment. Borrowers should always choose a longer term when borrowing because of the risk of default, since the risk of default is lower, but borrowers should never forget that a long term is associated with a high level of capital commitment for the bank, the borrower for this reason has to adjust to higher borrowing costs.
Short term and a low loan
The choice of a short term and a low loan amount should always be preferred by the borrower, since credit default risk and capital commitment can be reduced enormously for the bank and the bank is therefore more willing to grant attractive terms. In addition to the structure of the term and loan amount, the creditworthiness of the borrower is also decisive. The creditworthiness today is mainly defined by the income of the borrower and his Credit Bureau information.
The current, reduced earned income must be stated when specifying the income. The low income from work can be offset by the borrower through a positive Credit Bureau, so that even a car loan during parental leave can be taken out at attractive conditions.