A loan despite sickness benefit is not easy to obtain.
The sickness benefit is only paid after the end of the sixth week of illness and is a social benefit. This social benefit is not considered by banks as income that can be used to secure a loan. For this reason, borrowing during this time is only possible under difficult conditions.
Although a return to the former employment relationship is basically possible and worthwhile, it is not always the case.
In some cases, the employer will quit during the illness and in other cases, resumption of work is not possible as the illness is too serious. This often leads to a permanent retirement. Then the situation is completely different. However, nothing has been decided yet during the sick pay, and it is this insecurity that makes it difficult for the bank to approve a loan.
Credit requirements during the sick pay
The difficulties in taking a loan despite sickness benefit apply regardless of how high the sickness benefit. Even if it is above the seizure-free limit, a loan can only be granted under difficult conditions. Here, the bank will insist that the borrower who is currently receiving sickness benefit can provide additional collateral. For example, a suitable person from the family or circle of friends could take over the guarantee or even act as co-applicant. However, a person who wishes to do so may not receive sickness benefits themselves and must have a fixed income above the seizure limit.
In addition, the credit bureau must be basically in order and must have no negative entries of any kind.
The lenders want to hedge as much as possible against a credit default risk on the part of the customer. For this reason, they will make accurate checks as to whether the customer has the necessary conditions to properly repay a loan. There is little doubt here, a loan can usually not be awarded. Other statements, as they are occasionally heard, are fundamentally dubious.
During a sickness benefit not only the financial, but also the personal situation of the prospective borrower is uncertain. Exactly this makes it difficult for the banks to make accurate forecasts of how the situation will develop in the near future, but that would be the prerequisite for granting and paying off a loan.
Anyone who can not obtain bank credit at the house bank or at another bank would have a different opportunity to look for viable alternatives in order to obtain a loan in spite of all difficulties despite receiving sickness benefit. For example, during sickness benefit, it would be possible to take out a personal loan or a dealer loan. However, a foreign loan, which often comes from Liechtenstein, has the same difficulties as a German loan. This means that it is just the missing income that will lead to a credit denial if there is no other collateral in the form of a guarantee or a second applicant.
Personal loans can take many forms. A loan from the circle of relatives is just as possible as a credit from the circle of friends or a loan from a stranger. Often, the chances of getting a loan from a private individual, despite receiving sickness benefit, are not all that bad. In principle, a private individual can decide in which situation they would like to grant credit to which persons. Strict legal requirements, such as are customary with bank loans, do not exist with a personal loan. For that reason, you can seriously look for a personal loan and in many cases will find it.
In recent years, numerous online dating portals have emerged. These portals have been able to provide many personal loans to people who would otherwise find it very difficult to find a suitable loan for their needs. Even if a person turns out to be a reliable bank customer, the only thing that counts for the banks is that they have no income of their own during the sick pay. This alone is a reason for a rejection of a loan despite sickness benefit. For private individuals this is completely different. Here, the lenders can decide on a case by case basis and are completely free in their decision.
If you are interested in obtaining a loan from a private individual and you can not find anyone in your own circle of friends or relatives, you are always free to register on one or more credit brokerage platforms. Such a registration is completely free and without obligation. You can post your personal loan request on the lending platform and wait for a suitable lender to find you. But there can also be multiple lenders, each of which can contribute a portion of the loan amount you want to the total amount.
Not only credit seekers, but also private lenders can register on an internet platform for personal loans. For these persons a registration is also free of charge. There are many different reasons why a person wants to act as a lender. Often the desire plays a role to invest the money well and to collect interest. This is given at a loan. Many other investments only generate very low interest rates, which can potentially go to zero. This is different with a loan. As a rule, borrowing rates have always reached a level that may be worthwhile for the lender.
Reseller loans can be given in furniture stores, car dealerships and wherever larger consumer goods are to be financed. Although income and credit bureau information also play an important role here, credit standards are often not so stringent as other loans. For this reason, it can be much easier for a trader to obtain a loan despite receiving sickness benefits. The goods that are to be purchased with the credit, serve the merchant as collateral. It remains formally his property until the customer has completely repaid the loan or paid for the goods in full.
The interest is often very cheap for a loan that is taken directly from a dealer. Often, even a temporary zero-percent financing is offered, which is however limited to individual products or to individual brands. More information on this topic can give the dealer. A loan despite sickness benefit from the dealer must be paid back to the dealer in monthly installments.