The loan helps to overcome financial bottlenecks and to maintain liquidity. For many people who receive sick pay and thus have less money available, there are large gaps in the household budget. So the money has to come from somewhere else. But most of the sick see themselves alone because they assume that they have little chance of applying for a loan. Many credit applicants who receive sick pay have a good chance.
The loan with sickness benefit from a German bank
Getting a loan with sick pay at a German bank is usually not as difficult as you think. As long as you can provide positive Credit Bureau information or have various assets, the chance of a loan is great. In addition, you should be on sick leave for the foreseeable future. If a bank sees that a loan applicant can go back to work at a certain point in time and then have more cash available, the applicant’s creditworthiness will increase in his eyes. In any case, the sickness loan will become a normal loan once work is resumed.
If you are ill for an indefinite period of time and receive sick pay over this period, the chance of a loan with sick pay at a German bank is less likely. Sickness benefit is not paid for a long time but is limited. For this reason, this security is no longer available and you are classified as unworthy of credit at the bank, so you have no chance of a loan. You should still try to get a loan from several banks. It is not uncommon for other assets to increase collateral and minimize the bank’s risk, so you get a loan.
Sickness benefit credit by other detours
For all those who have not got a loan from a bank, there are numerous other ways to get a loan with sick pay. So you can compare different loans on the Internet, for which you do not have to provide proof of wages or proof of work. So you don’t have to report your illness and can get a loan. The disadvantage of this alternative is the usually poor conditions of such loans. You should know that the online credit is granted by foreign banks and passed on to customers via credit intermediaries.
These credit intermediaries must be paid by these foreign banks. These costs are passed on directly to the borrower. Therefore, the cost of such a loan is also much higher than comparable products from another German bank or bank.
Comparing is therefore the be-all and end-all when looking for a loan. But finding private investors can also be helpful. With a little luck, you can find a relative or acquaintance who is able to grant a loan. However, the motto here is that you should conclude a loan contract. This helps with later disputes or other eventualities. It also regulates the fixed annual interest rate, the term, the monthly installments, the start of repayment and any special repayments and their amount and costs. So it is basically possible to get a loan with sick pay.