The family loan can only be approved by a lender if monthly repayment rates are not a problem and the family is in a good financial position. The budget for the household is often relatively low and the credit for families often helps here, which in some cases makes necessary purchases possible. In most cases, however, the woman is educating the children and only the man is working. For the whole family, only the income from the working man is available for all expenses. The families have to cope themselves, because there is no funding from the state. Many people find it difficult to forego something and they want to fulfill their desires. Only with a loan for families is it often possible to buy a car, for example.
Creditworthiness is crucial
Many spouses in a family put together an application for the loan, even if a woman has little or no income. Many women also have parental allowance at this time. At a bank, both create a better impression, as if only one partner came alone. Unfortunately, the parental allowance is not counted as income at the banks because it is a wage replacement benefit. It is also important that this parental allowance is not permanently available and is only paid for a certain period. Thus, the earnings of the main earner must be sufficient to meet the obligations, to transfer the rent and to provide for the family.
After all of these costs have been deducted from income, enough must be left to settle the loan installments. However, all of this is often very difficult because most men are not yet top earners. The conditions are often incorrect and the family loan is not approved by a lender. After all, there shouldn’t be any problems just because the financial situation means that a person can no longer service a loan. Many fresh families may also overestimate themselves in terms of credit because they lack the experience. It cannot be expected that the woman will go back to work immediately after parental leave. In many cases, for example, another child intervened. Families should try to save and keep the budget low for the household.
General information about the family loan
Today’s lenders closely examine the information provided by prospective creditors and this is done very strictly. The banks ask a lot of questions and want to be well informed about the situation of the income with the help of information. Before applying for a loan, a family should calculate exactly which loan amount is actually realistic and can also be paid off monthly.