Health is the greatest good we can have. However, many people forget this and are therefore very negligent about their health. Only when you are ill for a long period of time do you know how important it is to take care of your body and soul.
If you are absent for more than six weeks, you will no longer receive wage payments, but only sickness benefit. Its amount is based on the last gross income. Sickness benefits are usually paid by the health insurance company. It is considered a social benefit and is therefore not counted as attachable income.
If you are interested in a loan despite sickness benefit, you must first of all be aware that the income, which is considered one of the most important forms of security when lending, does not exist. It will therefore be difficult to find a bank that is willing to lend under these conditions.
That is why a loan is a difficult topic despite sick pay
Those who have been sick for so long that they have to claim sick pay are usually seriously ill. In many cases, it cannot be predicted how long this disease will continue and how fit the person will be after recovery. Can he go back to work? In his old job? With his old employer and at the old conditions?
The banking houses in our country naturally know that these uncertainties exist when it comes to receiving sick pay and therefore classify this as non-attachable. This means that the security that a fixed income offers does not exist. Should the borrower fail to pay the installments, the banks would have no way of seizing the debtor’s income.
Therefore, despite sickness benefit, a loan will only be possible if the prospect tries to find a second borrower who can prove the desired fixed income. If this succeeds, almost any loan is possible. However, it should be borne in mind that sickness benefit is not paid forever. If it is not possible to recover in time and start working full-time again, Hartz IV can threaten you with sickness benefit. And this means even fewer options for repaying the loan to the issuing bank despite sick pay. Therefore, a loan should only be taken out in the event of illness if this is really necessary and cannot be avoided.
What about a consumer loan?
If a consumer loan is sought as a loan despite sickness benefit, the admission requirements are less difficult. Because a consumer loan that is earmarked and can be conveniently applied for from many retailers does not require a fixed income, but only income. Since sickness benefit is also income, it is recognized for the loan and can be used as security.
It is only important that the sickness benefit is higher than 450 USD and is paid on time every month. Furthermore, a positive Credit Bureau must be proven and the borrower must be at least 18 years old. All consumer goods that the lending dealer has in store can then be financed. Some of the dealers have minimum funding limits. Others also set a maximum limit in order to keep the rates to an acceptable level. A guarantor or second borrower is only needed if there is insufficient income or a bad Credit Bureau. Otherwise, the consumer loan is also offered to individual borrowers.
Tips for borrowing
Even if you have opted for a consumer loan, where it does not matter how the revenue is made up, it would be wise not to tell the lender that you currently only have sick pay. He could then consider whether a loan would make sense in spite of sickness benefits under such conditions, or whether the loan application should not be rejected better.
In order to avoid these considerations entirely, only the question of the amount, but not of the type of income, should be answered when applying for the loan. You avoid so many problems that don’t have to be and that make borrowing unnecessarily difficult.