If you look at mothers who raise their children alone nowadays, one could classify them in the professional field as managers. Unfortunately, they do not have the salary of this professional group. If the mother works full-time and has taken good care of her children, she of course receives an income. According to which profession is practiced, this can be measured by the male income situation. It is not uncommon for mothers to service car loans or installment payments from the mail order business. Income makes it possible. But what conditions does a loan for mothers have to meet?
The loan for mothers – the outlook
It can be said that the conditions for the loan for mothers are the same as for all other borrowers. The state of mother means nothing in the credit business if the necessary income is not available. But today’s young mothers, who are single, but still do their daily lives, are also very popular with banks.
When banks think of loans, they see the income of their customers. This includes a clean school and a decent income. If these conditions are met, the loan for mothers can be approved. The amount of the loan then depends on the income. If the mother earns well, a larger loan amount can be granted. Otherwise there is an affordable small loan.
The financial situation is different for a mother who does not have a full-time job but works part-time. Not everyone can look back on a professional career at a young age. But through the part-time job, she contributes a share of a family’s income that should not be underestimated. In this case, the loan will not be granted to mothers without collateral. There is a lack of income, which must show an attachable share.
If the mother is married, the partner could also sign for a loan for mothers. However, he must have a full-time job and also have a corresponding income.
If you want to get a loan as a single mother, you must have an income that is at least 1,439.99 USD net. The garnishment exemption limit is only met for this amount. However, no social benefits such as child benefit are included in the monthly calculation. The bank does not see child benefit as income. So the mother must assume that there will be a significantly restricted loan amount.
If the mother’s situation is such that she is a single parent and has no partner, perhaps living on unemployment benefits or Hartz IV, there will be no credit for mothers at a bank. In such a case, the solution would be a second borrower or co-applicant. However, it must be solvent, have a sufficient income, a clean school and a permanent position.
Even women whose children go to kindergarten or school and earn no more than 900 USD on their earnings will not receive a loan for mothers from most banks. The risk of default is too high for banks. A second borrower or a guarantor could also help here.
In addition, the mother should know that when banks lend, they check the income / expenditure ratio of the loan seeker. The income is compared with the expenditure. If this calculation shows a substantial plus, a loan for mothers could be approved.
As you can imagine, this will not be enough for a mother with almost 1000 USD of income. If there are still two children to look after, the money in front and behind is not enough. In most cases, government benefits still have to be applied for to make ends meet. A difficult situation that should actually be different. But that’s the way it is in a country where only income and prosperity count.
If the mother receives social benefits from the employment office, a loan from the job center could be the solution in an emergency. The loan is usually repaid in small installments without interest. However, there is only credit if there is a real emergency. Social institutions could also be a way out, especially when material assets are needed. These stations help everyone who is in need.
Another option would be if the mother looks at the private loan finance portals. There are two known platforms on the Internet. What is that? Here everyone can set a credit request, which, however, appears understandable and trustworthy. Private investors, if they have confidence, will then bid on a loan. The loan amount is provided by several donors. It is worth a try for sure.
Mail order is also an option, especially when a washing machine or stove is needed. The clothes for the children and themselves can also be bought in the mail order business. If the mother has been a customer there for a long time and has always paid the installments on time, payment in installments is approved again. However, it should be taken into account that one does not overdo the installment payment. A breakdown happened quickly and it has unpleasant consequences.
However, if a higher loan amount is required, the mother should look for a solvent co-applicant or guarantor for a loan for mothers. Banks are happy to accept this credit protection. In the event of a bank default, they offer the necessary security with their own assets because they have to continue paying the installments.
A co-applicant could be a partner or a friend, a guarantor could also come from the family. A guarantor’s creditworthiness is precisely checked. Because the guarantor guarantee that most banks require, the guarantor is immediately obliged if the borrower can no longer pay. The bank does not have to issue a complex warning.