Unfortunately, the need for money is never based on the right time. So it may well be the case that your own increased money needs fall into a period in which sickness benefit instead of salary flows into your own account. As with many questions about money, banks decide individually and at their own discretion.
But can a loan with sick pay be implemented at all? The fact is that there is no targeted loan on the market in the event of sickness benefits – however extensive the offers have become. Nevertheless, you should not be frightened and, if there is a need for money during the illness phase, you should also approach the problem actively.
In general, there is nothing to be said against borrowing within a sick leave
Basically, the banks are very open to applicants who want to apply for a loan in sick pay. Of course, this loan is not explicitly offered in this form. However, your own bank will not refuse the loan because you are currently unable to work and therefore receive sick pay. The loan with sick pay is therefore easy to implement. To do this, it is important that there is also a prospect of an improvement in the clinical picture in the case of sick leave. The fact is that the sickness benefit is significantly lower than the previously received income. Anyone who is able to work again after a while so that they can draw on old income in the usual amount will have no problem getting a loan that is based on real income.
Problematic: the disease may not be curable
A problem with the credit within the sickness benefit drawing could arise if it is not foreseeable whether the ability to work can be regained. Sickness benefit is limited in time and afterwards a permanently sick person may have to expect further reductions in income. In such a case, the bank should be played with open cards and only the absolutely necessary loan amount should be taken out if necessary.
This prevents bottlenecks in your own budget due to loan repayment. A long-standing house bank will usually be accommodating here and also grant the appropriate loan. However, the loan may not be granted in the desired amount , but only in the amount appropriate to the income. It is then also important for such a positive credit decision that your own creditworthiness is impeccable and that there is no indication of bad payment behavior.
Attention, if you make loan inquiries with several providers
If you want to get a loan within the sickness benefit, you are quickly inclined to contact different providers and to obtain loan applications. One should then note that one urgently points out that one only wants to obtain a non-binding loan offer under the given conditions. If the request is rated as a loan application, the non-use or rejection of the loan by the credit institution can significantly reduce your own Credit Bureau. It is important to be careful here and not to send or submit multiple applications for the security of a loan.