Strong impact on the account
If you have had an accident or serious illness and have been on sick leave for a long time, you will certainly receive sick pay. Unfortunately, the sickness benefit is only a fraction of the previous income and is therefore not sufficient to maintain the usual standard of living.
Larger purchases or expensive repairs would therefore have a strong impact on the account and cause financial problems. If you are currently receiving sick pay and still urgently need money, you can take out a loan despite receiving sick pay and provide more financial scope.
What are the risks?
Many banks are unwilling to grant loans to workers on sick leave. After all, it is uncertain whether you can work again after your illness and if so, how many hours a day. Although the sick pay is theoretically an income, it is not counted as such by the banks. This is because sickness benefit is only paid for a limited period of time and is therefore not a permanent source of income that could serve as credit security. If you want to get a loan despite sick pay, you have to offer the bank a lot of security. For example, it is advisable to appoint a guarantor who will assume your payment obligations in an emergency.
More clarity through a comparison
Are you looking for an advantageous and cheap loan? Then you should definitely carry out a comparison and find the best bank with just a few mouse clicks. After you have entered some important data into the comparison calculator, a result will appear that fits your requirements perfectly. It is important that you not only allow yourself to be attracted by low interest rates, but pay attention to the “total package”. Of course, this also includes the length of the term and the amount of the monthly installments. Allow yourself a little more leeway and agree flexible terms that adapt to your living conditions.