The bigger the family, the bigger the household expenses will be. In addition to the increasing expenditure for food and clothing, for example, children in particular also have an almost unlimited number of wishes. Many parents find it difficult to say no, after all, they also want to offer their children something in life. Additional expenses for vacation trips and larger purchases often strain the family’s budget. It is not uncommon for additional young people to run out of household space. Now only moving to a larger apartment or even a home helps. However, this move incurs additional costs. Many families can only meet this increased money requirement by taking out a loan.
In the case of the classic installment loan, income is decisive
If there is a general need for money, it is possible to apply for a classic loan for large families. Like any other borrower, the way to the bank is open here. The lender can be either your own bank or a direct bank from the Internet. Depending on the creditworthiness of the applicant, the lender decides individually for each request whether and on what terms he wants to grant the applicant.
In principle, the chances of a cheap loan for large families are no worse than for any other applicant. It primarily decides the income of the household over the chances of one. So if both parents have a full-time job, nothing stands in the way of a loan. If only one of the two parents has a regular income, the loan can still be granted if the income is sufficient to repay the loan amount. If necessary, only a smaller loan amount is approved here.
Additional collateral increases the chances of getting a cheap loan
With two working parents with a reasonable income, the question of credit protection is usually not an issue. In this case, the entire household income is sufficient for the lender as security for the capital invested. It looks more difficult if one of the parents takes care of the household chores and the upbringing of the children all day. If the parent with an employment relationship does not have an above-average income, it can be difficult to get a large loan. The lender often makes his pledge for a loan for large families dependent on additional collateral.
This includes, for example, the obligation to take out residual debt insurance. In the event of insolvency through no fault of your own, the borrower assumes the payment obligations until the borrower can service the installments himself. It is not uncommon for large families to have their own home. In addition to insurance and other property, this can also serve as security for a loan.
If the borrower does not have any material assets to secure his loan, he can improve his chances of getting a loan through solvent guarantors with a good credit rating. These are only liable for the borrower’s payment obligations when it is no longer possible to settle the outstanding claims. In this way, the lender is better protected against a loss of his invested capital and is more likely to agree to a loan for large families.