In case of prolonged illness, employees receive a sickness benefit from the health insurance fund instead of their salary, which is generally lower than the salary. In addition, sickness benefits are only paid for a maximum of 78 weeks. For this reason, banks often only grant the loan if the illness is temporary and resumption of work is foreseeable. The interest rates for loans are between 2.9 and 15.9 percent.
Due to the large differences, it is recommended to obtain and compare several offers. As loan amounts, sums of between € 1,000 and € 100,000 are possible, whereby a corresponding credit rating is required, especially for higher amounts. The term can be agreed with the bank and is 12 to 120 months.
Depending on the repayment installment and the term are also often the interest rates, which is why an accurate calculation can be worthwhile. When selecting the loan offer, it should also be ensured that special repayments are possible without paying a fee, so that the loan can be repaid in a more flexible and cheaper way.
If there is no recovery and the inability to work exceeds the period of sick pay, many banks refuse to grant a loan. However, some banks also grant a loan despite sickness benefit for an indefinite duration of the disease. Therefore, in any case, several banks should be in demand to find out about the possibilities of borrowing.
Usually, in such a case, the designation of a guarantor who can be used to pay off the debts if there are financial difficulties is required. The guarantor has to certify by proof of income that he can pay the installments. In addition, a private credit statement will be obtained from the credit institution used to verify creditworthiness.
Should the borrower have collateral in the form of own property, home savings or other property, plant and equipment, this may have a positive effect on the decision of the bank. An alternative are those loan offers where no information is required and credit requests are often granted without difficulty. The terms of such loans, however, are less attractive, so the loan is more expensive and the repayment can lead to problems.