Sickness benefit is linked to the six-week continued payment of wages and amounts to seventy percent of gross, but no more than ninety percent of net income. Households that get on with their money often need an additional loan to bridge the sickness benefit, which is often rejected by the requested financial institution.
Borrowing from commercial banks while receiving sickness benefits
Even if the resumption of work and, as a result, the re-payment of the previous wages is expected, financial institutions are reluctant to request a loan despite receiving sickness benefits. With automated loan application processing, in particular, they often consider sickness benefit as a temporary cash access, while they do not take current wages into account because the customer does not receive this for a loan at the time the application is made. Banks also see a certain level of uncertainty as to whether the sick employee can actually return to work.
In order to successfully apply for a loan despite receiving sickness benefits, applicants choose a bank that takes into account the special situation and in particular the wages that will come back later, and if possible attach a medical forecast to their application about the probable time of resumption of work. Often, at the beginning of their illness, employees recognize that their ability to work lasts longer than six weeks. You can therefore avoid a loan despite receiving sickness benefits by submitting the loan application while still receiving the usual continued payment of wages. If employees can already foresee the time of recovery, the salary to be expected soon can be stated in the case of an immediate loan without proof of income despite the sickness benefit.
Take out personal loan while receiving sickness benefit
As an alternative to a bank loan, borrowing via a platform for arranging private loans is available as a loan despite receiving sickness benefits. The lenders registered there largely make their decisions based on social criteria and subscribe to the requested loan from a sickness benefit recipient, precisely because conventional credit banks do not classify sickness benefit as a secure income. The platform operator is responsible for the loan disbursement, so that private borrowers and lenders do not learn their mutual bank and contact details.