Basically it is not easy to get a loan with sick pay. In contrast to wages or salaries, sickness benefit is not considered a fixed income, but is added to social benefits. As a rule, these cannot be attached, or only under difficult conditions.
As a result, the banks would have no way of accessing sick pay and seizing part of it in the event of arrears. A loan with sick pay will therefore only be possible if the applicant can find a guarantor or a second applicant. If suitable, the spouse or life partner could assume this role.
Sickness benefit – only after 6 weeks of illness
Sickness benefit is only paid in Germany when the person in question has been ill for at least 6 weeks and the period of continued sick pay has been exhausted. For this reason, the bank must always assume that the recipient of sickness benefit is a seriously ill person, and it is often difficult to predict when she will recover and whether she will be able to resume her old employment relationship to the same extent.
To make matters worse, the fact that an employer is unwilling to wait for a long time for the return of a sick person and that he or she quits during the illness must always be expected. As a result, the person concerned is completely without income after the end of sickness benefit and often has no other option than to go to the employment office or to the labor union to apply for unemployment benefit I or unemployment benefit II. By then at the latest, creditworthiness would no longer exist.
Sickness benefit credit – often not a problem with current obligations
If a loan was taken out before receiving sickness benefit and the installments are repaid during the illness, there are usually no major problems with the bank. It only becomes difficult when there are financial constraints due to the illness and the installments can no longer be paid on time. Then the conversation with the bank should be sought and negotiated about a partial payment or a temporary deferral of the monthly installments. Banks usually get involved with a loan with sick pay.