Those who have to live with a long-term illness cannot go to work and have to live on sick pay. Sickness benefit is a wage replacement benefit that cannot be attached by creditors. Can a loan be taken out in spite of sickness benefits under these circumstances?
It will be difficult, but it is not impossible
The fact is that you will not be able to get credit from your house bank or other traditional banks despite receiving sickness benefits. The lack of income and the fact that sickness benefit cannot be seized cause the rejection. You can only turn the tide with a second applicant. The additional applicant must be solvent and have a good income.
But even outside of the second applicant, there is an option to implement the loan despite receiving sickness benefits.
The consumer loan
So there is still consumer credit, which sees the conditions for a loan a little more relaxed. There is no need to provide proof of income here, but it is sufficient to state when applying that you are receiving an income. Roughly speaking, sickness benefit can also be seen as income. And so you would not make a false statement when applying.
The fact that everything is seen so loosely with a consumer loan is because the consumer loan is principally earmarked. So you can only finance the things you want to buy. The money is not freely available and the items purchased are considered security. If you are in default of payment, you have to expect that the items will be attached by the bank.
This is how borrowing works
Many retailers can take out the loan as a consumer loan despite receiving sickness benefits. They offer targeted financing for their items and also point this out to customers when making a purchase. If you choose the financing, you will be rewarded with low interest rates and pleasant installments. However, there is no choice regarding the loan. You have to take the offer that the dealer has ready and you can only take out the consumer credit there. Despite all this, the length of the repayment phase gives you the option of choosing between different terms.