Anyone looking for a loan despite short-time allowance has opportunities, but also a time-consuming loan search. The information you have collected – after several hours in the queue – is summarized for you.

Loan despite short-time work allowance – starting point

Loan despite short-time work allowance - starting point

A loan despite short-time work benefit (KUG) is not an everyday loan request. Short-time work allowance is generally a social security benefit from Sections 169 ff. SGB III, but it can still be seized in accordance with Section 54 SGB I. It should at least theoretically be eligible for income as a loan. However, the garnishment of the short-time allowance is not as easy as an ordinary garnishment of wages. KUG can only be accessed in a separate procedure.

The difficult decision as to whether lending is possible at all under these conditions is only made by the Cream Bank. Short-time work benefits cannot be counted towards the loan at the Cream Bank. Out of about 10 requested credit institutions, eight did not want to comment, even after several connections had been made. A negative attitude can be concluded between the lines.

Only a bank is generally willing to count short-time work benefits. It is the Cream Bank that leaves its branches to decide on a case-by-case basis. This offer sounds fair in that short-time work is always associated with risks. It would be possible that the slump in orders lasts longer than expected. In this case, unemployment is likely, at least after the short-time allowance has expired. 

Creditworthy despite short-time allowance

Creditworthy despite short-time allowance

In addition to accommodating the Cream Bank, there is another way to make a loan eligible despite short-time allowance. The KUG does not automatically have to make up a large part of the income. If ordinary wages still go beyond the attachment limit, there are still fair credit opportunities. The personal limit to the attachability depends on the individual life situation. The exact number can be found out via a current attachment table.

To grant a loan, only the Credit Bureau must then be free of negative entries. In addition, despite the KUG, the budget statement must prove a surplus. If this does not work, a solvent guarantor or co-applicant can fill the credit gap. In this case, the guarantor bears the credit risk if something should not work out with the repayment.

Credit without the bank – despite KUG

Credit without the bank - despite KUG

For almost all credit requests that are not fulfilled by commercial credit providers, there are opportunities with private investors. You can easily contact private donors via one of the large portals. It has been possible to publish a difficult loan request on one of the platforms for more than five years.

Private investors, mostly small investors, now have the opportunity to ask questions or to bid directly on a loan request. If enough bids have been submitted and accepted, the loan is approved. Further processing is carried out by a bank working in the background. It collects the money from the investors and transfers it in one sum to the borrower. It cannot be guaranteed whether a loan will be granted privately despite short-time work benefits. Nevertheless, it is a fair credit opportunity and the attempt costs nothing.