A housewife is a woman who, in a traditional single earning marriage, uses all of her labor to manage the household and raise children. The view that housewives do not generate income is common not only in everyday language but also in many banks.
Nevertheless, she is actually wrong, because housewives in one-earning marriage are in fact half of the income of her husband. After all, he can often only do a full-time job because his wife takes care of the household and children’s needs.
The bank risk of a housewife loan is lower than it seems
Most banks shy away from the alleged risk of approving a loan for a housewife with no income. In fact, there is no such risk if the housewife applies for the joint household management loan, since in this case the husband is automatically liable for the borrowing. This joint liability does not necessarily apply if the non-employed wife uses the credit for purchases that serve only her self.
Since the banks cannot see the purpose of a loan, they often only grant a loan to a housewife without income if the loan is taken out together with the husband. Alternatively, the housewife can ask her parents to guarantee the loan. However, the bank only accepts a surety from relatives if they are aware of the risk and are economically efficient.
If the housewife only needs a small loan amount, the small loan granted by some banks is ideal for every customer. The prerequisite for this is usually Credit Bureau information without negative characteristics. Anyone who is a customer of a small regional house bank and is personally known there also has a good chance of receiving a loan as a housewife without income.
Other ways of borrowing
When ordering items required for the household, payment in installments can easily be arranged as a dedicated loan for a housewife without income, since the trader can see that the financed item is used for housekeeping and thus triggers a joint liability of the husband. Furthermore, on most platforms for brokering loans between private individuals, a loan for the housewife without income can be applied for.
The platforms are formally issued by licensed commercial banks, but the decisions on lending are made by the members registered as lenders. These are based in many cases on social criteria and consciously support people who can only borrow from commercial banks to a limited extent. On the corresponding platforms, the housewives looking for a loan describe both their financial situation and the intended use for the desired loan.