Financial Review: Overcoming Financial Challenges during Maternity Leave


Welcoming a child into your family is a joyous occasion, but it also brings along a plethora of expenses. From baby essentials like strollers, furniture, clothes, and toys to unforeseen costs, the financial burden during maternity leave can be overwhelming. Even with careful savings, it’s challenging to predict and account for every possible expense. Unexpected circumstances, such as a decrease in the working spouse’s income or sudden household repairs, can strain finances further.

Maternity allowances and salaries may not cover all the necessary expenses, and personal savings are not unlimited. In such situations, exploring loan options becomes crucial to alleviate financial stress and ensure a smooth transition into parenthood.

Option 1 – Bank Loan

The most common solution that comes to mind is applying for a bank loan. However, this avenue poses several challenges for mothers on maternity leave. Banks typically favor applicants with stable and permanent incomes, making it difficult for those without such credentials to secure a loan. Mothers with young children face additional hurdles when visiting a bank, as finding suitable childcare can be a daunting task. Long waiting times and queues further complicate matters.

Moreover, banks often require an extensive list of documents that might be challenging to gather, causing delays in the loan application process. It’s essential to consider that banks generally offer loans with minimum amounts, potentially leading borrowers to spend more than necessary.

Additionally, borrowers should be mindful of the long-term commitment that comes with bank loans. If the financial requirement is relatively small, a bank loan may not be the most suitable choice for mothers on maternity leave.

Option 2 – Credit Card

Another viable option for mothers on maternity leave seeking financial assistance is obtaining a credit card. With a credit card, you can access a line of credit and repay the borrowed amount within a specified period to avoid incurring interest charges.

However, it’s crucial to remain diligent and remember the repayment dates, as failure to meet these deadlines can result in substantial interest rates. While credit cards often offer generous spending limits, exceeding these limits may attract additional fees and penalties. The application process for a credit card is generally more streamlined, and the chances of approval tend to be higher compared to bank loans.

Option 3 – Microfinance Institution (MFI) Loan

For mothers on maternity leave in need of quick and hassle-free financial support, turning to microfinance institutions (MFIs) proves to be an ideal solution. MFIs specialize in providing small loans with flexible terms and minimal documentation requirements.

Unlike traditional banks, MFIs are more open to lending money to individuals without regular employment, including mothers on maternity leave. The application process for an MFI loan is typically conducted entirely online, eliminating the need for physical visits to a branch.

To obtain a loan, applicants select their desired amount and loan term, provide identification confirmation, and furnish a valid phone number. Once the application is submitted, the approval process is swift, and funds are usually transferred to the applicant’s card within 5-10 minutes.

MFIs offer several advantages for mothers on maternity leave seeking financial assistance.

  • Firstly, they do not require income verification, allowing applicants to secure a loan without having to prove their current earnings. This aspect is particularly beneficial for mothers on maternity leave, as their income might be reduced or temporarily halted.
  • Secondly, the convenience of online applications enables mothers to complete the process from the comfort of their homes, eliminating the need to find childcare or navigate through long queues at traditional banks.
  • Thirdly, MFIs cater to individuals with diverse financial needs and offer loan amounts that are better suited for smaller expenses. This prevents borrowers from being tempted to borrow more than necessary and potentially falling into a cycle of debt.


When navigating the financial challenges of maternity leave, it’s crucial to explore loan options that provide quick access to funds without unnecessary complications. While bank loans and credit cards can be viable choices, they come with limitations and potential hurdles, especially for mothers on maternity leave. Microfinance institutions (MFIs) emerge as a practical and flexible solution, offering convenient online applications, swift approvals, and loan amounts tailored to meet smaller financial requirements.

By carefully weighing the available options and considering individual circumstances, mothers on maternity leave can secure the necessary financial assistance to ensure a stress-free transition into parenthood, allowing them to cherish precious moments with their newborns.

5/5 - (10 votes)
CashLoanPH Changed status to publish 27/05/2023
Skip to toolbar