How To Get A Loan To The Unemployed

An unemployed person is not necessarily a person who has no income. After all, many earn remotely at home (and often very decent money), but legally they are considered unemployed because they cannot officially confirm their earnings. Nevertheless, both real and formally unemployed have a chance to get a loan.

Do loans give unemployed people?

If you cannot provide a certificate of your income, the bank will be a little on its guard, because in this case there are few guarantees that your income will remain at the same level, or even cease to exist. Therefore, banks are either not associated with questionable borrowers, or are trying to protect themselves by issuing loans on special conditions.

How can I get a loan without formal employment?

Reliable Guarantors

If an unemployed person applied for a loan with a reliable guarantor, his credibility increases. And if it is a relative who can help with the repayment, the loan is likely to give no problems.

By the way, if you have a relative or friend who has the amount you need, it is easier to borrow money from him: both interest will be low (if at all) and terms can be negotiated (not strangers).

Pledge

If you have a collateral for the loan issued, the bank will be calm for your finances in case of non-payment of disease called debt. The main thing is that you yourself are aware of the risks and are ready to part with the property if anything happens. The collateral can be acquired property, whether it is housing or a car.

Small Loan Amount

Banks are often insured, giving out small amounts to borrowers so that they pay them faster. Therefore, do not count on any amount. And if you already need a small amount, you can take a microloan on a passport or a maximum of two documents.

Large Down Payment

So that you pay the loan faster, the bank can set a high standard for the down payment (30–50% of the amount). Similarly with a high bid.

Perspective business plan (for entrepreneurs)

Often, even the unemployed, but far from stupid people who need money for the creation and development of a business, apply for loans. For this you need a business plan, but not simple, but well-written. Most business plans, banks reject because they see a lot of errors and inconsistencies.

Therefore, if you need finances for your own business, the business plan should be thought out (minor inaccuracies are allowed, which the bank can even discuss with you).

Credit cards

Getting a credit card is easier than cash. But be careful when concluding a contract: cash withdrawals from a card are often carried out with a commission, which is profitable for the bank.

Credit Broker Assistance

These are organizations that cooperate with banks and know about them more than others. The broker can negotiate with the bank, but his services are not cheap.

Brokers should be contacted when there are no other options.

Contacting a small bank

Small young banks are increasing their customer base in various ways:

  • Lower interest rates;
  • Lack of initial contributions and collateral;
  • Long-term lending;

Issuing loans without references and guarantors.

Banks are often denied credit to the unemployed because they have a bad credit history.