A loan for the unemployed is almost always a classic installment loan, as is also given to people with a fixed income. The loan is paid out in a certain amount and then repaid in fixed monthly installments.
As a rule, a loan for the unemployed is not given by “normal” banks, but by some special providers. Due to the higher risk, the interest on a loan for the unemployed is usually somewhat higher.
What are the requirements for a loan for the unemployed?
Regular income is one of the most important prerequisites for lending. Of course, unemployment benefits can also be counted as income in a certain sense. It is not uncommon for at least the benefit to be higher than the monthly income from many workers.
For this reason, some banks do agree to grant a loan to the unemployed. The borrower may have to meet some additional requirements. In any case, Credit Checker information without negative entries is required. As with any loan, a Credit Checker query is mandatory for unemployed people.
Banks may also require additional collateral. For example, this can be the assignment of a life insurance policy or the deposit of a motor vehicle. It also makes sense to apply for the unemployment loan together with a second borrower. If he has a sufficient income and a clean Credit Checker, there is nothing standing in the way of lending even at regular banks.
Who grants a loan to the unemployed?
For example, unemployed people who urgently need a loan can contact a credit broker. These work with many banks and specialize in loans under difficult conditions. However, there are also some black sheep among them. It is therefore important not to pay an agency fee in advance. Alternatively, the unemployed can also turn to a credit platform on the Internet.
Here loans are granted by private individuals, which is why the conditions are less stringent compared to banks. Loans for unemployed people without a Credit Checker are sometimes offered. The borrower may have to meet some additional requirements. In any case, Credit Checker information without negative entries is required. As with any loan, a Credit Checker query is mandatory for unemployed people.