Nothing can be more stressful than being unemployed. There are tons of things that you have to deal with including your bills, daily expenses and many more. And, managing all this can be a back breaking task when you don’t have a reliable source of income. For a moment, you might think of getting a loan in order to put your unstable financial life back on the track. But, here is the real deal – getting a loan is quite difficult than you might have imagined in your dream.
Well, most of the street banks and other financial institutions provide loans to the people who are working and have a steady source of income. Basically, this instills a feeling of trust in the lender that the borrower will most probably repay the amount within the time. On the other hand, if you are unemployed, then there is a thin chance that the banks will trust you or consider you as a worthy borrower. This is the reason why getting loans for unemployed loans for people with very bad credit loans no guarantor no broker is not that easy.
Is it even possible to get a loan?
By reading all these, a common query might pop up in your mind that “is it even possible to get a loan if I am unemployed? Well, yes, there are certain ways to get a loan. There are many lenders who give certain types of loans specifically made for the people with no job in hand. Basically, these loans are given at a high interest rate and on a short term basis. Here, in this blog, we will be discussing these loans in details so that you can go for any one of them as per your convenience. Now, let us get started.
Different types of Unemployed Loans
Here is the list of the different types of loans that you can apply for if you do not have a regular job:
- Guarantor loans: In this type of loan, you have to present a guarantor in front of the lender in order to get the loan that you have applied for. With a guarantor supporting you, the chance of getting the approval of the loan increases dramatically. Therefore, if you are somehow not able to repay the amount, your guarantor will be responsible for this to complete the debt. In order to get the approval of the guarantor loan, you need to qualify the following criteria:
- The age of the applicant should be above 21 years.
- He/she must have a house owned by him/ her.
- The guarantor must not be involved in any kind of IVA (Individual Voluntary Arrangement).
- A guarantor undergoing bankruptcy will not be accepted in any circumstances.
- Doorstep loans: Another type of loan that can be applied by the unemployed people is the doorstep loans. In this type of loan, the agent directly sends the amount to the borrowers’ house by after he/she has qualified the criteria set by the lenders. Basically, a face-to-face interview is conducted to see the repayment potent of the borrower before the loan is given. In order to get the approval of doorstep loans, you must qualify the following criteria:
- Firstly, the age of the applicant must be at least 21. There are also many lenders who accept the borrower’s request only if he/she is 25 years or over old.
- Next, most of the lenders reject the request of the loan if the applicants live in a residence where there is a buzzer in order to get access.
- Secured loans: This is quite a popular type of loan where the borrower has to present an asset or also known as collateral in front of the lender. This asset could be either your car, jewelry or house and if you are unable to repay the loan, the asset that you staked will legally go into the hands of the lender. Therefore, make sure that you are ready to take the risk before applying for secured loans. In order to qualify for secured loans, you need to fulfil these requirements:
- The age of the borrower must be 18 or over.
- He/she must be a resident of UK.
- The value of the asset given must be equal or above the amount of the loan.
- Payday loans: These are basically short term loans that can be borrowed when you want to meet up your sudden financial requirements. Therefore, if you are unemployed but you do have a certain source of income, then you can apply for this loan. As this loan is given on the short term basis, the amount is generally not very high and the borrower has the liberty of repaying the amount in months. Most borrowers go for 12 months payday loans where they have an entire year to complete their debt. Now, let us have a look at the criteria of this loan.
- Must be a resident of UK.
- The age must be equal or above 18 years.
- A valid and functional bank account is mandatory.
- The applicant must be a citizen of the UK.
Wrapping up, these were some of the best options of unemployed loans available to you. Therefore, you can apply for any one of them as per your requirement. However, before applying the loan make sure that you have learned everything and have contacted the right lender.