Loans for Unemployed in the UK
Everybody knows that there is a wide range of loan options for people who are in paid employment. This cannot be said of people who are in search of a job. If you are living in the UK and have some financial difficulties to contend with while still unemployed, are there loans you can take to solve such problems? Yes, there are.
Unemployed people in the UK could take advantage of these loan options and take care of their personal finances:
Payday loans are short-term loans that are available for you if you want to fix some emergency financial problems such as repair bills and others. This loan is for individuals who are not employed but have an income that is regular and sufficient enough to make repayment of the loan possible. When lenders see that you are capable of making your payment, they will be willing to lend you about 1,000 to be paid within a month.
Your qualification for this loan is based on these criteria:
- You must be a UK resident.
- You must be 18 years of age and above.
- You must have a valid and functional bank account.
- UK citizenship is a must.
Those who are qualified to take this loan do get their loan within 15 minutes in their bank accounts after approval.
This is a loan option where you are required to provide a guarantor before you can be given a loan. The presence of a guarantor will lend credibility to your ability to repay the loan. This will make the lenders consider giving you a loan since the guarantor will be held responsible for the repayment if you default on your payment or you declare bankrupt. With a guarantor loan, you can borrow 12,000 which you can pay between a year and 7 years. To qualify for this loan, your guarantor must meet these requirements:
- He or she must be 18 or over.
- Must be a homeowner.
- The guarantor must not be on any Individual Voluntary Arrangement.
- A bankrupt guarantor will not be accepted.
One of the cons of guarantor loan is the high APR. It usually ranges from 40% to 200% depending on the lender. However, since lenders do not consider your credit rating, you may decide to go for this loan if you are unemployed and have poor credit rating. Also, the lenders do not discriminate against you based on your record with CCJ. Regardless of your situation, don’t give this loan option any consideration if you have any doubt about your ability to make necessary repayments. Doing so may put your guarantor and their dependants in serious financial trouble.
This is a type of loan where the loan will be brought to your home. The lenders here are ready to take the personal circumstances of the borrower into consideration while considering his or her eligibility. The process of borrowing and paying a doorstep loan is usually done on a face-to-face basis. This eliminates the need for a functional bank account because both the lending and repayment will be done at your doorstep.
The lending company will send a representative every month to collect your monthly payment, making them a popular option for people who don’t have a bank account and unemployed. What the lenders need is an evidence that you can repay the loan within the stipulated time without defaulting. You can borrow between 100 and 2500 depending on whether you are a new or existing borrower.
To confirm your eligibility for the loan, the company will send a representative to access your condition after you’ve applied for the loan online. Some of the factors that will determine your eligibility are:
- Your age: You must be 21 or over. Some lenders will not consider borrowers who are below 25.
- Your residence: This is one of their major criteria. Most lenders of this loan don’t accept borrowers who live where you have to deal with a buzzer before you gaining access to the borrower. They prefer unrestricted access to the borrower at any time.
If you are eligible, the process will be discussed with you via phone calls and you will have the money brought to you at home as soon as possible. The whole process usually takes about 3 to 5 working days.
While this loan idea is very attractive, it attracts a high APR which can be anywhere between 190% and 650%. The collection is made weekly and repayment periods can be between 14 and 52 weeks.
Doorstep loan companies employ the services of self-employed agents living in the neighborhood for any transaction. Therefore, do yourself a lot of good by knowing the name of the agent that is assigned to collect payment from you in advance. When the agent comes, check his or her ID to confirm you are not dealing with a sham agent. Most experts believe this loan should be the last resort due to its high-interest rate.
This is a type of loan that requires no collateral. If you are an unemployed tenant or homeowner and resident in the UK, you can take this loan if you don’t want to put your property at risk. The interest rates for unsecured loans are very high because the lender has no security for his money. In the case of non-payment by the borrower, the lender cannot lay claim to the borrower’s property because the property is not used to secure the loan.
Even if the lender has no way to get his or her money back if you default on your payment, you are jeopardizing your credit record. This may come back to haunt you if you need to take some loans in the future as most lenders frown at borrowers with poor credit rating.
One of the benefits of unsecured loan is that it can be used for a wide range of purposes without any discrimination. It can be used for vacation, home improvement, education, consolidation, marriage, and any other purpose you want to use it for.
You can secure a loan of between 500 and 2,500 depending on the purpose of the loan and your ability to repay it.
Bad credit loans for unemployed
If losing your job has rendered you unemployed with a bad credit rating, you are not down and out. The Bad Credit Loans for Unemployed is a great way to overcome your financial worries. This plan allows lenders to consider the possibility of failure to meet up with your payment plans and give you a loan with highinterest rates. The APR can vary from 8.4% to 17.9%. The interest rate is determined by a lot of factors such as your credit rating, duration of payment, and the loan amount. For the first 5 years of payment, interest is fixed at 11.4%.
To qualify for this loan, you must satisfy the following conditions:
- You must be 21 and above.
- You must have a property to secure the loan. This property will be sold to repay your loan in case of failure to make the expected payment promptly.
While this loan option can help you sort out your financial problems, don’t forget to contact different lenders before you take it. You may get a lender who is ready to give you a much lower interest rate than others. If you take that, it will reduce your monthly payment and years of payment.
Student loan for the unemployed
This is another scheme under the unemployed loan option. If you have a proof of your eligibility for a loan, you can take a student loan for the unemployed with its numerous benefits. While being unemployed is a great challenge, combining education with it complicates the issue. This loan scheme gives you a perfect opportunity to pay your way through higher education in the eventuality that you don’t have a job. It is the ideal loan option for undergraduate, graduate, and post-graduate students. Your course of study and the type of education you want to use the loan for will determine the amount of student loan that you can get if you are an unemployed student.
This loan has some benefits which include:
- No strict eligibility criteria.
- Flexible repayment options.
- You can postpone the payment if necessary.
- Low-interest rate.
- Short repayment term.
- You can get this loan regardless of your age if you have an evidence of your studentship.
Unemployment does not prevent you from having financial responsibilities. On the other hand, unemployment can increase your financial crunch. If you are unemployed, you can take a personal loan that is tailored to meet your needs. You can take this loan to meet a variety of financial needs such as education, vacation, and whatever you consider important to you.
Applying for this loan is relatively easy. The lender will consider your current financial status and income to determine your ability to repay the loan. If you are qualified to take the loan, the lender will come out with a loan that will meet your needs without mounting more pressure on your financial status through high interest rate.
Some benefits of the loan include the possibility of using it to solve different financial problems such as loan repayment, education, vacation, and other needs.
The loan also has low interest rates compared with other loans
You can enjoy a good discount if you apply for the loan.
Flexibility of payment makes it feasible for you if you are unemployed.
Unemployed loans for retired people
If you are retired, you probably have no source of income. As such, you may need some financial assistance to take care of your need. This is available in the UK either as secured or unsecured loan.
The secured form of this loan means that you pledge your property as collateral for obtaining the loan which may range between 5,000 and 100,000. If you have the right collateral, the interest rate will be reduced so that you can pay the loan back faster.
If you take unsecured Loans for Retired People, you don’t have to secure the loan with your property. In fact, no collateral is required if you take this type of loan. However, the interest rate will be higher than taking the secured loan since you have nothing to lose. Repayment period is between 1 and 10 years.
Whether you have an existing credit problem such as IVA, bankruptcy, arrear, CCJ, or default, you can take this loan if you meet the requirements that are outlined below:
- Permanent residence in the UK is compulsory.
- You must be at least 60 years old at the time of applying for the loan.
- A functional bank account to make an electronic transaction possible.
The repayment term for this loan is very flexible and you have the privilege of extending the payment terms if that is necessary. If you are in need of this loan, just fill an online loan form and you will be contacted.
Trusted lenders in the UK
If you reside in the UK and are unemployed, you can contact any of the listed lenders below to get a loan for your needs:
- Lending Works.
- Norton Home Loans.
- Precise Mortgages.
- Central Trust.
- Sainsbury’s Bank.
- Together loans, mortgages, and finance.
While it has been established that your unemployed status does not spare you from financial responsibilities, these loan options are there to help you out. You can leverage the numerous benefits of these loans for unemployed to give your financial condition a positive turn around.
Whatever your condition, don’t be in a hurry to get a loan without giving serious consideration to your ability to repay the loan. You may be better off without the loan that taking it without the required financial power to repay it.
It is important to consider different options before making a decision. If a loan appeals to you, consider if it is the right one for you. That will save you from paying a loan that doesn’t serve the desired purpose.
Unemployed Loans Pros
- Receive funds despite your current or previous employment status
- Resolve existing debts
- Guarantor or no guarantor loans - meaning you can select a guarantor to increase the number of lenders likely to accept your application by having a separate individual vouch on your behalf
Unemployed Loans Cons
- Interest/APR rates may be higher than normal if the loan is unsecured. As an individual is unemployed and has no collateral against the loan, a lot of lenders may instantly reject or charge expensive fee’s
- Proof of income is require to meet the lenders conditions. This can be showcased through government benefits, state pension, etc.