Had there been a rule that if you are unemployed, you will be relieved from all the bills that you have to pay, life would have been quite beautiful for all of us. However, the fact is that irrespective of whether you are employed or unemployed, you have to meet the basic necessities of life, which requires money. Therefore, unemployment is always the worst phase of anybody’s life.

Employed people find it very convenient to get a loan anytime and anywhere but those who are jobless find the loan process very cumbersome and costly. However, considering the unemployed loan market lucrative, there are lenders who have started offering loans to unemployed that too at an affordable rate of interest. For unemployed people, ‘Loan for Unemployed’ is a panacea to meet expenses of basic needs. With loans for unemployed, people can pay their pending bills as well as improve their financial status. These loans can also be obtained for consolidation of debts by the unemployed that also helps them to improve their credit score.

Though both secured and unsecured loans are available for unemployed, it has been seen that unemployed do not want to offer their asset, for example their home, as collateral. Instead, unemployed prefer unsecured loans. This is because in case of secured loans, if you offer your home as collateral, the lenders have the right to sell and compensate their loss in case you default in making payment. However, in case of unsecured loan for unemployed there is no such risk.

If you are getting any income support, benefits, or any other living or unemployment allowance, it will be considered your income by the lenders, which in turn, will help reduce the risk for lenders and hence reduction of rate of interest. But, if you do not have any such income support or you suffer from bad credit history then interest rate is likely to go up.

The amount that can be borrowed is decided by the lender after they decide about the repayment abilities of the borrower. Usually, in case of loans for unemployed, one can get anything between £1,000 and £15,000.

Rate of interest typically vary from 7.9% APR Variable to 19.9% APR Variable. Also the borrower must take care of the repayment term as they are not supported by any fixed income. It is always advisable to opt for a flexible repayment term instead of fixed one. Anyway lenders are lenient to the unemployed and generally charge no or less penalty for repayments.

Finally, I would say that now unemployed do not need to sit and curse their fate. They now have the option of borrowing loans for unemployed to meet all of their financial problems.

Unemployed, now, need only to be prudent in choosing the most suitable repayment term for yourself. Be ready to have all the pleasures of life weather it be purchasing a car or planning a weekend trip because your unemployment can’t stop you from all these any more.

Image taken on 2008-11-14 03:24:57. Image Source. (Used with permission)