Unemployment is not a new phenomenon. The world is as used to it as daylight. There are a multitude of people out there who are unemployed presently. The cause may be downsizing or some personal misfortune; losing your job could happen unexpectedly. The good thing is that for most of these people, it is just a transitory phase and they will be back on their feet in no time. Taking note of this, lenders have devised a specific lending scheme for the unemployed known as loans for unemployed.

Loans for unemployed are specialized loans for borrowers who presently do not have a regular source of income. These loans may be taken to generate funds for ventures like car purchase, home renovation, wedding, debt consolidation or any other plan that you have on your mind.

Loans for unemployed are advanced on the understanding that you are currently out of a job. But if you have the good fortune of availing unemployment benefits, you could get approved more easily. Benefits like disability allowance, redundancy pay or one-income allowance provided by your previous employers could help assure the lenders that at least you have a solid repayment capacity.

Loans for unemployed can be acquired with or without collateral. The benefits of availing this loan by pledging collateral is that a large sum of money can be borrowed for a longer repayment term. If you are not comfortable with pledging your assets or if you don’t own any valuable asset, then you can go for an unsecured option. The interest rate can be a bit higher and loan amount limited to £25000. But a shorter repayment term can be availed through this option.

Loans for unemployed have many advantageous features:
• They are generally charged low interest rate
• Repayment in small monthly installments as per your budget
• Flexible repayment options like overdraft, standby facility and holiday period

Loans for unemployed are undoubtedly the financial aid which can make many financial ventures possible at that time in your life when nothing seems possible.

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