Being unemployed can be stressful and upsetting. While you're unemployed, you may think that you have no chance of getting approved for a personal loan. In many cases, you are correct in thinking that it will be harder. A good number of lenders will steer clear of unemployed borrowers because these borrowers do not have a regular source of income to guarantee repayment of the loan. However, there are lenders out there that are willing to look past your current financial downfalls in order to see your need. They may be able to help you find a way to get the money you need.
There are two types of loans available to unemployed borrowers: secured and unsecured unemployed loans. For a secured unemployed loan, you need to put up something of value as collateral. This will provide your lender with some security that your loan will be repaid. With a secured loan, your interest rate will be lower than with an unsecured loan, but by putting up your valuables as collateral, you run the risk of having them repossessed if you are unable to repay the amount of your loan.
With an unsecured unemployed loan, you will have to pay higher interest rates than you would if you had taken out a secured loan because your lender is taking a higher risk by lending you the money since they have no security that the amount will be repaid. Getting an unsecured loan when you're unemployed will be fairly difficult, but there are lending institutions out there that are willing to consider you regardless of your lack of collateral.
You can get an unemployed loan for as little as £500 or occasionally for as much as £25,000. The factors that your lender will look when deciding whether or not to lend to you include your current income (if any), your credit history, and the length of time you have been unemployed. If you're unemployed with bad credit, don't despair. There are lenders that will consider you regardless, although the interest rate will be higher to counteract the increased risk that you represent as a borrower.The term for an unemployed loan ranges from six months to ten years. Unemployed loans can be taken out for a number of reasons including higher education, debt consolidation, taking a holiday, purchasing a car, etc. In short, there are many types of unemployed loan plans with varying interest rates and terms.
Your financial status will determine your interest rate. Even if you have adverse credit, there are some lenders that will consider you for a loan anyway. Many online sites provide loan matching services that will help you find the lender that is best suited to your particular financial and borrowing needs.