You are useful to your family and to the society until you are earning a good income. Yes, it is a bitter truth because no one trusts on an unemployed person and perhaps, everyone wants to maintain a distance from him. Such situation will not bother you until and unless you have savings to manipulate over the expenses. However, it suddenly converts into a horrible situation when a sudden financial expense arises such as ill health, bill payment and many more. What will you do? First thing that comes into your mind is taking help of the friends or relatives, but as already said, everyone wants to keep away from those with no job in hand. They are not selfish but they may have their own financial obligations.
Perhaps, it is the better time to look for the external funding sources. What will be those sources? Indeed, here we are talking about taking loans for unemployedpeople. The direct lending options are more or less useful nowadays and many people are taking advantages of it. The lenders are adopting quite a flexible lending approach and they have made easier to borrow funds without any hassle. Although, banks do provide some respite but they are less flexible to their approach and often deny the loan application if someone has not a good credit score or don’t have the guarantor.
It would be a nice question to ask but when we look around the options available, we can come to the conclusion that loans would be the easiest and fastest way to getting funds. The arrival of the ‘FinTech’ lending has made this possible because everything can be done online without visiting physically at the lender’s office and submitting too many papers. There are some other reasons to apply for the loans:
Since these loans are only for financial emergency and does not require any collateral due to the short amount, there may be a chance that the lenders can ask for the guarantor. It is good for you because it can calm down the interest rates. However, there is one more truth that not everyone has the companion to take his guarantee and later, the application gets rejected to apply for the loans.
For these individuals, the FinTech market does have the option of unemployed loans with no guarantor. Again, these are very small loans and more or less similar to the payday loans. Borrowers can apply directly without looking for any guarantor and they can do so through either lender’s website or sending a text message. There are some lenders, who are also providing the doorstep loan facility to the jobless individuals.
Many unemployed people are also receiving the government benefits and it may become a constraint of not accepted for a loan. Few direct lenders do show some interest in providing the loans for people on benefits, but the interest rates may go slightly higher.
Loans are indeed the useful option to survive in vicious circle of unemployment, but at the same time, you should be careful enough while applying. Don’t ask for larger amount than your repay capacity and try to build a credible credit score prior to look for any loan alternative. Some lenders do provide no credit check feature but still having an acceptable credit score has its own benefits. Concentrate on finding a new job and till then loans may control your expenses.