loans for the unemployed

If you have just recently been made redundant and are claiming benefits, or are currently in-between jobs or perhaps you just don’t take paid employment, you may have automatically assumed that you will not qualify for any loan on the market. However, that is far from being the case. So if you are in a situation where you need or would like to get a loan (for example, this may be to carry out home improvements on your property or to buy a new vehicle) then this guide written by Proper Finance can help you find a loan whilst you are unemployed, as well as providing you with all the information you need to know about getting one.

Can I get a loan whilst unemployed?

As previously mentioned, it is a common assumption that you will not be able to apply for credit if are not employed. This is the case for a large number of high street banks and building societies across the UK, declining you on the spot if you are not above a certain income, and therefore not receiving a regular income from a salary.

unemployment-loans

No need to be stressed about not being able to get a loan if you are unemployed, we can still help you!

Loans that are provided on the basis that the borrower will most likely be able to repay the debt on time. As a result, the better your financial situation is, the more likely you will be able to benefit from the best rates that the lender offers.

But it doesn’t mean you cannot get a loan whilst you are unemployed under any circumstances. Proper Finance works with a number of leading reputable lenders across the country who would be willing to provide you with an affordable loan even if you are unemployed.

Will there be fees?

Whilst you will not have to pay upfront fees with Proper Finance for using our services, and never will have to (even if you make an application with us) as it will always remain completely free to use.

However, if you do get approved for a loan whilst you are not in employment, there will obviously be fees with the lender directly that you will need to take into consideration. You also need to remember that these fees might be higher given the element of risk that the lender is taking by lending you cash. For example, you may have to pay a higher rate of interest.

Types of unemployment loans

Proper Finance works with other 100 lenders, all FCA regulated and authorised, who provide a variety of financial products to its customers. If you are looking for a loan whilst you are unemployed, you have a few different options with specialist lenders. These typically include the following:

  • Secured loans: one potential option for you if you do not have a job is to look at getting a secured loan if you need to lend money. With this type of financing, you would need to provide the lender with a high-value possession as security, working as collateral in the event that you are able to keep up with loan repayments at a later date. In the majority of cases, the high-value item used as security is their car or their property. However, it is important to take into consideration that this is a risk: if you think you will not be able to keep up with paying back the loan, you could end up with these items being repossessed entirely.

 

  • Guarantor loans: with a guarantor loan, you would need to find someone who is willing to act as your guarantor before being accepted by a lender. That means that in the event you couldn’t keep up with loan repayments, the creditor would automatically look to the guarantor to make them instead on your behalf.

 

  • Personal loans: another possible option as someone who is unemployed is getting a personal loan. However, keep in mind that the more you are considered a risk by the lender, then you will be required to pay a higher level of interest for the loan.

 

How can I apply for a loan if I am unemployed?

If you are looking to get a little extra cash to carry out home improvements or a sudden emergency, then take a look at making an application with Proper Finance. All you need to do is click on the apply now button on our website, and then fill out the application form. This will take you less than 10 minutes to complete in total.

When you make an application with us, we will run a soft check on your file. There is no need to worry about this impacting on your credit score! Unlike a hard credit search, this does not leave a footprint on your file for other creditors to see. It is simply done by our team in order to help you find the very best rates on offer, and the right loan for you based on your financial circumstances.