A lot of people need to access loan offers to survive especially those who are unemployed. The barrier is often the fact that since they do not have jobs, they are likely to not have collaterals. This means they do not have valuable properties to use as collateral during the process of obtaining loans from their various banks.
Unemployment is a huge issue in the country at the moment and a lot of people are looking for jobs fitting the description of their course of study or area of expertise. The country is not close to solving these issues.
This reality doesn’t take away the fact that people still have to survive. It doesn’t take away the fact that families have bills to pay. And they are supposed to do so on time, whether or not, they have jobs providing the money.
Read also: 3 steps to master the art of debt-free living
Yes, it’s possible to budget your living expenses when you are not having any source of income. You can find ways by which you can limit your purchasing habits so that all of your expenses can be covered. There are instances, where your calculatory steps do not help, and you begin to consider getting a loan.
At the moment, it’s no longer difficult for unemployed persons to receive loans as long as they are willing to repay the loan plus interest on time. This is because the financial market is currently ready to provide loans to those who meet all their criteria.
What do you need to do in order to apply for a loan?
Applying for a loan with an online short-term lender, you will need to prove that you will be able to repay the loans on time, by completing an affordability assessment. The assessment is different with various lenders, so you have to check and confirm what is required of you
These or more may be required of you in the course of signing up for a loan;
- Monthly Salary payments from an employer
- Self-employed income, either monthly or yearly
- Benefits or renunciations
- Pensions or gratuities
- Other sources of income
Should you repay your debts on time?
It is pertinent that you access your capabilities, and ensure you will be able to afford the various loan repayment options before opt-in. This is because if you miss a deadline, it will result in damage to your credit history, and place constraints on your access to financing.
Read also: How to Build a credit score in few easy steps
Having this in mind, you can decide to avoid taking the loan or borrow an amount you are confident you will be able to repay.
Are the unemployed qualified for loan options?
In other thoughts, the short-term lender may decide to review your application if you are unemployed. They may decide to alter the loan offers in different ways.
- Lowering the eligible loan amounts
- Asking for full repayment of the loan in a shorter time duration
- Charging higher interest rates
- Subsequently, charging origination fees to cater for the costs of pursuing payment if you default on the loan
- Requiring payment via automatic deductions from your bank account to reduce the chances of missing a payment.
You can go ahead and apply for any of the loan offers which you are eligible for. And do well to repay them on time to boost your credit score. This will improve your chances of getting an increase in the loan amount in subsequent applications.