Being out of a job can be one of the hardest times of your life. Imagine losing your solid source of income when you need sufficient money just to buy your basic expenses. Whatever fund you have left with you might be spent only on these expenditures which you cannot do without. But suppose you want to carry out a personal project which may require more. For such a situation, you may find the solution in loans for unemployed.
Loans for unemployed make their objective obvious through their name- they provide funds to those who are out of a job or do not have any source of income. These loans may be taken to fuel any personal purpose that you may like to fulfill during your unemployed phase. Whether it is to pay off debts, renovate you home, buying a car, going on a holiday or your wedding, you can find the necessary capital through these loans.
There are no stringent criteria as to how your approval for loans for unemployed will be decided. However, it will help you a great deal if you happen to be availing benefits like disability allowance, redundancy pay or one-income allowance provided by your previous employers. You can avail the loan through the provision of collateral or without it. A secured option may allow you to borrow up to £100000 while under the unsecured option, the funds are limited to a maximum of £25000. The interest rate is also lower in the secured option but on the flip side, you will be set a long repayment tenure which might even last up to 30 years if the principal is large. Unsecured option will have tenures which do not last more than 10 years.
Loans for unemployed are designed especially for unemployed people and as such, allow flexibility in the repayment terms. You will avail low interest rates and options like payment breaks, overdrafts and standby periods. However, your choice should be decided by your requirements, capacity to repay and also your prospects. It will be good if you find a job soon otherwise it would be hard for you when you start repaying. Also, compare loan quotes to select lower rates.
Summary:
Loans for unemployed are meant for those who do not presently have a job. They come with features that provide easy borrowing. They may be obtained with or without collateral.