Like most of the emergencies, one is very rarely prepared enough to face the difficulties which come with unemployment. And within months of losing a job, making ends meet becomes hard for an individual. The situation gets more difficult if the individual is unable to get the job very soon. And the employment benefits provided by the government are hardly sufficient for them to meet their daily needs. As soon as a large expense spring up, the financial situation becomes flat. In this situation of unemployment and indebtedness, it becomes really difficult for an individual to survive.
Certainly, nobody would like to see themselves in this vicarious condition for a long period. Emergency money for unemployed will be an important weapon at this juncture. This type of loan for unemployed has been designed with the concerns of the jobless people and thus provides a potential to fight the tough time of unemployment.
A question which comes up in mind is why an unemployed person needs a specialized loan and why they cannot fulfill their needs through a regular loan. The attitude of the lenders towards an unemployed person is the main factor behind this.
Since the unemployed people don’t have a regular source of income, they are not able to instill confidence in the lenders that they will safely repay the amount taken from them. Lenders perceive a high degree of risk involved while offering to an unemployed person.
This leaves lenders with two choices:
- Reject the application of the unemployed borrowers entirely
- Or provide them loans for unemployed with a renewed set of terms and conditions
Being declined loans because of unemployment leaves borrowers with no choice except to look for other loan providers.
It is not much difficult to search for a loan for unemployed now. With an increasing number of online lenders in the UK, borrowers have high chance to qualify for such loans with some or other lender.
Terms and Condition May Vary
The lenders who agree to offer the loan may provide financial aid on the terms and conditions which differ from a regular loan.
- The major difference can be seen in the rate of interest charged. Because of putting a higher exposure on the lenders, expecting an interest rate similar to the regular loan will be unreasonable.
- Rate of interest is directly linked to the severity of the risk involved. And the standard rate of interest charged on loans for unemployed is generally high.
However, this doesn’t give freedom to the loan providers to charge interest rate as per their wish. There have been many occurrences where unemployed borrowers lost their homes or other valuable property because of the exorbitantly high rate of interest.
The rate to be charged on the loans for unemployed can be calculated through a calculator.
Available in Two Forms
The emergency financial help for unemployed is available in two forms: Secured and Unsecured loan.
While providing secured loans, lenders seek some sort of security from borrowers like house, car, valuable property or assets, etc. This is just to make sure that the lenders don’t fail to recover the loan amount from you. If they don’t take any security and a borrower fails to make the repayment then it will be a loss for lenders. Hence, they ask for security.
But at the same time it is not always possible for a person to provide security or collateral to secure a loan. So to overcome this situation an unsecured loan option has been introduced by the lenders.
An unsecured loan for unemployed gives a chance to the jobless people of the UK to solve their financial crisis and live a stress free life. With the help of this product, an unemployed person can fulfill almost all his need.
Being unemployed is not a sin. There definitely has to be some problem that anybody stays unemployed. Therefore, today many financial companies have come forward to help jobless people during their hard times. Today money is required in almost all sphere of life and that is the reason having money is very important. Moreover, life being very uncertain, nobody knows what might happen very next moment and when they need to get some urgent money. Therefore in such conditions, an unemployed person can take help of such loan product to make their struggle easy.