- Unemployed loans
As the name suggests, unemployed loans are those that you take out when you are out of work. You should have an income source other than a full-time job such as rental income, part-time job etc. You will get money based on your current cash inflows. However, not all lenders provide unemployed loans. The APR of these loans are likely to be higher if you have a bad credit rating.
- Doorstep loans
Doorstep loans are an ideal option when you do not have a bank account. A representative of your lender will visit at your doorstep to have a face-to-face meeting in order to discuss credit requirements and examine repayment capacity. The representative will visit your home to collect funds on the due date. Make sure that you borrow money from a lender that charges a lower interest rate.
- Emergency loans
Emergency loans are unsecured loans that you can borrow to fund any unforeseen expenses while being out of work. The size of these loans may be smaller than unemployed loans. Emergency loans do not come with instalment facility. It means you need to pay off the whole debt in a lump sum. The length of these loans is usually not more than a month.
- Guaranteed loans
A loan backed by a third party is known as a guaranteed loan. When you need a large amount of money during unemployment, a lender may require you to arrange a guarantor with a good credit history. It mitigates the risk of the lender because they can call upon the guarantor when you completely fail to pay off the debt. Remember that if it does happen, your guarantor will also lose credit score.
- Small loans
Small loans are short-term loans. The best part of these loans is you can repay the debt in instalments. some lenders may allow you to pay down in weekly or bi-weekly instalments. However, the size of the loan will not be large.