If you are an officially working person, then you can easily take a loan from a bank – to purchase a car, an apartment (house) or just a consumer loan, and often on favorable terms. After all, by submitting a certificate of income (and this is a prerequisite for any bank when applying for a loan), you thereby sign your solvency. But what if you have lost your job or are not officially employed anywhere, but are in dire need of funds? You can also take out a loan! So in this article we will talk about how and where to get a loan for the unemployed with maximum benefits and minimum risks.
Express Loans
Perhaps the most common way of issuing a loan, which is practiced by most financial institutions, both young and small, and large, with a long history of activity on the market. Express loans are classified as consumer loans.
- Pros: Registration by submitting a minimum number of documents: a passport and another document (it can be a TIN, military ID, driver’s license or any other identity document), as well as two landline numbers, the subscribers of which will confirm your identity. The time to make a decision on the issuance of a loan is approximately one hour.
- Cons: Small loan amounts – you cannot buy a car or an apartment with these funds. Relatively high loan interest rates, which can reach 30 percent or more per year. In this way, banks try to protect themselves from the high risk of default on loans, and this cannot be blamed.
Mini Loans
In fact, the same express loans, with the same conditions, but with even less capital. Like express loans, mini-credits are easily granted to unemployed citizens who have a positive credit history, that is, who take and pay one or more loans.
- Pros: This means that you only need to present two proofs of identity, one of which is usually a passport. In addition, mini-loans can be issued through the Internet without leaving home. In most cases, your request will be resolved positively by a call from the bank operator.
- Cons: You need to be especially attentive to the documents if you apply for a mini loan online. Otherwise, they are the same as for express loans.
Secured by property (movable or immovable) and securities
If you have a car (in good condition), a house, a cottage or a vacant apartment, as well as securities or other material assets, you can obtain a loan guaranteed by both a bank and pawnshop The loan amount can reach up to 80 percent of the value of the mortgaged property, while you will not be required to have a source of income.
- Pros: Lower interest rates, due to the receipt by the bank of a guarantee for the return of your funds. Larger amount of loans provided by a banking institution.
- Cons: You are more likely to lose your car or property if you don’t pay the loan and interest on time.
On guarantee
If you have a close friend (relative) who is officially working, who agrees to become your guarantor and presents a certificate of his income, you can also count on receiving a fairly large loan amount and even, possibly, at preferential rates.
- Benefits: You can take out not only a consumer loan, but also a mortgage loan, as well as a car loan and other types of loans. The most important thing is to convince the bank of the intended purpose of the funds credited to you, for example, by providing the necessary package of documents.
- Negative aspects: they refer mainly to your guarantor; after all, if he can’t pay the money back, he, the guarantor, will have to. Well, you are facing a long and exhausting legal process.
Credit Card
Today, banks, especially young people interested in attracting customers, issue a credit card to those who want it, presenting minimum requirements for the number of documents provided.
- Pros: If you have successfully repaid the loan on the card, you will not have to collect documents again and apply to the bank for a new loan. He will simply continue the contractual relationship with you, providing you with the next loan at your request.
- Cons: It is important to pay attention to the fact that most banks charge interest when withdrawing cash from a credit card at ATMs or cash points . Therefore, you should carefully read the terms of the contract in more detail.
Help brokerage houses
This method is considered the last, due to its great unreliability. Although in many difficult situations it is the only possible way to quickly receive the amount of money you need.
- Pros: Suitable for those citizens who already have the sad experience of taking and not paying a loan. Brokers will not require income statements or credit history from them. But at the same time, they can help you choose profitable loan programs and draw up documents correctly.
- Cons: There is a great risk of encountering unscrupulous or illegally operating (“black”) brokers, which can have the most unpleasant consequences for you, up to the loss of property. High interest for the services, sometimes reaching up to 25% of the amount borrowed, as well as the prepayment requirement for the provision of services.
Conclusion
Well, we hope that, having considered and “tried” for yourself these methods of obtaining a loan for the unemployed, you will definitely choose the option that suits you. It remains only to choose a reliable banking institution that agrees to provide you with a loan on terms acceptable to you.