Especially during unemployment, everyone can quickly find themselves in the situation that their own money is no longer sufficient to offset costs. A high additional payment or a necessary repair can quickly exceed the financial budget. Then a loan is required – usually in a relatively short time. But are unemployed people considered in an instant loan? YES:
What is an instant loan for the unemployed
An instant loan is a loan that is paid out particularly quickly and under simplified terms and conditions. In the case of unemployed, credit institutions generally keep a low profile, since the risk to the bank is very great that the loan cannot be repaid reliably and the bank must therefore forego the money. Usually, it is only dubious providers who serve the unemployed via an instant loan without imposing any further requirements.
Normal banks don’t give loans to unemployed people
Reputable banks only grant a loan to the unemployed against the provision of appropriate security. A surety, for example, can serve as security. This includes life insurance or houses and land as security. A loan without collateral will be difficult to achieve for job seekers. Another person can also stand in as a guarantor. However, this must be creditworthy in order to be able to securely repay the loan if necessary. If the borrower can no longer meet the loan obligations itself, the bank takes on the guarantor. Therefore, the guarantor’s credit bureau information must also be faultless.
Collateral for the bank
As a further security for an instant loan, unemployed people can specify a property. This can be either a condominium or a house that the bank can sell if the loan can no longer be repaid. This type of security deposit should be carefully considered – because in the event of an accident, your own property is quickly gone. However, it is rare for the unemployed to own land or property.
Garnishment for the instant loan
In addition, an existing life insurance policy can be assigned to the bank with an instant loan – provided you have such insurance. In this case, however, the sum insured must be so high that the loan can also be secured accordingly. Otherwise, this is only possible through additional collateral or possibly several life insurance policies.
Does an application as an unemployed make sense?
In general, you should carefully consider the application as an unemployed person. The bank can certainly get approval for the loan application – but one should remember that the money must also be repaid reliably and regularly. The monthly installments should therefore be chosen so that repayment is not a problem. If there is a prospect of a new job, the banks often also engage in special repayment options or an increase in repayment rates.
If you are not unemployed or do not plan to become unemployed, it is best to look here at the normal instant or installment loans.