The most important documents that a credit agency required while giving you a loan are- your age proof and your pay stubs. These two help them in determining that you are a resident of the UK and have enough earning capacity to payback your loan on time. In this way, the loan companies feel more secure while giving loans to you. However, what if you are not employed? How will you show your pay stubs? Don’t worry. There are many unemployed loans around the corner that will help you get a great finance opportunity without even having to show that you are employed and earn a decent income.
The economic conditions have been very disturbed in the recent times. The lines at the unemployment offices are growing by the day. Even the people who are employed currently are not sure about their job security. This is the reason why taking a pay stub as the basis of the loan is no more a sound measure of an individual’s earning capacity or even his loan repayment capacity. It is quite likely that you will come across a number of people need finances to fulfill their basic needs, start a new business or even buy a new car for themselves. In such a case, they should be looking forward to the unemployed loans. These loans will be providing you an opportunity to give a new start to your life.
Unemployed loans are a comparatively new kind of loan structure. There are two kind of unemployed loans. First are unsecured loans where you do not have to present a collateral to get a loan. Though this loan is also available at a higher rate of interest, it is still a great choice for many people. Second are the secured loans. These loans come with some kind of collaterals. As these loans provide more security to the loan companies because of which the rates of interest are not as high. Fund recovery is a better option in these cases. Therefore, most of the loan companies are interested in providing this kind of unemployed loans.
In order to find the right unemployed loans, you should be conducting an online search in order to find the right unemployed loans for yourself. You should compare offers from different companies and then check the ones that are most suitable to you. Always try to provide a collateral so that you can lower your repayment burden.
All the loans that we review or recommend all have:
- Minimum period of repayment: 6 months. We do NOT recommend taking any loan with repayment period of less than 6 months, as you will have difficulties paying back
- Maximum period of repayment: 3 years
- Annual Percentage Rate (APR): less than 12%. Any rate higher than this will negatively impact your finance
- Below is an example of the loan mentioned in this article, with a loan amount of $20,000
|Flat Interest Rate||7.50% p.a. (Effective Interest Rate of 14.39% p.a.)|
|Total Interest Charged for the Loan||$20,000 x 7.50% p.a. x 3 years = $4,500|
|Loan amount + Total Interest||$20,000 + $4,500 = $24,500|
|Monthly Instalment||$24,500 / 36 = $680.56|