If you are looking for a jobless loan, you will quickly find that this is a relatively big expense. After all, finding a bank that can provide credit even when the borrower is unemployed is extremely difficult. A regular income is required by most banks, since otherwise it is hardly possible to service the monthly installments.
No credit without a job
The only way to get a loan without a job from a bank is when the borrower has either a second borrower or a guarantor. Particular demands are placed on the second borrower or on the guarantor. In any case, this must have sufficient income to service the loan in the event of a default. In addition, there must be no negative entries in the credit. As with the first borrower, a co-applicant or guarantor will also be subject to a corresponding credit check. Those who provide themselves as guarantors should at all events bear in mind that consumer credit is always a direct guaranty. This means that as soon as the actual borrower is in arrears with his payment, the bank can claim the money from the guarantor. In addition, the banks consider such a guarantee as a contingent liability. As a result, the guarantor himself will have difficulties if he needs his own credit during his guarantee.
Beware of dubious loan offers
In many cases you can see advertisements in the internet where credit is offered even under the most difficult conditions. If you believe these offers, it is no problem at all to get a loan without a job. While there are a number of credit intermediaries specializing in such exchanges, there are some black sheep among them. These are recognized by the fact that a corresponding advance payment is required for the agency fee. Once this has been done, then only in the rarest of cases does an actual mediation occur.
A popular scam is also to ask the prospective borrower to take out insurance or a savings loan. For this, the intermediaries then collect appropriate commissions. Anyone who realistically thinks must realize that for every bank, it means too much risk to place a loan without a job. In case of doubt, the mediators’ offers can also be checked by the local consumer advice center so as not to fall into a trap.
Obtain a loan through the Employment Agency
In some cases it is also possible to apply for a jobless loan through the relevant Employment Agency. This is especially true when the money is needed for urgent purchases such as a new washing machine. The big advantage of this is that the employment agency usually does not charge interest on the loan. In addition, the rates are very moderate, so that the borrower can continue to make a living. However, to obtain such a loan, the borrower must prove that he has actually used the loan amount for the purchase concerned. For this purpose, he simply submits the corresponding proof of purchase to the Employment Agency. The monthly installments are then deducted directly from unemployment benefits so that the borrower is not in danger of being in arrears.