Quick Unemployed Loans – UK Lenders

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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.

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Taking out a quick loan is a daunting task especially for the unemployed. It is pretty hard to get the money that you need to cover emergency finances when you don't have a job mostly because traditional financial sources will hardly entertain your application. If you are one of the unemployed who is struggling to get reliable funding because of your current status, there are certain avenues that you can look into to give you that much-needed financial relief.

unemployed loans

Yes, You Can Still Get a Loan!

Financial products from traditional financing institutions such as banks and credit unions are normally reserved for borrowers who are employed and possess good credit rating and history. Employment is necessary for their lending decision as it reflects a steady income stream to make the proper repayments on time. A good credit rating, on the other hand, demonstrates an ability to borrow responsibly in the past. But if you currently don't have a job, there are still lenders who will provide credit for people who are out of work and on benefits or those with a poor credit history.

What are Your Options?

Now you know that there are certain lenders who are willing and able to offer your loan services even if you are unemployed. Some of the popular ones that are readily available in the UK today include:

1.) Guarantor loans 

In most instances, lenders are more than happy to grant you a loan if you have a guarantor attached to your application. Your guarantor, however, must meet certain qualifications such as being over 18 years old and have a good credit standing. If you can provide one, you can borrow as much as £15,000 alongside flexible terms and cost-effective interest rates.

2.) Payday loans

Payday loans for the unemployed in the UK are designed to provide short-term financing as quickly as a single day to people who are currently out of the job market. The qualifications are usually minimal and almost any borrower can obtain them even if they are unemployed or have bad credit as long as they can afford to make the proper repayments. You can borrow as much as £1,000 and pay it back typically after a month or on your next payday.

3.) Doorstep loans

Doorstep loans are a convenient short term financial option, for people who are jobless, that can be obtained and repaid in person through the lender's agent. These loans are typically accommodating and accessible with minimal requirements that even people living under benefit can obtain them. You can borrow from £100 to £1000 and repay between 13 or longer depending on the lender right at the very comfort of your doorsteps.

4.) Logbook Loans

Secure a loan by offering your vehicle as collateral - this is what logbook loans are all about. You can borrow larger amounts - as much as 50% or sometimes 70% of your vehicle's trade-in value - and pay it back in instalments for a number of months or a few years. The best thing about the loan is that you can still use your car even if you're still paying your loan.

Do I Need A Guarantor?

Although there is some flexibility over the kind of income you can have to obtain loans, there are still basic qualifications that you need to meet. In most cases, you need to be above 18 years of age at the start of the loan. You also need to be a UK citizen or a permanent resident of the country. Having a bank account is also important as this is usually the preferred means for lenders for money transfers and payment collections. If you can satisfy the requirements mentioned above, taking out loans would be a real possibility. Understanding your credit is important having bad credit doesn't mean you need a guarantor but remember don't automatically think no guarantor loans are what you need as a guarantor can really help the APR you pay.

Loans for Unemployed people on Benefits

If you are unemployed, retired, and living under benefits like a pension, you can still get credit if you don't have a job and are on benefits in the UK. So how is this possible? There are two main reasons why lenders like (website name) are ready to provide such a financial product.

  1. They Still Need a Loan - Unforeseen expenses can still happen to those on benefits and lenders understand that in these times they will need access to credit to cover them. To cater to the needs of these people, Pickaloan has designed its website to show certain products that are tailored to the needs and present circumstances of people who are unemployed and relying on benefits.
  2. They Can Afford it - While benefit checks are smaller than paychecks, they still demonstrate a regular cash flow that can make the proper repayments. They are legal and come on a fixed date making it easy for lenders to come up with a payment term that is suited for such an income stream.
  3. Direct Lenders - Finding the right direct lenders when your unemployed is really important when it comes to getting the loan you need the only issue is that there are so many you need help, our service will check all the direct lenders for you rather than you going to each one.
  4. Guaranteed Loans - Are there loans out there that are guaranteed? Honestly, I don't think anyone could "guarantee" you anything but there are ways you can help yourself. Don't have multiple loans at once don't apply everywhere use a service like ours that will check with the lenders directly all at once.

It is important to point out, however, that short term loans will be different than traditional ones. Payday loans, for example, are usually offered in lower amounts compared to traditional ones that are granted to employed borrowers. While there are legitimate reasons why people are on benefits, many lenders still deem them to be slightly riskier in terms of the default rate.

Apply through a Reputable Lender

Searching for unemployment loans in the UK can be frustrating as users who are on benefits may be charged with unfavourable rates or simply denied by lenders who do not specialise in such type of lending. Luckily, the internet offers an ample supply of reputable brokers like pickaloan.co.uk who have the experience and expertise needed to provide the best deals on loans. Whether it is a payday loan, convenient short term loans, guarantor loans for flexible terms, or logbook loans to unlock your vehicle's value without having to sell it, the lender will provide you with the funding that is suitable for you and your present circumstances.

We understand that at some point or another everyone is out of work, whether you have been fired, made redundant, or are on benefits at this time we know if you need financial assistance there should be options for all. So here at Pickaloan, we try to have a huge variety of different loan types to suit every individual's needs and abilities. We know you won't always have a good credit score or a guarantor to agree to the loan with you but we will still try to offer you a loan that will help you in your financial situation no matter your circumstances.

Key points

  • Loans for unemployed individuals are available from direct lenders.
  • Guarantor, doorstep, payday, and logbook loan options are available.
  • Individuals on benefits can apply for loans for unemployed people.

Unemployed Loan FAQs

Can I apply for a loan if I am between jobs?

You definitely can! In many cases, individuals experience a period of time between resigning from one job and starting at their new place of employment and find themselves short of cash for a week or two. Many of the lenders we work with will do everything possible to assist you with a cash loan during this time.

If I cannot provide a guarantor, will I still be able to apply?

Yes. We work with many lenders who understand that there are times when unemployed individuals will also require emergency funds. As a result, they will do everything possible to assist you with the money you need. If you are able to provide a guarantor, you may sometimes be able to secure a loan for a larger amount of money.

Will I need to provide any form of collateral or security when applying for a loan?

In most cases, no form of security or collateral will be required at the time of application. However, this may depend on your personal financial circumstances as well. The lender who is working with you will inform you regarding the requirements that will need to be met so that you can obtain the cash you need

Will I pay a fixed rate of interest on my loan?

The percentage of interest charged on your loan will be discussed with you at the time of application. This will enable you to plan accordingly and have sufficient funds on hand to make each repayment on time.

How much does it cost to apply for a loan?

None of the lenders we work with will charge you any type of upfront application fee. If you are asked to pay any amount upfront, it could be a scam to obtain funds from you fraudulently. Always exercise vigilance when applying for any loans.