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- Unemployed loans for people on benefits is a sure way for people who are less privileged to get access to quick loans whenever they want it.
- Borrowers have the option of choosing between a secured and an unsecured unemployed loan (this increases their chances of securing the loan).
- Online unemployed loan for people with benefits involves very little paperwork and has a short processing time.
Loans For Unemployed People On Benefits
Having a physical or psychological ailment is devastating especially if the affected person was the breadwinner of the family. The situation worsens once reality hits and they realize that they aren’t exempted when it comes to financial struggle. If you’re one of those who receives public assistance and you’re thinking whether you can borrow money or not, then this article is for you!
Loans For People On Benefits
Receiving financial assistance or welfare benefits is helpful when you’re jobless, however, it is not enough to cover all the other expenses. Luckily, there are unemployed loans for people on benefits. This loan is available to those who are living on DSS benefits who have no stable income because of his condition. Although most loans require regular employment, lenders have given them the chance to acquire extra cash providing that they can repay it back.
Unlike other lending process, loans for people on benefits are easier and faster to acquire. In addition, it can be done online. This is favourable for people who are not able to stand or walk for a long time.
Secured Vs Unsecured Loans
When you’re thinking about applying for a loan, you have the option whether you want it to be secured with collateral or not. Both options come with its own set of advantages and disadvantages and it’s up to you to choose which one is more convenient.
If you want to have a low-interest loan with a big amount, then you can pledge any of your valuable items to the lender, such as your house, car, jewellery, etc. This will help you save money and gives you ease when repaying the loan. However, you cannot default or else, you will lose your property. Secured loans will give the lenders the right to repossess your items if you cannot repay the loan anymore. To compensate your debt, the loan provider will sell your item and acquire the money.
Meanwhile, if you don’t have collateral or you are afraid of losing your property, then you can go for unsecured loans. The downside, however, is the expensive interest rates. Also, even if you can get away and not lose any of your assets, there are still chances where the lender can take legal actions against you. Worse, the event can affect your credit report negatively.
Not every person with a disability can procure the loan unless they possess the following criteria:
- Recipient of DSS benefits for at least 6 months
- Legal age
- Proof of residency
- Have sufficient savings; at least £500 and above
- Valid bank account which is not least than 6 months old
- Capable of repaying the loan back
Apart from these, the borrower is obligated to fill out a 5-minute application form and submit it online. The paperwork involved is lesser than the conventional application process, thus, the decision is released in only a matter of minutes. Once approved, the lender will send the fund to the borrower’s bank account.
Unemployed Loans on Benefits FAQs
Can I take a loan if I do not have a job?
With our network of lenders, your chances of securing a loan if you are unemployed are quite high as long as you are entitled to benefits or you can provide a proof of another source of income. However, because of the risk ratio involved, this type of loan will be subject to high-interest rates which may be paid once or over the course of the loan duration.
Can I get a loan from my local bank if I am unemployed?
The answer is yes, but it is highly unlikely. This is because banks and other similar financial institutions prefer to give money to people who have a steady flow of cash monthly. People on benefits may be considered but it is not 100% guaranteed they’ll be given a loan. This is why direct lenders in the UK are still the only ones that offer a loan option for unemployed people living on benefits.
Will taking a loan affect my benefits?
Unemployed loans for people on benefits belong to the SMI loans category. They do not undergo credit checks before being approved. Hence, you will not do any harm to your credit score or benefits by taking up this loan. But if you take the loan from a bank or a friend, and they give you all the money in one payment, your credit score may be affected.
Do I need a bank account to receive this loan?
Applications are submitted online so your bank account will be needed to send the money to you if you are successful. If you do not have a working bank account, you can contact us, and we’ll help you in any way that we can. Other criteria include:
You must be eighteen or more.You should reside in the UK.You must have proof of income.An identity card or other related documents.
Can I take multiple Unemployed Loans?
If you are almost through repaying your current loan, the lender may be willing to grant you another one based your new relationship. However, this is rare and you’ll be better off paying off your current debt before you consider securing another one. This will give you the time you need to recover from the previous loan.
How much money can I borrow?
The amount of money a lender can give you depend on your ability to pay it back. If you request for 1000 pounds and the lender feels you cannot afford it, then you won’t be granted the loan. It is critical that you do not borrow more than you can afford. Doing this will save you from financial difficulties in the future.
Will the lender conduct a credit search?
Yes, the lender has to do this so that they can get a clearer picture of your current financial condition. This will help them make an informed decision when it comes to granting or refusing your loan application.
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