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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.
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