How to get a loan when you are out of a job

Being employed comes with benefits such as different loan options to help during financial struggles. Circumstances sometimes change, and you can find yourself out of a job and in need of financial help. Fortunately, some loans are not only limited to the employed. There are some loans in the UK that you can secure even without a job.

One of these kinds is payday loans. These are loans that a lender offers to help you with an emergency financial problem for a while. You could use it to settle some bills then pay it after a few weeks. To get such a loan in the UK, you must show the lender that you receive regular income even if you are not employed. You should have enough money to repay the loan within the required time.

By showing a lender the capability of making repayments, they can give you up to 1,000 in one month. You must, however, be a citizen of the UK and be above 18 years. You should also have a bank account that is functional since they deposit the loan in banks. Unlike other types of loans which can take days to mature, this can take minutes for you to receive approval.

Unemployment should not deter you from applying for a loan when you know you have the capacity to repay it. You can also get a guarantor loan to help you settle your bills. In this case, you need a guarantor to represent you if you are not able to settle the loan. The guarantor is held responsible by the lender if you default on payment.

A guarantor loan allows you to borrow up to 12,000 and get reasonable payment terms which can last for some few years. Lenders check if you are a homeowner and if you are of age before they can approve the loan. They cannot accept a guarantor who is bankrupt.

As you apply for this loan, you should be aware of the high annual percentage rates which range from 40-200%. You should therefore not apply for this loan if you doubt your potential to repay it since it can put you and the guarantor in serious problems.

Some lenders are also considerate enough to bring doorstep loans to your home. Unlike other loans that need bank accounts, this is delivered to you at your home. The lending company uses representatives to deliver the loan and collect your monthly payments. Most unemployed people consider this type of loan.

The lender only needs proof that you can make repayments within some time. You can borrow any amount ranging from 100-2500. The company sends a representative to your home to evaluate your condition after online loan application. They consider your residence and age before they approve the loan.

The company can also make some phone calls to you during the processing of the loan and deliver it within a week. Though the loan is attractive, it also comes with high-interest rates.  The company utilizes agents around your neighborhood to collect payments. Ensure that you know the agent and ask for their ID every time they come for payments to avoid paying the wrong person.