Unemployed Loans: Monetary Relief for Jobless

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Published: 05th December 2016
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Unemployment isn't the best stage in one's life, since the person is jobless and has no source of income. The jobless person often finds it hard to pay for emergency needs, especially in times when financial help is not available from friends or relatives. For someone going through the extended phase of unemployment, UK financial markets have introduced unemployed loans.

What are Loan Options for Jobless
Unemployed loans are available as secured, unsecured, bad credit, and guarantor loans.

As their name suggests, secured loans require the borrower to pledge collateral against the loan. The collateral works as security with the lender, who can repossess the asset if the borrower fails to repay the full amount. Since these types of loans are secured, these are available at low interest rates. The greatest risk of obtaining secured loans is that the lender has all rights to forfeit the borrower's asset if he/she fails to pay off the debt in time or defaults on the loan amount.

On the other hand, unsecured unemployed loans are collateral free, meaning the borrower needs not pledge a mortgage for obtaining the loan. The lender relies on the promise of the borrower to repay the loan as per the scheduled loan term. Since these are not secured, lenders often charge high interest rates and offer a shorter repayment term. Nevertheless, such loans offer an immediate relief from financial misery, especially when the borrower does not have anything to use as mortgage.

Bad Credit
Poor credit loans are available for unemployed people who do not enjoy a favorable credit history and have defaults, arrears, late payments, bankruptcy, County Court Judgments, and foreclosure standing against their name. Such loans are offered without credit checks, which means the credit history of the person is not taken into account.

Guaranteed unemployed loans offer financial relief to jobless people who can prove to the lender that you have a guarantor with a fixed source of income. The lender will immediately approve the loan application even if the borrower isn't currently working but has a guarantor to repay the loan on his behalf if he/she fails to make timely repayments. Such loans can make life really easier for jobless people who are in immediate need for money and have no credible source of income to pay for their needs.

Is it Worth Taking Unemployed Loans
The best thing about all of such loans is that these are available online. The procedure is quite simple, hassle free, and straight forward. All that the borrower needs to do is fill out a loan application form with the respective lender and submit minimal proofs to qualify for unemployed loans. These are fast track loans that are often approved the same day or within 8-48 hours and the amount is credited instantly after approval. Upon approval of the loan application, the funds are immediately transferred to the borrower's bank account.

The repayments will be made through the same account.
In the case of secured loans, the applicant may be required to personally meet the lender's representative in order to sign agreements regarding the collateral. The lender then calculates the rate of interest, amount, and time on the basis of the value of property. The total principal amount is immediately credited to the bank account of the borrower.

For those looking to avail the best interest rate for instant loans, good credit history will have a positive influence. It will help to do extensive research on lenders so that you find a reliable one that understands and sympathizes with your situation and offers the best loan terms. This will also ensure that you do not fall in wrong hands.

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