Getting a loan seems to be extremely easy these days. Just look around to see the ads around us from different lenders willing to give us credit. However, not everyone is in a good position in negotiations with financial institutions. The problem with credit can even have unemployed people who are not reliable customers for banks. So how can you get such a loan if you have no documented stable income?
Unemployed person and installment loan
In the opinion of virtually every bank that offers loans to its clients, every unemployed person is automatically disqualified as a potential borrower. The lack of a fixed remuneration documented by a relevant employment contract means that the bank will not be able to cover the costs associated with the loan. Therefore unemployed, realizing this approach of banks, do not even try to apply for a loan in them. It is worth remembering, however, that an unemployed person is not always deprived of income that allows them to support themselves. An example in this case is students who do not earn, but still have some sources of income. It is even monthly financial support from parents or a scholarship awarded by the university.
Installment loan for the unemployed – what is it about?
As already mentioned, installment loans for the unemployed are a rather special financial product. It is not provided by traditional banks, but by various types of capital companies, such as loan companies. However, the products they offer for loans to the unemployed have similar rules. First of all, these are usually loans granted for short periods, which are usually a maximum of 30 days. Of course, there are also offers with longer repayment periods.
Under the loan for the unemployed, we can also apply for lower amounts, on average from PLN 500 to 3,000. For these types of loans, both the time to make a loan decision and all formalities are kept to a minimum. Most companies offering such products to their clients require an ID card as well as a bank statement. This is a very important document because on its basis the lender can obtain important information about the client’s financial situation. From the history of the account, the loan companies learn how much savings we have, what income affects our account, as well as what other obligations we pay and what we spend the money on.
What to remember when deciding on such a loan?
The first rule with any type of loan is to carefully analyze our financial position. An installment loan for the unemployed is a great solution when we need a quick injection of cash, but we must be sure that we will be able to regularly pay off such commitment. Therefore, it is worth considering this option a bit longer and recalculating both our income and monthly expenses, which cannot be avoided.
When making such calculations, we must not forget that the loan for installments for the unemployed is burdened with higher costs that we will have to bear. It is about high interest rates as well as all types of commissions and additional fees, which are usually quite high. The loan company takes quite a lot of risk by deciding to grant us a loan. Therefore, it must somehow compensate by imposing higher fees on us. Therefore, before we decide to sign the contract, we check the total cost of such an installment loan.
Where can you get a loan in installments for the unemployed?
As we already know, we cannot count on a loan for the unemployed in the bank. That is why it remains for us to look for a non-banking company that also offers this type of financial product. Of course, the easiest way is to start searching the web, where you can find a lot of websites offering us a loan without unnecessary certifications. Of course, each of them will advertise as the one that offers the best conditions to its clients. Therefore, we should choose a few of them that seem the most beneficial and carefully analyze them.
It is extremely important to read meticulously every contract we intend to sign. If we do not understand something or a certain point of the contract is not clear to us, let us always try to explain it. Thanks to this, we will get a fairly clear picture of what conditions we agree to and of course how much such a loan will cost us. This can save us from debt that we will not be able to bear.