The chances of getting a loan for the unemployed are very bad. Those who are in financial distress should act prudently and receive detailed advice about their opportunities.
Is there a credit-free loan for the unemployed?
This possibility can certainly not be ruled out, however, the probability that this is a frivolous offer is almost 100%. The salary of an unemployed person is so low that his salary can not be seized. For credit institutions, this means that they have no opportunity to get their money in case of late payment. Anyone who nevertheless grants a loan for the unemployed, is therefore at risk that is far too large and can not be justified even by high interest rates. A loan for the unemployed despite credit entry increases the risk in addition. No financially sound and credible lender would approve such an application.
Jobless loans for the unemployed do not increase the chances. Even if the credit entry is insignificant here, the income is too low to provide security for the lender.
Even if the unemployment benefit I exceeds the seizure limit, there is a high risk that after the unemployment benefit no new job can be started. The unemployed would then receive less benefits and their income would no longer be seizable. That is why, above all, long-term loans for the unemployed are not possible.
Unemployed people should therefore generally refrain from consumer credit. The danger of being bankrupted by a dubious provider is far too high.
How can unemployed people get a loan?
In some cases, it may be possible that guarantors or collateral can still be used to grant a debt-free loan to the unemployed. Even so, the interest rates are so high that the risk to the borrower increases considerably. That is why a loan for the unemployed is generally not recommended.
Retraining credit for the unemployed
There is one exception to the unemployment loans: The debt restructuring loan for unemployment can certainly make financial sense. However, the old lender is the first port of call here. If you can not pay your monthly installments, you have a good chance that the old provider will allow the debt restructuring for the unemployed.
Unemployed loans when starting a business
The path to self-employment is even more difficult for unemployed founders than for people who want to become unemployed out of employment. However, the state supports this project with a start-up grant. However, those who need an out-of-work loan to realize their future business have a better chance of getting a corporate loan than consumer credit for the unemployed. Comprehensive advice from certified bodies increases the chances of starting a business. Before applying for a company loan for the unemployed, the prospective entrepreneur should be aware of his opportunities and be aware of all alternative financing options.
Alternatives to the loan for the unemployed
In principle, the unemployed have the opportunity to borrow money from friends or acquaintances. However, those who need a loan for the unemployed usually have the problem that their expenses exceed their benefits. The starting point should therefore not be to obtain a credit-free credit for the unemployed by trusted persons, but to improve their own financial position.
As re-entry into the job is often not easy, it is mainly the expenditure that needs to be reduced. The biggest help here is keeping a household book. In the event of over-indebtedness, the path to debt counseling is the most promising. The unemployed person is informed here about his possibilities and can get out of the debt trap, or even avoid it.