Will the unemployed get a payday loan? Does he have a chance?
February 15, 2019
In most cases, banks have very restrictive conditions for granting payday loans.
Therefore, many people, including the unemployed, can not count on such a form of financial support, they have no chance that the loan application submitted by them will be considered positively.
However, there are still non-bank payday loans that can be obtained much easier and the conditions for granting them are not as restrictive as in the case of bank payday loans.
Non-bank payday loans are often of interest to the unemployed, and to people who, according to banks, do not have creditworthiness. It is thanks to this that unemployed people can start their own business, they can settle their current financial obligations, they can also fulfill their dreams related to acquiring new skills that they will be able to use in their future professional work.
No income statements
Usually, however, payday loans for the unemployed are defined as preferential, have a significantly lower interest rate, and a longer repayment period, as well as lower loan installments. Banks, however, in the case of payday loans granted to the unemployed, require financial security, certification of other people that in the event of problems with the repayment of subsequent installments, they will assume the obligation.
Unfortunately, not every unemployed person can count on such support, and thus a loan without a certificate for a declaration provided by non-banking institutions remains the only solution for them, despite the fact that the conditions for granting such a loan are not as advantageous as those offered by the bank.
Banks are aware that this situation is very troublesome for them, involves the loss of new clients, and at the same time they do not want to risk lending to people who do not have creditworthiness, do not have regular income, and the business plan presented is not a guarantee of success .
Payday loans for the unemployed
This is another, if not the most important, reason why payday loans for the unemployed are not at the center of interest of banks, which see in this solution above all a very high risk. At the same time, for the same reasons, a loan without a statement certificate is so popular among people who intend to set up their own business, need financial support, or know very well what financial means will be allocated for this purpose. One may wonder why banks are relatively reluctant to support unemployed people, and non-bank institutions do so very willingly.
One may wonder about the diversification of the conditions under which payday loans are granted, their costs and repayment periods. Nevertheless, non-banking institutions that have introduced such solutions to their offer have not only been enjoying great interest for many years, but also are able to ensure that customers do not lose their trust, do not give up their services, and once again decide to submit a loan application.