Banks offer a wide range of lending services for every taste, ranging from consumer loans and ending with leasing for legal entities. But all the bank’s offers are designed for solvent customers, those who will pay the contract on time and pay the accrued interest. This is the profit of banking organizations. But what if the bank does not consider you to be a paying customer, how can you get a loan for an unemployed person? More in this article.
What can the bank offer the unemployed?
For a bank, those who do not have a formal job are unemployed. Even if you work informally or provide private services, but you do not have an employment record, you are an unreliable client for the bank. When you make a loan agreement, a bank employee will require a copy of your employment record and a certificate that confirms your income. In addition, the phone number of your employer is also requested, where bank employees can call to make a decision on granting a loan. Therefore, it is not so easy to take a loan to an unemployed person.
For this category of citizens developed special banking products. Loans to non-working can be divided into several categories:
1. Express loans. If you are looking for where to get a loan for the unemployed, then this option is for you. The amount of express loans rarely exceeds 100,000 rubles, while one should expect a fairly high interest rate – about 30-50% per annum.
The advantages are that such a loan to a non-working person will most likely be approved. No need to collect any certificates and confirm your income. It will be enough just to issue an online application on the bank’s website or it is possible to contact the branch directly. When making a deal, you need only a passport and a second document.
High interest rates are due to the fact that when applying for a loan for the unemployed, a banking organization risks that the client may simply not repay the loan. In this connection, it will be necessary to use a whole mechanism for working with the debtor, including court proceedings, which negatively affects the reputation of the financial company.
2. Loans secured by property. This is another option how to get a loan to the unemployed. Some banking organizations provide loans on the security of real estate client or on the security of the car. It is important to understand that if the loan is not repaid, you may lose ownership of your property or business.
Banks that give loans to the unemployed
In matters of financing of a particular category of citizens, banks often refer to experience and statistics. Therefore, even if a potential borrower temporarily does not work, he still has a chance to get a loan. The bank where you have a positive credit history is more likely to approve a loan to the unemployed. Therefore, we recommend that you first contact the banking organizations with which you have already executed contracts.
It will be more difficult to get a loan for an unemployed person who does not have a credit history in principle or has a negative experience in paying off debts. In this case, it is worth looking at current offers of banks in the direction of express loans. Banking organizations that operate in this segment of the lending market and give loans to non-performing, is becoming more and more.
And many others. Therefore, if you are looking for where to get money to an unemployed person, first review the current list of offers from banks and try to get a loan. If you constantly get a refusal and already doubt whether you are giving a loan to the unemployed, we recommend using other ways to get a loan that is not working.
You can get a loan for the unemployed in microfinance organizations, or so-called MFIs. This is a financial structure that operates under a license issued by the Central Bank. As a rule, such a company lends a small amount of money – up to 50,000 rubles.
Is it possible to use this service for an idle person? Without any problems. No reference is required. The maximum, in addition to a passport, may require another identity document.
The minus of such loans is that they are issued for a short term and the interest rate can reach 700% per annum. For a temporarily unemployed person who is looking for where to get money in a short time, this option may be acceptable, but we still recommend considering another option.
These are companies that work directly with the mass of banks and help arrange a loan to a non-working person. The usefulness of such an organization lies in the fact that in order to notify dozens of banks at once about your intention to issue a consumer loan, you may not have enough patience and physical abilities.
Brokerage offices, working with a large number of banking organizations, will quickly determine which bank and will give a loan at all. The loan itself and the interest rate may vary depending on the banking offer, but brokers are going to take a certain percentage for their services. Usually, it is from 1 to 10% of the loan amount.
This is the most recent option where you can get a loan for the unemployed. There are people who give money for a promissory note. You declare in writing that the loan from a certain citizen undertakes to repay on time for a certain percentage. This note will guarantee that you will return the money, otherwise they will be able to recover through the courts.
Although for non-working people it may be just the only working option where to receive money, we do not recommend using it. Since individuals, firstly, will require huge interest rates (up to 10 per month), and secondly, there is a chance to stumble upon criminal elements who will extort your money in every way.
From the foregoing, it is worth noting that they can give credit to the unemployed. But this will have to make a lot of their own efforts. We recommend that you first look for banking institutions that are willing to give you money, and only then use the rest of the loan processing methods.