Are You Blurring the Boundaries between Doorstep Loans and Loans for Unemployed

All types of short-term loans aim at funding unforeseen expenses. However, there is a wide variety of loan offers with different features. Some loan products may seem to be more or less same because of not much difference. Doorstep loans and unsecured loans for unemployed are among them.

You may think that these loans are same as both of them generally target the unemployed, but the fact is doorstep loan is a type of loans for unemployed. When you do not have a full-time job, but have other sources of income like rental income or a part-time job, you become eligible to take out loans for unemployed.

Doorstep loans

As the name suggests, you get funds at your doorstep. These loans are also known as home credit loans. When you put in the loan application, a representative of a lender will schedule a meeting at your home to look over your credit needs and financial circumstances. If everything goes fine, you will get money on the spot and the same representative will visit your home to collect funds on the due date.

Important points to bear in mind:

  • Doorstep loans for unemployed aim at those people who have no bank account.
  • Physically disabled can apply for doorstep loans to get money with ease and comfort.

Home credit loans do not accept applications from the unemployed who do not meet any of the condition mentioned above.

Loans for unemployed

Since you do not know how long your savings will last and when you will land a new job, you need a funding source to finance your unexpected expenses that arise in the meantime. Seeking help from friends and family is not only difficult but also embarrassing. Therefore, you have left with one option – direct lenders.

Under following circumstances, you will get other than doorstep loans when you are out of work:

Transition from a full-time job to a business

Career transition is a very common reason for taking out loans for unemployed. As long as you need a small amount of money, you can apply for unsecured loans for unemployed. A lender will not approve your business loan application because of lack of experience.

A business loan is signed off on only when you have at least two years of experience of running your business in the same niche and it is making profits. If you need a large amount of money, the lender will require you to secure the loan against an asset. However, this is applicable when you need money to fund your business expense like buying equipment. Otherwise, lenders will not disburse money for a long period.

You are on maternity leaves

Expecting mothers can take out unsecured loans after they have stopped working but have one ongoing income. However, direct lenders quickly approve applications of couples who start the process before the mother-to-be stops working. You must bear in your mind that you should have a good credit history. In case your credit rating is less-than-perfect, your spouse’ income will be taken into account.

You are a retired person

If you are retired, you cannot apply for doorstep loans because the lender can directly transfer money to your account. As long as you have a functional bank account, the representative will not take the pain of visiting your home to know your credit needs and financial circumstances.

Now you would have understood the difference between doorstep loans and unsecured unemployed loans.

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