Can An Unemployed Person Qualify for Guaranteed Personal Loans?

If you are out of work for a good time, you may find being in a financial market tough. Lenders look for the borrowing ability of an individual before providing them with the needed financial assistance. According to fresh personal finance rules, short-term loans, in particular, cannot be extended to someone lacking the ability to repay them. Individuals lacking a monthly salaried amount get dropped off the list.

Many individuals believe this and wait forever in regret. If you believe this too, then perhaps you imagine things.

Lenders require sustainable and credible income proof as a repayment potential to grant funds. But not every lender rejects the loan applied by an unemployed individual.

Some lenders like Honor Finance consider such loan applications and provide short-term assistance. Unemployment is just a phase, not a phenomenon. If you need one, you can qualify for loans for unemployed by direct lenders.

There could be multiple reasons for quitting the job like parenting, taking retirement, accident, etc. It does not limit one from meeting urgencies and needs without wasting a moment.

There are multiple ways one can seek cheap personal loans in the UK. Individuals lacking a monthly income proof can reveal another income source. As long as you can provide scannable loan proof, you may qualify for credit immediately.

What Are the Basic Loan Approval Criteria for The Unemployed?

While unemployed individuals may access different affordable loan offerings, there is a loan eligibility criterion. Here are some basic requirements to meet before qualifying for the loan.

  • Should be a permanent citizen of the UK
  • You must be above 18 Years of Age
  • You must have a bank account in the country
  • You must have a valid income proof

As long as you can produce this proof, you may qualify for the loan. A credit score is an essential criterion that lenders consider for lending money. But there are some short-term and instant borrowings like doorstep loans for unemployed that one can qualify for regardless of the credit score or credit history. If you are worried about your declining credit score owing to pending debts, don’t be.

Certain loans require a sound credit profile along with loan affordability proof. In this case, one can get a loan by providing a guarantee. You will find it in detail in the blog. Let’s understand the income proof unemployed individuals can provide for loan approval.

Is There Any Proof of Repayment That Can Help an Unemployed Person Get A Loan Instantly? 

In dire circumstances, one seeks immediate help from close ones-friends and family if unemployed. At times, individuals share time constraints and need a loan immediately at the destination or account. Jokes apart, no one readily turns up to help when one needs it the most. In this situation, you need someone who can guarantee and provide money within an hour or so. Here, lenders hasten to help an individual in need and provide immediate funds.

Unemployed individuals often think they may not qualify for a loan lacking income proof. It is false. You can easily borrow cheap personal loans for a short time if you could provide any of these proof to your lender.

1)  Spouse income

If you are married and recently left your job, you could provide your spouse’s income proof to qualify for the loan. It is favourable if you need a loan urgently.

2)  Income from dividends

Do you hold dividends from the investments you made? You can provide these as repayment proof to the lender. But it should cover the loan costs completely.

3)  Income from a retirement fund

Having a 401(k) account can be profitable in an uncertain situation like UNEMPLOYMENT. If you need funds urgently but lack an income source, you can reveal income from a retirement fund to get financial assistance.

4)  Income from benefits

In the UK, many individuals are currently facing blows of unemployment. The government provide grants to these individuals to sustain the tough phase. If you receive any income by leveraging benefits during unemployment, you can reveal to get loans for the unemployed by direct lenders.

Only 2 in 10 lenders consider income from benefits as valid income proof to provide short term personal loans. At Honor Finance, we accept income from benefits as a repayment mode to provide the loans. For small financial help, you do not need to wait any longer than 10 minutes. Individuals can secure any small personal loan according to affordability and requirement.

Top Guaranteed Loans for The Unemployed at Honor Finance

Whether you need to fix a boiler, pay rent, pay subscription bills, pay tuition fees, or buy utilities, you can use the below-listed loan for any purpose:

1.  Doorstep loans

Doorstep loans for unemployed do not require credit proof to qualify. You can provide any of the above income repayment proof if you are unemployed to get the loan. These are door-to-door loans. If you want, you can get cash in the account too. You can get up to 2500 for urgent requirements.

2.  No guarantor loans

Sometimes, an individual needs a slightly high amount to meet the requirement. Lacking an income source prevents one from securing the desired amount. In this case, getting someone to bet upon is difficult. You can get no-guarantor loans here. If you have a part-time income with a good credit score, you can qualify for the loan amount. Even if you lack a credit score, you can fetch a small amount on the platform.

3. Single-parent loan

Parenting is one of the most difficult parts of life. As a single parent, you may struggle fiddling out with educational, personal or child medical expenses. In such a situation, single parents loans can help. You can borrow up to £10000 at flexible terms and affordable interest rates. The platform receives applications from single mothers for government benefits too.

These are some promising steps that the platform takes to provide instant and immediate cash relief to individuals lacking a regular income. Unemployment shouldn’t be a barrier to your dreams. Contact for further information.