Tips for a loan for the unemployed

Loan commitments are also made for the unemployed under certain conditions. All tips for the loan for the unemployed.

Unemployment is a snapshot for many people. It is not easy to get a loan from the bank, even if the unemployment benefit is high. In today’s legal situation, unemployment benefits are not counted as attachable income. Some conditions have to be met in order to receive a loan approval from the bank.


Is there a possibility of a loan approval for the unemployed?

loan approval for the unemployed?

From the point of view of credit institutions, unemployment is a critical period of bridging. The question of whether and to what extent an unemployed person is capable of borrowing must be answered individually. As an unemployed prospect of a loan, it is much easier if a business relationship with the credit institution already exists in advance. In this case, the financial institution can already involve experiences that date from before unemployment. The likelihood of the loan approval can have an advantageous effect and the prospective customer should first contact their house bank.


Loan guarantees through co-applicants, guarantors or insurance

Loan guarantees through co-applicants, guarantors or insurance

An unemployed person who receives basic security benefits can only get a loan approval from a Goodshare Bank if he shows a co-applicant or a guarantor. An unemployed guarantor or co-applicant is futile. A regulated attachable income is a prerequisite for increasing the opportunities for unemployment credit. Capital life insurance can also be helpful for a loan for the unemployed. It can be granted as part of a policy loan. 


Personal loans through credit exchanges

Personal loans through credit exchanges

Another option is credit exchanges. Here loans are offered from private to private. However, a credit check is also mandatory here. However, it is doubtful whether the lender will lend money if the repayment is questioned by a lack of regular income. The loan request is free and the award is trustworthy compared to a credit broker who charges in advance.


Unemployment loans from abroad

Unemployment loans

Reputable banks in Germany or abroad do not grant loans without collateral to people who have no income. This also applies to the term “credit without credit record”. The term refers to loans that come from countries such as Liechtenstein or Switzerland. credit record is only a purely German company and often foreign banks do not check the credit record Score. There is also no credit record entry when borrowing. However, the creditworthiness is also checked here. In the case of a loan for the unemployed, the foreign bank also requires certain requirements:

  • Proof of loan repayment
  • Possibly additional collateral
  • majority
  • Permanent residence in the Federal Republic of Germany

The first two points represent a certain difference to German credit institutions. The provision of collateral in Germany is not sufficient because a loan has to be paid from current income. If the rates are suspended, the unemployment benefit cannot be seized and therefore represents an obstacle. In the event of unemployment, other income for a loan is only rental or interest income used up to the minimum amount at an earlier or later date.

Banks in Switzerland are a little more spacious when it comes to security assessment and types of income. In reverse, a riskier loan can be repaid with higher interest rates.