How to apply for loans for the unemployed?

Getting a loan, a credit or any other type of financing when you are unemployed is much more complicated than when you are working and developing a paid work activity.

However, even when a person is receiving periodic income in the form of unemployment benefit or unemployment benefit, conventional financial institutions and fast credit institutions may become more reluctant to offer financing.

So does this mean that a unemployed person without income cannot access a loan?


Credits for unemployed without income: do they exist?

Credits for unemployed without income: do they exist?

A priori, the answer is no. Most loans are made based on a personal guarantee, that is, with the certainty that, if you are going to request a loan, you have the necessary resources to repay it, whether in the form of savings, salary, equity, etc. Given this type of loan, the absence of a payroll is an important handicap for the application to be accepted. If we add to this the total absence of periodic income, the possibility of it being accepted seems complicated.

In these cases, by not receiving income, we can choose to explore other options, such as loans with collateral. What are they? A type of loans that require a good or asset as collateral. In this way, if you do not meet your financial obligations, the lender will have the right to keep that guarantee as compensation.

When a person who does not have periodic income applies for a loan with real guarantee, the first thing that is done is to evaluate their assets. Based on this information, a valuation process called scoring is initiated, through which the granting of the loan will be analyzed.

The scoring consists in assigning a score to a series of data (in addition to the previously analyzed patrimonial situation) such as the profession, age, marital status or seniority in the applicant’s work. If, by adding up all the scores, the final value exceeds the minimum established by the entity, it is usual for the loan to be granted and a binding offer to be issued. In this offer it is mandatory that the client be perfectly informed about the interest rate that will be applied and the loan repayment schedule.


Carefully evaluate the risks of applying for this loan

An applicant who is in a delicate economic situation, as in this case, can face the loss of the asset under guarantee if he is not able to obtain future income to settle the debt. Therefore, if you are evaluating to request a loan with real guarantee, from Greenpeak Credit we recommend that you analyze the situation and your need for credit, since, instead of helping you to overcome a complicated moment, it can make the management of your finances difficult.

This occurs in cases where the applicant is unemployed and does not receive money periodically, but what happens when, despite being unemployed, he does receive monthly income? Let’s see it!


Loans collecting unemployment: requirements

Loans collecting unemployment: requirements

If you are unemployed but receive periodic income, you can apply for a loan, but you will have to meet some requirements such as being over 18, having Spanish nationality or a residence permit and not accumulating outstanding debts that exceed a certain amount of money ( Usually the limit is usually around 1,000 dollars, but each entity has its policy). In addition, you will need to have a proof of periodic income, regardless of where they come from (benefit, subsidy, pension …).

But the process does not end there. To access a loan, you must first fill out a form that you can usually access through the website of the credit institution. In that form you will have to provide your National Identity Document (DNI) and a proof that certifies your monthly income. This last document is essential to measure your solvency and, therefore, your ability to pay back the borrowed money.

Once this information has been sent, a verification of the data offered is carried out, each specific situation is thoroughly evaluated and, if deemed appropriate, in a few hours or even minutes, the amount is usually entered Applicant’s account

There are, currently, a multitude of solutions for those who need financial help to pay their payments. However, it is essential to make responsible use of these resources. That is why credit institutions such as Greenpeak Credit evaluate each case and provide support to their clients to help them make responsible financial decisions taking into account their real and potential resources.