Information About Instant Loans for the Unemployed
Scholasticus K
Many banks and lending and finance institutes provide instant loans for unemployed individuals, which are primarily short term loans with a repayment period of one to six months.
Economic cycles, such as depression and economic recession, create many fluctuations in the macro aggregates of the economy, such as employment levels, flow of cash, distribution of income, national income, and credit levels.
When an economy plunges into recessionary or depression cycles, the rate of credit created in the economy drastically drops, which consequently affects the economic growth, thereby bringing down the levels of employment.
In such a scenario, banking systems and lending and finance organizations sanction instant loans for jobless people.
Features
Instant loans for unemployed are so named, because these type of loans are usually fast track loans and are approved within a short period of time.
Most of these loans are approved within a time period that ranges from 8 hours to 48 hours.
The time period varies on the basis of several factors, such as credit rating and credit history of the applicant, as well as the principal amount of the loan.
Ordinary, these loans are treated as personal loans and are approved by the lenders without any kind of down payment.
In some cases, such loans are also lent for specific purposes. For example, an unemployed person may apply for the loan in order to fulfill a medical bill's obligation.
In other cases, these loans can also be availed to purchase assets such as cars and real estate (Note that auto loans and real estate loans are many a time not approved if the applicant is unemployed or does not have a steady flow of income).
Requirements
The first requirement that most of the applicants need to fulfill is having a good credit score.
The significance of a good credit score is that it indicates a good credit history. A good credit history, in turn, means that the applicant is capable of repaying the loan.
Most instant loans are short term and are repaid within a time period of 1 to 6 months, hence neither party has to worry about timely and full installments.
The lenders also go through a background check of the applicant, which typically involves checking on the number of assets that are held by the applicant, or other debt obligations that the applicant might have accrued.
In cases where the loan is borrowed for some emergency, such as a medical emergency, the applicant is expected to disclose details regarding the nature of the medical emergency or details of medical insurance.
Instant approval loans for unemployed whose principal amount ranges between USD 400 to USD 1000 is usually an unsecured loan. However, if the principal amount of the loan exceeds the higher limit (which is about $1000), then the loan is usually a secured loan. In such cases, the applicant is required to pledge an asset to avail the loan.
Procedure
The procedure that is involved in the application and approval of this kind of loans is simple and straightforward.
The best way to apply for such a loan is to visit the site of the lender and fill in the required details for the application.
The lenders quickly perform a background assessment and a credit check.
In cases where the loan is a secured loan, you may have to personally meet the representative of the lenders and also sign agreements regarding the collateral.
The rate of interest is then calculated by the lender on the basis of the value of the collateral (if any), amount, and the time period of the loan, and also the credit score of the applicant.
The total principal amount is then transferred to the bank account of the applicant. In case of instant cash loans for unemployed, the amount can either be transferred to the bank account of the applicant or even availed in cash.
A point to remember - while availing these instant loans, a good credit history can be instrumental in securing the best rate of interest and time period from lenders.