Loans for Unemployed in the UK: Facts You've Never Heard Before

by Ellie Brown Finance Loans

Conventional funding options for jobless don’t exist as most of the typical banks and lending companies are reluctant to offer financial assistance due to the lack of a steady source of income. Their poor credit scores are also a negative factor that hinders the approval process. Unemployed loans for people on benefits are special unsecured lending options that direct lenders in the UK offer to such population. Let’s have a quick look at the facts about these funds that you’ve never heard before:

Fact 1: These Funding Options are Approved by FCA

Hundreds of deals are available online that are too tempting to avail. Financial Conduct Authority (FCA) has allowed certified direct lenders to offer viable and affordable lending options to helpless unemployed people who are struggling to survive. Be wary of the lending companies that are not certified by the FCA. They may deceive you with an attractive deal and land you in another financial trouble.

Fact 2: Loans for Unemployed in the UK are Affordable

As jobless people are not accessible to typical financing options, so they think that unemployed funds are costly. But, the fact is that these funds are quite affordable and a prospective borrower can get them at a competitive APR. Even you have a good chance to get the best deal with no upfront and processing charges. To get the lowest APR deal, you need to compare various offers.

Fact 3: No Valuable Asset is Required

To avail unemployed loans for people on benefits, you don’t have to pledge any collateral like your house or car. Now, the question is how a direct lender would recover the money if the borrower defaults the loan. Well, it is a big risk, and direct lending companies take it just to ensure none of the jobless person feel cornered during the financial crisis. They offer funds on easy terms so that even people on rent can apply.

Fact 4: No Need to Search Guarantors

People have apprehension that they need to arrange a guarantor to get the approval. However, in the reality, short-term loans without guarantor can be accessed anytime without the need of a co-signer. Direct lending companies don’t want their customers to run door-to-door for requesting people to become guarantors.

Fact 5: Repayment in Installments is Indeed Possible

Lump sums or complicated payback options trouble the customers a lot and make them more vulnerable to another financial crisis. The direct lenders know the financial health of borrowers well and hence offer flexible repayment options. A jobless person can easily repay the availed debt in easy installments by choosing any convenient tenure option i.e. 6 months to 10 years.

Don’t feel confused! These funds have been especially designed for you. Apply now to get the best deal on loans for unemployed in the UK.