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Obtaining 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 “무직장대출”, conventional financial institutions and those with fast loans can become more reluctant when it comes to offering financing.
So, does this mean that an unemployed person with no income cannot access a loan?
Credits for the 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. Faced with this type of loan, the absence of a payroll is an important handicap for the application to be accepted. If to this we add the total absence of periodic income, the possibility of it being accepted seems complicated.
In these cases, with no income, we may choose to explore other options, such as collateralized loans. What are they? Property or equity is used as security for secured loans. In this way, if you do not meet your financial obligations, the lender will have the right to keep said 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 her equity. Based on this information, a valuation process called scoring begins, through which the granting of the loan will be analyzed.
Scoring consists of assigning a score to a series of data (in addition to the previously analyzed financial situation) such as the applicant’s profession, age, marital status or length of service. If, when adding all the scores, the final value exceeds the minimum established by the entity, the usual thing is that the loan is granted and a binding offer is issued. In this offer it is mandatory that the client is perfectly informed about the interest rate that is going to be applied and the loan repayment schedule.
Based on all this information, the unemployed and unemployed applicant should carefully evaluate the risks of applying for this loan. An applicant who is in a delicate financial situation, as in this case, may face the loss of the collateral if he is not able to obtain future income to pay off the debt. Therefore, if you are evaluating requesting a loan with real guarantee, from loanman we recommend that you analyze the situation and your need for credit, since, instead of helping you overcome a difficult moment, it can make it difficult to manage your finances.
This occurs in cases in which 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
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 years old, having Spanish nationality or a residence permit and not accumulating outstanding debts that exceed a certain amount of money (In general, the limit is usually around 1,000 euros, but each entity has its own policy). In addition, you will need to have proof of periodic income, regardless of where it comes 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 normally access through the website of the credit institution. In this 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 repay the borrowed money.
Once this information has been sent, a verification of the data provided is carried out, each specific situation is meticulously evaluated and, if deemed appropriate, in a few hours or even minutes, the amount is usually entered in the applicant’s account.
