Loan for unemployed

Loans for the unemployed in the Philippines

Data from the Philippines Statistics Authority indicate that the unemployment rate in the country currently stands at seven percent. This may be just a figure but when taken into context; it means that close to four million Filipinos have no stable income or means of livelihood. Although unemployment may not be permanent, this is a grave situation given that the affected have to meet their daily needs such as food, rent, buy clothes, and other necessities. Unemployment not only denies a person a decent livelihood but also has serious emotional effects. It does not get better given that unemployed people find it hard to get credit from the financial institutions; assistance that may help in alleviating their current problems. Most of these entities will require collateral or a regular income to advance credit. 

However, all is not lost since there are financial institutions that are coming up with products that can help the unemployed meet their needs. Unemployment loans or emergency cash loan for unemployed are some of the products that are available for those who are temporarily out of work. These kinds of facilities provide credit assistance with no job verification giving the applicant a chance to meet their daily needs or even start an income-generating activity. In this article, we will be exploring the loan for the unemployed, covering aspects such as its advantages and disadvantages, money lenders for the unemployed, the requirements, approval process, and repayment of this type of credit.  

Advantages

• With the fast loans for the unemployed, you have a chance to improve your credit ratings. Once you pay on time, you will get in good books. With good ratings, you qualify for more in the future.
• The application process is simple and easy; once you meet all the requirements, you can get the money within a short period; sometimes in minutes. With this, you can meet your needs including emergencies.
• As a borrower of online loans for the unemployed, you are not limited on how you can use the money. Unlike other types of credit, the borrower has the discretion of use. However, one is encouraged to use it well, especially in meeting the most urgent and important needs.
• Repayment terms are friendly and flexible, especially for those who pay on time. If you repay on time and in the required amounts, you can negotiate with the lender to extend the period or even get a top-up.
• Unlike some types of credit, you can get a loan without a bank account. With numerous legit online money lenders, all you need is an active mobile phone number; make a loan application providing all the required details, and if you meet the criteria, it will be processed and sent through the phone.

Disadvantages

• Although personal loans for the unemployed can help boost a credit score, they can only do so if the applicant pays back on time. With chances of defaulting being high due to lack of regular income, this type of credit can damage the credit score preventing the borrower from qualifying for a mortgage or any other loan in the future or increasing the cost of borrowing.
• The amount that can be advanced to an employed person is relatively low when compared to those who are in employment. This in essence limits what you can do with the borrowed money.
• Given the risk, money lenders result in charging relatively higher interest rates. When you pay higher rates or charges it results in the added cost of borrowing, therefore, reducing the amount that you take home.

Where can you get it?

Now that we have weighed the pros and cons of this type of credit, let us talk about where it can be sourced. The number of financial institutions giving urgent cash loans for the unemployed has been increasing. This has been fueled by technological advancement and increased financial inclusivity. Public and private lenders are competing for the customer including the unemployed giving people who have been previously shunned by banks an opportunity to finance their projects or daily needs. Private companies such as DiGiDo, MoneyCat, Online Loans Pilipinas, Kviku, UnaCash,OneClickMoney, Cash Mart, Cashalo, Tala, Pera247 among others as well as public lenders such as SSS Unemployment Insurance have been offering this segment of borrowers credit assistance allowing them to stay on foot during difficult times.

Requirements 

To qualify for personal loans for the unemployed, you need to meet these requirements

• You must be over 21 years, although some microcredit institutions advance credit to those who are below 21 but above 18 years if they meet all the other conditions
• You have to be a resident of the Philippines
• A valid bank account may be required but some institutions only require a valid and active mobile phone number
• You are a recipient of financial assistance

Getting approved

To get approved, an applicant needs to provide complete information. This is done by filling out an application form where official data is provided. The applicant needs to give accurate information as any false details automatically lead to disqualification.

Repayment

Repayment periods are flexible, they range from weeks to months or any stipulated duration. In some circumstances, the borrower has the discretion to choose the amount as well as the repayment term. A borrower needs to repay on time and at no time default on payment. This helps in building a good profile with the lender and also improves the chances of future borrowing. The borrower’s attitude to the credit taken determines the future relationship with the money lender as well as the whole lending fraternity. 

Final thoughts

Being without a job can be difficult, especially when you have some bills to pay. Luckily, you have options where you can get money to cover the expenses. However, before applying for a loan for the unemployed make sure that you have selected a legitimate money lender and you clearly understand what you are taking. Avoid lenders who are out to take advantage of your situation. When you get the money, ensure that you use it prudently, avoid misuse, pay on time and work your way out of debt.