How you can get loans for unemployed people on benefits
Unemployment has increased in the UK in the last few years and despite the sincere efforts of the government things are not improving much. This is the reason that many people suddenly find themselves unemployed with no source of income. Such people often have to live off benefits provided by the government and financial emergencies can happen with them as well. In such a situation if you are unemployed and in need of a helping hand you may not be able to approach the traditional high street lending organisations. These financial institutions are usually not ready to take the risk associated with providing loans for unemployed people on benefits.
What you should do if you are unemployed and in need of money
In such a situation the best thing to do is approach some specialist loan brokers who will immediately put you in touch with one of the lenders associated with them. These loan brokers always have their own user friendly websites and you can apply for the loan by filling out an online form. This online form will ask about basic information and within minutes of submitting this form, you will get an approval for the loan. Most loan brokers have a very good track record of getting loan approvals for unemployed people living on benefits.
Why lenders provide loans to unemployed people
Most of the non-traditional lenders understand that nowadays the market scenario is such that you may end up being unemployed due to no fault of your own. A sudden lay-off is a common occurrence nowadays and this is why many people end up being unemployed. However, if they are living on benefits then it is likely that they may be able to save enough money every month in order to pay off the loan. The specialist lenders consider this situation and also the fact that you may not remain unemployed for long especially if you are making sincere efforts to get a job or start a small enterprise of your own. In fact you may be taking out the loan in order to start a small home based business which is an alternative to traditional means of employment. This is the reason that the lenders are ready to take the risk and provide loans to unemployed people living on benefits. However, because of the fact that they are taking a higher risk they also charge a higher rate of interest. In order to get loans at a reasonable rate it is advisable to opt for a reputable loan broker.
What are long term loans?
Loans that have a tenure of more than 3 years are usually known as long term loans. Mortgages, some student loans, car loans etc. are examples of long term loans. Usually the traditional lending agencies expect you to provide a guarantor for the loan who will agree to pay the instalment in case you fail to do so. However, you may not be lucky enough to have someone to vouch for you in which case you need to approach some non-traditional lenders who are willing to provide long term loans no guarantor.