Installment loan for the unemployed, or for whom?
Not all of us can boast of stable, prospective work and guaranteed financial security. Sometimes it happens that fate plays tricks on us and we are suddenly out of work. Such a period may last for a while, but it can also last for months and even years. No matter how long this time is, we must function normally then.
Most often at such moments it turns out that we need to carry out a small renovation of the apartment or a car breaks down. These types of events involve considerable expenses, which we cannot afford in this situation, unless we reach for a loan for the unemployed.
Installment loans for the unemployed are available both for people who do not have a stable income (e.g. work without a contract, abroad or receive income from other sources such as a scholarship or renting apartments) and for people who do not have any source of income.
In order to be able to use the loan for installments for the unemployed, the latter group does not have to be registered in the office and have the status of “unemployed”, but should show that they perform any work – even seasonal work, which allows them to live on savings or work “on black “and receives remuneration.
In some cases, a person applying for a loan in installments for the unemployed does not have to have a positive credit history, as all they have to do is take advantage of the loan offer without BIK. Then, the lending company does not check the borrower in the databases of the Credit Information Bureau or the National Debt Register.
Installment loan for the unemployed – how does it work?
Loans for the unemployed are not granted by banks, only by loan companies, also known as parabanks. What is the difference between a loan and a loan? First of all, three factors: repayment time, the amount that can be borrowed and the costs associated with granting the loan.
- Repayment time – loans granted by parabanks are often called “payday loans”. This term is associated with a short repayment time, characteristic of this type of products. The installment loan for the unemployed is usually granted for a period of 30 days and after that time it must be repaid in full. It may happen that the loan company gives us payday loans for a longer period, e.g. for 45 or 60 days, but most often it is the second loan granted by the company to the same customer. Then, the lender has already built up some customer credit history and knows that he will be able to repay the loan after a certain period of time.
- The amount we can borrow – in order to take advantage of the payday loans offer, we must bear in mind that the amount we can apply for will not be high. Most often it is 1000 USD, sometimes 2000 or 3000 USD. The most common maximum amount is 5000 USD.
- Costs associated with granting a loan – parabanks that do not look into the customer’s credit history must have some kind of security against delay or default. One of them is the high costs that make us borrow USD 1,000 or USD 1,300. Before applying for payday loans, it is worth checking whether the financial institution is not organizing a promotion in which the APRC (i.e. the Real Interest Rate) is 0%. Then we can be sure that when borrowing USD 1,000, we will have to give back USD 1,000, not more. Most often, these types of promotions are organized for the first customers of a given parabank.
Loan installment for the unemployed – how to apply?
You can get a loan for the unemployed in a few moments without leaving your home. All you have to do is fill out the form available on the parabank website and provide data such as:
- first name and last name,
- PESEL number,
- country of birth,
- series and number of identity card,
- mobile number (you will receive credit information for this number),
- e-mail address (a contract will be sent to this address),
- place of residence.
You may also be asked to create an account, then you will have to enter a password through which you will log in. You will need an account to be able to check, for example, your payment history, any interest or apply for another loan faster.
When taking an online loan, you will be asked to perform a verification transfer so that the lender can verify your identity. To do this, all you need to do is transfer a specified amount from your account (usually USD 0.01) to the lender’s bank account. It is very important that the transfer is made from your account – then you will be able to compare your transfer details with those you provided in the loan application. An online loan for installments for the unemployed has an unquestionable advantage – borrowed funds
An online loan for installments for the unemployed has the unquestionable advantage – the borrowed funds can be on your account the same day you applied. In addition, the whole procedure takes several minutes and does not require any certification.
Installment loan for the unemployed – how to choose the best
It’s hard not to get lost in the thicket of offers that scream to us from leaflets, when advertising on television or on the Internet. When deciding on a loan for installments for the unemployed, first of all it is worth checking what is the cost of the loan (how much is the APRC) and how much interest will be charged if we fail to pay the debt on time.
Loan companies can add a lot for simply notifying the customer about an unpaid commitment, or finally – for debt collection. Before applying for a loan, it is also worth using the payday loan comparison tool, which clearly presents all the costs of the loan and allows you to conveniently combine them.
Remember that loans are for everyone, but it is worth repaying them on time to avoid unnecessary costs and stress in the future – with unpaid liabilities, each subsequent loan will bear higher interest.