Employment is the key factor in the nation’s growth and in fact, it reflects how contented would be the locals of that particular country. But whether it is the UK or any other part of the world, the instability in the employment sector causes major concern. People are divided into categories like employed, self-employed, unemployed and underemployed. Here we are going to discuss about the unemployment. Britons, particularly for the last few years, have been suffering a lot due to sudden increase in the ratio of unemployment.
In such scenario, the lending marketplace has a huge role to play because when regular income is not coming frequently, applying for the loans remains the only option. Fortunately, the UK marketplace does have the variety that has been fulfilled by traditional lenders and the direct lenders in this modern era. This is perhaps the reason why people now have variety of loans for unemployed available on different terms and conditions.
Which is the best source to generate extra funds?
In comparison to the mainstream lenders, the direct lenders have now maximum of dominance in the UK market. They are flourishing rapidly and their flexible lending policies have the major role to play while assisting the jobless individuals. They have given several user-friendly features to the borrowers, which make them more efficient than their traditional counterparts
|Direct Lenders||Traditional Lending Institutions|
|Loans usually come with easy terms and conditions.||Borrowers have to go through a specific lending criterion to apply for the loans.|
|Flexibility is a key in making the borrower-friendly lending options.||Most lenders are not keen to change their policies and accept applications only when all the conditions have been fulfilled.|
|Variable interest rates and repayment terms are applicable.||They always fix to their rates and their repayment terms are also inflexible.|
|Providing the guarantor and collateral is not mandatory.||These obligations have a major role to play in the loan process.|
Direct Lending – More Suitable to Unemployed
Whether you require £500 or £3000, the online lenders are more suitable to offer you the amount on the same day basis. They have the easier application procedure that has been practiced through the internet. Borrowers just have to visit the website of the lender and they can just start applying for the loans by filling an online form.
Like the application procedure, the approval process too practiced on the instant basis. Lenders tend to verify the details within a few minutes and that help them to approve maximum applications within a single day.
During the jobless days, the more worrying factor is the unexpected expenses, which can only be eradicated through the quick funding access. By keeping this thing in mind, the direct lenders in UK are providing payday loans for unemployed. These loans bring the funds as quickly as possible and repaying the funds is also not complicated. Borrowers can make the repayments from their side income like getting money from rental properties, freelancing and self employment. As long as lenders are convinced about the repayments, they have no hesitation to fund the unemployed people.
Other features that these loans bring for the borrowers are:
- Having a guarantor during the loan agreement is not in the compulsory list.
- Pledging the collateral is also not mandatory. However, few borrowers can do that if they require larger amount.
- Receiving the government benefits does not put restriction on availing the loans.
- Your bad credit score is also not the obstacle thanks to the policy of no credit check of the direct lenders.
- Adjustments can be done in terms of making the repayments and also on the interest rates.
Some tips in the end
In the nutshell, a few suggestions for you that should be considered before applying for the loans for unemployed:
- Do research as much as possible before choosing the right lender and the loan deal. Beware of the high interest rates.
- In the scenario of getting quick financial relief, you should approach paperless loan application procedure rather than paper based format.
- Never shy to discuss any matter with the lender because a good bonding can benefit you in terms of doing some adjustments in the repayment schedule.
Hope, you have understand all the explanation here and use the loans in a smart way until finding out a new job.