A job or employment is one of the most crucial aspects of your financial life that is taken into account before accepting an application to many services and short term lending is not an exception as these private lenders usually want to see a stable income before giving their money to someone. A stable income or a job means that you will be able to pay your utilities as well as other essential needs and on top of that it also gives a greater probability that you will be able to repay the debt that you are asking for.
But even if you don’t have a job you can still sometimes get a loan because being unemployed doesn’t mean that you don’t have any income as there are many different income types such as passive income, pension and social security income that does not count as an official employment. But even if you don’t have any regular income there are some lenders that are willing to take the risk and let you borrow money as long as you are not in the black list of debtors and your credit score is not that bad. Usually people can get these loans without employment if they have already previously been credited by the same company and they have repaid their debt in full without any delays. This action gives creditors more trust that you will do everything in your power to pay them back after you have taken this loan.
The global economy has largely recovered from the 2008. and 2009. crisis but the unemployment statistics in most countries are still high and as much as 10 % of the population at any given time are unemployed. But that does not mean that these people who have no job dons’t need money to survive and meet their basic requirements like food and shelter. And because regular creditors like banks won’t even look at you if you have no official income then the only choice you have is to try and get one of these quick loans.
These loans without employment verification are useful for people that work part time or earn their living from small jobs freelancing and are not working a full time employment but because they do not have regular income they can’t apply for loans in the regular fashion. And also people who work in the so called grey economy that do not pay taxes can get these private short term loans because lenders do not check their income statements and that gives everyone the chance to borrow money when it is needed. But lately governments around the world have started to crack down on lenders that do not check their client employment statements and these actions have made it much harder to take out these loans.
How much money can I get without regular income?
Because loans without employment verification are very risky for the lenders then they can only hand out these loans if the profit from each transaction is big enough to mitigate that risk. And that is why lenders allow their customers to borrow only short term loans without checking their income statements. These fast loans usually have a much higher profitability from those bigger annual percentage rates compared to other long term loan types. This means that you will be able to borrow only a sum that does not exceed 1500 Lari but that should be plenty enough to cover your emergency expenses and any other spending that you need money for.
Repayment terms for loans without employment verification
If you don’t have regular income then you will be able to borrow only quick non-bank loans and their repayment therms are usually from 1 to 30 days and that is usually enough to find the money that you borrowed. Of course every lender creates their own rules and there are even some consumer credit offers that you can also apply for but the most common terms are within 30 days. If you are not able to repay your fast loan in time you can always extend your repayment term by paying a one-time sum for extending this period to 7, 15 or 30 days.
What are the alternatives?
There are some alternatives to fast loans without official employment and they are some longer term loans where yo give your lenders something as collateral. These leans that use collateral are called secure loans and they usually are associated with lower risks to the lenders themselves but you as a borrower take on more risk because you can loose the thing that you used as a collateral to secure your loan. When you take out a secured car loan or any other secured loan type you take a pledge that if you do not pay your monthly credit payments the creditor has the right to take this collateral from you. These loans are with lower risk and so creditors are willing to give them out even if you do not have a permanent job or a regular income.
If you are thinking about borrowing money but you do not have regular income coming into your bank account then you need to be super careful because these fast loans and secured loans are easy to take on but much harder to repay. You need to take a hard look at your financial situation and estimate if you have enough money to repay that debt or are you taking on too much. Loans are a great way to fix your budget holes but they can also be like a financial time bomb and can grow exponentially if you let them get out of control!