Can You Take Out Unemployed Loans for a Longer Period?

The thought of taking out a loan during unemployment seems to be idiosyncratic, yet a few online lenders provide financial assistance when you are out of work. Not all loan companies aim at making profits but at supporting as many people as possible. Having no stable income source will definitely makes tougher to make ends meet.

Since direct lenders believe that you may need money to fund unexpected expenses when you are out of job, they will likely approve your application for loans for unemployed provided you have a side gig.

The size of unemployed loans is very small, not more than a month and lenders usually require lump sum payments. What if you need a large amount of money? Will a lender sign off on your application or turn you down?

Many people suffer from borrowing a large amount of money to be paid back in instalments, but it does not mean that you cannot get money for a long period. Of course, nobody will imagine staying unemployed for very long time that is why it seems an unrealistic question. The fact of life is some people struggle to land a new job and they stay unemployed for four to six months.

Whether you take out unemployed loans for smaller or longer period, you are going to pay higher interest because the lender will see unemployment as a risk.

If you need smaller amount

Lenders mainly encourage the unemployed to take out a loan only when they have emergency. Since you do not have a steady source of income, they will ask you the reason for borrowing money and chances are they will cast aside your application if they do not sense the presence of urgency. If your credit need is smaller, the lender will not ask you to arrange a guarantor and collateral. The final decision will be made on basis of your income sources and good credit history. In case, you have a bad credit history, the lender will consider you riskier. In this situation, the lender may or may not accept your application. The lender may also require you to arrange a guarantor with a good credit history.

If you need larger amount

Getting a personal loan even for a period of three months during unemployment is very tough. Mainstream lenders will not entertain you at any cost. Online lenders are the ultimate option. They may lend you money provided you arrange a guarantor who agrees to repay your debt in case you commit a default. In case of absence of a guarantor, you can put collateral. Whether you arrange a guarantor or put collateral, you must have a good credit rating. You must note that the APR can be high because of a longer period.

The bottom line

The length of unemployed loans depends on the policy of the lender. No matter the size of your loan is very small or big, make sure that you will manage to pay off the debt successfully.

Description: Yes, you can take out unemployed loans for a longer period depending on the policy of the lender, but the APR will be higher.