Issuing a loan without certificates confirming income is not an easy task. However, there are separate groups of unemployed citizens who manage to make deals with lenders.
In this matter, a competent approach to choosing a suitable loan program is crucial. Experts identify 4 methods of obtaining loans without proof of employment.
4 ways to issue loans for unemployed people
Way #1: Contacting an online payday lending service
If there is an urgent need for a small amount of extra cash, you can contact a payday lending service. Quick loans are issued by one document. It is enough to specify passport and contact details in the application to conclude a transaction with such a service.
Features of short-term payday loans are:
- online customer service;
- minimum requirements for future borrowers;
- loyalty programs, discounts and profitable promotions;
- issuing loans without checking solvency;
- high interest rates with daily accrual.
Organizations engaged in fast lending limit the amounts and terms of transactions available to customers. When you first apply, there is a high probability of receiving a low interest loan, but the duration of such a transaction is likely to be limited to several weeks. Within the framework of basic express lending programs, the standard term of the contract is often one month.
Way #2: Use special lending programs
When applying for a loan, a bank employee will offer the client to fill out a mandatory application, the information from which is used to analyze solvency. Among the many items with personal data will be the field “place of work”. If this field turns out to be blank, the application will remain without consideration.
However, financial institutions sometimes allow you to specify alternative sources of income or belonging to special categories of borrowers.
Lenders are ready to work with the following groups of clients:
- unemployed pensioners;
- full-time students;
- employees on maternity leave;
- temporarily unemployed citizens;
- employees for hire;
- seasonal and temporary workers.
Many banks cooperate with pensioners and students on special lending programs. If there is no work, representatives of these categories of clients can apply for special financing conditions. Students usually issue credit cards with small limits without much difficulty, and banks provide separate credit products for the elderly.
Pensioners belong to a group of the population that has access to a permanent income in the form of a pension, so they can pay out loans with minimal risk to a financial institution. Nevertheless, elderly people often have health problems that provoke additional medical expenses for treatment and the purchase of medicines.
Way #3: Lending to inofficially working people
Many potential borrowers with a stable income believe that they will not be able to take out a loan, as they are unable to prove their solvency due to inofficial employment. However, banks that perfectly understand the current situation on the labor market successfully cooperate with these citizens.
Unofficially working people may get income through:
- various groups of freelancers;
- unformed employees;
- outsourced persons;
- owners of creative professions.
The main feature of unofficial income is the absence of tax deductions. In this case, it is impossible to prove the fact of income with the help of a personal income tax certificate, which must be signed by the head of the enterprise.
Banks offer adapted loan programs for borrowers without official income. The easiest way to get access to these products is to use a debit card of a financial institution to receive a salary. Lenders can offer successful financing conditions and acceptable repayment terms. In this case, the borrower needs to fill out a standard income statement form according to the bank’s form.
Way #4: Issuing a secured loan
If an unemployed citizen needs a loan for a large amount, you do not need to apply to microfinance organizations. However, the probability of receiving money in a bank without a certificate of income will be scanty.
In this case, you will have to use the security of the transaction. For example, a loan secured by real estate, a car or other property.
Such a lending scheme often works for borrowers without a stable income.
Ways to secure transactions are:
- provision of valuable property as a liquid collateral;
- involvement of a solvent guarantor in the role of a guarantor.
Collateral lending has a significant drawback. The occurrence of overdue payments leads to the compulsory collection of debt. The client faces the risk of losing real estate, vehicle or other mortgaged property. In addition, not all credit organizations are engaged in secured transactions.
However, there are also reliable institutions that provide collateral loans with loyal terms and low interest rates.
Conclusion
Thus, banks refuse to issue loans to citizens who do not have a stable income at the time of filing documents. However, even in such an unpleasant situation, you can find a way out. The borrower has the right to use special lending programs, apply to MFIs, offer collateral or provide information about unofficial sources of income. The main thing is to find the most loyal lender.