Banks most often grant loans to people with a stable professional and thus financial situation. But what if we theoretically have the status of unemployed and need an injection of cash?
Each of us was in a situation where suddenly we had to get a larger sum of money. This could be a washing machine breakdown, the need to renovate the apartment or news about a wedding of a member of our extended family. In any case, we need money as soon as possible. A person working full-time under an employment contract can simply go to his bank, but what should a person who does not have a permanent job do? Are there institutions that will lend money to someone who has no stable income? The solution are loan companies.
Take a loan and your monthly income
There are many loan companies on the market that do not require an income certificate when applying for a loan – all you need is a written statement of your monthly earnings. This does not mean that we can make a false declaration in such a statement, because very often employees of loan companies contact employers to confirm the information.
If we formally have the status of an unemployed person, this does not mean that we have no chance to borrow money from a loan company. If instead of a monthly payment we have a different, stable source of income, we can apply for a loan. It should be emphasized that the sum of our monthly income must be high enough for us to receive the money we need. Our credit history is very important. We can only apply for a loan if it is impeccable. Information about debts and late payment will disqualify us from being able to get a loan.
What can be a permanent source of income?
Loan companies, unlike banking institutions, do not recognize only remuneration under an employment contract as a permanent source of income. Due to the fact that the requirements are not so restrictive, regular receipt of money from other sources can be considered as a stable income. This can include earnings from the implementation of a work or commission contract, but also social benefits, alimony or even rental contracts.
We can also include all odd jobs that we do for a fee and other activities that bring us profit and which we pay tax to as a stable income.
So, if a certain amount of money comes to our account every month for the above activities, we can apply for a loan. The loan decision can be positive if, after deducting expenses for current consumption, we meet the requirements of the lender and we do not have any other financial obligations on our account.
More and more loan companies offer car loans for people without permanent employment. This is based on a very simple mechanism.
A car that becomes the lender’s property in 51% (of course until the borrower repays the debt) becomes the collateral for the money borrowed. When the debtor defaults, the loan company can bid for the vehicle and cover the debt for the money received.
Applying for a car loan is very similar to taking a standard payday loan. Therefore, we submit an application for a loan, and after a positive decision of the loan company, we are waiting for documents to be sent by the lender. In the correspondence sent we will find a loan agreement, transfer of the car and power of attorney, based on which the original owner of the car will enter the lender as a co-owner of the car. After writing out the documents, go to the appropriate department of communication (taking the received transfer agreement and power of attorney with you) and report the need to enter the lender in the registration certificate.
We write more about this type of loan in the article Car loan .
Loans for the unemployed and the risk
The decision to take out a loan by an unemployed person must be carefully considered. Lack of work or irregular income may cause us to have problems with timely debt settlement. On the other hand, it’s a way for us to get the cash we need. Before deciding to incur debt, we must analyze all the pros and cons, and above all answer the question: will I be able to pay it back on time?
Compliance with the liability repayment date is very important, because otherwise you may be charged interest and penalties related to late repayment. Additional fees can increase the value of our debt by several hundred zlotys! Therefore, if we decide to borrow money from a loan company, let’s do everything to return it on time.
Where to take a loan?
If we want to take a loan without compromising on complicated formalities, we can use the services of the platform. Only in some cases can this company ask you to send us a proof of income or bank statement. In most cases, the loan is granted on the basis of an online application, and after positive verification of the document and after signing the contract, money can be expected on the account the next business day.