How to obtain credit while being unemployed?
It is possible for an unemployed person to obtain a loan from a bank. However, the guarantees required by the lending organizations will be greater. In addition to bank loans, other formulas allow it to acquire funds. To know everything on the subject, it's here.
Unemployed: what to do to get a loan?
Credit institutions grant loans to the unemployed following and only certain conditions, including the presentation of supporting documents and guarantees.
- Unemployed person: supporting documents required by the bank
The acceptance of a credit application is always preceded by the verification of the creditworthiness or not of the borrower. Generally, the lending institution requires the presentation of various documents, including the latest statements of account, the latest tax notice and the latest payslips.
Banks refuse to grant a loan if the borrower's financial situation is too weak. Even more, if there is not enough evidence of its solvency. It is, however, possible to remedy this by presenting additional guarantees.
- The various guarantees available to the unemployed
First, the personal guarantee called the “surety”. The mechanism is simple. One of his relatives acts as guarantor for the borrower. In the event of its insolvency, the banking establishment will request the reimbursement of the loan from the surety.
Second, the real guarantee, a good. The estimate of its value is carried out by a banking professional. In principle, it should be equal to the amount borrowed. The financed asset serves as insurance for the bank. In the event of non-reimbursement, it will be subject to seizure and then resold. The lending institution will be charged on the price.
What are the possible alternatives for the unemployed?
Unemployed people can obtain funds by other means, including the CAF microcredit.
- Obtain funds through microcredit
The microcredit allows the unemployed to access a capital of 300 to 3000 US dollars repayable over a period of 6 months to 3 years depending on the borrower's repayment capacity. The interest rate of this type of loan varies according to his personal situation. This loan is free of charge. Better yet, no borrower insurance is required. Note that half of this loan is guaranteed by the State. Unemployed people can therefore submit their applications to partner financial institutions.
- Contact CAF to request a loan
Unemployed people can find loan solutions at the Family Allowance Fund. The granting of credits is conditional. The borrower must have low resources and a dependent child.
In some cases, CAF requires that he be able to provide part of the desired sum to finance the purchase of movable property, a car, household appliances or to carry out work.
Unlike traditional lending institutions, the borrower pays the monthly payments directly to the supplier of said property. Note that the payment is made by deduction of the paid allowances.