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The unemployed can hardly be considered as ideal borrowers by lending firms. But it may be a surprise to learn that some lenders are willing to grant approval to those seeking a loan but with no job to their name. It is not as unwise as is generally believed, so securing a large loan for the unemployed must be considered a major possibility. Of course, it seems very strange that the unemployed can be considered for a loan at all. With no visible means of repaying the loan, the lender is clearly accepting all of the risk. However, there is a definite method to their madness, with granting approval with no income still managing to increase their profits with defaulting remaining low. But why would a lender provide an unemployment loan? The answer lies in the whether a leap of faith is considered acceptable or not. After all, there is the potential to make real profits. However, there are some questions that should be asked before making a final decision. Why Lend To The Unemployed? There is a common misperception of the unemployed, with traditional lenders suggesting they are too unreliable to borrow money. The fact that there is no reliable source of income supports that believe, but it is possible to get a large loan for the unemployed becomes a potential to earn is recognized. Basically, even though the applicant has no income now, there is a belief that the borrower will get a job soon. So, granting loan approval with no income is not so big a risk. This removes the risk of defaulting, at least in part, also ensures that the critical bills that the applicant faces can be met But of course, there are conditions to such loans. For a start, these unemployment loans are not available to the long-term unemployed. The lender is more interested in the recently made unemployed - those who have the biggest chance of bouncing back, so to speak. What Are The Terms To Seek? While it is possible to secure a large loan for the unemployed, there are conditions that make this quite expensive. For the most part, however, applicants seem to like the availability of smaller loans. Since there are two repayment terms to consider – long and short – it is generally not difficult to work out which is affordable. The typical loan for an unemployed applicant is around $1,500, offering just enough finances to deal with a specific financial emergency. The interest charged on these loans will be higher than usual while the term of the repayment schedule is such that there is often pressure to repay the full amount on time. Getting approval with no income is not too difficult when the sum is small, but for larger loans of perhaps $25,000, approval may be a little more difficult. Affordability is essential, and by extending the repayment term – to perhaps 10 years - the unemployment loan become affordable. Satisfying the Qualification Standards Lenders who offer a large loan for the unemployed may seem to be overly generous, but in fact there are strict qualification criteria that must be met before approval can be seriously considered. The criteria are specific. For example, applicants must have been recently made unemployed, but must also have spent at least 6 months looking for work. There must also be a realistic chance of securing employment in the future. It is a myth that approval with no income is available with bad credit ignored. In fact, what is true is that lenders will check out the background of applicants, with a good credit history helping to seal the loan approval. Career-orientated applicants can also look forward to larger unemployment loans because they are more likely to restart their careers with well-paying jobs. Mary Wise is an expert in the financial industry and knows exactly how to aid you in getting approved for the loan or credit card you need. She has helped a lot of people to obtain Guaranteed Bad Credit Personal Loan, home equity loans, car loans, unsecured credit cards, payday loans, Bad Credit Mortgage Loans and many other products regardless of their credit situation through his website http://www.badcreditloanservices.com
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