With a personal loan, you are borrowing money that you can use for any purpose. Personal loan have a fixed interest rate, making your payments predictable. You can also have the money in your bank account within days of applying. Also, personal loans are not a safe haven, so they do not need to be tied to certain assets, such as a car loan. And in some cases, you may be eligible for a mortgage if you have bad credit. Personal loans are available for unemployed borrowers too, if they have got other income sources to show with which they will be repaying the loan amount borrowed. To be prepared for all the expenses beforehand, you can also use a personal loan EMI calculator.
This means that there are certain criteria that your lender will consider when deciding whether you are eligible for a personal loan. Specifically, lenders will check to see:
What your credit score looks like
Whether you have a source of income that will enable you to repay the loan. If you are currently unemployed, you may wonder: 'Can I get a personal loan if I am unemployed? The answer is: Probably.
Personal loan lending when you are not working
In order for a lender to feel secure in allowing you to borrow money, solid credit history is not enough. You will need to prove that you have the means to comply with your loan payments, and in general, having a job is the best way to do that.
But that doesn't mean you've run out of options if you don't work right now. While it is true that you will need to provide proof of income to your lender, that amount can be obtained from a variety of sources. These include:
Social Security Benefits
Disability insurance
Alimony payments or child support payments
Interest or dividends arising from investments
Social assistance
Rental income from the property you own
Now, suppose you are unemployed and need money fast, but you also have a rental property with Rs. 800-a-month rental. If so, the lender should be willing to count the Rs. 800 as income, even if it is not from the employer.
What if you have no income at all? You may be out of luck. That means, if you have a signed letter from a new employer but have not yet started a new job, the lender may be willing to lend you money.
Getting a mortgage loan for coronavirus hardships
It may now be possible for you to qualify for a modest coronavirus loan if your finances have collapsed during the epidemic. These loans are basically small personal loans with favorable lending conditions, and many include a minimum interest rate of as much as 3%. Of course, in order to qualify for one of these loans, your lender will also need a guarantee that you can stick to your payment plan. The details of the guarantor can be checked in the Standard Chartered Bank personal loan. But if your credit limit is high and you can prove that you are struggling with short-term financial difficulties (e.g., you are affected but expect to be hired again in a few months), then you may qualify.
Conclusion
Whether you need money for an ongoing crisis or some other reason, your goal as a borrower should be to make your debt as repayable as possible. Thus, a personal loan is a more costly option than a credit card loan. While the approval of a personal loan is often dependent on getting a job, there are ways to get that, especially if you have another source of funding, so don’t assume that this loan option is not on the table because they are currently unemployed.
Know more about:- Myth About Personal Loan
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