Loans for Unemployed

Loans for Unemployed Workers: A Helpful Guide

Are you currently facing financial struggles due to unemployment? Tough times can make it difficult to get cash for everything from rent to car repairs. Many that find themselves in hard times make the mistake of thinking help isn’t available. In reality, even during unemployment, there are many options available for money through loans for unemployed workers.

What are Loans for the Unemployed?

Loans for unemployed workers are loans available for anyone who is currently facing unemployment. These loans do not discriminate based on unemployment history, meaning anyone who is out a job can face quick approval. Anyone in dire need of cash without a job should seek these loans for urgent assistance.

What Can Loans for the Unemployed be Used For?

Reliable providers of loans for unemployed workers, such as MiFinance, understand that financial hardships may arise in numerous ways when out of a job. Whether for urgent car repairs or utility bills, these loans are available for many uses. Some of the most common uses for these loans include:

  • Medical expenses, such as doctor fees
  • Education expenses, such as university fees
  • Repair expenses, such as emergency car repair fees
  • Utility expenses, such as electricity and internet fees

These are only the most common uses for these loans, there are countless more valid circumstances where loan approval is guaranteed.

What are the Requirements for Application and Approval?

Unemployment can strike anyone from any background, which is why respectable loan providers have a very small set of criteria for potential loan applicants. The main criteria include:

  • Age of at least 18 years
  • Resident of Australia
  • Regular Income for the past 3 months (includes Centrelink income)
  • Valid phone number and email

The above criteria ensure that virtually anyone experiencing unemployment can get the cash they require. Importantly, Centrelink payments are a valid form of income, which means anyone facing a prolonged period of unemployment is still eligible.

What Makes Loans for the Unemployed Better Than Other Alternatives?

Out of all of the possible ways to get quick money while experiencing unemployment, getting a loan from a trusted lender is almost always the best option. Here are the main reasons why going with a loan for quick cash is best.

Simple Process with No Documentation

Getting money through other means usually involves plenty of paperwork and plenty of questions. When facing financial hardships due to lack of a job, the last thing anyone wants to do is fill out form after form for some money. Sometimes, intrusive questions are also part of the approval process of other types of financial assistance.
Getting a loan for unemployment involves no paper and no intrusive questions at all. All that’s required is a basic online form and some personal details such as a phone number. No documentation is needed, and neither is lengthy and invasive questioning.

No Collateral Necessary

Collateral is standard for many types of loans and financing; However, this is not the case with loans for unemployed workers. Anyone applying for these loans will not have to put up any sort of collateral in order to get loan approval. Respectable lenders do not place an extra burden on their customers, ensuring these borrowers don’t have to risk losing valuable assets such as their home.

Potential for Consolidating Debt

Some unemployed workers face other debt obligations, which can lead to an overwhelming situation, particularly when out of a job. Loans for unemployed workers include the opportunity for these individuals to consolidate all of their debts into a single loan. Turning all debt commitments into a single loan, those facing unemployment can not only get the cash they need but reduce the anxiety that comes with managing many different repayment obligations.

What are Main Features of Loans for Unemployed Workers?

Loans for those facing unemployment are essentially the same as any other loan when it comes to main features. Government bodies encourage borrowers to properly understand what is involved when taking out a loan, as stated by Moneysmart. Understanding the main features of loans, anyone seeking a loan will know how much they need to pay, as well as how long they need to make repayments until they fulfil their obligations.

Loan Amount

Loans available for those currently unemployed usually range from $500 to $5000 in value. The loan amount is important as it forms the basis for repayment calculations. In general, the larger the loan amount, the longer the repayment period. Depending on the situation, a smaller or larger loan amount might be suitable for someone out of a job.

Loan Interest

When an unemployed worker takes out a loan, they get the loan amount as well as a continuing obligation to pay interest on the same loan amount they have just received. Interest is calculated as a percentage of the loan amount and is compound interest. Depending on the lender, the interest rate used for the calculation may differ. In general, interest for loans for unemployed workers ranges upwards of 20% per annum.

Loan Repayment Period

Depending on both the loan amount and loan interest, the period repayment changes. Generally, the person taking out the loan decides the repayment period. Most of the time, higher loan amounts and higher interest rates will often lead the borrower to seek a more extended period of repayment. Once the repayment period is over, and all repayments have been made, the borrower has successfully fulfilled their obligations and doesn’t need to make any more payments.

Loan Approval Fees and Other Extra Fees

Some lenders include additional loan approval fees for their customers, particularly new borrowers. Also, lenders sometimes have extra fees for early repayments as well as late repayments. All trustworthy lends should be transparent about any charges they might include other than the principal repayment of the loan amount with interest.

What to Watch Out For When Seeking a Loan While Unemployed

Getting cash when out of a job and facing hard times is understandable. However, there are some pitfalls borrowers need to avoid when seeking loans. The obligations that come with a new loan agreement can stretch into the next months to years, meaning borrowers must make informed and reasonable choices. Here are situations to avoid when looking to get some quick money during unemployment.

Only Trust Reliable Lenders

Many businesses provide loans for unemployed workers, but only a select few are reliable and trustworthy. Some lenders are scammers, looking to prey upon people who are facing the hardest of circumstances. Only lenders with a strong track record and trustworthy credentials such as MiFinance should be used when seeking these loans. Trusted lenders that have plenty of great reviews and have all the necessary credentials as an Australian business are reliable for loans.

Fees for Early Payments

Many people who get loans while unemployed get back on their feet shortly afterward. When experiencing a better financial situation, one of the first things lots of borrowers want to do is pay off their debts. However, some types of loans available to those facing unemployment have strict repayment terms that penalise early repayments. Penalties for early repayments can sometimes lead to paying the same amount of interest as paying out the loan for the original repayment period. When seeking loans as an unemployed worker, attention must be paid regarding repayment policies.

Debt Obligation Cycle

Loans are readily and easily available for people out of work, which can be tremendously helpful when used correctly. However, some borrowers make the mistake of taking out too many of these loans and accumulating huge amounts of debt obligations. The debt cycle often involves a borrower taking out loans just to pay off other loans they have outstanding. Debt cycles can go out of control very quickly, which is why it’s essential anyone taking out these loans understands their financial limitations before proceeding.

What Makes a Trustworthy Lender?

Considering the pitfalls some borrowers face when taking out a loan, the need for a trustworthy and respectable lender is highlighted. Finding lenders that have the best interests of their borrowers in mind is easy when considering a few key features.

Reasonable and Affordable Interest Rates

Lenders are a business, which means making a profit is essential. However, trustworthy lenders provide interest rates on their loans that are reasonable considering the risk they are taking by handing out the loan amount. Good lenders do not punish their borrowers by setting excessively high interest rates that will undoubtedly burden them. Instead, lenders that are worth utilising for loans combine the interests of both the borrower and themselves as a lender for a reasonable and affordable agreement.

Simple and Easy to Understand Application Process

Respectable lenders understand just how difficult unemployment may be for their borrowers, which means they should have a simple application process. Many people who are struggling are seeking these types of loans, so an application process that asks for as little information as possible is optimum. Loans for unemployed workers shouldn’t involve filling out documents and providing extensive details. Anyone facing unemployment should prioritising borrowing from a lender with the most uncomplicated application process available.

Swift Responses and Transparent Communications

Getting quick and easy to understand responses is an incredibly important feature of high-quality lenders. Unemployed workers going through financial hardships don’t want to wait days for answers to their questions. Furthermore, people out of a job don’t want their lender to hide important details through difficult to understand emails and other communications. Reliable lenders all want their borrowers to be as informed as possible at all times, while also answering any of their queries in the quickest possible manner.

No Extra Charges or Hidden Fees

High-quality lenders don’t want to overburden their borrowers with sneaky charges and fees. These lenders know that what their borrowers are going through is incredibly difficult and stressful, which would mean they would never consider charging more than necessary. Hidden charges that aim to trick disadvantaged individuals for extra profits are almost always a sign of an untrustworthy lender.

MiFinance is a lender that satisfies all of the above conditions, as it is one of the most trusted providers of loans for unemployed workers. The company is committed to helping people facing difficulties finding a job to get a quick and uncomplicated source of cash. Applying for a loan through MiFinance is incredibly easy, with some of the fastest loan approval times available. Apply now via following this link or calling 1800 825 805.