Loans offered to Borrowers on Unemployment Benefits

For people who are on unemployment benefits, gaining access to credit facilities on either short-term or a long-term basis can be a very tough task. In the United Kingdom, many credit card companies require applicants to maintain a minimum income level of £30,000 annually to gain approval of their applications. A large group of people in this country are tired of pursuing lending institutions on high streets or payday lenders, only to be denied because they are claiming unemployment benefits.

Borrowers seeking short-term loans while claiming unemployment benefits could apply at a lender who specialises in these types of loans such as This place is willing to offer short-term loans to people who are on benefits. To begin with, there is a significant demand for accessing credit on a short-term basis among people who are unemployed. They have extreme difficulty in accessing credit with traditional means. Unexpected expenses will arise even for people who are unemployed and who are on benefits. This large group of individuals also needs access to lenders who can extend loans to them.

It has to be remembered that benefit cheques are much smaller in amounts than the pay cheques, but they still are a basis of regular cash flow. This is what the lenders are seeking when they offer a loan. As long as the deposits in the borrower's bank account are regular, it is still enough for the lenders to consider sanctioning loans of a manageable size. Hence, payday loans which are offered here to people who are on unemployment benefits are lower than what is offered to people who are actively employed. This decision is taken purely on statistical grounds and is not meant to discriminate against those people who are on benefits. Even though many people are on unemployment benefits for valid and legitimate reasons, they are however considered riskier than those who are actively employed when the default rate is taken into consideration.

Easy Loans for People who are on Benefits

There are people on unemployment benefits who are worried about getting accepted for credit when they apply for loans. Such kinds of people can look here when they are finding it tough to borrow money on the high streets from banks and various lenders. People on unemployment benefits may have bad credit rating, but their loan applications would be considered here, and every application would be assessed based on personal financial circumstances and not just on their credit scores. Short term loans can be arranged for people who are on unemployment benefits. A credit check would be run on all applicants, and their income and outgoings would be assessed to ensure that they can afford repayments before loan amounts are offered to them. It is understood that people who may be unemployed would also need that extra cash to tide them over for the rest of the month in case of sudden emergency expenses. It is also accepted that it may take some time for these people to find the right jobs and it is necessary to support such people while they are in the processing of getting set up. They deserve to take care of those immediate emergency purchases that may arise when they are least expected.

How much can be borrowed by people who are on benefits and what is required on their loan application?

People who are claiming unemployment benefits may be able to borrow amounts here ranging anywhere from £200 to £1750 for a period ranging from three to twelve months at an Annual Percentage Rate of 1421%. The applicants have to be over eighteen years of age. They should be receiving a minimum of £400 every month from their benefit allowance. All applicants should be residents of the United Kingdom and must have lived in the country for at least six months.