Need to borrow money, but lack a permanent job? Borrowing money without permanent employment is definitely not impossible, although it makes it somewhat more difficult to get a loan unlike if you have permanent employment.
When you apply for a loan, a credit check is made, which simply involves assessing your ability to pay now and in the future. The most important things that affect your creditworthiness, and which come into play when you apply for a loan with no permanent employment, are your annual income, your debts, and any payment remarks.
The banks and lenders simply want to make sure that you have the option to repay the loan according to the plan. By conducting a credit report and assessing your credit rating, they analyze the risk of lending money to you. The more things you can present that show that you will be able to repay the loan without any problem means lower risk to the lender.
This is how you take out loans without permanent employment
There are several different types of employment and sources of income. There are many lenders in the market today who do not stare blindly at your past payment history (such as payment remarks) or permanent employment. They only want to make sure that you receive money regularly so that you can repay the loan when you apply for a loan without permanent employment. Thus, they can accept other forms of income. Here are the most common types of employment and income that lenders usually accept when assessing your credit rating:
Project employment. You have a work contract for a limited period of time, for example, a year. This should mean that you can take out a smaller loan that is paid off during that time.
Income from the pension. Although many lenders have an age limit on their loans, there are some who accept pensions as income and grant loans without permanent employment.
Income from studies. Tuition is an income and is often enough to take out a smaller loan. However, we do not recommend that you borrow money if you are a student – you probably already have a student loan so you risk double indebtedness and high repayments in the future.
Income from A-cash. The A-cash is also counted as income when you apply for a loan without permanent employment. Again, we raise a warning finger. If you completely lack employment and income, it is better to lower your expenses and only borrow money in the event of an emergency and then only very small amounts that you can pay off quickly.
The most important thing is to take the time and compare loans and lenders if you have no permanent employment. The purpose is to find those who help clients who do not have permanent employment or have other factors that cause the major banks to refuse the loan.
Loans that can be taken out without permanent employment
Most loan forms, except for some of the very smallest mortgages, require some form of regular income. This is necessary so that the lender can feel confident that you will pay your monthly bills without any problems. Here we go through different types of loans and what usually applies when you borrow without permanent employment.
SMS loans and fast loans without permanent employment. These types of loans are smaller, fast loans with amounts up to USD 10,000. They are characterized by having very generous conditions for signing the loan and shorter repayment periods. For example, a very low SMS loan of USD 1,000 can have a repayment period of only one month.
In order to take out quick loans without permanent employment, it is usually sufficient that you have income from work, pension or unemployment insurance of USD 50,000 per year.
Private loans without permanent employment
A private loan is a slightly larger loan that is taken out without collateral. They are usually offered up to USD 500,000, but the most common amounts are around USD 30,000. It can be a loan for a slightly larger investment, such as a new washing machine or a used car. Here, the income requirements are slightly higher. We usually see income requirements of USD 100,000 per year for this type of loan, from work, pension, a-cash or similar.
Account credit without permanent employment. An account credit is a current credit that is always available to avail when needed. You can be granted a credit up to, say, USD 40,000 and then withdraw money from it whenever you want.
The credit is then repaid monthly until the debt is repaid. Signing up for an account credit without permanent employment is more difficult because the credit runs on until further notice, whereupon the lender wants you to always be able to repay it when you choose to withdraw money.
We, therefore, recommend that you primarily look at alternatives other than bank credit without permanent employment if you want to borrow money without permanent employment. In addition, if you do not have permanent employment, it is generally a bad idea to debt yourself and cover up the loss of income by borrowing money.