Only a few banks offer credit for the unemployed. However, financing is still possible under certain conditions. Read about the difficulties you face and the options you have. Who actually writes and advises here? About us.
This is a loan for the unemployed
When consumers are looking for a loan for the unemployed , there have often been a few cancellations from various banks. The background should not be underestimated: The banks fear that the loan installments cannot be paid by the money that the unemployed borrower has at their disposal. The so-called default risk is often too great for banks, so that a loan for the unemployed is not offered at all.
The reasons are understandable:
- A loan for the unemployed creates additional costs every month: the loan installments that have to be paid to the bank. Since unemployed consumers generally have little money at their disposal, the banks assume that an additional financial burden cannot be met.
- Unemployment benefit is often not recognized as eligible income! This means that the chances of getting a loan are slim if there is no further income. Because with a loan approval, the banks primarily pay attention to whether the monthly income matches the monthly expenditure.
Notice! If you want to apply for a loan for the unemployed, you should be aware that the agreed installment payments must be made – on time and in full ! Otherwise, not only will there be legal consequences, but also a negative Schufa entry (or a deterioration in the score), which will not only make it more difficult to apply for further financing. Problems can also arise in other areas of everyday life, such as signing a smartphone contract or renting an apartment.
If you still want to apply for a loan for the unemployed, you can use the free loan comparison at the top of this page to view offers. In a further step, a knowledgeable credit advisor will contact you to discuss whether the financing suits your personal situation or not. This is a great advantage for consumers – not only for loans for the unemployed, but also for other loans. If the credit advisor finds that the financial burden on the applicant is hardly manageable, the bank will probably come to the same conclusion. In this case, it makes no sense to apply.
If you want to apply for a loan for the unemployed, you should first determine whether the financing is actually not too much of a burden. How this works is described in the section “How to determine whether funding is eligible” below.
Also check the following points:
- Check alternatives
- Keep the loan amount as low as possible
- Consult a second borrower
- Check your options for a “private loan”
Before you apply for a jobless loan from a bank or financial institution, find out whether you might be eligible for an unemployment loan from the Employment Agency (BfA). See the relevant section later in this article: “Loan for unemployed from the employment office”
Keep the loan amount low
Many unemployment loans are not granted because the loan amount cannot be repaid with the available financial resources. However, if applicants keep the sum of the desired loan small, the chance of approval increases. Clearly: the lower the loan amount, the lower the amount that has to be repaid. And the lower the monthly rate that burdens the household budget.
Consult second borrower
A second borrower increases the likelihood of receiving the desired financing – and it does so significantly! The background: When the banks determine the creditworthiness, it is checked whether the monthly income matches the requested loan amount.
With two borrowers, both borrowers’ income is taken as the basis. For example, if it is about financing over 1,000 dollars, the likelihood that the bank will grant the financing is significantly greater if two people pay for the repayment instead of just one. Notice! A second borrower is not to be confused with a guarantor! While a guarantor only comes into play when the borrower can no longer pay the monthly installments, a second borrower is the same as the first. The second borrower therefore has the same rights (e.g. to the loan amount) as well as the same obligations (e.g. payment of the installments).
Consider “private” credit
While with a bank loan the borrower gets the money from a bank, with a loan “privately” a private person grants the financing. There are several brokerage platforms on the Internet that bring borrowers and private lenders together.
The advantage: Private lenders can decide who they lend their money to. That the borrower is unemployed does not necessarily have to be a reason for rejection!
Loans from private individuals automatically flow into the credit calculator of our cooperation partner smava! If you use the calculator at the top of this page, the “private” loans are displayed together with the bank offers. Notice! The strict guidelines that banks apply when lending not only protect the banks, but also the borrowers from over-indebtedness! If you find funding that has just enough financial resources to repay the loan in accordance with the contract, you should carefully consider whether the funding really suits you.
If, for example, the washing machine needs to be repaired during the repayment period, an additional financial burden, such as a loan, can become a debt event! The credit rates then increase the mountain of debt every month, threatening personal bankruptcy. (Source: Schufa)
How to determine if funding is an option
You can use a simple household bill to determine whether you can afford a loan. Write down all fixed costs such as
- Rental costs
- Telephone and internet costs
- monthly ticket for local public transport, if applicable
- if applicable costs for car insurance and tax plus reserve for car repair costs
- Expenditure on food and clothing
- Insurance costs
- If applicable, costs for loans already in progress (monthly credit installments)
- Other expenses for e.g. B. visits to the cinema
You should also plan a buffer for unforeseen expenses, such as the purchase of a new hair dryer or the money for the child’s day trip.
Now compare this expenditure with the monthly income. If there is still an amount left on this invoice that makes it worthwhile to take out a loan, a loan is considered.
Loan for unemployed from the employment office
The Federal Employment Agency (BfA) is obliged in certain situations to grant a loan to an unemployed person. This is generally the case in an emergency, such as a defective roof that urgently needs to be repaired, or a heating bill that can no longer be deferred.
If you want to take the step into self-employment, you may also have the chance to get a loan from the employment office.