There are situations in life where more money is needed than is available. So it can happen that the car needs an expensive repair in the workshop, that the washing machine becomes defective or that new glasses are needed that the health insurance company no longer pays. When it comes to such emergencies, a loan is urgently needed. Those who are unemployed usually have a problem.
Private loan for the unemployed
Those who are looking for work also have needs and financial expenses. For example, if the place of residence is rural and the car is on strike, there is little hope of a new job. Now there is of course the possibility to borrow money from family, friends or acquaintances. This is called personal credit.
It is safest if both parties conclude a short repayment contract and the borrower signs a note on the creditor. As soon as work is in sight again, the loan can be paid off faster than during unemployment.
Loan for unemployed at the bank
Banks and savings banks struggle to lend to unemployed customers. This results from bad experiences that the money raised could not be paid back.
However, if the needy has been a customer of his bank for many years and the creditworthiness has always been in order, it may be that he gets a loan for the unemployed; even if the loan amount here will probably not be very high.
Loan with guarantor
If no way has been found to get the money you need, there is another way. If a guarantor is found who signs the loan agreement and is in the background as security, the loan is usually approved. It goes without saying that the guarantor must be solvent. If the debtor is no longer able to pay his installments, the guarantor is used to pay. This is one reason why this loan for unemployed people is usually only a family member or spouse.