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Same Day Loans For People On Benefits
Apart from bad credit remarks, being unemployed is another problem if you want to borrow money from a lending institution. Most banks and credit union will deny the application automatically if the applicant is not a regular employee. Even self-employed individuals are having a hard time when finding a lender. If you’re currently in any of these scenarios, this guide will shed light on the things you need to be aware of and how you can apply.
Is It Possible To Get A Loan Despite Being Unemployed?
Although some lenders are strict with their prerequisites, there are still loan providers who are willing to accept borrowers who are unemployed. However, there are certain conditions that should be met such as the age, residency, bank account, or income. Since the borrower is unemployed, the earning should come from various sources, such as welfare benefits or payments from investments. Self-employed applicants are also welcome.
Same-day loans for people on benefits are beneficial to those who wish to acquire money when they are in need. However, there are important things that the borrower should consider prior to putting their signature in the lender’s contract.
- You Should Be Able To Repay The Loan
As a business, lending facilities need to have their money back, therefore, you need to know if you’re really capable of repaying the loan or not. Find out the exact amount you need and resist the temptation of borrowing more than what you can settle. In addition, smaller amounts are easily granted especially for cases like this.
- You Should Be Able To Meet All The Criteria
Loans for benefits same-day have requirements that are easier to accomplish than the other types. However, each requirement should be met to be eligible, therefore, it’s necessary to find all the prerequisites and ensure that you have all of those.
- You Should Receive Welfare Payments
Since you’re applying for same-day loans on benefits, it’s obvious that you should be a recipient of welfare benefits. If you’re unemployed or you are a single parent, your income should come from welfare payments in order for your loan application to be approved.
- Quick Repayment Plans
The loan that you will apply for are released on the same day of your application and since it’s quick cash, it should also be settled on the next payday. The payment is higher than the amount you’ve borrowed as it consists of the principal amount, interest rate, and other charges. This is the primary reason why the lender requires you to have an income.
- High APR (Annual Percentage Rate)
One of the qualities of a short-term loan is its high APR; this means that their fees and other charges are more expensive than the banks. This is the risk that comes along when you choose to apply for instant money.
- Automatic Payments
Most instant loans require auto-debit for payments. This means that you should grant the lender an access to your bank account so they can automatically withdraw the settlement on the loan’s maturity date. If you have no money on your account on that date, overdrawing could happen – and this means more charges.
Representative example: £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)