Unemployed Loans UK
If you are currently unemployed and looking to borrow money, we can help you!
- Top-notch Security
- Fast Lender-Approval
- Simple Online Application
- Bad Credit Okay
Can I get a loan if I am unemployed?
Yes, even if you are unemployed, you can still qualify for loans for unemployed people.
Usually, lenders who offer unemployed loans consider the whole financial situation of the applicant instead of basing their entire lending decision on the unemployment status. They also evaluate other factors such as income and expenses ratio and payments coming from government-aided benefits.
So, as long as you can prove to your lender that you will repay the loan on time without facing any financial hardship, lenders will consider you a potential borrower.
Who are looking for unemployed loans?
Unemployed loans are for people who have lost their jobs and have no source of earning but need money to cover their expenses. With the help of these short-term loans, people facing unemployment get some monetary relief.
With the help of loans for the unemployed, you can easily cover the following expenses:
- Paying utility bills.
- Travelling.
- Paying tuition fees for school or college.
- Paying insurance premium.
- Paying for childcare.
- Purchasing household appliances or electronics.
- Medical expenses.
- Carrying out vehicle repairs or home repairs.
Why Choose Us?
Finding a loan with no job is difficult, but we are here to assist you! Our ultimate and AI-based platform helps you to find a lender who offers loans for unemployed people. There are many other advantages of us like:
Easy to apply
We believe in simplicity, and that's why our application is straightforward. You can apply online from anywhere without surprises and no waiting.
Get same-day funding
If anyone is looking for a loan, it might be for emergencies. We provide instant loan approval, and if you get approval, you may receive money directly into your bank account within 10 minutes*.
Loan for all
We offer loans ranging from £100 to £5,000 that easily fit to cater to any financial needs. We accept all income sources and credit types (Bad credit).
No hidden fees
We are committing to provide 100% transparency and respect the privacy of our customers. No origination fees. No prepayment penalties.
Do benefits count as income for loans?
Yes, nobody can stop you from getting a loan if you are earning an income from benefits. It might be difficult, but possible, to find a lender that accepts benefits as an income source.
The good news is that some lenders in the UK accept the benefits as a valid income source when doing their affordability checks and making a final lending decision.
You may get loans and other financial support if you receive monthly payments from the following benefits mentioned below.
- Universal Credit: If you are unemployed or earn a low income, you can apply for Universal Credit. Find out more information about Universal Credit here.
- Jobseeker's Allowance (JSA): If you are out of work or working less than 16 hours a week in the United Kingdom, you can apply for a 'new style Jobseeker's Allowance' (JSA). Get more details about Jobseeker's Allowance (JSA) here.
- Housing Benefits: If you pay your rent while you are unemployed or earn a low income or claim benefits, you might be eligible to apply for Housing Benefits. Your local council pays for these benefits. Detail about Housing Benefits is here.
- Income Support: Similar to JSA and Universal Credit, Income Support benefits provide extra money to help those Britons who are low on income or jobless. Get details here.
- Pension Credit: If you and your partner reach the State Pension age in the UK, you can apply for Pension Credit. It provides extra money to cover living costs if you are low on income or unemployed. Know more here.
Many other benefits are eligible as valid income. These benefits are Attendance Allowance, Child Benefit, Child Tax Credit, Disability Living Allowance (DLA), Incapacity Benefit (IB), Maternity Pay, Severe Disablement Allowance, Widow's Pensions, and many more.
What type of loans for unemployed on benefits available?
Suppose you are not earning income from a job. In that case, you can apply for loans for the unemployed UK by using your supplementary income from benefits like Universal Credit or Jobseeker's Allowance (JSA). Here are some loan options available for unemployment benefits:
- Secured loans: These loans are backed by collateral. You must submit your valuable assets, like a home or car, to get such loans. If you don't repay your loan on the due date, the lender can legally sell your assets to recover their loss.
- Payday loans: Unemployed can apply and qualify for payday loans. These loans are easy to get approval for and provide fast cash. But despite this, you may need to pay higher interest rates and other fees.
- Guarantor loans: You can also consider applying for guarantor loans. In the case of such loans, you and your guarantor are liable to loan repayment because your guarantor takes responsibility when you default on your loan.
- Doorstep loans: These loans are also known as home collection loans or home credit loans in the UK. As the name indicates, once your loan is approved, your lender sends their agents to your house to deliver the loan amount in cash or vouchers. These agents are also responsible for collecting repayments from your doorstep.
How to get a loan when you're unemployed?
When you apply for a loan while unemployed, you need to be extra careful. Below we share some ways to get a loan without a job.
- Increase your credit score: The higher your credit score, the more chances of loan approval. Lenders might see you as a potential borrower if your credit score is good and you have some income source.
- Borrow from friends or family: If you have someone close who offers you money even if you don't have a job, then it is a great deal. But keep in mind that if you don't pay back the loan, you might ruin your relationship.
- Try to lower your debt-to-income ratio: The less your debt ratio to your total income is, the less risk borrower you are in the eyes of your lender, even if you are unemployed. So, try to control your expenses and pay your existing debts.
- Get cash advance: Cash advance credit cards allow you to withdraw cash from your credit card through ATM up to a specific monthly limit. Usually, they charge 2%-5% per transaction, which is higher.
What factors lenders consider when you apply for a unemployed loan?
Whatever type of credit you apply for, every lender always wants to check whether you are a potential borrower who will repay the loan. When you apply for a loan or, in our case, unemployed loans, they may consider the following factors:
- Income: Whether you earn income from a regular job or your benefits, you may need proof that you earn some form of income and can afford the repayment of the loan.
- Credit History: No. Lenders check the credit history and score to determine how risky of a borrower you are. Whether employed or unemployed, your credit score is in good numbers, and your chances of getting a loan are higher.
- Debt-to-income Ratio (DTI): Your Debt-to-income (DTI) ratio shows your monthly debts with your total income. Most lenders use DTI to determine whether you can afford the additional debt. The higher your DTI ratio, the risker borrower you are for the lenders.
How can you apply for a loan while unemployed?
With us, applying for loans to unemployed people is very simple and quick. You must complete an online application form with your details and submit it. After that, we'll handle all things.
You have to meet the following requirements such as:
- Provide proof of age, identity, and residence,
- Your banking details and,
- Proof that you are receiving government benefits.
In most cases, you will get an instant decision, and if your loan is approved, you will need to e-Sign your loan contract if you find everything okay. Once you accept the loan offer, the lender deposit cash into your bank account or debit card within 10-15 minutes*.
(Won't impact your credit score!)
Unemployed Loans- Some FAQ's
Can I get a loan if I'm unemployed?
Yes, you can still apply for a loan even if you are unemployed. Many lenders in the UK accept benefits as a valid income source and offer loans on unemployment benefits.
How can I borrow money with no job?
It is possible to borrow money with no job, but you may need to increase your credit score, lower the debt-to-income (DTI) ratio, provide collateral, or attach a co-signer with your loan.
Can I get a loan if I have no income?
Yes, many lenders consider another source of income, such as benefits, to approve a loan. If you do not receive benefits payments, your only option is a secured loan.
How can I borrow money immediately?
If you want to borrow money immediately, some popular options are personal loans, online cash advances, borrowing from friends/relatives, payday loans, or loans from credit unions. But the most famous option to borrow money fast is payday loans.
Can I get a bank loan if unemployed?
Yes, but it isn't easy. You need to submit collateral for a secured loan or attach a co-signer to apply for a bank loan with your unemployed status.
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(Won't impact your credit score!)