Personal Loans for Unemployed ? Liberating You from the Tangles of Unemployment

Like most of the contingencies (the after effects of unemployment safely allow it to be categorised into a contingency), one is rarely prepared enough to face the inconveniences being forced upon by unemployment. And within months of losing job, making ends meet becomes tougher for the individual. The situation gets grimmer if the jobless individual is left to fend for himself. The unemployment dole handled out by the government is hardly sufficient to meet the routine needs. As soon as the larger expenses crop up, the finances fall flat. There is little option other than to surrender to the forces of poverty and indebtedness.

You certainly do not intend to allow the chain of events a free run in your life and finances. Personal loans for unemployed will be a very important weapon in this venture. Personal loans for unemployed identify well with the concerns of the jobless borrowers and thus prove a more potent technique to fight the times of unemployment.

A question that crops in most minds is why the unemployed individuals need a specialised loan, and why they cannot realize their purpose through a regular loan. The attitude of the loan providers is more to blame for this. Since, the unemployed people lose a stable source of income, they are not able to instil much faith in the loan providers that they will safely repay the personal loan for unemployed. Loan providers perceive a greater degree of risk in offering personal loans for unemployed. This leaves loan providers with two options- either reject the application of the unemployed altogether, or offer them personal loans for unemployed with renewed terms and conditions.

Being refused personal loans because of unemployment leaves borrowers with no choice except to look after other loan providers. It is not that difficult to search for personal loan for unemployed now. With the loan providers making a widespread use of technology, borrowers can find listings by loan providers offering quotes on personal loans for unemployed. With an increasing number of lenders in the UK borrowers do have a chance to qualify for personal loans with some or other lender.

The lenders who agree to offer financial assistance may generally offer personal loans on terms that differ from the regular loans. The principal difference may be noticed in the rate of interest charged. Because of putting a greater exposure on the loan providers, expecting an interest rate equivalent to the regular loans will be unreasonable. Rate of interest is a function of the degree of risk involved in a loan. Standard variable rate of interest charged on personal loans for unemployed is generally higher.

This however, doesn't give the loan provider a free hand in charging interest. There have been many instances of unemployed borrowers losing their homes or other possessions because of agreeing to excessively high interest rates. The base rate to be charged on personal loans for unemployed can be ascertained through a loan calculator. A loan calculator lists loans of all kinds along with their respective interest rates. A borrower can upon comparison know what the lowest interest rate is, and also know whether the interest rate he is being offered is in concurrence with the best available rates of interest. The entries in the loan calculator may not have been updated according to changes in the rate of interest and other terms. Thus, though the loan calculator may not give an exact information, it may be used for defining a benchmark.

Personal loans for unemployed are generally secured on the borrowers' home. The collateral helps salvage a somewhat better deal for the borrowers. Willingness to offer ones home as collateral also makes more and more lenders keen upon offering personal loans to the unemployed.

The personal loan thus offered is also termed as a home equity loan. A borrower has the option to receive the money due on the home equity loan through two different methods. He either receives the entire amount at one instance or opens a home equity line of credit to assist him in emergencies. The second option of home equity line of credit will be much more useful for people who do not have an immediate use of the entire sum. Under the home equity line of credit, interest is charged only on the amount withdrawn and not the entire amount as in the home equity loan.

Though personal loans for unemployed may not cater to unemployment in its entirety, but it can offer a potent short-term solution to the financial shortage that unemployment is generally accompanied with.

Andrew baker has done his masters in finance from CPIT.He is engaged in providing free,professional,and independent advice to the residents of the UK.He works for the Secured loan web site loans fiesta for any type of loans in uk,secured loans,unsecured loans,debt consolidation loans please visit http://www.loansfiesta.co.uk

---

Second Mortgage Loans

A second mortgage is a loan that is secured by... Read More

What is a Bridging Loan?

A bridging loan as the name implies is a loan... Read More

Fast Payday Cash Loans

Do you need fast cash to get your car fixed... Read More

A General Discussion about Unsecured Personal Loans in the UK Financial Market

Personal loans are offered by lenders such as banks and... Read More

Title Loans - Get More of the Title to Your Vehicle

Title loans have the same features as a secured loan,... Read More

Loans For Unemployed - Employing Home For A Solution To Unemployment

If the statistics for the quarter ended April 2005 are... Read More

Where to Get Your Military Signature Loan

Military signature loans are easy to come by. When looking... Read More

Benefits of a Secured Loan

The secured loan is favoured by many UK residents seeking... Read More

Bad Credit Car Loans - Why They Are Easier To Get Than They Ever Have Been

Car loans are easier to get by using an online... Read More

So Many Loans, So Little Time

If you find yourself in need of poor credit loans,... Read More

Bad is the Opposite of Good... Is It? Not with Bad Debt Personal Loans

'Bad' means 'bad' no matter where you go! It is... Read More

A Look at the Origins of Online Lending

You might find yourself wondering about the origins of online... Read More

Cheap Loans Till Payday - Using Cash Advance Loans in an Emergency

Need extra cash till payday? It's easy to apply and... Read More

UK Student Loans Explained

Student loans seem to be the only feasible way out... Read More

5% Down Vs. 10% Down - A Comparison

It has always been an issue for home buyers to... Read More

Payday Loan Qualifications - What to Expect

Payday loan qualifications are different from other types of short-term... Read More

Guide to Bad Credit Loans

Here is a useful guide to Bad Credit loans. Bad... Read More

Best Car Loan Rates - Tips To Getting a Low Auto Loan Rate Online

Online car loan shopping practically guarantees that you are getting... Read More

Are You Ready for Your Students Student Loans?

Your son or daughter is a high school senior and... Read More

What is the Difference Between an Unsecured Personal Loan and a Secured Personal Loan?

This is a common question that many consumers have. Many... Read More

Applying for a Loan Online

If you want to apply for a loan online, you... Read More

Top 10 Ways to Avoid Loan Fraud

Every year, misinformed homebuyers, often first-time purchasers or seniors, become... Read More

Your Home Can Act As Carriage For Car Loans; Do You Know The Term For That? Secured Car Loans

Since the invention of the first self propelled car by... Read More

Debt Consolidation Tips

Here are some useful Debt Consolidation tips. Debt consolidation is... Read More

Information About Adverse Credit Homeowner Loans

While looking for adverse credit homeowner loans it can seem... Read More

Why Payday Loans Should Be Avoided

If you are considering getting a payday loan for the... Read More

Guide to Bridging Loans

Here is a useful guide to bridging loans. This is... Read More

The Wonders of Compound Interest

Albert Einstein called compound interest "the greatest invention of all... Read More

About Personal Loans

What are personal loans? They are unsecured loans that a... Read More

Finding A Thin Credit Or No Credit Motorcycle Loan

It is no secret that thin or no credit can... Read More

Benefits of a Personal Secured Loan

A Personal secured loan can offer many benefits, some of... Read More

Everything You Need to Know About a Secured Loan

If you're not familiar with the term, a secured loan... Read More

No Faxing Cash Advance Loans - 3 Reasons to Use A No Fax Payday Loan Company

No fax payday loan companies save you time with your... Read More