Loan is possible if the applicant makes up for the missing job
It is possible to apply for the loan without a job at any time, because regardless of the borrower’s creditworthiness and income level, a loan can always be applied for from any lender. However, the application itself should not be confused with the loan approval, as this must be done separately by the bank.
This is a major hurdle for many unemployed people, because unemployed are not just not ideal customers at banks, but are often not generally accepted as customers for a loan. This makes it possible to apply for a loan without a job, but the promise is more than questionable, not to say that the loan is rejected anyway in 99 out of 100 cases. Reputable lenders always try to secure their investment adequately, which is why it cannot be agreed, especially after the economic and banking crisis, that loans should be freely released to people with low credit ratings.
However, a loan is possible if the applicant makes up for the missing job with additional collateral. A paid-off car will not be enough as the only security, but it can under certain circumstances increase the credit line minimally. The main security that borrowers can avail themselves of is a guarantee. The guarantor must meet a number of requirements.
Obtained a loan despite unemployment
The guarantor that is used by the borrower in the loan agreement must always have sufficient creditworthiness. That means he must be able to show a regular income, but ideally also have an immaculate Credit bureau entry. At least an average rating must be achieved in Credit bureau so that it can actually be used as a guarantor for the loan.
If you want to apply for a loan without a job and are already expecting a rejection, for example because no guarantor can be brought up, you should look around for possible lenders in your private environment. Parents, grandparents and their own partner are particularly suitable as lenders, and even very good friends are by no means opposed to financial support.
In this case, the fact that the borrower has no job and therefore no regular income is irrelevant, because the loans are issued as an investment rather than as an investment. Applying for a loan without a job is often even possible verbally with private lenders, and a written loan contract is not always mandatory, although this should definitely be created as security for both parties. In addition to the loan amount and the term of the loan, the interest burden should also be recorded.