Loan for the Unemployed – Almost Impossible for German Banks
Those affected by unemployment quickly find themselves in financial predicaments, which could only be helped by receiving a loan. In many cases, bills are open or necessary purchases can not be paid with the existing unemployment benefit. Most banks deny unemployed people a loan. A loan for unemployed people without Private credit is almost impossible for German banks.
Good long-term business relationships are often rewarded by banks
Many banks are well informed about the financial possibilities of their customers. This is especially true if long-term business relationships exist. The house bank, where the checking account is kept and also savings or insurance were completed, should therefore of course be the first point of contact in a difficult financial situation such as unemployment.
Depending on the amount of the unemployment benefit and the known period of unemployment, banks can set up a smaller discretionary loan. If guarantors, savings or even real estate are available, it is possible that the bank granted a loan. However, the data of the credit agency are needed here and a loan for unemployed without Private credit information is not granted. If the entries are not severe and there are no legal claims, banks can make a positive decision.
Private credit providers can be an alternative for the unemployed
If a loan has not been approved by a bank, a credit portal on the internet can be a solution. A loan for unemployed people without Private credit, however, is not possible even on these portals, where private investors finance loans. If no major payment defaults are noted in the Private credit information, unemployed persons are also admitted to these portals. This is possible because the monthly income is listed here but often does not have to be proven by payroll.
After logging in, a profile with as much information as possible will be created for the lenders. The loan project must be written in writing and should be fairly well defined. If several lenders have fully funded the project, the loan will be disbursed and repaid like a loan by a bank in monthly installments. On the loan portals unemployed people can provide collateral, which must be acquired as certifications.
Private credit always plays a very important role in lending
A loan for the unemployed without the Private credit, which provides the banks with the necessary data on the borrower, is rather not possible with German financial institutions and also on private loan portals. If you are rejected by a bank or a portal, you should not take it personally. With a cancellation, the lenders protect their capital and the borrower from further debts or possible over-indebtedness.