The global economy is flourishing at the moment, there are hardly any unemployed and Germany is almost fully employed. Nevertheless, there are still unemployed people in this country who cannot participate in the success of the economy. There can be many reasons for this and it can also be assumed that times will deteriorate again and unemployment in Germany will rise again.
The unemployed also have wishes and ideas about life, they also want to go on vacation or own their own car. In addition, larger purchases can always be made in the household, for example if the washing machine no longer plays along. It is very difficult for people without a job here because the unemployment benefit is usually not sufficient to make such purchases. But how can these people be helped?
Loan without a job out of the dilemma
Many banks give unemployed people substantial support here by offering them a loan. In order to get a loan without a job, however, as with traditional lending transactions, certain collateral must be covered in order to be granted a loan. These types of collateral can be of various types. Banks usually require applicants to provide proof of income, but this is not possible in this case, since they are unemployed. Other values and possessions such as shares, real estate or life insurance are often not available.
So another way must be found. This is where the guarantor concept comes into play. A guarantor is a bank credit protection that comes into play when you have a jobless loan. A guarantor is a specific person, possibly an acquaintance or friend, who can provide financial support for the borrower as required. In this respect, the banks are covered because they receive their installments on time. The possible conditions for a loan without a job are presented below.
The framework for a loan without a job
Such banking is generally offered as an installment loan, ie the borrower has to repay installments to the bank on a monthly basis. The possible loan amounts depend on whether a guarantor can be specified. If this is the case, loan amounts of up to USD 100,000 are possible; if not, only small loans of up to USD 5,000 can be granted. The terms, however, can be fixed flexibly and can be between 1-10 years.
The effective interest rate is also crucial, it essentially determines the amount of the installments. The interest rate is currently between 5 and 8 percent. Furthermore, the installments can be suppressed by possible one-off and special payments, which is particularly useful if you want to keep the installments as low as possible.