Are you unemployed and need to take out an unemployed loan for one reason or another? It is true that your status can make the application more difficult, but it is not impossible.
We will therefore guide you in your quest for credit for the unemployed by explaining the different options available to you.
Why apply for a credit for the unemployed?
Unemployment is a scourge difficult to combat and anyone can find themselves in this situation at some point in their life. In fact, with the various crises that can arise, no one is immune to economic layoffs. Unfortunately, unemployment is often synonymous with financial problems, and for a variety of reasons, the unemployed may be forced to apply for a loan.
If you are unemployed and planning to apply for funding, you will need to start by answering the question “why?” Once the objective is known, you can contact the institution most suited to your needs.
First, there is the consumer loan: the job seeker in need of resources may have difficulty providing for his daily needs and must therefore take out a loan to restore his situation. Second, funding can be provided to maximize their chances of re-entering the workforce. He can use the money to buy new clothes and be more presentable during job interviews. It is also possible to take out a loan for the purchase of a car.
Without forgetting that the latter is considered an essential element in the job search (enlargement of the job search area, useful for positions requiring a personal car). Finally, it can be used as capital to allow a person to embark on the creation or purchase of a business.
How to get it?
Everyone knows that applying for a loan from a bank can quickly turn into a real combatants’ journey, even if you have a job. Indeed, when applying for a loan, the first condition required is the creditworthiness of the applicant. It is for this reason that several supporting documents are to be provided: salary slip and account statement.
If you do not have sufficient resources, you represent a risk for the agency and your request will be automatically refused. Being unemployed, your chances are therefore minimal. Fortunately, more and more banks and financial institutions are giving the unemployed a chance. To do this, you need different guarantees to reassure your creditor.
Easier with a personal guarantee
To reassure the organization with which you are submitting your request, you must have recourse to a personal guarantee also called a “deposit”. The surety is someone who will take care of the refund if you have financial concerns. So if there is unpaid, the bank can turn to the surety to request the payment. By choosing this type of guarantee, you greatly increase your chances of granting a loan. Regarding the designation of the surety, it is advisable to choose a person around you, a person you trust.
Credit with real collateral
The second solution available to you is the use of a real guarantee. This is real estate, the amount of which must be at least equal to the value of your loan. You cannot lie or cheat on the value of the property since it will be evaluated by an expert. The real guarantee is a great way to reassure your bank, because if you are unable to pay your monthly payments, the property in question will be seized and sold at auction.
There is also another form of real guarantee which is particularly suited to the credits allocated, that is to say the credits intended for the purchase of a specific good. Thus, if there is unpaid, the purchased property is seized and sold at auction.
The unemployed loan with a down payment
In some organizations, it is also possible to obtain a personal loan with down payment by paying a deposit. To prove your determination and your good faith, you can pay a down payment of around 10% of the total loan amount. For this, there are certain conditions to be fulfilled. Without forgetting that it is also necessary to have a guarantor or co-borrower who will take care of the payment of the monthly payments if you have financial worries.
The necessary procedures and documents
Whatever your situation, the granting of a loan is always done according to a precise approach. To start, you must obtain information from several banks and organizations. Consult a dozen agencies to compare the different offers and choose the best one. Once you have chosen, submit the request form with the required supporting documents. These can vary from one agency to another, but in general, you must:
- A certificate of non-employment
- Account statements for the past three months
- Information concerning your surety, co-borrower and guarantor
- The title deeds of the goods to be pledged
Once you have filed the request, all you have to do is wait for the bank’s decision. Some organizations may request other documents and require that you take other steps. This is the reason why it is important to inquire well with the bank of your choice.
In France, there is nothing more natural for a job seeker than going to government agency to ask for a helping hand. It is a public administrative establishment responsible for employment. More specifically, its mission is to guide and support job seekers by assigning each a personal adviser. And for some time now, this operator has become an attractive option for unemployed loan seekers.
New support for business creation and takeover (NACRE)
NACRE is a device that boosts people wishing to create or take over a business. Thanks to this device, you can benefit from individual support and a loan at a zero rate. Unemployed, whether compensated or not, you can take advantage of NACRE. However, you must benefit from the return to work assistance allowance, the professional security allowance (ASP), the RSA or the Ata. Other conditions must also be fulfilled.
Help for job seekers setting up or taking over a business ( ARCE)
ACRE is the ideal solution for job seekers who want help getting started or starting a new business. It allows you to benefit from a partial exemption from social charges during the first 12 months of the activity. To benefit from this system, the applicant must fulfill certain conditions relating to the age, the nature of the activity and the type of unemployment (compensated or not, beneficiary of certain types of allowances).
Government agency offers many aids to help create or take over a business. To find out the documents and procedures to be followed for each aid, it is advisable to go to the offices or consult the official government agency website.
Microcredit for unemployed Agree Bank
Agree Bank is a recognized association of public utility which comes to the aid of people wishing to create a business and therefore employment. She is responsible for supporting and funding creators. Among the most interesting offers of Agree Bank, there is microcredit.
What is microcredit?
It is a limited sum granted to people excluded from the banking circuit for certain reasons. There are several types of microcredit. First, there is personal microcredit which can be used to meet specific needs such as registering for training. Like all credits, personal microcredit is granted following a study and it is necessary to have guarantees. Then there is the professional microcredit which is intended for people in difficulty to facilitate the creation of a business.
Why choose microcredit from Agree Bank?
If you are unemployed and want to quickly re-enter the world of work by creating your business, talk to Agree Bank. The association can grant you an unemployed loan of 300 $ to 3000 $ and the beneficiary has a repayment period ranging from 6 months to 3 years. The main advantages of this financial assistance are that the repayment terms and interest rates are defined according to the profile of the applicant. In addition, there are no application fees or borrower insurance.
How to benefit from microcredit?
To obtain a microcredit, it is necessary to contact the Agree Bank association. You will be received by friendly staff who will conduct an interview. Don’t be surprised if some questions seem personal to you. Just try to answer them as clearly as possible. Regarding supporting documents, you will be asked to provide your last 3 account statements, your identity document and a certificate of non-employment. If you have a bond or a real guarantee, do not forget to provide the information concerning them.
If you are looking for credit for the unemployed and have experienced many failures with credit institutions, contact CAF. The CAF or Caisse d’Allocation Familiale is a local branch of the National Family Allowance Fund (Cnaf): a public body responsible for paying financial benefits to families.
CAF offers several types of credit for job seekers. First, there is the loan of honor, which is an interest-free loan for families going through a temporary financial crisis. The sum obtained can be used for the acquisition of a vehicle, registration for training or the purchase of any other goods used to facilitate the reintegration of the unemployed into the labor market.
There is also the furniture and household appliance loan which is a loan at a zero rate. As its name suggests, the loan is intended for the purchase of household appliances allowing each unemployed person and their family to live a decent life.
The conditions and documents required by CAF
To benefit from the CAF unemployed loan, you will need to have limited resources and have at least one dependent child. In certain situations, you will have to finance part of the amount of credit requested. Concerning the documents to be provided, it is preferable to inquire with the agency of your department, because they can vary from one establishment to another.
Your request must be submitted to the CAF in your department, which will then assess your request. It is the evaluation which will determine the amount of the credit as well as the repayment terms.
From now on, it is also possible to make an online request by going to the caf.fr website. You will have to start with a simulation, by filling out a form with your personal information: names, resources, residences. The online simulation will determine the amount of the monthly payments. This will allow you to check for yourself whether you can pay these amounts. If so, you can print the form and send it with all the required supporting documents.
Credit for the unemployed online
Thanks to the evolution, there is nothing simpler than to take out a loan on line. To do this, you must perform a search by typing “unemployed credit”. Several results will appear on your screen, but it is preferable to choose the sites that allow you to perform an online simulation. On these, fill out the form correctly. Once the site has analyzed your needs, it will send you the most suitable offers and all you have to do is choose.
Taking out an unemployed loan online offers many advantages. Among other things, online searches make it possible to avoid numerous trips. In addition, you can perform operations at any time, via a smartphone, tablet or computer. However, applying for credit online presents a great risk of getting scammed. So be careful and choose reliable sites.
Auto credit for job seekers
In France, the status of unemployed does not constitute an obstacle for applying for a car loan. Besides, the car can be considered as a useful element to facilitate the return of the job seeker to the working world. Indeed, the vehicle can be used for job search. Some companies even require that an employee be in possession of a personal car.
As a result, many establishments accept to grant this type of loan to the unemployed. However, obtaining a car loan is strictly regulated and the conditions differ from one establishment to another.
This loan can be granted by many credit institutions. But the best solutions for a job seeker are CAF and micro-credit of Agree Bank. And to maximize your chances, avoid being too greedy. So put a stop to luxury cars.
Credit between individuals
When all the agencies close the doors and refuse to grant you a personal loan for the unemployed, your last resort remains the credit between individuals. Indeed, there are many platforms that connect applicants and lenders. However, they present a great risk of scam and certain platforms require the communication of documents which you may not have, such as pay slips.
It is for these reasons that we advise you to consult your entourage for this type of loan. Choose people you trust: friends, families and acquaintances.
Unemployment insurance for a loan
As mentioned earlier, no one is really safe from unemployment. This last part of the article is not a real solution for the unemployed looking for credit. However, this is a preventative solution that should be taken by all employees: unemployment insurance for a loan. Take the example of a person who purchased real estate on credit.
He suddenly finds himself unemployed and can no longer pay his monthly payments. If he has unemployment insurance for a mortgage, his insurer can take care of the payments for him. Of course, this type of contract is subject to many conditions which differ from one agency to another.
But in general, to benefit from this insurance, you have to pay a premium and have lost your job involuntarily, which excludes resignation except for legitimate reasons. Regarding the duration of the compensation, the principle is 1 day worked is equal to 1 day compensated. Taking out unemployment insurance for a loan is highly recommended, as it is a great way to secure your back.