Loans for unemployed Australians are available. Many people need to borrow cash for sudden needs and expenses. And often this is when they are in-between jobs or have been laid off.
When most online loan and credit companies have all but excluded them due to financial status, certain loan companies are here to help. For these types of loans, there are different terms and limits that need to be reviewed first.
Reminders for Unemployed Loans
Unlike other loans discussed herein, loan applications for the unemployed will uncover your financial info and credit history. You also have to provide other financial references and minimum proof of funds for future payments. This is a standard security check since the terms are more risk-based for loan companies.
As long as these are provided, loans can be approved within their timeframe. The loans will also be smaller from $100 to $5000, to maintain light, reasonable instalments.
Application for an Unemployed Loan
To avail of a loan, choose from loan providers who support unemployed applicants. Make sure to review the eligibility requirements which you can commit to. Consider the terms of this loan if they are manageable.
Among these companies are Savvy, OK Money, Wallet Wizard, MyCashFinance, Good to Go Loans, Cash Direct, Swift, Ferratum, and other many smaller providers. Make sure to review their fine print to be sure which provider matches your current financial capability.
Loans are open for:
- Legal-aged Australians (18 and above)
- Permanent residents
- Has a regular income, or has minimum funds
Unemployed people can avail of loans with just a few simple requirements:
- Minimum financial capability – Usually a small net amount per month to cover the instalments
- Credit History/Score/Rating – Be prepared to show previous payments, instalments, and ratings. This is usually to see non-payment instances.
- Possible Collateral – You can put other assets up for possible collateral if you fail to finish a loan. Most of these have to be non-essential assets to lessen losses.
- Sources of Funds – Proof of funds from non-regular income, welfare, government benefits, Centrelink payments, and all other sources.
Unemployed Loan Terms
The operational terms of these loan companies are different. You have to review them before committing – Take note of the slight differences from most common loans:
- Flexible payments and schedules
- Additional fees may apply
- Higher late payment fees
- Smaller loan amounts
- Additional terms and conditions may apply
For example, one loan provider is Cash Converters; they offer small loans for unemployed Australians. Different types of loans are offered depending on their specific use.
For loans applied for by unemployed people who cannot provide current employment details and don’t have higher or reliable fund sources, the terms are much different:
A small loan has a small limit amount up to $2000, payable up to a year. It will include a 20% establishment fee, 4% monthly fee, and $33 arrears fee for late payments. You can claim the cash within 48 hours.
The terms here are more strict with a small ceiling amount for your loan. So a faster turnaround for your payments will be beneficial and will help avoid debt traps.
Other Loan Assistance services
There are also other forms of Unemployed Loan assistance with easy terms and much lower credits. These are either additional loan options or an alternate in case you don’t meet the requirements and eligibility for other loans.
- Guarantor or Partnership Deals – To apply, you need a partner for the loan who can join in the terms or serve as a voucher to guarantee the repayments. They may answer to the loan financially in case you miss payments or can’t complete the total.
- Bank account overdraft – This is a bank account option where you can withdraw beyond your limit up to a certain ceiling amount. Depending on the bank, there is an overdraft fee plus the interest.
- Microfinance services – Smaller loan companies are available for no-interest loans. The loan may focus on necessities, bills, utilities, and other more important daily needs. The screening process will not be as thorough and will only have a low annual interest rate.
In addition to loans, there are niche services sometimes from the same company. Cash Converters for example accept second-hand items, pawnbroking, and cash collateral. While not direct loans, they can help with completing funds or as an alternative to smaller loans.
Basic guidelines for Unemployed Loans
- Borrow smaller, exact amounts only:These loans are offered in smaller amounts since the fees and interest rates will be higher. The debt trap is still a danger when loan payments go awry. And these fees and interest rates will pile up easily. Borrow the least possible and exact amount that you only need.
- Be mindful of your funds and schedules:Unlike buy now pay later loans or P2P loans, there won’t be apps to remind us of the schedules and amounts for each instalment. Keep in mind that late fees are much higher. You would need to think ahead with your funds and make sure they will be available. Pay on time and even in advance to settle it faster.
- Finish loans fast:Keep the loan small and manageable. Advanced and in-between payments are encouraged if the terms allow for it. Get off the loan as fast as possible and you will avoid late fees, piling interest rates, and extra charges.
- Be mindful of collateral clauses:Other loan companies will include collateral as part of the loan, often for bigger amounts. Be careful with what to put up as collateral. Instead, opt for different terms or get a smaller loan that doesn’t require collateral.
Some of these terms may be too heavy. You’re in a temporary difficult situation, and there may be lighter and easier loan offers or cash sources. Among these are the aforementioned loan assistance alternatives, and other services where you can sell or pawn off some assets and properties instead.
In some instances, BNPL services (Buy Now Pay Later), or P2P loans (Peer to Peer Lending) may be a better option as long as the terms meet your situation, and the fees and interest rates are reasonable for you.