Is it possible to obtain a personal loan in the absence of income ? If so, what do you need to do to access it without difficulty? Let’s find out with the help of this guide.
Personal loans? Even without income
Being in possession of a paycheck is the simplest condition for accessing a personal loan. This does not mean, however, that in the absence of an income it is not possible to have a loan. We will not consider here those who do not have a paycheck but have a demonstrable income, such as self- employed workers or pensioners ; for more information on these two profiles of applicants, refer to the guide on loans without paychecks.
Instead, we return to talk about loans with no demonstrable income considering the profiles of the most common applicant (with the possibility of access to credit).
Protestants and bad payers : for persons reported to the central risks as profiles at risk of insolvency, obtaining a loan without income is possible, provided that we can present guarantees of different types. For this purpose, banks and financial institutions offer dedicated personal loans, such as those involving the presence of a guarantor or the signing of bills to guarantee the sums disbursed.
Students and unemployed : we share these two profiles because they have similar characteristics as regards the absence of a demonstrable income. Students and unemployed have the possibility to access loans without income and guarantees, usually thanks to agreements stipulated by local or state agencies. In many cases this type of loans fall into the category of fiduciary loans, although this type is not the only one accessible for these profiles of applicants.
Workers with payroll but indebted: in this case the presence of a paycheck is not very significant, as a further personal loan is usually judged as unsustainable by those who assess the practice of access to credit. In these cases it is possible to access the loans without income, usually proposed for figures that allow to understand in a single installment the payment of the loans previously stipulated (this is the so-called “debt consolidation”).
Loans without income: looking for alternative guarantees
Often those who do not hold a paycheck or a demonstrable income are led to think that their income situation does not allow to present guarantees . This is only partly true, because as a guarantee various goods can be presented, which allow access to personal loans designed specifically to meet the needs of those without a paycheck. One of the types of loans without income is that of loans with bills of exchange , usually offered to those who have a previous financial situation compromised. In the presence of real estate it is possible to provide as a guarantee the mortgage of the asset; in this case the specific product referred to is the mortgage loan, so called because of the presence of a mortgage.
What we have just described are just some of the possibilities of accessing personal loans without income and guarantees, but bear in mind that very often banks and financial institutions have set up special products, with very different characteristics. For this reason it is always recommended to carry out a thorough research (perhaps using an online comparator), to find the financial product that is right for you.
Personal loans without income: attention to costs
After describing how to borrow personal income without income, we consider a non-indifferent aspect in accessing credit, that is, the costs of personal loans. In fact, it is not rare for loans without guarantees and paychecks to be charged higher than comparable products for employees or those with demonstrable income. Refer to the guide on the site for details on the valuation of interest rates of a loan. Here, however, we remind you that the simplest parameter to consider in order to evaluate the convenience of a loan is the APR interest rate, which makes it possible to understand the actual costs applied to the personal loan.
It should be noted that very often loans without paychecks , without guarantees or intended for specific categories of applicants, such as bad payers or protestors, have a higher APR than a secured loan. However, even in these cases the differences between the conditions applied between a product and the other can be considerable, so it is always advisable to evaluate two or more different products before signing a personal loan without income (but a similar argument applies to all personal loans).