When it comes to acquiring a loan, there are several requirements lenders put in place to ensure they get their money back. But how does one get a quick loan without having a job, especially in a country like Nigeria? Not having a job is not a phenomenon peculiar to Nigeria as the job market the world over is presently in crisis. According to available statistics, the rate of unemployment in Nigeria rose to 33.28% in 2020.
With this in mind, it is not uncommon to see one or two people who are out of jobs yet have an urgent financial need to settle. For those who fall into this category, “No-Income Loans” can always come to the rescue.
What Are No-Income Quick Loans?
Although the name suggests otherwise, no-income loans are types of loans designed for people whose source of income is not tied to things like a full-time job. These loans generally require you to either have liquid assets or alternative income sources to repay the loan.
In cases like these, the lender may be required to verify these sources.
How No-Income Quick Loans Work
Like other types of loans, no-income loans require that the borrower has some alternative method of paying them back with interest. In that case, the lenders will want to see the borrower’s credit history, bank accounts, and proof of any liquid assets where necessary.
The more financially responsible the borrower demonstrates they are to a lender, the more likely you are to get a loan application approved.
In some cases, lenders scrutinise things like finances, assets, credit scores, distributions, or payouts from any other sources to determine the level of risk you represent to their firm if they were to approve your loan. If they are confident that the borrower can pay them back, they are likely to approve the request.
Some assets the lender might take into consideration in providing a no-income loan may include:
- A house or real estate
- Appraised valuables
- Government bonds
- A vehicle
Steps To Take When Applying For A No-Income Quick Loan
When you apply for a personal loan, the lender looks at your credit score, existing debt, and other sources of income for individuals that are unemployed.
The unbanked could also pass for the unemployed in the sense that their income does not go through any financial institution. This could include unskilled artisans who also pass for the unemployed because of the absence of proper documentation.
Some of the steps one could take when applying for a loan without a job in Nigeria include the following;
1. Guard against fraudulent options
In seeking out a no-income loan, it is important to get familiar with available loan options. Once you start looking for alternative loan types, you are likely to run into many that are marketed to people with a bad credit score or no credit history. By this, one may stand the risk of falling into the antics of unregistered borrowers or loan sharks.
For instance, in cases where you have to tender collateral like a house or a vehicle, it is best to scrutinise the loan terms before accepting. It is also very important to be sure of your payment plan else you stand the risk of losing your property.
2. Know your available options
A good number of lending apps in Nigeria offer loans to individuals with no documented source of income. Some are comfortable giving out loans to borrowers who meet the credit requirements, while others may accept other forms of collateral. The downside to this is that the loans can only be given in small amounts.
An online loan is similar to a loan from your local bank. They will usually consider income sources other than employment. Many popular online lenders offer unsecured loans only, but you will find some that specialize in secured loans.
3. Explore alternatives
Individuals that fall into the no-income category are usually advised to explore other options before seeking the loan route. Alternative means of meeting urgent financial needs could include family or friends,
4. Choose carefully
As an out-of-job borrower, your options are limited. As a result, the loan offers you may get may not be quite friendly. It is important to check the rates and fees that apply in this kind of situation. Depending on your circumstances, not having a job could make you look like a more risky borrower. That could cause them to charge you higher rates and fees for an installment loan.
What to do if your quick loan is not approved
In a situation where loan offers get unapproved, borrowers can try lowering the loan amount. In this kind of situation, it is not advised to go from one loan platform to another, especially when dealing with loan apps. This may either raise a red flag or potentially damage the borrower’s credit score.
Naturally, borrowers who do not have income or assets will have a hard time getting a personal loan. In that case, they are advised to re-evaluate their needs and consider other strategies.
Things to consider before taking out a quick loan while unemployed
No doubt, loans can be a valuable tool for anyone who needs money to cover a pressing expense. While the unemployed can still get their loan application approved for a personal loan, it might be tougher for those who have the inconsistent income to prove that they will be able to pay back the funds.
In taking out a loan while unemployed, ensure that you are capable of repaying the loan so that it will damage your credit. If your credit gets damaged, it ruins your chances of getting a loan in the future. You should always analyze your personal circumstances to make sure any new debt or other financial decision is the best step for you.
No matter how pressing the financial situation is, before attempting to obtain a loan, it’s important to be completely honest with yourself about your capacity to fully pay back the loan at the agreed time. Missing the repayment date can cause substantial damage to one’s credit.
This makes it harder to borrow in the future. Also, defaulting on repayment altogether puts a considerable dent in your credit history.