Foreign loans for the unemployed.
Loans for unemployed from abroad
Unemployment can have fatal consequences for many people. Especially young families who live in rent or have ongoing financing for their own home suffer from the financial misery. But it is not only young people who have to chew unemployment. In order to get out of the financial shortage, unemployed people at institutions like the bank often have bad cards to get a loan application.
Requirements for an unemployment loan from a bank
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In order to get a loan application from a bank approved, the institutions often require collateral such as assets, a private policy or a guarantor. In most cases, financial collateral does not exist and it is usually undesirable to burden a third party with your own financial situation. Borrowing from a bank is therefore difficult.
Alternative online loans
Numerous credit providers can be found online, which grant unemployed people the granting of a so-called small loan. It is important to ensure that they request Credit bureau information. Data such as regular income are also entered in the Credit bureau. Most of the time, the chances for unemployed people to get a loan are rather poor due to the irregular income during a credit check. The alternative of a Credit bureau-free loan can enormously increase the likelihood of a positive response.
Possibility of foreign credit from abroad
Since the Credit bureau information is a German invention, in order to protect the credit institutions from the insolvency of their customers to a certain extent, but also to protect the borrowers from a considerable debt trap, banks from abroad usually do not value a Credit bureau test. The Credit bureau core is therefore usually irrelevant when applying for a loan abroad. Likewise, no new Credit bureau entry is created. However, the creditworthiness of the borrowers is thoroughly examined. Banks from Switzerland in particular, like German banks, require certain guarantees:
- proof of payment security
- possibly further collateral
- Identity card to check the age of majority and
- proof of permanent residence in Germany.
While evidence of collateral is insufficient in Germany because credit must be borne by means of current income, collateral is sufficient in Switzerland.Unemployment benefits cannot be seized in Germany. For this reason, banks are usually not satisfied with security.
Another option is to get an unemployment loan from a private person. Numerous platforms offer loan offers. However, a prerequisite for this is a comprehensive creditworthiness check. Since private individuals also want to secure themselves in a certain way, it is questionable at this point whether the lack of a regular income leads to a positive answer to a loan request. Compared to loan offers from intermediaries, however, the loans are serious and there are no costs for a loan application.