There are loans for the unemployed in Ghana. Unemployed people have financial obligations they must meet just like employed people. Some people opt to take personal loans to cater to some of their personal needs. Or even get a business loan to expand their businesses and so on. However, there are other types of loans for various needs that you can access from financial institutions. Unemployment could make people have low self-esteem, which could sometimes lead to depression.
There are a few things you need to know before taking a loan for the unemployed. As you read along this article, you’ll know the requirements for unemployed loans, how to apply, interest rates and so on.
About loans for unemployed in Ghana
They designed loans for the unemployed to give people who are not employed funds to carry out their financial obligations. Before lenders give out the loans for the unemployed, they ensure that borrowers have a way to repay.
Because of unemployment, the unemployed people usually have difficulty affording their basic needs. And some of these basic needs could sometimes require a quick loan to get things done immediately. But for them to meet their basic needs, they need money or an adequate source of income. However, there could also be payments to make, like education fees, electricity bills, telephone bills, and so on. Therefore, getting loans for the unemployed in Ghana is a good option to take.
Loans for the unemployed are usually short-term loans. This is so because the lenders want the borrowers to repay the loans easily.
What are the features of loans for the unemployed in Ghana?
Loans for unemployed in Ghana have features of which are among:
- They are short-term loans.
- The loans give you small funds
- Loans for the unemployed do not require collaterals or credit checks.
- Sometimes they come with high interest rates
- You must pay back the loan fully to avoid penalty
- An individual person with inadequate credit issues like; defaults, missed or late payments, bankruptcy and so on can also take loans for the unemployed.
What are the requirements for loans for the unemployed in Ghana?
It is rare, if not impossible, to see a financial institution that gives loans without requirements from the borrowers. There are requirements to meet for any form of loan. Loans for unemployed have requirements which could differ from one institution to the other.
The following are the requirements for loans for the unemployed in Ghana:
- The applicant must be in between 21 to 60 years old
- You must be a Ghanaian citizen or resident in Ghana (legally)
- Must possess proof of address.
- Provide utility bill less than three months old
- Proofs of identification such as passport, driver’s license, Voter’s card and so on.
How can I apply for loans for the unemployed?
Getting a loan as an unemployed was difficult. But today, you can get loans for unemployed by doing:
- Visit the office of a financial institution (lender) that offers loans for the unemployed.
- Choose an online lender and visit their website with your smartphone, tablet or personal computer. Then apply for the loans for the unemployed after filling an online application form. Fill in some details like; your name, bank account, address, email address etc and then submit.
What are the things lenders test in my loan application?
Lenders test some factors while evaluating your loan. This is because they want to be sure that you will repay the loan after giving it to you.
The following are what lenders test in your loan application:
- They know you do not have a job at the moment. Therefore, sometimes they might want to know the income of your closest relation (maybe your spouse).
- The capital money or gains from your investments may be in real estate
- Your retirement benefits
- They test your debt-to-income ratio
- They put your credit score into consideration
How fast can I get the loans for the unemployed?
When in need of a loan, you actually want to be sure of when to expect it. This is because you have needs that require urgent attention. However, you get loans for the unemployed once your application is successful.
How important is my credit score if I want to get loans for the unemployed?
Your credit score is very important for you to get loans for the unemployed. Your credit score becomes very important when you are unemployed. Better are your chances of getting loans for the unemployed when you have a higher credit score. There are lenders in Ghana who offer loans, even if you have a low credit score.
However, in some of these cases, the minimum credit score you may have to maintain is around 600. The credit score requirement will vary from one lender to the other.
What are the cons of borrowing while unemployed?
Loans naturally come with risks to both the lender and the borrower. These risks emanate from the inability to make repayment of the loans.
The following are the risks you are about to take while unemployed:
- Without a job, you risk missing payments. This can harm your credit score and can worsen your already tough financial situation.
- Some loans for the unemployed come with high interest rates.
- You will get a shorter repayment term if the lender is not likely to believe you will become financially buoyant in a short while.
Financial institutions that can offer loans to the unemployed in Ghana
You might not get the offer of loans for the unemployed in all financial institutions in Ghana. However, there are some financial institutions in Ghana that can offer these loans to Ghanaians.
The following are the financial institutions that can offer loans for the unemployed in Ghana:
- GCB bank
- STANBIC BANK
- FIDELITY BANK
- FIRST BANK
- FIDO MONEY LENDING LIMITED
- FAST-TRACK MICROFINANCE BANK
Loans for the unemployed help people without jobs to meet their financial obligations. Besides that, the unemployed can now cater for unforeseen circumstances because they have the funds to do it. However, the unemployed should beware of the risks that come with loans. Therefore, they should ensure to pay back the loans after getting it. Ultimately, borrowers should beware of loan sharks who would normally offer too-good-to-be-true loan offers and get loans from credible lenders.