Using a loan is becoming more common for individuals. If banks tend to favor people with jobs, the unemployed can also apply for a loan in Belgium. The unemployed loan.
The essential conditions for an unemployed loan
As you will have probably understood, to qualify for this type of credit with financial organizations, you have to match a certain profile. The file submitted at the time of application must be relevant to claim a loan of € 30,000 with a fixed rate of 4%. In Belgium, banks generally give unemployed people who meet certain conditions a chance.
People who own 10% of the amount requested are more likely to get a loan. However, if this is not your case, you could always choose between the following two options to get a personal loan for the unemployed.
The first case concerns an application for a mortgage loan which consists in putting in guarantee of the goods in its possession. The borrower will thus benefit from a capital equivalent to the real value of the pledged property. If one does not have such means, it is also possible to call on a co-borrower. It will then be a personal loan with downstream where a third person is guarantor of its solvency. The latter must however be approved by the National Bank of Belgium and must not be in any case filed by the bank.
The second option to consider: a personal loan launch. This solution concerns, essentially, those who have been registered as job seekers for at least three months and are formally considering becoming independent. The project that you will have to submit to start your own business, or any independent income generating activities, will however have to be approved by the Participation Fund.
Supporting documents essential to an unemployed loan application
Unlike traditional personal loans, your record for an unemployed personal loan has to be picky. Also, every detail will have to be taken into account to convince the agent in charge to analyze your unemployed loan application. The advice of a broker can tip the scales in your favor. Your request will reflect a mature reflection.
A clear administrative approach must be followed to the letter if one wants to obtain this type of credit. By contacting his banker directly, the margin of error in the process follow-up is limited. In case you opt for the launch loan solution, keep in mind the relevance of the project. This point is essential for its validation. The Participation Fund must provide its approval for your innovative project.
For vouchers, they are the same as for a conventional loan. Information on his identity, an unemployment certificate, proof of residence, statements of energy bills for the last three months and statements of account. The list is not exhaustive and some banks will ask for other essential parts according to your request; as deeds and deeds for a personal loan, a mortgage loan; or detailed information about his co-borrower.
The advice of a good expert
Loan applications do not necessarily lead to a positive response. If conventional loan files have trouble getting through the banks, the applications for credit for the unemployed will have to double vigilance. Indeed, credit agencies are crumbling under a pile of demands. In order to put the odds on one’s side – especially if one is unemployed – it is better to seek the advice of an expert. A broker is responsible for helping people who are considering applying for a loan. He studies, with the borrower, all the options to allow his file to be validated. You will have to move, only for the signature of your contract.
The broker is the intermediary between the bank and you and he will defend your request to the agency of your choice. Banks have, moreover, more consideration for requests supported by an intermediary. The latter is in this case, a business carrier and a wise adviser. The services of an intermediary then turn out to be indispensable for people who are considering obtaining an unemployed loan.
Comparative study of the best unemployed loan prospects
As you can see, financial organizations offer various offers to credit applicants. However, a loan application for the unemployed does not pass easily to all banks. It is imperative to make a comparative study of the overall effective rates and opportunities of each organization. For this purpose, online credit comparators are available to help people find the right offer.
As competition from the financial market is tough, rate variances are reflected in the offers of credit institutions. To get an unemployed credit with reasonable interest, you have to peel the proposals. Since your jobless status should in no way prevent you from finding the best possible offer in terms of APR and payment flexibility.
A study of your financial possibilities will then have to be made so that you can calculate the global interest rate and the miscellaneous expenses. You will actually be brought in to establish a financial statement of your repayment capabilities. It is better to opt for a lower interest rate offer that will allow you to honor your commitments to your bank, to ensure your daily expenses and to save money. All of these calculations will be based on a preliminary analysis of the sum of your loan and all the expenses you should pay. Do not forget to attach the application fees and refund penalties to your calculation to better anticipate expenses.
Call a broker
To the extent that you have difficulties in setting up your file, it is better to use a broker to support your request. It will help you to go through each administrative step. Your file will be more likely to be accepted and you will also receive support to obtain credit for unemployed. Belgian banks are, of course, more inclined to issue this kind of credit if the demand is relevant.
In order to answer the many questions of unemployed people who are considering applying for a loan, YES, it is possible to borrow money with an unemployed status. However, it is essential to follow all instructions to the letter.