If you are worried that you would not be able to secure approval from the direct lenders, you might be highly influenced by the strict lending norms of the traditional lenders. Now, the time has arrived to come out from the doubts and avail the chance to retain financial stability in your life. To understand how it can be possible, you need to look at some factors. Here are some points that can give you a clear view of the world of unemployed people if direct lenders do not exist:
- No Scope For Unemployed Individuals
Traditional lenders want the applicants to be employed. They usually follow inflexible lending policies and have yet not agreed to fund the risky borrowers. They believe that applicants with no steady income are unable to make repayments in time. This is why the chances of getting the emergency cash loans for unemployed people from the banks are quite low.
- Interest Rates Are High
If in case, the traditional lenders approve you for a loan somehow, they might charge you high rates of interest. Such unbearable burden makes it almost impossible to repay the loans during unemployment. Apart from this, you may feel overburdened and it gets tough for you to bring your financial life back on track.
- Collateral Becomes Mandatory
There are many conventional lenders available, who promise to lend money through online route. However, they are unable to give you a loan in an unsecured way. With them, offering the collateral becomes mandatory and this is enough to make your current situation worse than ever.
Accessing a loan for a person, who is currently jobless, is necessary to overcome the adverse financial days at earliest. If direct lenders were not present, getting the 12 month loans in the UK might not be possible. In case, you got a loan somehow, you had to pay off higher interest rates and plus collateral, which is enough to make your life a hell.
Nowadays, you do not need to be earning to secure a loan. The online lenders like to serve you financial aid instead of taking advantage of your situation. Therefore, they aim to make your life comfortable even if you are recently out of work. Now, you do not need to imagine what the world of yours would be like if direct lenders do not exist.