Christmas Loans For Unemployed
It is not just Christmas loans; any kind of loan is difficult to get for an unemployed individual. It is very evident that there are very fewer possibilities that he or she will repay the loans properly. It is because they have no solid income source. There are no second thoughts on the fact that it is difficult, but that does not mean that it is impossible. In this article, we will see in detail about the Christmas loans for unemployed.
We all know for a fact that Christmas loans are very small amounts that have to be repaid within a short span of time. For unemployed people, the easiest option that they have to secure a Christmas loan is by pledging any gold jewellery. A few grams of gold are all it takes for them to get Christmas loan. Christmas loans do not require any collateral. But in this kind of situations where the person is not employed, there is no other way but to pledge something that is worth the amount that is being borrowed. Hence this gold jewellery will function as collateral. This type of loans is called as no guarantor christmas loans.
The loan should be repaid within a particular period of time, and it will vary from lender to lender. In most of the cases, Christmas loans will be repaid with just one or two instalments. If the payment is not done within the specific time period, then the borrower will lose complete control of jewellery that was pledged. The time period can be extended, but you will have to pay the interest until the entire loan amount is paid.
Using a guarantor
The next way to secure a Christmas loan is by using a guarantor. A guarantor is a person who will have to sign a document stating that he or she will take full responsibility for the repayment of the loans and if the loan is not repaid properly, they are the ones who have to repay it. For a person to be a guarantor, they should have a proper income source, and they should provide certain documents like identity proof and income certificate.
The same procedures will be applicable for taking a loan using a guarantor. But instead of something functioning as collateral, the guarantor will have to repay the loans along with interest if the borrower fails to repay it on time. There will be a maximum time limit within which the borrower has to repay the loans. In most of the cases, the repaying method is flexible. The loan amount can be repaid entirely, or it can be split into two or three instalments.
Things to consider
There are a lot of things that you need to take into account while taking Christmas loans, especially if you are unemployed. The most important thing is choosing the lender. You should make sure that you choose the lender who has the lowest interest rate so that you can reduce the amount that you are paying.