Lack of official employment does not always mean lack of income. Is it possible to get a loan without official employment and under what conditions? We will tell you in more detail.
If I work unofficially, will I be given a loan?
The absence of an official place of work does not always mean that a person has no means of subsistence. In most cases, it hides unofficial employment, in which the applicant cannot confirm to the bank the presence of a legal source of income. For example, this category includes workers who receive wages in envelopes without concluding an employment contract. These are freelancers who have not formalized their self-employment, students working part-time.
Getting a loan for the officially unemployed has its own afghanistan mobile database difficulties. The inability of a potential borrower to confirm his income does not allow the bank to assess his solvency. And therefore, it increases the risk of non-repayment of borrowed funds. But there are chances of getting a loan, especially a consumer loan.
What kind of loan will this be?
Unofficial employment complicates the approval of a loan application, but does not completely exclude such a possibility. Banks understand that the absence of documented income does not mean the absence of means of subsistence. Therefore, they do not refuse this category of borrowers, but try to find an individual approach to each potential client.
To minimize credit risks, banks can:
limit the amounts issued;
increase the interest rate;
require additional security - collateral, surety from other individuals with official earnings.
Also, in the absence of a confirmed source of income, banks more thoroughly examine the applicant's credit history. For example, if a person has a good salary and a long-term employment contract, then the presence of small delays in previous loans in the past will not be an obstacle to obtaining a new loan. But for an officially unemployed person with a bad credit history, the chances of issuing a new loan are practically zero.