If the unemployed person can contribute additional collateral to the bank in the credit agreement. These collateral can be complex, but often they are not even within reach for the unemployed or have already been charged by the Office. To name for example is a private paid car, which of course in its resale value should cover the payday loan amount (at least reasonably), so that it can be brought in at all as attachable object.
Even a property can be presented to the bank, with the property ownership under recipients is rather rare, which is why this security for most unemployed out of reach. Another possibility is the use of a guarantee, which increases the creditworthiness of the borrower enormously by the liability by the own income and fortune, without it would have disadvantages by the guarantor. On the contrary, because a guarantee brings benefits for the unemployed and for the lender alike.
Due to the additional liability of a second person, small payday loans for the unemployed can also be given to persons without a regular income. On the other hand, the disadvantages for a guarantor are of course enormous, since this ultimately has no share in the sum paid out, but must be holistically liable for this sum. a risk that only a few people want to take.
Which actually pays off especially with a preloaded remark entry. If the path is chosen in the circle of friends and relatives, borrowers can usually look forward to very favorable terms, which means in plain language: there are no interest and the repayments can be made very variable. Of course, this possibility presupposes that small payday loans for the unemployed can actually be financed by private individuals (friends, family).
For this they must have either a regular income or savings, which is not necessarily the case in many families and groups of friends. Another possibility is the use of a credit intermediary portal for private payday loans. On these portals, private lenders are brought together with private borrowers to arrange payday loans among themselves. Of course, the lenders do not distribute payday loans out of kindness, but in order to achieve a not insignificant return.
For example, small payday loans for the unemployed in these portals have a relatively high interest rate, which is often in the range of 12 to 18 percent. Thus, the interest burden is similar to that of an expensive credit line, these private payday loans for the unemployed are often the only way to borrow.