There’s no doubt that it is very difficult for people to find a loan with no job. As far as the lender is concerned, a person without a job represents a great deal of risk with regards to repaying the loan. There are ways to be approved for a loan with no job however they come with a variety of penalties which many people may not want to consider.
For example if you own your own home, and have equity in the home, some lenders will approve a loan with the home provided as security. What this really means is that if you default on the loan, the lender has the right to take your home and sell it to recover the loan proceeds and interest that has accrued. this would be truly catastrophic for many consumers.
This client is currently renting, is up-to-date on all his bills including his rent however he has used all of his savings at this point in time and needs a loan to bridge the next two weeks until he gets his first paycheck from a new job that he is just been hired for.
Lenders will still view him as a high risk client however if he can get a letter from his new employer indicating when he will start the job, how much he will be paid along with how long his new contract is, this will help with regards to being approved for a loan with no job. He will still be considered high risk and will be requested to pay a higher amount of interest on his loan to reflect the risk that the lender perceives.
The table at the bottom shows a calculation of a variety of different interest rates for a five-year term and $10,000 in loans. It will be up to the lender regarding what interest rate he be offered, however the client can get some idea of how much interest he will pay and what the monthly payments will be by studying this table. He can also fill in his own numbers if he has a different amount in mind.