The unemployed are often struggling to make ends meet with their money, especially if they have already slipped into unemployment benefits II (Hartz IV). If there is still a financial emergency, for example, because the apartment is to be repaired, it can be financially dicey. A cash loan for the unemployed could be a good solution in such cases. But is there such a financing option in practice at all?
Cash loan for the unemployed: very few offers on the market
A cash loan for the unemployed is actually extremely rare on the financial market. This is mainly due to the fact that, although some credit intermediaries and banks from abroad are willing to give so-called loans without private credit. In this case, the request for private credit information is waived, so that any negative entries also do not play a role in lending. On the other hand, almost no lender is willing to lend money on the condition that there is no regular income. Although some lenders – also often based abroad – explicitly offer a cash loan for the unemployed. In most cases, however, these are either dubious offers or the loan sums are so low that they do not really help the loan seeker. Nevertheless, there is also the possibility for the unemployed to find the right loan. The offers should, however, be compared very closely.
Under what conditions is a loan for the unemployed feasible?
In particular, under the condition that you as an unemployed person or a jobseeker receive unemployment benefit I for a few months, it is quite possible to find a suitable cash loan for the unemployed. In most cases, however, the loan amounts are limited to a maximum of € 1,500 to € 3,000 and the repayment must be made at the latest within the period in which you still receive ALG I. A possibly optimal financing solution in this case are so-called short – term loans. These are provided by special providers, such as Express credit.
For these short-term loans, the maximum loan amounts – depending on the provider – often only between 500 and 1,000 euros, but often this is already sufficient to carry out the much-needed financing. In addition, it is another feature of such loans that the full eradication usually takes place after a maximum of 30 to 60 days. Therefore, short-term loans qualify as a cash loan for the unemployed only if there is a real short-term liquidity shortage and the amount borrowed is likely to be repaid after 30 or 60 days.