United Kingdom has accepted concept of welfare state right from the fifties of the last century. Financial crunch in the recent years has forced the British government to withdraw some of the social security measures. The British society has failed to withstand this. It will be a matter of study if the latest riots presently occurring in London and in many other British cities are result of the unbearable rate of unemployment prevailing in this country. The finance market and financial institutions have a study over this issue. Loans for unemployed people are, however, offered to the jobless people traditionally.

A person interested in applying for the loans for unemployed people must provide official document to support that she/he is unemployed. It is necessary that she/he is a British citizen and that her/his age is 18 by this time. She/he must have checking account, because the lender will transfer the loan amount to the bank address of the applicant after her/his application is approved.

Loans for unemployed people are advanced in two forms: secured and unsecured. In secured form, loans for unemployed people are available to the borrowers who are homeowners, who have valuable assets and who are ready to produce their assets as a pledge against the loan. It is a fact that the pledged property will be grabbed by the lenders if the loan-seekers cannot clear the loan amount honoring the loan agreement. Most of the loan-seekers apply for the loans for unemployed people in unsecured form in which case the finance is free from collateral. Terms and condition for the loans granted in the unsecure form are, however, comparatively tough.

It is said that loans for unemployed people are free from credit checking. The lenders are to decide what amount of loans they will offer to the respective applicants. This is why they go through the financial status of the borrowers. They want to learn if the applicants are equipped enough to bag a job in the following period. They also do some research on the repayment behavior of the loan-seekers. They frame the terms and condition on the basis of these findings. It is, nevertheless, sure that loans for unemployed people are offered at favorable terms and condition. An applicant can get £25000 which is the maximum amount usually advanced towards this kind of finance.