Unemployment is a stage of life that most salaried people experience at some point or the other. It is that point when the person does not possesses a job due to varied reasons such as medical illness, relocation, etc.

Unemployed loans are designed for the convenience of people who have no source of income. These loans can be availed without much hassle. The salaried people who have unemployment benefits find it easy to get loan approved for them. The benefits can be disability allowance, redundancy pay or one-income allowance which may be offered by your previous employers or organization. With the help of these loans, unemployed people can enjoy recreational activities such as buying a car or renovating your home. Therefore, it can be said that these loans are taken not only to fund the necessities of life.

Some of the advantages of loans for unemployed are:

• Feasible interest rate

• Repayment of loan amount in small monthly installments according to the budget

• Flexible repayment options such as overdraft, standby facility and holiday period

Just like other personal loans, these loans can be rated as secured or unsecured. Secured loans are easy to avail as unemployed people have to borrow money against some valuable asset. Value of collateral enables unemployed people in borrowing the desired amount of money. The amount offered under this category ranges from £5000 to £75000. Under this category of loans, people can meet their greater needs of home improvements, purchasing a car, holiday tour, wedding expenses, starting-up of business and so on. The amount can be returned back with flexible repayment of say 5 to 30 years. Interest rate on the secured loan low as collateral acts as a security for the lender.

In unsecured loans for unemployed loans, people can raise the amount up to £25000 and a repayment period lasts up to a maximum period of 10 years only. The interest rate is higher than secured option.