For lenders, young people are a very special category, in that in most cases they do not have a sufficient credit history to be able to guarantee obtaining a large sum of money.
Other cases that may limit obtaining funding for younger people are cases where they have a fixed-term job or are out of work. We deal with the first case in this article, we talk about the second case now, so read on.
Loans for Jobless Youth: limits and opportunities
Loans for unemployed young people are solutions that can be requested from banks or financial companies provided that there are additional guarantees that cover the risks for the institution that grants the loan.
But, we ask ourselves, how likely is it to be able to obtain loans among unemployed young people? What are the chances of being able to find a job for anyone under 25/35 years old and without a job?
Loans for unemployed young people: what are the limits for funding for unemployed young people?
The fundamental condition for obtaining loans for young people, even if unemployed, is precisely the provision of adequate guarantees, which are requested by the bank or credit institution to cover risks.
Loans for young people are usually referred to as long as the applicant is around 35 – 40 years old.
The difference compared to other financing solutions could often be the interest rate applied to the loan, sometimes more advantageous than traditional personal loans.
A concrete example of this are mortgages for the first home, solutions with which everyone and especially young people can buy their first home. Often, in fact, these loans to buy a house have more advantageous interest rates compared to classic mortgages, used to buy properties beyond the main residence house.
What alternatives are there?
It is really difficult for a young jobless person to find a loan that is really convenient.
So what alternatives can there be? What advice can you follow?
- Choose small loans. The lower the amount required, the easier it is to get credit. So, being able to limit your request to only USD 1,000, for example, could increase your chances of success.
- Choose lenders where you are “known”: if, for example, you already have a bank account, or if your parents have long been customers of a certain bank, it may be easier to be successful in question;
- Opt for loans between individuals: it is a loan that, in some cases, may be easier to apply for and obtain. This is not always the case, also because the companies that manage loans between individuals are real financial companies authorized by the bank , but sometimes solutions could be found which, elsewhere, are not found;
- Contact relatives and friends: you can also make loans between relatives, free and non-interest-bearing. Think of parents who lend money to a child, for example. The basic rule is that the payment is traceable (bank transfer, for example).
Loans for unemployed young people without guarantees
As anticipated, the presence of a guarantee is fundamental to be able to obtain loans for the unemployed, without it the response from the lender will most likely be negative.
Having said that, what guarantees would be needed?
- personal guarantee, ie a guarantee, ie the guarantee provided by another person (a parent, relative, partner, friend) with which he or she undertakes to pay the installments if the main debtor (ie, who requests the loan) does not fulfill;
- real guarantee, for example in the case of renting a property, or if you have other fixed monthly income with which to guarantee the regular payment of the installments.
In both cases, however, it must be kept in mind that these are always secondary guarantees, ancillary to the main one, which in any case remains the presence of a job.
For this reason, unemployed young people may still not be able to obtain credit from a bank or financial institution.
Loans for unemployed to start business
For all young people who want to start a new economic activity there are entities, regional, which have provided funds to be granted as non-repayable loans or as loans at subsidized conditions, with which to start a new economic activity.
In this case, depending on the conditions of the loan, you can also receive the entire sum.
In this case, the guarantee is usually offered by the organization organizing the competition, whether it is the Region, the State or directly the Union.
Loans for young housewives
A housewife, or a woman who does not work but who has decided to stay at home, does not have great opportunities to borrow money because that of the housewife is an unpaid job and, as such, does not provide the right economic guarantee.
Despite this, there are some financial companies that offer loans for housewives, we have already talked about it here on Loans Online , whose main characteristics are generally two:
- however, they ask for guarantees, which can be provided by the husband or partner;
- the sum of money that can be requested almost never exceeds 1,000 / 2,000 / 3,000 dollars (therefore they are small personal loans).
Loans for unemployed young people, in conclusion
We said, therefore, that finding loans for unemployed, unemployed young people is not easy and that it is essential to offer guarantees, even if there are “ad hoc” solutions.
We have said that it is difficult to obtain credit for a young person without a job, and we also confirm this in closing. The absence of a job, added to the young age, makes it really complex to be able to obtain credit, often even for small amounts.
However, trying does not harm, provided you know what to do if the loan is refused.