Menu Close

Personal Loans for the Unemployed: Is it even possible?

Making ends meet is especially difficult when you’re unemployed. So what are your options? First, get a job! Well, if for some reason you’re still struggling to get hired and you are on the brink of financial ruin, you do have an option of applying for a personal loan.

Yes, borrowing money while you don’t have a source of income is pretty risky. So please make this your very last option. Try looking for ways to earn first, like get a side hustle, try out a minimal capital investment, or pawn off your unused valuables like cars and jewelries.

But if you have exhausted all means to earn and you really need the money for something important like food and emergency expenses, then and only then should you apply for a debt. 

Our advice is to apply for an official financial institution for this need. Do not attempt to cash in from informal money lenders. Yes, it’s easier to get the money but it will be so hard to pay them back with the hefty interest rates! So your best bet will be turning to your local bank or a credible money lender.

Where can I apply for a loan?

  1. Microcredit Institutions

In today’s world of digital banking and the transition to a cashless economy, it’s no longer a secret that there are now a lot of microcredit institutions who are willing to offer small-interest and small-amount loans for the unemployed online! Yup, you heard it right! Some even have apps that you can download to make your applications a whole lot easier. The loan amount can be quite small (at least p2,000) and must be repaid within a shorter term, but it can still help. 

  • Local Banks

If you need a bigger loan amount or if you need more time to pay for your loan, then the next best thing is to reach out to local banks. Yes, local banks do offer debt programs for the unemployed. But there’s a catch: these are usually done through collateral loans. Meaning you have to bet your house, car, or anything of value for the loan amount that you will receive. This is the property that the bank will take from you, in the event that you can’t pay. If all else fails, you can have a guarantor or someone with a job to help you apply for a loan. But that person will be under hot water if you can’t pay. So proceed with caution.

  • Government

Of course, the government is prepared to help you out if you need to borrow money for living expenses or some kind of emergency. Government agencies like SSS can do this for their unemployed members. But the loan is payable only within a month and the interest is charged on a daily basis. In any case, if you don’t get approved, you can try going to your local government office to see if there’s any form of cash assistance they can provide. Also check with the DSWD and apply for the 4Ps Program if you’re qualified.

Leave a Reply

Your email address will not be published.