How Can Students Benefit from Guaranteed Loans for Unemployed in the UK?

Posted by nicole dickson on November 26th, 2018

Education policies in the UK are globally renowned to take its toll on the students, especially international university students. Although the 2012 post-study visa rules benefitted around 39,000 students, still, 750,000 students who join British universities every year have to go through a stringent visa process. Moreover, the world’s 4th most expensive university tuition fee does not do much good to attract international students.

The most concerning point - thousands of students drop out of their colleges not because of their academic shortcoming but due to lack of financial assistance. Not only does this pose threat to their personal lives but it results in an overall loss of talent and a setback to overall global skill development. Students, mostly being jobless, are also denied loans by the banks. However, with guaranteed loans for unemployed individuals, be it students or anyone in need of money in the United Kingdom can avail a much-needed financial support to overcome all such problems.

What is the Eligibility Criteria to File for Different Types of Unemployed Loan?

To the relief of university students, the minimum age limit accepted by the online lenders is 18 years. Along with that, for loan approval, one has multiple options to choose as per the availability of the documents.

1.    Education Certificate from a Reputed University

Although the loans provided by lenders in such cases are unsecured, for which they can charge high-interest rates but students who have joined renowned educational institutions can apply for the loan. This provides the lenders with a sense of reliability that the concerned student would repay the loan after graduating from the university.

2.    Collateral Always Works

Depending upon the collateral, which includes, but is not limited to property, students can get a loan of up to 70-80% of its overall valuation. These secured loans are highly beneficial for the borrower, in this case - students, who will have to pay significantly low-interest rate during the repayment.

3.    Guarantor Loans

In case there is an individual with a decent credit history who can vouch for a student, even in that case, the loan can be granted to the students. Guarantor loans can be repaid as soon as the student completes his or her education and is able to repay the loan. On the contrary, if the loan defaults, the guarantor is liable for the loan repayment.

More on Guaranteed Loans for Unemployed…

By availing instant guaranteed loans, one does not just improve his or her living condition but also in case of a timely repayment, it helps build up an outstanding credit score at an early stage that many adults struggle to do later on. This can save them from later Bad Credit Loans.

In the UK, there is another option of doorstep lenders, however, due to a somewhat poor history, financial advisers always recommend to opt for it only in case of dire emergencies which you can now overcome with unemployment loans.

The guaranteed unemployed loans, as the name suggests, though have a comparatively high-interest rate depending upon the security of the loan but the lenders can guarantee them if you can meet the minimal document condition. Since there is no credit check for the students, the entire process from applying for the loan, consulting with the loan adviser to finally crediting your account can be completed under 24 hours.