The short answer is yes, you can probably still find a loan even if you’re unemployed. That being said, it won’t be as easy as if you had a job. Many lenders are only willing to lend to borrowers who have proof of steady income. They usually want to make sure you have the ability to repay a loan before they issue one to you.
There are lenders, however, who may be willing to give you a loan even if you’re unemployed. But it’s important to note that some lenders who are willing to do this may not be very trustworthy themselves. There’s a good reason why most lenders want to see that you’re employed before providing you with a loan.
By making sure you have the ability to repay the loan, the lender is looking out for you in a sense. If a borrower doesn’t have the ability to repay a loan then they can get into a heap of financial trouble by taking one out. They may miss payments or consistently pay late. They may default on the loan altogether. This would lead to the debt being passed over to a collections agency, and ultimately the borrower’s credit score is going to suffer for it.
If a lender is willing to offer you a personal loan without confirming your employment it could actually be a red flag that they aren’t credible or trustworthy. But why wouldn’t they want a borrower to repay their loan on time? At first glance, it doesn’t seem to make much sense. But when you consider the fact that many predatory lenders make more money on late fees and roll over it all starts to come together.
If the borrower can’t repay on time, they may incur additional fees. If they can’t repay at all by the due date they may have to roll the loan over to a new term. This means extending the life of the loan and paying additional interest and fees. Some lenders make a lot of money through rollover, which means they may not care as much about the borrowers’ ability to repay.