What Is an Emergency Cash Loan?
An emergency cash loan is a personal loan given to borrowers who need money immediately due to unforeseen circumstances. Depending on the lender, emergency loans can be secured or unsecured, and it’s the most straightforward and quickest option for cash-strapped consumers to handle unexpected needs.
Where To Get A Loan For Unemployed Individuals?
Pawnshops or Sanglaan
Pawnshops or Sanglaan are the most trusted financial institutions you can depend on during emergencies as long as you have a valuable item that’s pawnable. Of course, the cash loan amount will depend upon the appraisal value.
The most common requirements for a cash loan from a pawnshop are one government-issued ID, a duly filled application form, and the pawnable item. You can receive the loan proceeds instantly if you accept the appraised value and agree with the terms and conditions.
M Lhuillier Pawnshop
Avail M Lhuillier’s Quick Cash Loan by pawning items at any of the branches nationwide. The pawnshop accepts a wide range of items for pawning, such as jewelry (gold and diamond), electronic gadgets, expensive kitchenware and silverware, appliances, power tools, equipment, luxury items, motorcycle, or car.
Loan Amount: Based on the appraisal value
APR: 40.72% to 52.89%
Loan Term: 1 to 120 days
PawnHero
PawnHero is one of the pioneers of online pawnshops that lets you pawn items in exchange for cash. The pawnshop accepts jewelry, designer bags, watches, laptops, and gaming consoles. Here are the interest rates and service charges as references.
Interest Charges:
- Interest of 3.5% or ₱500, whichever is higher, for gold and jewelry
- Interest of 4.99% or ₱500, whichever is higher, for designer bags, luxury watches, gadgets, and other item categories
Service Charge: 1% of the principal loan but shall not exceed ₱5.00
Online Lending Companies
Some online lending companies offer cash loans to unemployed individuals without collateral. The application and loan disbursement process can be done online. The downside is that the cash loan comes with high-interest rates, a shorter payable term, and a limited loan amount.
Cash Mart
Cash Mart believes that every Filipino deserves a reliable financial partner to assist them in times of need. As a response, Cash Mart developed an app with various financial products to assist you in overcoming financial difficulties. Cash Mart has 50,000+ satisfied customers and a 9.5/10 review rating on Google.
Loanable Amount: ₱5,000 to ₱50,000
Interest Rate: 0.8% to 3.5%
Repayment: Fixed Terms
Approval Period: 1 day
Age Requirement: At least 21 years old
Online Loans Pilipinas
Online Loans Pilipinas is one of the reliable online microfinance companies based in the Philippines. You must download the app and follow the four simple steps to apply for the loan amount. Filipino citizens aged 22 to 70 are welcome to apply and may be eligible for up to ₱30,000.
Loanable Amount: ₱1,000 to ₱7,000 for first-time borrowers and a maximum of ₱30,000 for repeat borrowers with a good credit standing
APR: 0% to 200%
Interest Rate: 0% interest and no processing fee loan for first-time borrowers
Loan Term: up to 30 days
TALA
Tala is one of the few online lenders in the country that provides online loans with flexible repayment terms as you can get to choose your preferred due date. All you have to do is download the app to be one step closer to receiving the funds. The application is fast and straightforward, and your information is secured.
Loanable Amount: up to ₱15,000
Interest Rate: 9.5%
Loan Terms: up to 61 days
Family and Friends / Informal Lenders
Suppose you’re not qualified to apply for a loan in banks and lending companies, the fastest, although not the easiest, to get immediate funds is from relatives or friends. However, borrowing can sometimes strain your relationships, so beware of committing to any loan, especially if you can’t afford to pay it on time or per your agreement.
Another option is individual lenders, often called 5-6, but it’s highly discouraged given the illegal practices associated with this type of borrowing. Both options don’t require documentation or proof of income, but informal lenders may impose high-interest rates.
How to Get My Emergency Cash Loan Approved if Unemployed?
The lack of proof of income and other documentation will likely affect your loan application negatively. If you’re unemployed but still want to take your chance and apply for a loan, here are some tips to increase the likelihood of getting your emergency cash loan approved.
Show Other Source of Income
Having an employer is not the only way to show your source of income. You may also provide your investment and self-employment information as sources of income. Retirement or pension can also be sources of income.
Good Credit Standing
Since you don’t have a steady source of income to offer to the lender, having a good credit history may help you get your loan approved. After all, having a good track record of debt repayment weighs more than your employment status. But most likely, even if the lender approves your application, it will only provide you with a limited loan amount.
Look for Loans with Collateral
Applying for non-collateralized loans may be difficult given that you are unemployed. However, if you have assets such as a house, a car, or other valuable items to offer the lender, you will have a greater chance of getting your loan accepted. Some lenders require you to surrender your land title and OR/CR of your vehicle as collateral.
Cautions on Borrowing Money if Unemployed
Some emergencies are unforeseeable and unavoidable. With this in mind, it can become impossible for people – especially the unemployed – to take a loan during emergencies. However, in situations where you can still avoid taking a loan, especially without a steady source of income, it’s better to avoid it and wait until you have finally established your finances and work or business.
Before signing the fine print or agreement, take your time and read the fine print or the terms and conditions. Reading will save you from future financial woes, especially if you meticulously inspect the interest rates and other service charges that weren’t discussed in the preliminary stage of your loan application.
Conclusion
The unemployed are likely to face greater challenges when applying for cash loans and other types of loans because they have to show proof of income, creditworthiness, and other documentation. Lenders often based their assessments on the borrower’s ability to pay the monthly payments and steady income stream.
But despite all these limitations, unemployed individuals can still find other means to access funds immediately, such as pawning, as this is technically a secured loan where they are required to have collateral.
Nonetheless, unemployment shouldn’t hinder them from accessing financial services as they can always present other sources of income and prove that they have good credit scores.