There are several businesses that loan money to the unemployed, but unless substantial collateral is presented, terms are almost certainly unfavorable, notes Moneysupermarket.com. The borrower pays a high, if not exorbitant, interest rate and administration fee.
Moneysupermarket.com tells people who are unemployed and without an income to not borrow any money at all. There are situations where an individual might own a significant asset that can be sold without incurring any major financial debt. It might be reasonable to consider selling the asset or borrow money against it if borrowing rates are at or near the risk-free rate of return that is generally regarded as the rate at which three-month U.S. Treasury bills trade, according to Investopedia. This is the interest rate at which larger investors consider borrowing money and investing in other, more risky, asset classes in an attempt to leverage stock and other market gains. The goal of any borrower is to borrow as close to the "risk-free rate of return" as possible.