Unemployed people are able to get personal loans by borrowing against assets such as homes, cars, life insurance policies and pensions, reports Alison Doyle for About.com. Alternatively, people without jobs can find relatives or friends to co-sign for a loan with them, notes Justin Pritchard for About.com.Continue Reading
Unemployed people who own homes are able to borrow against them to obtain a home equity loan or a home equity line of credit, according to Bankrate. A home equity loan is a one-time amount with a fixed interest rate on which a borrower makes monthly payments, while a home equity line of credit allows a homeowner to borrow and repay smaller amounts of money multiple times during the term of the line of credit.
Under the terms of a car title loan, the lender holds the title of the borrower's car until he repays the loan, states Doyle. Interest rates are high, and the short-term loans are usually for 30 days, sometimes with the possibility of a 30-day extension. Although a number of companies offer lump-sum loans borrowed against pension plans, borrowers should only use them as a last resort, as interest rates are exorbitantly high, explains Jessica Silver-Greenberg for The New York Times.
Asking a friend or relative to co-sign for a loan is an alternative for unemployed people without assets or good credit, says Pritchard. The co-signer must have good credit and a good borrowing history and be willing to take full responsibility for paying back the loan if the unemployed person defaults or dies.Learn more about Personal Loans