Are you unemployed and have money problems? First thing, know that you are not alone since 487,291 Belgians were in the same situation as you, at the end of 2017. The good news is that the number of unemployed in Belgium continues to decrease.
In 2018, like everyone else you would like to borrow money and you wonder if there is a form ready for unemployed allowing you for example the purchase of a vehicle or a computer to help you in your search job or simply a mortgage because it is not because you have lost your job that you do not have the right to access property.
Unemployed loan: why is it a hassle?
Before explaining to you what are the solutions available to you to borrow money while being unemployed, you must understand why a priori, the banks do not want you. What you should know, even if it is obvious, that banks and other credit organizations are not generous patrons, so when they lend you money it is with the objective to earn (via interest).
To earn money, the banks must ensure that you will reimburse them the money they will lend you and the interest agreed in advance via the APR and without hindrance, that is to say without having to spend money to send you “reminders” by registered mail etc.
When someone does not repay his credit, the lenders, want not to lose money, this is why, they send you the bailiff and come to seize your goods to be reimbursed. This is why what conditions obtaining your credit is the seizure.
Basically, is there something to grab at home so that the bank can recover the money it loaned you if you were to default on payment. On top of that, you should know that as an unemployed person, you receive an unemployment benefit and not a salary and the banks do not consider it as fixed income. In addition to this, the Belgian state has implemented a series of directives to protect consumers and prevent them from having too high a debt ratio.
While an unemployed person can still hope to obtain financing if he presents sufficient guarantees, one should not hope to obtain a credit by being prohibited banking for example since it is prohibited by the law. Okay now that you know why as an unemployed you represent a risk for the bank, we will see what are the solutions available to you to still get credit by being unemployed in Belgium.
How to get a loan?
Good news, it is not impossible for you to take out a loan because your professional status is not the only thing analyzed by your banker to decide whether or not to grant you financing.
Logically, the higher your unemployment benefit, the more likely you are to get credit, not because you earn more than another, but because it tells the lending agency that you recently lost your job. and that unemployment is for you only a bad step from which you will get out quickly. If in addition to that you have a substantial savings and / or you own your home, you are likely to get a loan?
Each bank has a different granting policy, in some establishments you will face a categorical refusal, another organization will ask you to find someone to stand surety and a third will accept your request for credit without conditions.
In short, the first tips for obtaining credit while being unemployed is not to be afraid to ask. I advise you to use a credit comparator like mine and compare the different offers to find the best rate, because it is precisely in times of scarcity that savings must be made. Once you have found the organizations that offer you the best rate for a given amount and duration, do not hesitate to make several requests, this will allow you to see how your file is perceived by lenders and see who can potentially l ‘accept your request and under what conditions.
Except, if you have a concrete file, there is a good chance that the bank will ask you to find a person who has no history of bad credit to vouch for your financing. This person will have to have sufficient income to cover his personal expenses, but also your loan if you were to default, because yes your guarantor will have to discharge your debt if you were to fall in default.
Think before you apply for your credit! Seriously, if you have just lost your job, your income has just dropped by 40%, tell yourself that going into debt to buy the latest iphone or to go partying for two weeks in Ibiza is not the best idea you can have. If you are already in financial trouble, no need to sink into it even more by buying stuff you don’t need.
The social loan, a formula for people with modest incomes.
Set up for people with low incomes, social credit is a consumer credit and / or mortgage loan formula that will allow you to buy a used vehicle, replace your boiler, finance training and even to access property, even with modest incomes.
Social credit is for you if:
- Access to bank credit is difficult or impossible.
- You have not found other cheaper or more suitable solutions.
- Are you able to repay your credit even after meeting your charges?
- You have low professional income
- You live in the Walloon region or in Brussels
There are several forms:
Social credit supported.
You are unemployed and you need to improve your daily life or to maximize the chances of finding a job by buying for example a new car or by attending a language training, traditional banks have refused you, social credit accompanied may be the solution for you. This is a so-called “assigned” credit offer as opposed to the “unallocated” credit more often referred to as my “credit without proof”, which means that the accompanied loan can only be used for purchases of specific products and services, in this case we could also speak of a microloan.
It is not easy to buy a house or an apartment when you are unemployed, fortunately the accesspack will perhaps help you. For my part, I was able to borrow a small sum (less than 170,000 USD) with average income (+ -1500 USD / month) and with my unemployed partner (at the time) but we had sufficient savings for finance notary fees (mortgage loan deed and deed fees) which is not the case for everyone.
Under certain conditions the Accesspack really helps to become an owner. One of my friends for example was able to afford the house of his dreams (to an APR defying all competition in bonus) via social credit while he and his partner were both unemployed and their financial situation was far from be pink. Obviously you should not dream, you can forget the villa with swimming pool but it is a good way to start paying for yourself rather than for an owner.
Ecopack and Rénopack
I am going to dwell less on these two credit formulas which are in reality loan work and ecological work at a rate of zero percent. We all know the importance of good insulation and having a comfortable home. While the Rénopack will allow you to do renovation work like redoing your roof or changing your boiler, the ecopack will allow you to do ecological work like insulating your house or installing a heat pump.