Unemployment is the period of unemployment if the person concerned is both willing and able to work. Usually he receives unemployment benefit I in the first year, the amount of which is based on the earnings he has previously earned, and then unemployment benefit II, which is just enough for a modest standard of living. Every loan taken out over the Internet is called an online loan.
The easiest way to take out an online loan despite unemployment for ALG I recipients is if they have a fairly high unemployment benefit thanks to a previously high income and choose a loan term of less than one year. Another possibility is to provide a guarantor or a co-applicant. The bank must make particularly high demands on the economic performance of a guarantor and ensure that the guarantor understands the importance of a guarantee.
The provision of collateral such as life insurance also makes it easier to borrow, but it is usually cheaper at the insurance company than at a direct bank. Some financial institutions waive the submission of pay slips for smaller loan amounts, so that the unemployed can hide their status.
However, this is strongly discouraged, as the bank can terminate an online loan that has been deliberately misrepresented at any time despite unemployment if it is discovered, even if the borrower pays the installments in good time. The unemployed may continue to use existing credit lines, such as a call-off loan or the credit card account, provided they pay the contractually agreed minimum repayments.
In a broader sense, an order placed over the Internet at a mail order company is also an online loan despite unemployment, even if a delivery of goods takes place instead of a cash payment. In principle, unemployed customers are allowed to make installment payments, but they must ensure that they can pay the agreed installments on time.
Only a few mail order companies require the submission of wage slips or employment contracts in the case of a partial payment agreement, so that this form of shopping remains possible for the unemployed, provided their Credit bureau information does not contain any negative features or they are already existing customers in a specific trade. For unemployment, online credit offers a platform for brokering loans between private individuals for taking out cash.
On the corresponding website, the loan seeker presents his financial situation honestly and at the same time gives the reason for the desired loan. The platform members registered as lenders often make decisions based on social criteria and grant online loans much more frequently than a direct bank despite the unemployment of the loan seeker. A prerequisite for the successful processing of the online loan via the corresponding platforms is that the unemployed borrower chooses a long term, which is associated with low monthly installments that match the income.