Loans For Unemployed People In Nigeria (2023)
Both the employed, self-employed, and unemployed need money in our day-to-day life. However, while chances are open for the self-employed and employees, the unemployed have a narrow chance of getting income and in some cases, emergencies do arise which is a must cater for, catering for such emergencies may require nothing rather than funds. Then how does the unemployed get funds? This is heartbreaking, yet there’s a way out! This article is basically about Loans for unemployed people in Nigeria.
Can unemployed individuals also get access to finances in times of emergencies?
Everything would be made known to you in this article.
Who are the unemployed?
Want to know who the unemployed are?
The unemployed are individuals who are willing and able to work but unfortunately they are currently without a job.
This includes people who are actively seeking employment and those who are not currently looking for work but would like to work if suitable job opportunities become available.
However, there are different kinds of employment, which can be seen below:
This type of unemployment occurs when workers are in between jobs or transitioning from one job to another.
This type of unemployment occurs when there is a mismatch between the skills of workers and the requirements of available jobs.
Another type of employment is Cyclical Unemployment, this type of unemployment occurs as a result of changes in the business cycle or economic downturns.
This type of unemployment occurs when workers are employed only during certain seasons or times of the year, for example the agricultural or tourism industries.etc.
The unemployed may also include people who have been laid off or terminated from their previous jobs due to factors such as budget cuts, restructuring, or downsizing.
Loans for unemployed people in Nigeria
Are there loans for unemployed people in Nigeria?
Yes, but it can be challenging to obtain a loan as an unemployed person in Nigeria, because most lenders require proof of income and employment before approving a loan application.
Read: How To Get A Loan From Fidelity Bank In Nigeria With Or Without Collateral in 2023
However, there are still some options available to unemployed individuals who need financial assistance the following:
The Nigerian government has a number of loan programs aimed at supporting small businesses and entrepreneurs, such as the Youth Entrepreneurship Support (YES) Program and the Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS).
As an unemployed individual, you may be eligible to apply for these loans if you have a viable business idea.
Loans from Microfinance institutions
Some microfinance institutions offer loans to individuals who are self-employed or have small businesses.
However, while some may require proof of income, others may be more flexible and may not require such documentation.
Peer-to-peer lending platforms allow individuals to borrow money from other individuals or investors.
Some platforms may not require proof of income or employment, but borrowers may need to provide other forms of verification, such as proof of identity and bank account information.
Some of those platforms or apps will be shared with you in “Loan Apps that give loans for unemployed people in Nigeria”.
Loans from Family and Friends
Another option and one which is considered the easiest way for unemployed individuals is to get a loan from family and friends.
However, while this can be a good option for some, it is important to set clear repayment terms and treat the loan as a formal agreement.
Loan Apps That Give Loans To Unemployed People In Nigeria
As I’ve said earlier that I’ll show you some loan apps that give loans to unemployed people in Nigeria they can be found here.
There are some loan apps in Nigeria that offer loans to unemployed people.
However, it is important to note that the eligibility requirements for these loan apps may vary, and not all unemployed individuals may qualify.
Here are some loan apps that offer loans for the unemployed in Nigeria:
The first of the loan apps that offers loans for unemployed people in Nigeria is Carbon.
Carbon (formerly Paylater) is a loan app that offers loans to individuals without collateral or traditional credit history.
However, while Carbon may require proof of income, they may also consider other factors such as education and work history when assessing eligibility and you don’t necessarily need to give an accurate answer to it.
I have seen some full-time students getting loans from loan apps and you shouldn’t be left out.
FairMoney is also one of the best financial apps that offer loans for the unemployed in Nigeria, not only for the unemployed but both unemployed, employed and self-employed individuals.
This is one of the most popular loan apps in Nigeria that you might have possibly come across online.
Palmcredit is a loan app that offers loans to individuals without collateral both employed, self-employed and unemployed.
For you to get a loan from the app, you’ll need to download the app from Play Store and register with them.
Frequently Asked Questions On Loans For Unemployed people in Nigeria
Here are some of them:
What documents do I need to apply for a loan as an unemployed person?
This may vary depending on the loan app, but some common documents may include proof of identity, bank account information, and proof of income or a viable business plan.
Can I still get a loan if I have a bad credit history?
Some loan apps may still consider your application even if you have a bad credit history, but you may need to provide additional information or collateral to secure the loan.
How long does it take to get approved for a loan?
This may vary depending on the loan app, but some loan apps offer instant approval and disbursement of funds.
What happens if I am unable to repay the loan on time?
If you are unable to repay the loan on time, you may incur additional fees or penalties, and the loan app may report your delinquent account to credit bureaus, which can negatively impact your credit scores.