There are various types of loans available for individual support. These days, individuals can apply for the no income personal loan to fulfill their basic requirements such as paying bills, health expenses, and many more.
Some people face a difficult situation when they have no job and they have to cover all the necessary expenses, then they need to apply for a loan. There are three types of no-income personal loans as follow:
- No income loan, no assets
These loans are a reservation for real estate loans where the borrowers have to determine enough rental income.
- Stated income loan, verified assets
You can get this loan if you have some income. The income may not be sufficient to service the loan, but it is enough when making the combination with the verified-value assets you used as collateral.
- No income loan, verified assets
If you have no source of income but there are enough assets that are used as collateral to repay the loan amount.
The housing and urban development department creates the list of assets that are used as collateral:
- Retirement accounts
- Lump-sum slips
- Revocable trusts
- Financial securities
The usage of collateral is a serious part of no income personal loan. It will make a reduction in the risk to the lender and increases the chances of loan approval.
What to do to avail the personal loan if you are unemployed?
In this today’s world, every person is employed as a regular source of income. In some cases, if they are unemployed, then they fall into some financial crisis. There are some sources available for unemployed individuals through which they can claim to apply for a no-income personal loan. The sources are given below:
- Child support
- Tip income
- Partner income
- Unemployment benefits
- Job offer
- Dividend payments
- Business startup
It does not determine whether every lender will accept these types of resources, but there is surety some lenders will accept some of the sources for the approval of loans.
Is it possible to get a mortgage without any income proof?
A no-doc mortgage loan is considered as the no income-verification home loan. It does not need to offer any income evidence to the mortgage lender. A no-doc loan is more similar to a reduced documentation loan instead to no income personal loan.
This type of reduced documentation loan is usually applicable to self-employed persons who do not want to show their tax returns.