Emergency Cash Loans in Australia: Unemployed Loans, No More Hassle

Being unemployed doesn’t refer to an absence of income. Regarding loans, an “unemployed consumer” can refer to one without full-time job security. In other words, freelancers or gig economy workers can be classified as such. 

It can be generally hard to get approved for a personal loan as an unemployed consumer, especially with bad credit. But what if we can show you how to take out small emergency loans, even if you’re unemployed?

In this article, you’ll learn about hassle-free emergency cash loans in Australia for the unemployed. 

What this article covers:

What Are Emergency Cash Loans 

Emergency cash loans are money advances with fast approval. The approval period can range from a few minutes to a day. 

Lenders offering emergency cash loans immediately in Australia can do so because of their less stringent application process. Unlike conventional loans, applying for an emergency loan will require less documentation. Additionally, they often don’t require collateral. 

However, lenders operating in this space use several procedures to reduce risk. For instance, they can analyse your ability to repay by checking your monthly income. 

Are There Emergency Cash Loans for the Unemployed in Australia? 

Yes, they’re available. And in most cases, lenders check your credit score or income statement to ensure you have a good history. 

Why’s that? 

Because of the Responsible Lending Policy by the Australian Securities and Investment Commission (ASIC), every lender must carry out meaningful checks on consumers’ financial status to ensure they’re fit for a loan offer. So, most lenders either use credit checks or income verifications for this. 

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But while credit checks and income verifications are some ways to deem you fit for a loan product, some alternatives can suffice. 

Instant cash loans with no credit checks for the unemployed will require a cosigner, proof of an alternative income, or a liquid asset that can show your ability to repay. The lender wants to see that you’re financially stable, so having enough proof of this can increase your chances of getting an offer. 

Here are a few things you can use as proof:

  • Self-employment income 
  • Unemployment benefits 
  • Dividends from investments
  • Child support 
  • Retirement income
  • Alimony 
  • Income from gigs
  • Royalty payments

Drawbacks of Emergency Cash Loans With No Credit Checks

While it’s possible to obtain unemployed loans with no credit checks, there are some drawbacks to be aware of before borrowing this emergency loan.

For one, lenders only offer you small loan amounts. So, this option might not be available if you’re looking to take loans above $1,000, as the case may be. 

Furthermore, the loans must be repaid in full within a few months—no instalments are permitted. 

Finally, the rates and fees for this type of loan are above the roof. You can expect to pay at least $20 per $100 borrowed, like with payday loans. 

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What Are the Types of Unemployed Emergency Cash Loans 

There are several cash loans for the unemployed with no credit checks. We’ll discuss four of them briefly below. 

1. No Income, No Job, No Asset (NINJA) 

NINJA loans are given based on trust. The lender offers you a loan amount and trusts that you’ll pay it back within the agreed duration. 

However, NINJA loans became extinct officially after the 2008 financial crisis. Policies such as responsible lending prevent lenders from offering them. 

2. No Income, Verified Asset (NIVA) 

This type of loan doesn’t require submitting an alternative income source; instead, you use an asset. 

Some assets you can use for this loan include 

  • A government bond certificate 
  • Appraised valuables 
  • House ownership certificate 

Note that online lenders offering NIVA loans might only accept digital assets like government bond certificates. 

3. Stated Income, Verified Asset (SIVA) 

You can take out a SIVA loan if you have a low income and need to augment it with an asset. SIVA loans have higher chances of approval since you’re providing a double guarantee (income and asset). 

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4. Stated Income, No Asset (SINA) 

SINA loans are mostly offered by online lenders. They offer fast cash loans with no credit checks to the unemployed but require them to submit proof of alternative income sources. 

For instance, you can apply for emergency money if you have enough retirement savings and benefits to qualify for the loan. 

Also, you’ll have a higher chance of getting loans immediately if you show two to three stable income sources. 

While these four types of no-income loans are popular among online brokers, you can find other options. For instance, there’s an option that offers real estate investors loans against their rental income. 

What to Consider Before Applying for Unemployed Emergency Cash Loans

You can consider the following factors before taking out an emergency cash loan with no income. 

Why You Need a Loan 

Easy loans can lead to a cycle of debt, which might not be best for your financial situation, especially if you don’t have a stable income. However, understanding why and when to take out a loan can help you make better decisions. 

Here are a few questions you can answer to get the ball rolling:

  • Why do I need a loan? 
  • How urgent is the situation? 
  • Are there alternative sources to get a loan? 
  • Can the issue wait? 
  • How much do I need to take out? 

Answering these questions can help you place your priorities in order. 

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How Much You Need 

Because of the nature of fast cash unemployed loans, you must exercise caution when applying for them. And one way to do that is by carefully calculating how much you need before applying. 

Loans of this nature—fast and easy approval—usually have high-interest rates. So, taking out more or less than you need can mean you’ll be paying more.

For example, if you take out a $500 loan when you need $700, you might have to take out an extra $200 loan with a different loan term. Adding the rates for the two loans might make them higher than that of a single $700 loan. 

Also, taking out $700 when you only need $500 means you’ll pay more than you intended. 

Risk of Taking Out a Loan 

There are risks associated with taking out an emergency loan. For one, you can enter a debt cycle if you’re not strategic with payments. 

For instance, continuously taking out loans to settle previous debts without plans to repay them can put you in a tight financial corner. Also, a lender can sell off your debt to a collector or, rather, sue you in court. In this case, your debt will be reported to the credit bureau. 

Impact on Your Credit Score 

Emergency loans for the unemployed don’t affect your credit score. This is because lenders offering them don’t perform a hard inquiry on your credit report or file your loan with the credit bureau. 

On the other hand, these loans don’t improve your credit score since transactions are between you and the lender. 

However, your score might take a hit if your debt is filed with the credit bureau. 

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How Do You Intend to Repay

Setting out a plan to repay is one step towards responsible borrowing. 

Before borrowing, you should check your income sources to know if they can cover your loan and interest. This way, you can repay on time and avoid embarrassing text messages or penalties. 

How to Apply for Emergency Cash Loans Without Income

Applying for an emergency cash loan as an unemployed person goes through the same process as anyone else applying for a quick loan. However, you’ll need to take steps to ensure the process is hitch-free. Below, we’ll walk you through three quick steps.

Find a Lender 

You can start by searching the internet to find an online lender offering emergency cash loans with no credit checks. While the options you find might be overwhelming, you can choose reliable lenders based on a few considerations. Let’s outline a few of them below. 

License 

All reliable lenders must have an Australian credit license. This shows that they’re under ASIC regulations and can only carry out supervised actions. So, check for this before choosing a lender to avoid becoming victims of loan sharks and fraudsters. 

Loan Rate and Terms 

Lenders offering no-credit-check loans for the unemployed often have fixed interest rates. However, some lenders can charge higher than others. 

You’ll need to compare rates from several options to get the best lender. This way, you can find the best loan offers for less. 

Also, read through the loan terms on the lenders’ site. Check for penalties and understand what’s at stake if you default on your loan payment. 

Customer Service

Besides being able to take out last-minute loans, finding a lender with the best customer service can make a difference. 

A way to check how well a company values its customers is by reading online reviews. With reviews, you can learn about customers’ past experiences and whether or not they found the service impressive. 

You can also call the customer care line and ask questions about their service.

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Signup 

If you’re satisfied with the lender you find after your search, you can register with them. Registration is often as quick and easy as filling out an online form.

After registering, the lender creates your loan profile, where you can find information about your loans, repayment duration, and interests, amongst others.

Apply 

Once you’re good with the other steps above, you can apply for a loan. Usually, you’ll need to choose a loan amount and a preferred repayment duration. Then, fill out a form with your details, like your contact number and address. A shortcode will be sent to your contact number, so ensure you use your active line to register. 

You’ll also need to provide your tax filing number and documents detailing your alternative income sources. 

Alternatives Sources for Unemployed Emergency Cash Loans 

You can use several alternative sources to get emergency cash loans without a job. We’ll highlight a few spots below. 

Loan Communities 

A loan community is a closed group that connects borrowers with direct lenders. Joining such communities can help you take out a quick loan without income verification. 

After registering in the community as a borrower, you’ll have a profile that enables you to apply for loan offers. However, first-timers can only take out small loans and increase their chances of taking out larger amounts after maintaining a good track record. 

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Loan from Relatives 

Your friends and family members can help when you need an urgent fix. Depending on your relationship with the party, you might not have to fill out a form or anything. 

Both of you can agree on an amount and repayment date. Also, the odds of paying interest will depend on your relationship and arrangements. 

However, avoid delaying repayments in this case. And if the need arises, ensure you inform the other person to prevent misunderstandings that could potentially ruin a good friendship. 

Conclusion 

You can still apply for a small loan without a full-time job. However, you’ll need to use other sources of income like alimony, real estate rent, or proceeds from investments. 

Before applying for an emergency cash loan for the unemployed, consider why you want it, the amount to take, the risks involved, and how you can repay it. This way, you create a visual plan to help you meet repayment deadlines. 

While emergency cash loans are helpful, they might not fit your situation. In this case, you can try other no-income loan sources like loan communities or family loans. 

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