The global recession has caused financial problems not only to companies, but also to ordinary people. People are in desperate need of money and taking out a loan can be nearly impossible if you don’t have a job. The need for small loans is increasing, but still, giving out loans to unemployed people is seen as too big a risk. The credit companies still categorize peoples ability pay out their loans by their job status. But as we all know that there are a lot of people who have jobs and can’t pay out their loans and a lot of people without jobs or with low income who manage to keep their finances in order.

When talking about business ideas most financial gurus think that there is no more room for new ideas in the credit sector. All sorts of loans are now available for the public. Still loans for the unemployed are not available or are not easy to get. Credit companies think that the risks are too big, but they are still happy to give out credit cards to shopaholics. Giving out small loans for the unemployed could give the credit companies the opportunity to make the terms of the loan better suited for their needs. It would increase their profits and the probability of people paying back their loans.

Still, taking out the loan should be made as easy as possible. Giving out loans online could be the answer. Today taking out unsecured loans for unemployed with no phone calls is almost impossible as most companies don’t usually give out loans online or without a personal visit to the bank. Maybe that is something that credit companies should look into. Small unsecured online loans could be the next big thing in the credit business. The risks are the same as with credit cards, but it can cost far less for the credit company as there is only one transaction instead of many. Transactions between different banks and accounts can cost a lot to a businesses.

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Filed under: Loans and financing

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