Not a day goes by in our various business locations where we do not receive a credit request from an unemployed person. Indeed, people who become unemployed are also faced with having to make major purchases and the unemployed, more than anyone else, therefore implicitly see their contributory capacity extremely limited. He, more than any other taxpayer, will therefore have difficulty paying cash for the price of a washing machine, a car or a computer: in short, to meet his basic necessities with a view to finding a job. Is it legally possible to grant a loan or credit to an unemployed person?
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A harsh reality…
When your unemployment benefit is around €1,400 and you have paid your rent, the balance with which an unemployed person must meet their needs very quickly becomes limited. Therefore, buying a basic necessity such as a car, a washing machine, a living room table, a refrigerator can prove to be a real challenge… However, finding a job requires showing up properly dressed and well-groomed for job interviews. selection, browse job offers and send application letters and a CV, tasks for which the use of a computer and a printer is essential.
Can we grant credit to an unemployed person?
What will determine the willingness of a financial organization to grant credit will be, in addition to the contributory capacity, the possibility of carrying out a seizure in the event of non-payment of monthly premiums. Belgian and Luxembourg legislators have decided to make unemployment benefits below a certain amount unseizable (except with regard to the recovery of alimony arrears). The unemployed person is therefore in some way guaranteed to keep their unemployment benefit.
This gift from the legislator, which removes responsibility from the unemployed, acts like a sword of Damocles hanging over the shoulders of the unemployed. Indeed, if, as we have explained, the unemployed person is protected from recovery of their unemployment benefits, their capacity to borrow is, by force of circumstances, extremely reduced.
Thus, very often, the unemployed will experience a refusal to their loan or credit request since the financial organization will not be able to carry out a seizure at source on their unemployment benefits in the event of non-payment of monthly premiums. .
Is there an alternative to allow the unemployed to access credit?
Regarding the installment loan
The unemployed person must obtain a guarantee, a guarantee or a guarantor if they want to obtain credit or a loan. In other words, the unemployed cannot borrow alone. He will have to find a co-signer, a co-borrower, that is to say a person who borrows with him and who must be perfectly solvent.
Regarding mortgage credit
The unemployed person who owns a house or real estate (land, building, etc.) will be able to take out a mortgage loan but on the condition of taking out a mortgage on the real estate.
This still means that the amount of the loan cannot be less than €25,000 because the costs of setting up a mortgage are so high that it would not be reasonable to take out a mortgage loan for a lower amount.
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