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If you are employed and have a steady source of income, you can easily avail a loan. But, can you get a loan if you are unemployed and have no regular income? Yes, you can get a loan even without a job. Many lenders in India offer loans to applicants who do not have a job. Of course, the terms and conditions for such loans are different from loans than the loans provided to income earners.
Types of loans you can apply for if you are unemployed
- Secured loan for unemployed To avail a secured loan, you must provide a collateral to the lender as a security against the amount you borrow. The amount you can borrow depends on the value of the asset you pledge.
- Payday loan for unemployed You can apply for a payday loan if you are expecting to get a job soon. If the lenders feel that you will be employed in the future, they may sanction the loan.
- Gold loan for unemployed If you need quick cash, you can use your gold holding to get the desired funds. Gold loan is one of the most popular instant loans for unemployed as it has minimal documentation, and most lenders do not require income proof.
Government loan schemes for the unemployed
- PMRY scheme Prime Minister Rozgar Yojana aims to provide employment opportunities to the unemployed by providing financial support. Under the scheme, if you are aged between 18-35, and attended school till eight standard, you can avail a loan upto Rs. 5 lakhs to start your business.
- Loan subsidy scheme Under this scheme, 25% of the amount you borrow (subject to terms and conditions) will be subsidised by the state government. This scheme is available in only a few states across India.
- Agriculture loan scheme Under the agriculture loan scheme, the government has tied-up with several financial institutions in India to provide agriculture loans to the unemployed youth of India. To avail this loan facility, you must be engaged in agriculture-related work and must be at least 22 years old at the time of applying for the loan.
Tips to Apply for A Personal Loan If Your Unemployed
If you are unemployed and wish to apply for a personal loan , here are a few critical things you must know:
- The internet rate applied for your loan is at the sole discretion of the lender, and it may be higher from the advertised rate of interest.
- If you default on the repayment, it could lead to a high penalty.
- Never apply for a loan more than you can afford to repay
- Make sure to have a financial plan to ensure a timely repayment.
Final Word before applying for a personal loan
Although you can apply for a personal loan even if you are unemployed, you should avoid accruing the debt unless you are facing an emergency.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.