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Emergency Loan for the Unemployed Person

July 18, 2022 • 11069 views

A Loan plays a significant role in meeting our additional financial requirements. However, lenders go through a rigorous credit appraisal process before disbursing loans. First, they look at your credit history and ability to pay. You can easily get a loan if you have a steady source of income, be it salary or business income. However, if you are unemployed and do not have a stable source of income, many lenders will not be willing to give you a loan. Maybe you're out of a job, in the transition phase of a career or in the early stages of your venture. Housewives, students, and retirees also form a bracket for borrowers who have no current source of income. However, even without a proper source of income, you can get a loan. Many financial institutions in India offer loans to applicants who do not have a job. Of course, interest rates, loan terms and other factors are different from loans to salaried individual, but that will not stop you from getting loans from different lenders. Such loans can be obtained in the form of secured loans, pay-day loans and government Personal Loan schemes for the unemployed.

Loan options are available for the Unemployed in India

If you are in dire need of money, you have no choice but to take out a loan. There are many other options besides Personal Loan. Many lenders offer loans to the unemployed. The different types of loans offered by lenders are:

1. Same-day loan for the unemployed:

Many lenders give loans to unemployed people in a single day. These loans are short-term, and anyone can take advantage of them if they have reached the age of 18. There is no formal credit appraisal process for the loan, and it can be given to anyone who has a bad credit history.

2. Unsecured loan:

Unemployed borrowers can also opt for unsecured Personal Loans. The interest rates for these loans are higher and the repayment period may vary. The best option to go for an unsecured loan is to take advantage of it with a co-applicant so that your application is considered stronger and there are better chances of getting the loan approved.

3. Loan without a credit check:

A loan without a credit check can be given to someone unemployed or with a bad credit history. You do not have to keep any collateral for this type of loan.

4. Payday Loans:

This is a loan that is given without any credit assessment. The interest rate for a payday loan is higher than a normal loan. The EMI for this loan is deducted from your salary account.

5. Long-term loan:

An unemployed person can also take a loan which is for a long term and can be availed without any employment record or credit history. These loans are usually made by mortgaging property.

6. Gold loan:

This is one of the oldest forms of loan. Primarily housewives and retirees may choose to take out this loan. In case of emergency, they can put their gold jewellery to use and take cash instead of pledging it. You can go to your nearest lender branch to opt for this loan, which offers attractive interest rates.

7. Education loan:

However, this loan is for higher education purposes and only students who are yet to get employment can avail of it. Parents can act as co-applicants in this case. Once a student gets a job or the loan expires, whichever is earlier, he can repay the money in easy instalments.

8. Government schemes for unemployed people in India

The Government of India has also launched several schemes which provide loans to the unemployed youth of the country:

9. Prime Minister's Employment Scheme:

The scheme is designed for the unemployed only. The government provides financial assistance to the youth to start their new venture. Loans offered range from Rs. 2 lakh to Rs. 5 lakh. The amount disbursed is for launching ventures in the advanced industrial sector. Borrowers in the 18-35 age range are eligible for the loan.

10. Agricultural loan:

Under this scheme, the Government of India provides loans to unemployed youth above the age of 22 years to start their venture in the field. This is especially true for those who are involved in agriculture or want to do so. The government has partnered with several banks and financial institutions to provide these loans.

Also Read: The Ultimate Guide to Comparing Personal Loan Interest Rates

How to get an Unemployed Loan?

Unemployment loans are a type of credit given to people with unstable incomes. Credit for this form can be obtained under certain special terms and conditions. This type of loan for unemployed persons is available in the form of personal credits, secured credits, government loans, etc.

Tips for applying for a Personal Loan

If you are unemployed and want to apply for a Personal Loan, here are some important things you should know:

  • You should apply for personal loan with co-applicant who should be an employed person.
  • The interest rate applied to your loan is at the discretion of the lender and may exceed the existing rate of interest.
  • If you default on the payment, it can lead to higher penalties.
  • You should never apply for a loan more than you can afford
  • Make sure you have a financial plan to ensure timely payment.

How to Apply for a Personal Loan?

You can apply for a Personal Loan by following these three simple steps:

  • Step 1: Click on the 'Apply Now' button.
  • Step 2: Fill in the required details on the loan application form.
  • Step 3: Upload necessary documents.

On successful verification, the loan amount will be disbursed into your bank account instantly. 

To Conclude

Although you can apply for a Personal Loan even if you are unemployed, you should avoid taking out a loan unless you face a financial crisis. If you want to apply for a Personal Loan, you can apply for any above mentioned schemes. However, it is advised to have a stable income before taking any debt. Having a steady income helps you repay the loan without any financial difficulty.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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