How do I get a personal loan in India if I am unemployed?

by sourav Kumar Afinoz

Applying for a personal loan and getting it approved is a very tough task. It is tougher if the applicant does not have a steady income and it is toughest for a person who is unemployed. Banks and NBFCs have eased the process for approving the personal loans but it is still a very tough task for people who do not have a source of income.

The credit score of an applicant is taken into account while approving the personal loan, which, in most cases, is not applicable for unemployed. The applicant’s repayment capacity is also highly dubious ass he has no source of income. However, unemployed applicants can also get personal loans in certain cases. In this article, we will discuss how an unemployed person can get Best personal loans in India.

Unsecured Loan with a Co-Signer

An unemployed applicant, who does not have a source of income, can apply for the

personal loan with a co-signer (or a guarantor) having a good credit score. The co-signer, here, acts as a security for the bank and if the unemployed applicant fails to make the repayment, the bank will approach the co-signer to recover its fund.

Secured Loan

The unemployed applicant can get the loan from the bank by keeping some asset as

collateral. These loans are available at relatively lower rates of interest as there is less risk for the bank. The applicant can provide an asset in lieu of the loan amount. Most banks sanction the loan amount of up to 75% of the asset value in these cases.

Pradhan Mantri Rozgar Yojana

Pradhan Mantri Rozgar Yojana is framed keeping unemployed people in mind who are willing to start a business of their own. The government provides the financial resource to the applicant under this scheme to start a business of his own. Any youth who has completed the education till class 8 th and is between 18 and 35 years of age can apply for this loan. For starting a business venture, the applicant gets up to ₹ 2 Lakhs whereas the loan provided for starting an industry of his own, the applicant gets a loan of up to ₹ 5 Lakhs. However, the income of the applicant with his spouse or parents should not exceed ₹ 1 Lakh per annum if he wants to take this loan.

Pradhan Mantri Mudra Yojana for Women

Unemployed women, who want to start an industry of their own, can get loans under Pradhan Mantri Mudra Yojana for Women. The primary aim of the government behind this scheme is to improve the condition of women by encouraging them financially to start a new venture of their own. Various banks and NBFCs offer loans to eligible applicants under this scheme.

Peer-to-Peer Lending

Peer-to-peer lending is a type of crowd-funding where the lender provides loans to an applicant at a definite interest rate. Both parties are generally brought together through an online portal where adequate steps are taken to ensure healthy lending takes place.

Unemployed applicants who do not get loans anywhere else can try peer-to-peer

lending to get a personal loan. Even though there are not many companies that offer peer-to-peer lending, but the recent developments in the financial market have seen unemployed youths getting loans through it as well.

If you have any question about HDFC personal loan then. afinoz team will be help for you.