Applying for loans and getting approvals from the bank is a tedious process as there are many documents / collaterals that you will have to furnish to the bank. The bank decides to approve your loan application based on your capacity to repay the loan amount and your credit history. If you have a steady source of income and a good repayment history, banks will offer you loans. But if you are unemployed, the scenario might change, even though it is not impossible to get a loan.
There are several financial institutions and banks that offer loans to the those who are unemployed. Let’s look at a few available options below:
- Gold Loan: One of the best ways to get loans when unemployed is to pledge your gold and take a loan. The gold will serve as a security against the bank’s loan amount. The documentation required by the bank for gold loan is also minimal.
- Secured loans: If you choose to go for a secured loan, then you will have to provide a possession as a security, such as a land or a house. However, if you fail to make your payments, this security will be repossessed by the lenders.
- Personal loans: Personal loans are primarily unsecured loans. So, you can avail a personal loan without any collaterals, but this type of loan comes with a higher interest rate. If you have a good credit history, then the lender might consider your loan application based on how well you convince them. In certain cases, if the lender is not very well convinced, you will have to back the loan by providing collaterals.
Additional Reading: How to get personal loan for unemployed
The government of India has also come up with some loan provisions for the unemployed sector of our country.
Some of these schemes include.
1. Prime Minister Rozgar Yojana:
This scheme is launched to support the unemployed youth of our country by providing them with financial help to start their own new ventures. Anybody who is above 18 years and has passed 8thgrade can avail this loan. Also, the family income put together should not be above 1 lakh.
2. Pradhan Mantri Mudra Yojana for Women:
This scheme is launched by the Government of India to empower the women of our country and improve their status by providing them loans and encouraging them to start new ventures.
3. Agriculture Loans:
This type of loan is introduced by the government of India to support the youth who are engaged in agricultural activities.
Loan Subsidy Scheme: Under this scheme, the state government will subside 25% of the loan amount, but it is available only in few states.
If you are unemployed and looking out for loans, click here to know more
Additional Reading: Government Loan Scheme for Unemployed Youth