There are lenders who offer personal loans even if you don’t have a stable job. Of course, the interest rate, loan tenure and other factors are different from loans offered to income earners, but that won’t stop you get financing from various lenders. You can get such loans in the form of secured loans, payday loans and government personal loan schemes for the unemployed, to name a few.
|Banks/Lenders||Interest Rate (p.a.)||Loan amount||Tenure|
|LazyPay||15% to 28%||Up to Rs.1 lakh||3 months to 24 months|
|SmartCoin||30% to 36% (APR)||Rs.1,000 to Rs.25,000||3 months to 4 months|
|State Bank of India Pension Loan||11.95% to 12.45%||Rs.2.5 lakh to Rs.14 lakh||Up to 84 months|
|Punjab National Bank Personal Loan to Pensioners||11.25%||Rs.25,000 to Rs.3 lakh||Up to 60 months|
|Bank of India Star Pensioner Loan Scheme||11.15%||Up to Rs.5 lakh||Based on lender’s terms and conditions|
|Prime Minister’s Rozgar Yojana||Based on the scheme specifications||Up to Rs.10 lakh||3 years to 7 years|
|Pradhan Mantri Mudra Yojana (PMMY) for women||Varies from bank to bank||Up to Rs.10 lakh||Varies from bank to bank|
You can choose any of the below options to apply:
Secured unemployment loans- Secured unemployment loans are sanctioned against a collateral or security. In this loan scheme, the borrower pledges an asset to the lender based on which the lender sanctions the loan. The loan amount depends on the value of the asset pledged.
LazyPay operates as a part of PayU offering instant personal financing facilities to customers. You can get a loan of up to Rs.1 lakh with LazyPay. In order to get a loan, you need to download the LazyPay app and apply.
SmartCoin is an app-based money lending platform targetted towards the middle- and lower-income strata. The interest rates offered by the lender are on the higher side because of the short loan tenure.
State Bank of India offers SBI Pension Loan to Central or State Government or Defence pensioners who draw their pension from any of the SBI branches.
Punjab National Bank offers personal loans to pensioners who draw their pension through any of PNB’s branches. This loan can be taken to meet the medical expenses of pensioners during the time when they need it most. Borrowers can avail a loan multiple times based on the adjustment of the previous loan.
Other than the aforementioned loan schemes, you can also apply for the following schemes:
Bank of India offers BOI Star Pensioner Loan Scheme to a retired employee who draws a regular pension through the bank branch. The net pension of the applicant after the loan EMI is deducted should be at least 40% of the total pension amount.
This scheme aims to provide self-employment opportunities to the educated unemployed youth of the country. The scheme has undergone quite a few modifications over the years, including the relaxation of norms in the north-east region.
This is a loan scheme launched by the Government of India in 2015. This scheme allows women to avail a loan so that they can start a business venture of their own. There are various lenders and NBFCs in India who offer this particular loan scheme to its customers.
|Processing fee||2% of the loan amount|
|Prepayment charges||Not applicable, as prepayment is not supported|
|Late fee||Rs.10 per day|
|Processing fee||0% to 5% of the loan amount plus GST|
|Prepayment charges||3% of the prepaid loan amount|
|Documentation charges||Up to Rs.450 plus GST|
|Processing fee||Up to 2% of the loan amount|
|Processing fee||Up to 1.5% of the loan amount|
|Prepayment charges||May differ from lender to lender|
Eligibility:You need to be a minimum of 18 years of age to apply for such loans.
The documents you need to provide may include:
Before applying for a personal loan, here are a few things you need to keep in mind:
Unsecured loans- Unsecured loans is another way through which unemployed individuals in India can avail loans.Unlike secured loans, there is no need for collateral in unsecured loans and it comes with a higher rate of interest.A good credit history will increase the chances of availing unsecured loans in India.
Your credit score will play an extremely important role in you getting a loan. If you are unemployed, your credit score becomes extremely important. Higher your credit score, better your chances of getting a loan. There are lenders in India who do offer loans even if you have a low credit score. However, in these cases, the minimum credit score you may have to maintain is around 600. The credit score requirement will vary from lenders to lenders.
Yes, since the bank may not be willing to offer you a loan if you are unemployed. The bank takes into consideration your occupation and annual income as it helps them determine the rate of interest, they should levy on your loan amount and whether you will be able to repay the loan back in time. Hence, it is always a good idea to have someone as your co-applicant who will take the responsibility on your behalf to repay the loan. Your co-applicant should be someone you trust most preferably from your family such as your parents, siblings, spouse, etc.
Yes, there are loans which you can avail against collaterals. For example, if you own a property, then you can avail a personal loan where you pledge your property as collateral. Similarly, you can pledge your bonds, stocks, and even your FD returns which would help you avail a loan. You can also avail a gold loan if you have gold to pledge as security.
Regardless of whether you are employed or not, if you are looking for a loan, then it is always recommended that you visit the bank in which you hold an account. Your relationship with your bank goes a long way. Since you are a customer, the bank will surely look to help you avail a loan and recommend ways through which you can repay the loan in time even if you are unemployed.
The first step is to identify the reason why you would need a loan in the first place. Availing a loan means accruing debt which you cannot afford if you are unemployed. Hence, you must avail a loan which you can repay in time and hence you must be specific regarding your loan amount and repayment amount.
You must look to maintain your credit score, as good credit score means lower rates of interest which would help you repay the loan in time. Before you avail a loan, you must compare the various loan schemes available and select a scheme which you feel will be suitable for you and will also allow you to repay the loan without any delay.
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