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 |
| Mudra loan 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.
Benefits/Key highlights
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.
Benefits/Key highlights
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.
Benefits/Key highlights
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.
Benefits/Key highlights
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.
Benefits/Key highlights
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.
Benefits/Key highlights
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.
LazyPay Personal Loan
| Processing fee | 2% of the loan amount |
| Prepayment charges | Not applicable, as prepayment is not supported |
| Late fee | Rs.10 per day |
State Bank of India Pension Loan
| Processing fee | 0% to 5% of the loan amount plus GST |
| Prepayment charges | 3% of the prepaid loan amount |
Punjab National Bank Personal Loan to Pensioners
| Processing fee | Nil |
| Prepayment charges | Nil |
| Documentation charges | Up to Rs.450 plus GST |
Bank of India Star Pensioner Loan Scheme
| Processing fee | Up to 2% of the loan amount |
| Prepayment charges | Nil |
Mudra loan scheme for Women
| 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.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
The Stand-up India Scheme for entrepreneurs from the SC, ST section of the society and women, has been quite a success in India, the numbers suggest. In 2016, the number of entrepreneurs who benefitted from this loan facility was 2,1735. The total quantum of loan sanctioned was Rs.4,747.95 crore. Percentage wise, the Scheduled Caste (SC) section received 15.05%, the Scheduled Tribe (ST) section received 4.28%, and female entrepreneurs got the lion’s share with 80.67% of the total loan sanctioned. The Scheme is designed to make possible that at least 2 loans (one to SC/ST, other to Woman entrepreneur) are sanctioned per bank branch of Scheduled Commercial Banks to set up Greenfield enterprises. No state-wise target has been specified under this Scheme.
8 August 2016
Loans will be given to over 5 lakh youth as part of the PM Mudra Yojana and the CMs self-employment scheme, according to the MP Chief Minister, Shivraj Singh Chouhan. Young entrepreneurs will be given land in every district of the state. The Chief Minister was addressing a state level self-employment convention. The MP Laghu Udyog Nigam and Telexco.com have signed a MoU to offer e-marketing platforms to young entrepreneurs. Loans amounting to Rs.1 crore will be given to 10,000 individuals to start industrial units. This will be done as per the Mukhyamantri Yuva Udyami Yojana. Loans amounting to Rs. 50,000 will be given under the Mukhyamantri Arthik Kalyan Yojana. The loan limit under the Mukhyamantri Swarozgar Yojana will be incremented from Rs. 50,000 to Rs. 10 lakhs.
21 July 2016
For the welfare of the Scheduled Communities, the Andhra Pradesh State Scheduled Castes Cooperative Finance Corporation would be spending Rs. 1,101 crore in the near future. The Corporation would be providing employment to youth by purchasing 200 cabs that will be Government department hires. Lands will be bought by the Corporation in order to be given to landless families. The proposal has been submitted to the Chief Minister, N. Chandrababu Naidu for approval. Additionally, interest-free loans would be offered and employment along with skill development would be given to 1 lakh people. The Tirumala Tirupati Devasthanam board would also be asked to allocate 17% of the shops in Tirumala and Tirupati to SC youth.
5 July 2016
There has been a new scheme conceptualised by TS government to support unemployed youths in the quest to save money. By simply saving Rs 10 every day for six months, they can get Rs 1 lakh grant from the state government. This scheme is aimed at unemployed youths between the ages of 18 and 35 years. The amount thats disbursed by the government must be used to form youth groups and for self-employment. Further, an exclusive youth bank will be set up to benefit the youth. The youth bank has been inspired by and planned in the manner of œStree Nidhi Bank. Stree Nidhi Bank is a women's cooperative bank that has been hugely successful. It provides loans to women self-help groups (SHGs).
11 May 2016
Finance Minister, Arun Jaitley has announced that government is looking at launching the Stand-up India scheme which will offer loan of up to Rs.1 crore to members of the SC/ST community and to women to become big entrepreneurs. The scheme is set to be rolled in almost all major banks in the next few months. Under this scheme, one such woman and people from the SC/ST community can apply for a loan to start their own business. The ruling party is trying to enlarge its base by in Delhi through such schemes which focus on the women as well as the SC/ST vote bank.
30 March 2016
There is likely to be a draw of lots to select the beneficiaries for various bankable loan schemes by the Telangana State Minorities Finance Corporation or the TSMFC. This schemes are being implemented in coordination with many banks. Around 1.50 lakh people have applied for various loans across the State. To avoid any favouritism the selection process of the beneficiaries will be done through lots which will be a computerised said the principal secretary Syed Omer Jaleel.
15 March 2016
A total of 41 unemployed educated young persons in Nager coil were given a cumulative of Rs. 31.80 lakh as loan towards self-employment. The loans were provided in a special camp conducted by the District Industries Centre, as per the directions of Chief Minister Jayalalithaa. A target of Rs. 25 lakh has been fixed to extend loans to 50 more persons. The beneficiaries do not need to participate in training programmes and they can use their loan sanction letter to borrow from banks.
1 February 2016
Women who wish to venture out on their own and start their own businesses can avail Rs.50,000 from the government, and since half the amount is subsidy, repayment must be done only to the extent of Rs.25,000. The National Employment Service department will offer the interest-free loan as per Saranya “ a self-employment scheme that is designed to aid legally divorced women, unemployed widows, unmarried mothers, women abandoned by their husbands and single women who are over 30 years of age provided they have been registered in employment exchanges in Kerala.
03 December 2015
Karnataka Minorities Development Corporation (KMDC) is all set to train 10,000 unemployed graduates belonging to the minority communities. The highest concentration of minority communities is in the Udupi and Dakshina Kannada districts of Karnataka which will see special focus by the KMDC.
The youth will be trained under the œDevelop India program. KMDC also plans to tie-up with various other institutes to popularize the program and provide training to the unemployed youth. The aim is to provide placements to about 70% of the youth that avail training under this program while the rest 30% is to be offered loans for starting of their own enterprises. KMDC also plans to offer subsidized loans to around 5000 minority students for taking up various engineering, medical and dental courses this year. Students who avail these loans will have to start repayment after completion of 6 months from the date of completion of course.
14 September 2015
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