There’s a myth that unemployed individuals are not eligible for personal loans. However, that’s not completely true. 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.
Know more about Personal Loans
|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|
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.
|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|
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:
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.
Listed below are the benefits of secured unemployment loans.
Listed below are the disadvantages of secured unemployment loans.
Unsecured unemployment 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.
Listed below are the benefits of unsecured unemployment loans.
Listed below are the disadvantages of unsecured unemployment loans.
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