When you apply for a loan, lenders check your repayment capacity. A steady income is often required because the lender does not want to risk their loan being unpaid. 

If you need funds for your immediate financial needs but don’t have a stable job, fret not. You can avail of instant loans for unemployed persons with ease. You can also seek financing options from government schemes or approach a lender who allows you to borrow with a guarantor. 

Here are some ways you can get a loan without a steady income. 

#1 Apply jointly or get someone to act as a guarantor

You can apply for a loan jointly with your spouse or a family member who fulfils your lender’s personal loan eligibility criteria, such as a steady income and a high credit score.

Since the co-applicant or guarantor also becomes liable for loan repayment, it increases the chances of your loan getting approved. 

Additional Read: Tips To Avail Lowest Interest Rates On Your Personal Loan

#2 Look for secured unemployment loans

Secured unemployment loans are personal loan sanctioned against collateral or security. In other words, you pledge an asset to your lender when you opt for a secured loan. 

Your loan amount depends on the value of the asset you pledged. 

#3 Check your eligibility for government schemes

The government has rolled out special loan schemes for unemployed people. Some of them are: 

  1. Prime Minister’s Rozgar Yojana (PMRY): This scheme aims to provide self-employment opportunities, especially to the educated unemployed youth of the country aged between 18 to 35 years. Under PMRY, you do not need any collateral for loans up to Rs. 1 lakh. 
  1. Pradhan Mantri Mudra Yojana (PMMY) Scheme for Women: Launched in 2015, PMMY allows women to take an unsecured loan to start their own business venture. You can benefit from this scheme through various lenders and NBFCs. The key benefits of this scheme are its affordable personal loan interest rates and long tenure of up to 7 years.
  2. Agriculture loan for the unemployed: The government provides funds for unemployed agriculture graduates above 22 years of age. You can use this loan for any agricultural project like farming or horticulture. 

Things to consider

  • Before you proceed, carefully ponder why you want to take a loan. Availing of a loan is a financial commitment. Hence, choose a lender that meets your needs. 
  • Always borrow an amount that you can repay timely.
  • Plan your loan repayment by estimating your EMI and interest payable in advance using a personal loan EMI calculatorEnter the amount you would like to borrow, your lenders’ interest rates, and the time you will take to repay the loan. The tool will calculate the EMI you will have to pay. 
  • Maintain a good credit score, ideally over 750, to bag lower interest rates. 

Additional Read5 Simple Ways To Manage Your Personal Loan EMIs

In conclusion

Do you need an affordable loan for personal use? Turn to Tata Capital. We help you with multi-purpose loans at attractive interest rates and offer flexible repayment options. Visit our website to learn more. 

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