How to get personal loan for unemployed during Covid 19 in India

Funds are a necessity for all sectors of society. We all know about the availability of personal loans and the benefits availed through them. All the financial institutions’ banks provide credit to the people who may prove their reliability to repay the loan back. These borrowers are generally employed or salaried people or business enterprises.

But are the loans needed equally by the unemployed sector too? Or are they provided with the same opportunity of availing the benefits of personal loans? This post answers how to get a personal loan for the unemployed during Covid 19 in India?

Amid covid-19 thousands have lost their job and are in a financial crunch and not even able to solve the cash crunch, as loans that are difficult to get when you don’t have a source of income. Many banks or lenders have come out with schemes to lend loans to unemployed people or without any stable job in India.

However, the terms and conditions for this facility are different from the usual ones. Such loans can be in the form of secured loans, payday loans, and government personal loan schemes for the unemployed sector in India.

Personal loan facilities for the unemployed in India

Yes, though surprising, but it’s true that an unemployed person can also avail the benefit of personal loans. There are various types of loans schemes that are provided to the unemployed people in India, like,

1. Gold loan scheme
2. Educational loan to the students
3. Star Mahila Gold Loan Scheme for women
4. Pradhan Mantri Mudra Yojana for women
5. Agricultural loans
6. Pradhan Mantri Rojgar Yojana
7. Loan subsidy scheme
8. Secured loans
9. Property loans
10. Mortgage loan

How to get a loan if you are unemployed

The lenders locate multiple factors when evaluating a new loan application just to find out your sources to repay the loan. However, a little research can help you avail the benefit of a loan even when you are unemployed. Personal loans for the unemployed, a special type of credit that a person with income instability can get away with under special terms and conditions. Some tips to get a loan when you are unemployed:

• Collateral –

When one lacks job security, the easiest way to avail of a loan is offering financial institutions something as collateral against the loan amount. It can be anything, any acid like gold, land, property, etc., that can help you get lower interest rates on a loan.

• Income of spouse –

Most banks and institutions allow you to use your spouse’s income as a source against the loan. The feature may be used as your credibility to repay the loan. Your spouse may also act as a CO applicant if you choose to include their income as a source of income.

• Guarantor or a CO applicant –

One can see the help of a CO applicant for the loan application if he or she is unemployed. If you find a CO applicant or guarantee could also work as long as they fill in the necessary paperwork, including KYC formalities and signature., Applicant with a good credit score and a steady source of income increases your chances of availing of the loan facility.

• Investments –

The lenders considered capital gains or money from an investment like real estate as a source of income. Also, investments in the form of dividends and rental properties can be a significant indicator of your ability to repay back the loan. One-time capital gains might not be considered, but recurring income is considered and may be allowed if approved.

• Microlending platforms –

Also, nowadays, there are several digital lending platforms offering the loan in the most quick and convenient way. The loan process through them is spontaneous, which makes it one of the best options in case of emergency.

Fortunately, there are also ways to get emergency loans for the unemployed to weather the storm of joblessness from covid-19. Urgent search times loan benefit can be availed through the following institutions:

• Bank or credit unions direct lenders
• Loan aggregators
• Getting a co-signer
• A payday loan

If you are struggling with an emergency loan due to a poor credit score or income issues, you may opt for alternatives to traditional loans. They may not be the ideal personal loans one is looking for but can help to overcome the financial world in a pinch.

Note: It should be taken into consideration when you don’t have anyone in security like a job or any other source of income and other related to provide you a loan with higher amounts. So, if you opt for getting a smaller loan amount, then the chances of getting a loan approved may increase.