Loans for the unemployed or loans for people who don’t have a stable job sounds tough, and that too in such hard times of Covid. Still, practically there are lenders in India who provide loans to the unemployed. Such loans may be in the form of secured ones, payday loans, or government schemes for the unemployed.
Yes, there is a possibility of availing of loan benefits even when one is unemployed. However, there are some basic requirements for the same. Being unemployed suddenly or by will, lenders can consider granting you loans if one proves his ability of timely payment for the same.
In these Covid 19 times, many people are undergoing financial crises as they have lost their jobs unexpectedly. In these hard times, loans sought to be the only means to overcome the crisis.
Loans for unemployed
Getting loans for the unemployed sounds challenging as income is the greatest consideration to get and give loans. The world of lending depends upon income, but a little research can help you avail of loan benefits even if you are unemployed.
Personal loans for the unemployed prove to be a special type of credit with special terms and conditions. Here we will discuss some tips favoring loans for the unemployed in such hard times.
Tips favouring loans for unemployed
- Searching for a guarantor or a co-applicant: One can opt for the help of a co-applicant to apply for the loan. A co-applicant or a guarantor may complete the formalities and paperwork, including KYC formalities. A co-applicant or a guarantor with a stable job (source of income) and an efficient credit score may enhance your chances of getting a loan.
- Digital lending: Nowadays, there are many apps and online lenders that offer quick, easy, and guaranteed small loans. The process is spontaneous, and so these form the appropriate options in emergencies. In the online (digital) borrowing process, the amount of loan is directly credited to your account, and an option of easy instalments is offered.
- Gold loan: In such critical times, the gold loan has also evolved as one of the means to satisfy financial requirements. A loan against gold helps to build up the trust of the lender in the borrower. The gold acts as a security against the loan amount.
- Secured loans: If one lacks a job, then any collateral against the loan amount makes it easy to get a loan. Any asset or property can be used to avail the benefit of personal loans. This is the easiest way of getting loans if one is unemployed. The property offered as security against the loan amount is called collateral.
- Dividends and rental properties or investment: Income from real estate properties, rents, dividends, etc., all are considered as sources of income. For lenders, income from such sources may prove your ability to make timely repayment of the amount. One-time capital gains do not matter much, but a steady and stable source sounds better and trustworthy.
- Government plans: Government schemes and loan policies also prove to be a blessing to the unemployed at such hard times. PMRY, education loans, agricultural loans, secured loans for the unemployed, etc., are the types of schemes launched by the government of India to help the unemployed sector and youth. The government also provides them with cash loans to help them in overcoming their financial emergencies.
- Spousal income proof: Some lenders may provide you loans considering the salary documents of your spouse. In this case, the undertaking of repayment is taken up by the better half in case of any default in payment from your side.
Documents required for providing loans to unemployed
- Identification proof: Aadhaar card, PAN card, voter’s ID card, driving licence, etc
- Address proof
- Proof of being an Indian citizen.
Even the people looking for jobs can apply for business loans with attractive interest rates.
Applicants may raise their chances of getting loans by getting a co-signer and with a history of no defaults in dealings. It must be taken into account that in the absence of a stable source of income or being unemployed, it is better to apply for small amounts of a loan instead of big amounts.
Concluding, it can be assessed that the options may include cash loans against your FDs, overdraft facility, loans against credit cards, etc. All the above-mentioned points clarify that being unemployed in such hard covid-19 times doesn’t push you away from availing of loan benefits because companies like Money View are always at your rescue.
Related Article: Covid 19 Personal Loan