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How Can You Manage a loan if don’t have a stable Income or are Unemployed?

There are financing institutions that will provide you with a personal loan even if you haven’t secured a steady job or income. Naturally, however, the rate of interest, loan term, and other parameters vary from those provided to wage earners; however, this won’t prevent you from receiving monetary support from a variety of lending institutions. Secured loans, payday loans, and government personal loan initiatives for unemployed individuals are all examples of the aforementioned loans.

Check out the most effective personal loan options for unemployed adults


Interest Rate (p.a.)

Loan amount



18% to 25%

Up to Rs.1 lakh

3 months to 24 months


20% to 36% (APR)

Rs.1,000 to Rs.70,000

91 days to 270 days

State Bank of India Pension Loan

9.75% to 10.25%

Rs.2.5 lakh to Rs.14 lakh

Up to 84 months

Punjab National Bank Personal Loan to Pensioners


Rs.25,000 to Rs.10 lakh

Up to 60 months

Bank of India Star Pensioner Loan Scheme


Up to Rs.10 lakh

Based on the 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

How can I apply for an unemployment loan?

You may pick any of the following alternatives:

  • By using the financial institution’s official site or via a mobile application.
  • Through the Refer Loan website.
  • Straightaway at the financial institution’s branch.

Outline of Government Loan Schemes within India for the Unemployed

Rozgar Yojana: This program was launched to assist unemployed individuals. The scheme’s primary goal is to provide unemployed people with financial resources to launch their businesses. The loan is open to any Indian young person with a high school certificate in Standard 8th Class. The loan is composite in form, with a loan of Rs. 2 lakh and a loan of Rs. 5 lakh provided for the business and industrial sectors, respectively.

Loan subsidies for unemployed youth: The Tamil Nadu government runs a program for unemployed people called NEEDS (New Entrepreneur and Enterprise Development Scheme). The state government gives a 25% discount for loans to graduates with no employment through this initiative.

Collateral for loans given by banks is selected by the banking institution. The project is projected to range between Rs. 5 lakh and Rs. 1 crore, with expenses related to infrastructure not exceeding 25% of the loan amount.

Government of West Bengal cash loans for the unemployed: The government of West Bengal offers a loan program for unemployed individuals in which a loan of Rs. 50,000 is given out. The plan’s primary goal is to assist unemployed youngsters in starting their businesses or initiatives. This plan is available to young people aged 18 to 45.

Agricultural loans for the unemployed: The government has partnered with multiple types of banks to present financial assistance to jobless agriculture graduates. The funds from this loan can be used to cover any type of farming project. This financial assistance is available to any unemployed agriculture graduate over the age of 22.

Secured unemployment loans: Secured unemployment loans are granted in exchange for collateral or security. Under this loan plan, the borrowing party guarantees collateral to the financial institution, which then approves the loan on their behalf. The loan amount is determined by the estimated worth of the secured asset.

Internal charges and penalties

LazyPay Personal Loan

Processing fee

At the discretion of the lender

Prepayment charges

Not applicable, as prepayment is not supported

Late fee

Contact the lender for more information

State Bank of India Pension Loan

Processing fee

Waiver on processing fee till 31 January 2022

Prepayment charges

3% of the prepaid loan amount

Punjab National Bank Personal Loan to Pensioners

Processing fee


Prepayment charges


Documentation charges


Bank of India Star Pensioner Loan Scheme

Processing fee

Up to 2% of the loan amount

Prepayment charges


Mudra Loan Scheme for Women

Processing fee

At the discretion of the lender

Prepayment charges

It may vary from lender to lender

Eligibility: You must be at least 18 to be considered for these loans.

Documentation needs to be submitted.

You may be required to present the following documents:

  • Residential proof
  • Age proof
  • ID card
  • PAN card
  • Aadhaar Card

Look into the following:

Outlined are a couple of points to consider when attempting to get a personal loan:

  • The mentioned rates of interest can vary from the last rate presented and are subject to the bank’s sole decision.
  • Being in default on these types of loans can bring about severe penalties.
  • Compute the EMI using an online EMI calculator to determine the amount to be paid every month.
  • Double-check that you have adequate money to make your payments within the time frame.

The Benefits of a Secured Unemployed Loan

  • Reduced interest rates
  • Loan terms for repayment that are flexible
  • Loan tenure is long.
  • Individual loan payments are minimized.
  • Interest that is tax deductible

The pluses and minuses of a secured, unemployed loan

  • In case the loan fails to be reimbursed on time, the lender may seize custody of the asset.
  • The person borrowing the money must own the asset that has to be guaranteed.
  • The lender determines the loan term.
  • More costly in the long run.
How significant is my credit score if I want to get an unemployment loan?

Your credit score will be incredibly crucial in obtaining a loan. When you are unemployed or without work, your credit score turns out to be essential. The higher your credit score, the more likely you are to get approved for a loan. Some financial institutions in India would give you a loan even though you have a bad credit history. In these circumstances, though, the lowest possible credit score you might be required to maintain is roughly 600. Lending institutions will have different credit score requirements.

I’m looking for a personal loan. Will I look for a co-applicant?

Yes, because a bank may only be willing to provide you with a loan if you have a job. The bank considers your professional background and yearly earnings when determining the rate of interest to charge on the amount you are borrowing and the probability that you will be capable and willing to pay back the loan on time. As a result, having anyone as a co-applicant who will accept the obligation to repay the loan on their behalf constantly represents a good option. Your co-applicant must be anyone you trust, especially somebody in your immediate family, which might include your siblings, your parents, your spouse, and so on.

Is it possible to get a loan with collateral?

Absolutely, there are loans available against collateral. In this case, where you own a home, you can apply for a personal loan and use your home as collateral. Comparably, you’re able to guarantee your bonds, stocks, or maybe even your FD earnings to obtain a loan. You can also get a gold loan whenever you have gold to put up as collateral.

May I seek a loan from the banking institution where I have a banking account, whether I am unemployed?

No matter whether you have a job or not, it is generally advised that you go to the bank where you have an account if you are searching for a loan. A relationship with your banking institution is extremely important.
Because you are a client, the banking institution will undoubtedly attempt to assist you in obtaining a loan and recommend ways for you to make payments on the loan on time, no matter whether you are without a job.

What should I always keep in mind before applying for a loan when I have no regular income?

The initial thing to do is to determine why you require a loan in the first instance. Taking out a loan entails incurring debt, something that you are unable to repay if you are jobless. As a result, you have to find a loan that you are capable of repaying on time, and you should be specific about your loan size and repayment amount.

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