Best Loan App for Unemployed in India | Complete Information: There are many lenders who provide personal loans even if an applicant does not have a job. Several loans are offered by which the interest rate, loan tenure, and other factors are different. People can get such loans in the form of secured loans, government personal loans, and unsecured loans for the unemployed. This article tells you about the best loan app for the unemployed in India.
Types of Loans for Unemployed
Secured Loans: People who are unemployed with no income can apply for a secured loan. It allows an individual to fulfill several financial needs. If a person is employed but does not have a steady income to show to the lender then apply for a secured loan. The applicant profile is considered no risk and a lender can trust the applicant as far as repayment is concerned.
Unsecured Loans: The loan allows a person to avail of credit without pledging any asset or security. Unsecured loans are higher when compared to other loans. People can get loans easily by arranging a guarantor.
Gold Loan: If the applicant is a homemaker or housewife they use the gold jewelry as an asset to take a loan against the same.
Government Loans for Unemployed in India
Prime Minister Rozgar Yojana: The scheme is designed for the unemployed. The scheme is to give employment to the unemployed by providing them with financial resources to start their own business. If the person completed the 8th standard is also eligible to apply for a loan under this scheme. The aged from 18 to 35 years who are unemployed can avail of a loan of up to Rs. 5 Lakhs. The income of the beneficiary along with the income should not exceed Rs. one lakh per annum.
Loan Subsidy Scheme: Tamil Nadu government has a scheme for the unemployed known as NEEDS (New Entrepreneur and Enterprise Development Scheme). Under this scheme, the government provides 25% of the loan amount will be subsidized. This scheme is not available in all states.
Cash Loans: The government of West Bengal has a loan scheme for the unemployed where a loan of Rs. 50,000 will be granted. The aim of the scheme is to help unemployed youth to start their own business between the age of 18 and 45 are eligible.
Agriculture Loan for Unemployed: Individuals who are engaged in the agriculture sector can avail of the benefits of this scheme. Under this scheme, the government will join with other banks to provide agricultural loans for unemployed youth in the country. People who can apply under this scheme should be 22 years old or above.
Secured Unemployment Loans: These loans are sanctioned against security. The loan amount must be based on the asset value.
Personal Loans
State Bank of India: The bank offers an SBI Pension Loan to central or state government or defense pensioners who can draw their pension from any of the SBI branches.
Benefits
- Flexible Repayment Tenures
- High Quantum of Financing
- Competitive Interest Rates
LazyPay: LazyPay offers instant personal financing facilities to customers. People can get a loan up to Rs. one lakh with LazyPay.
Benefits
- Instant Approval
- Minimal Documentation
- Flexible Repayment Options
SmartCoin: SmartCoin is an app-based money lending platform designed to cater to the middle and lower income. The interest rates are high due to the short loan tenure.
Benefits
- Quick Loan Disbursal
- Minimal Documentation
- Repeat Loan Facility Available
- Paperless Application Process
Bank Of India: Bank of India offers a star pensioner loan scheme to retired employees who can draw 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.
Benefits
- Low-Interest Rates
- High Quantum of Finance
- Minimal Documentation for Processing
Punjab National Bank: PNB gives personal loans to pensioners who can withdraw their pension from any of PNB branches. For an emergency situation, this loan is useful.
Benefits
- Easy Source of Finance
- Attractive Interest Rates
- Flexible Tenures
Important Factors
- The interest rate may be different from the final rate offered by the bank.
- Calculate the EMI through an online EMI calculator to know the monthly installment amount.
- If you have enough money to pay the cash for the loan payment.
Documents Needed
- Residential Proof
- Age Proof
- ID Card
- Pan Card
- Aadhaar
Pros of Unemployment Loan
- Lower Interest Rates
- Flexible Loan Repayment Terms
- Long Term Tenure
- Smaller Individual Loan Payments
- Tax Deductible Interest
Cons of Unemployment Loan
- If the loan is not paid in the duration of time it should be a risk to an asset.
- The borrower must be the landlord of the assets.
- The Loan term is set by the banker.
- More expensive in the longer run.
Endnote: People can easily get a loan even if they are unemployed. If any queries regarding the post on the best loan app for the unemployed in India leave a comment here and keep on visiting this site for more updates.