Can a Personal Loan for Unemployed People be a Reality?

Personal loans remain the tool to fulfill a variety of needs and aspirations such as the wedding, education, medical emergency, travel, etc. To ensure the loan gets approved without any fuss, one must have a steady source of income. The income defines in many ways the repayment potential of an applicant. After all, the bank does not want to be at the receiving end of any loan default in the future. But there can be a significant number of unemployed people wanting some cash to fulfill their respective needs. So, will a Personal Loanfor Unemployed be approved by the lender? Well, for that, you need to read the post further.

Secured Personal Loan

One of the finest ways to procure a personal loan during the stage of unemployment is to procure it against collateral that can be anything from a fixed deposit, Kisan Vikas Patra, National Savings Certificate or other financial products. The loan can be granted to the extent of 70%-80% of the value of the collateral provided to the lender. What this ensures that in case the default happens, the lender can take over the collateral and take out the money to recover the unpaid dues. Plus, the fact that the loan is not 100% financed gives lenders that extra bit of breather.

Loan for Education

Education loans are basically provided to students wanting to study from the prestigious educational institutions in India or abroad. Yes, before approving the loan, the bank makes sure to check the reputation of the institution and the job prospects through the course opted by the candidate. If the goodwill of the institution is good and job prospects are bright, no wonder the bank can nod for a loan. Educational loans of up to 7 lakhs can be financed without a collateral. However, loans beyond the same would require an individual to submit any of the following documents.

• Fixed Deposit
• National Savings Certificate
• Kisan Vikas Patra
• Land & Building

After the completion of the course, the candidate would need to repay the loan via Equated Monthly Installments (EMIs). The installments combine a portion of both interest and principal amount payable towards a loan.

Gold Loan

Gold ornaments can also be used to procure the loan at attractive rates of interest. The precious yellow metal can fetch considerable value and so many use it to avail a loan. You can apply for a tenure ranging from 6 months to a year. Like secured loans, this type of credit also assures lenders to a great degree by giving them the flexibility to sell gold in the market in case borrowers default and find it unable to pay the loan dues.

Points to Keep in Mind While Applying for a Loan Without a Job on Hand

Even as the personal loan for unemployed can be a reality, one must not be complacent and instead do the following due diligence to be on the right path.

Affordable Interest Rates - You must go online and compare the interest rates of different lenders to chose the one with the lowest on offer. This will bring down the borrowing cost.

Fewer Charges and Formalities - You should also look for a loan with fewer charges and formalities to make it easily accessible.