Loans for the unemployed – Cash loans for the unemployed and public funds

There is a myth that unemployed people are not eligible for a personal loan. However, this is not entirely true. Some lenders offer personal loans even if you do not have a stable job. Of course, the interest rate, the term of the loans and other factors are different from the loans available to people with income, but that will not prevent you from receiving funding from various lenders.

You can get such loans in the form of secured loans, payday loans and government personal loan programs for the unemployed, to name a few.

Compare the best personal loans for the unemployed

Compare the best personal loans for the unemployed


LousyPayer operates under PayU and offers customers instant personal financing facilities. You can get a loan of up to 1,000 R Luckypay with LousyPayer. To obtain a loan, you must download the LousyPayer application and apply.

Benefits / Highlights

  • Instant Approval
  • Minimum documentation
  • Flexible repayment options


SmartCoin is an application-based money-lending platform for middle- and low-income layers. The interest rates offered by the lender are higher because of the short duration of the loan.

Benefits / Highlights

  • Paperless application process
  • Fast loan disbursement
  • Minimum documentation
  • Repeat loan facility available

National Bank of India

The Indianers Bank offers a SBI pension loan to retirees from central governments or state or defense governments who retire from one of the branches of the SBI.

Benefits / Highlights

  • High amount of financing
  • Flexible repayment term
  • Competitive interest rates

National Bank of Punjab

Punjab National Bank offers personal loans to pensioners who retire through one of the PNB branches. This loan can be taken to cover the medical expenses of retirees during the period when they are most needed. Borrowers can benefit from a loan several times depending on the adjustment of the previous loan.

Benefits / Highlights

  • High amount of financing
  • Attractive interest rates
  • Flexible tenures

In addition to the above loan schemes, you can also apply the following programs:

Bank of India

The Bank of India offers the BOI Star retiree loan scheme to retirees who receive a regular pension through the bank branch. The net pension of the applicant after deduction of the EMI loan must represent at least 40% of the total amount of the pension.

Benefits / Highlights

  • High amount of finance
  • One of the lowest interest rates on personal loans in India
  • Minimum documentation for treatment

Prime Minister’s Yojana (PMRY)

This program aims to provide self-employment opportunities for educated unemployed youth across the country. The system has undergone many changes over the years, including the relaxation of standards in the northeastern region.

Benefits / Highlights

  • Loan for the unemployed aged 18 to 35
  • No collateral required for loans of less than 1 lakh
  • Preference will be given to women and the weaker sections of society, including SC, ST or OBC candidates.

Penalties and internal charges

Penalties and internal charges

LousyPayer personal loan


Processing fee 2% of the loan amount
Prepayment fees Not applicable because prepayment is not supported.
Late charge Rs.10 per day

Pension loan from the Indianers Bank

Pension loan from the Indianers Bank

Processing fee 0% to 5% of the loan amount, plus GST
Prepayment fees 3% of the prepaid loan amount

Personal loan from Punjab National Bank to retirees

Processing fee nothingness
Prepayment fees nothingness
Documentation costs Up to Rs.450 plus GST

Bank of India Star Retiree Loan Scheme

Bank of India Star Retiree Loan Scheme

Processing fee Up to 2% of the loan amount
Prepayment fees nothingness

Eligibility: You must be at least 18 years of age to apply for a loan.

Required documents

Required documents

Documents that you must provide may include:

  • Residential proof
  • Proof of age
  • ID card
  • PAN card
  • Aadhaar

Things to consider

Things to consider

Before applying for a personal loan, consider the following:

  • The advertised interest rate may differ from the proposed final rate and is at the sole discretion of the bank.
  • The non-repayment of these loans can lead to high criminal charges.
  • Calculate the EMI via an online EMI calculator to find out the amount of the monthly payments.
  • Make sure you have enough funds to make your repayments on time.

How to register?

How to register?

You can choose one of the following options to apply:

  • Via the lender’s website or mobile application
  • Directly by the bank branch

Government Loan Plans for the Unemployed in India

Government Loan Plans for the Unemployed in India

  • Prime Ministers Rozgar Yojana- This program was designed specifically for the unemployed. Its main objective is to provide employment for the unemployed by providing them with financial resources to start their own business. The loan is available to all young people who have education up to grade 8 in India. The loan is of a composite nature and a loan of Rs.2 Lakh and a loan of Rs.5 Lakh is advanced for the corporate sector and the industry sector, respectively.
  • Unemployed Youth Loan Grant The Government of Tamil Nadu has set up a program for the unemployed called NEEDS (Program for New Entrepreneurs and Enterprises). This scheme provides a subsidy of 25% for loans granted to young unemployed graduates. Credit for the loan through the banks is decided by the bank. The project estimate is between 5.5 million rupees and 1000 rupees and the project infrastructure cost can not exceed 25% of the loan.
  • Cash loans to the unemployed by the West Bengal Government The West Bengal government has put in place a loan scheme for the unemployed, providing for a loan of 50,000 rand. The main purpose of this plan is to help unemployed youth to start their own business. Young people between the ages of 18 and 45 are eligible for this plan.
  • Agricultural Loan for the Unemployed The government has worked with many banks to provide financial resources to unemployed agriculture graduates. This loan can be used for any type of agricultural project. Any unemployed agriculture graduate over the age of 22 is eligible for this loan.

Guaranteed Unemployment Loans – Guaranteed unemployment loans are subject to a guarantee or pledge. In this loan system, the borrower commits a loan to the lender on the basis of which the lender sanctions the loan. The loan amount depends on the value of the asset pledged.

Benefits of Guaranteed Unemployment Loan:

Below you will find the benefits of guaranteed unemployment loans.

  • Lower interest rate
  • Flexible loan repayment terms
  • Long term mandate
  • Smaller individual loan payments
  • Interest tax deductible

Disadvantages of Guaranteed Unemployment Loan:

Below are listed the disadvantages of guaranteed unemployment loans.

  • Risk of asset ownership by the lender if the loan is not repaid on time.
  • The borrower should be the owner of the property pledged.
  • The duration of the loan is set by the lender.
  • More expensive in the long run

Unsecured Unemployment Loans – Unsecured loans are another way by which unemployed people in India can benefit from loans. Unlike secured loans, there is no need to guarantee unsecured loans and there is a higher interest rate. A good credit history will increase the chances of using unsecured loans. in India.

Guaranteed Unemployment Loan Benefits –

Below are the benefits of Guaranteed Unemployed Loans.

  • No need for warranty.
  • No need for a co-signer
  • Unemployed persons can obtain a loan under this scheme.
  • Loan approval faster.
  • Less documentation.

Disadvantages of Unsecured Unemployment Loans

Below are listed the disadvantages of unsecured unemployment loans.

  • Higher interest rate
  • Higher individual loan payments.
  • The conditions are decided by the lender.
  • Short-term loan.

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