There is no end to personal expenses. As your quality of life improves, so does your monthly expenditure. Plus, there are many unpredictable events such as a medical emergency or urgent home renovation, etc. that make for huge expenses on their own. That said, when facing a cash crunch, a personal loan is always a good option.
The majority of public and private sector banks offer personal loans at competitive rates in India. However, if you are in-between jobs or don’t have a stable income yet, then it can be really tough to get a loan. It’s especially the case when you don’t want to offer collateral which usually makes the loan process easier. So, what choices do you have in this situation?
Personal Loans for the Unemployed
It’s true that for an individual who has no employment, it’s not easy to get an ICICI personal loan, HDFC personal loan, etc. However, it doesn’t mean that they there is nothing that can be done about it.
If you have faced only rejections for your loan applications so far, then you can try the following options/techniques:
1. Loan with a Co-Borrower
An easy way to make the lender more comfortable in approving your loan is to get a co-borrower onboard, especially one who has a stable income of their own. This is because, in this arrangement, you can lower the risk on the lender’s part.
2. Instant or P2P Loans
Do you know you can get a personal loan without CIBIL score? You can get a loan even when you don’t have a job too! This is possible because of the Peer to Peer (P2P) lending platforms that offer instant loans aka online loans for the young professionals who are still applying for jobs but need money on an urgent basis.
There are plenty of P2P lending platforms on which you can submit an application for a loan easily. However, bear in mind that you may still need to share details of other sources of income. After all, no one will give a loan to someone who doesn’t have any means to repay it.
3. Credit Cards
Your ICICI personal loan application was tossed in a bin? Fret not, and apply for a credit card instead.
Credit cards are often viewed as financial cushions that can serve the purpose of an instant loan whenever needed. Thus, there is no reason why you can’t get one for yourself when you can’t get an actual loan.
Obtaining a credit card is often easier than a personal loan. Plus, there are other benefits to owning a credit card as well. For instance, you can increase your credit score by using the card responsibly over time. You can also save a lot of money through cashback offers and special discounts offered on the card from time to time.
Things to Remember:
Even if you are able to get a loan without a job, you must be prepared for the following:
1. High Interest Rate
Remember, when you don’t have a permanent job, then it’s the lender who has the leverage. They know you are in need of money and are out of options. Besides, they have to take a risk by sanctioning a loan to someone who has an uncertain income. So, they would want to impose a higher interest than standard.
2. Good Credit History
You may get a personal loan without CIBIL score but that doesn’t mean your credit history doesn’t mean anything.
One of the most common ways a lender assesses an individual on the financial grounds is by going through their credit history. It’s put in your credit report which contains details such as your repayment history of past loans, credit cards, etc., an instance of loan defaults, settled accounts, etc. The lender may also check the credit report to verify your personal details.
Don’t let the lack of employment dishearten you. You just need to look harder and try techniques such as the ones above to get personal loan.
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