Personal Loan for Unemployed

Last Updated : June 26, 2025, 4:20 p.m.

Being unemployed doesn’t mean you’re out of financial options. Whether you're between jobs, starting a freelance career, or facing a temporary setback, some lenders and platforms offer personal loan solutions customized to your unique situation. While traditional banks may hesitate, many NBFCs, P2P lending platforms, and government-backed schemes provide financial support, often requiring a co-applicant, collateral, or proof of future income potential.

This guide explores how you can access a personal loan even without a regular salary. Well, if you are curious to know more, all you need to do is just go through the post below:

Types of Personal Loans for Unemployed Persons in India

Yes, an unemployed individual can also avail of a loan in India. Wanna know how? Read below.

Loan Against Fixed Deposit (FD)

If you have a fixed deposit but no stable income, you can apply for a loan against it. This loan generally lets you access funds ranging from 60% to 80% of the value of your fixed deposit. The FD remains intact and continues to earn interest while serving as collateral, making this a low-risk borrowing option for lenders.

Gold-Backed Loan

Gold loans are a fast and convenient option for unemployed individuals. You can obtain funds at attractive interest rates with minimal paperwork by using gold jewellery or coins as collateral. These loans are widely available and often approved within hours.

Secured Personal Loan

You can opt for a secured loan by pledging an asset—such as property, shares, or insurance policies—as collateral. The loan amount sanctioned depends on the value of the pledged asset. This route offers better interest rates and approval chances, even without a steady income.

Short-Term or Payday Loan

If you’re temporarily unemployed and expect to start earning soon, payday loans can provide short-term financial relief. These loans are usually offered based on your previous income record or a future job offer and come with higher interest rates due to the risk involved.

Loan for Unemployed Students in India

Are you a student who is unemployed yet looking for a loan?. Yes, if you are looking for a loan to pursue higher education, you would be glad to know that students can also avail of a loan in India for the same purpose. So, let’s just know more about the same in the post below.

Education Loan - There are many top lenders that are known for offering educational loans the students. In this case, the parents/guardians act as a co-applicant and the primary debtor. To avail this loan, a third-party guarantee or collateral is required. Here, the future income of the student is also taken into consideration while granting the loan.

Loans for Unemployed People with No Income

Many times people ask this question, i.e. how the unemployed people with no income can get the loan. Well, the answer is yes they can.

Secured Loans

Unemployed individuals can consider secured loans, which require collateral such as a vehicle, gold, savings, or other valuable assets. Since the lender has security, approval is easier, even without a regular income. However, failure to repay may result in loss of the pledged asset. However, in such cases, your profile is considered less risky, and a lender can trust you as far as repayment is concerned.

Student Loans and Grants

For students, some lenders offer student-specific loans with relaxed eligibility criteria. In addition, students should explore grants and scholarships, which don’t require repayment and can significantly lower the need for borrowing.

Building a Credit History

If a loan isn’t needed immediately, students can focus on building credit through methods like:

• Using a secured credit card, or
• Becoming an authorized user on a parent’s credit card
  A strong credit history increases the chances of future loan approval on better terms.

Loan Scheme for Housewife

Are you a housewife who is looking for a loan but doesn’t know which schemes are there to you? If that is the case, all you need to do is go through the points below:

• Star Mahila Gold Loan Scheme - This scheme is provided by the Bank of India that helps non-working women or housewives to purchase gold ornaments.

• Pradhan Mantri Mudra Yojana for Women - This scheme is launched by the Government of India, whose main endeavor is to improve the status of women by providing them loans and encouraging them to start new ventures. There are many lending financial bodies and banks that offer Mudra loans to eligible applicants.

• Gold Loan - Being a homemaker or housewife, if you have some gold jewellery, you can use this asset to take a loan against the same. Many lenders out there offer you a gold loan at an attractive interest rate so that your needs can be fulfilled.

Govt Loan Schemes for Unemployed (youth/graduates)

While it can be challenging for unemployed youth to secure a loan, several schemes introduced by the Central and State Governments have made access to financing much easier.

Below are some schemes that have been rolled out by the government to support the unemployed youth in the country and reduce poverty.

Prime Minister Rozgar Yojana - This scheme is aimed at providing financial support to unemployed individuals to help them start their businesses.

• Open to Indian youth with at least an 8th-grade education
• Offers composite loans covering both working capital and fixed assets
• Loan amounts:

• ₹2 lakh for the business sector
• ₹5 lakh for the industrial sector

Loan Subsidy Scheme - The New Entrepreneur and Enterprise Development Scheme (NEEDS) is a Tamil Nadu government initiative aimed at unemployed graduates. Under this scheme:

• The government offers a 25% capital subsidy on project costs.
• Eligible candidates must be graduates, planning to start a new business.
• The maximum project cost (including infrastructure) should not exceed ₹75 lakh.
• Collateral requirements are determined by the lending bank.

Cash Loans for Unemployed Youth by the West Bengal Government - The Karma Sathi Prakalpa Scheme, launched by the West Bengal government, provides financial assistance to unemployed individuals aiming to launch their businesses and become self-reliant.

• Offers loans up to ₹2 lakh per beneficiary

• Targets 1 lakh youth annually

• Aims to promote self-employment and job creation through entrepreneurship

Agriculture Loan - The government, in partnership with banks, offers loans to unemployed agriculture graduates for setting up agricultural projects.

• Eligible for graduates aged 22 years and above
• Funds can be used for any type of agri-based venture
• Aims to promote self-employment in the agriculture sector

Secured Loans for Unemployed - Unemployed youth can also avail of secured loans by pledging an asset as collateral.

• Loan approval is based on the value of the pledged asset
• Common securities include property, fixed deposits, or gold
• Offers better approval chances and lower interest rates.

Conclusion

Although obtaining a personal loan without a steady job can be difficult, it is still achievable. Options like secured loans, gold loans, government-backed schemes, and loans against fixed deposits can provide much-needed financial support. For students and recent graduates, grants, student loans, and credit-building strategies offer a good starting point. By understanding the available alternatives and meeting basic eligibility, unemployed individuals can access funds to manage expenses or even start their ventures.