The global coronavirus pandemic of 2020 has left a lot of us in disarray, mainly due to the thousands of job losses happening around us. In a country like India, where a significant amount of the population depends on jobs and permanent employment to support their livelihood, a job loss doesn’t only come across as a shock but also puts many in constant financial stress.
If you have lost your job amid the global COVID-19 pandemic, and you are undergoing financial stress, then taking a personal loan will not help you out in the short term, but also make sure that you can support yourself as well as your loved ones.
But one common thought which must be pondering your mind is how you will get a personal loan without a job in India? If you too are looking for this answer, then you have arrived at the right place, because in today’s article we will share with you the exact steps you need to follow in order to get a personal loan without a job in India.
Let’s get started.
What Is a Personal Loan?
One of the first and most important aspects we need to understand is the meaning of a personal loan. In simple terms, a personal loan can be understood as a financial instrument through which you can borrow any amount between 10,000 all the way to 25 lakhs while enjoying flexible repayment, low rates of interest, and most importantly instant disbursal.
While the concept of a personal loan is not entirely new in India, over the past couple of years, the concept has been gaining momentum mainly due to its many advantages. If you compare a personal loan with the many traditional loans available in the market, you will quickly come to realize that personal loans are one of the best solutions if you are in a cash crunch scenario.
How to Get Approved for a Personal Loan With No Job?
Now that you have a better understanding of what exactly a personal loan is, let us see how you can apply for one. If you want to apply and get approved for a personal loan in India with no job, there are a couple of steps you need to follow:
A Great Credit Score:
If you have been researching loans for some time now, then you must be aware of the fact that your credit score is one of the first factors the lender takes into consideration while assessing your loan application, and the process for personal loans is no different. If you want to get approved for a personal loan quickly, then you need to have a good credit score no matter what.
In simple terms, your credit score is a numerical rating that is assigned to you by the credit rating agency, mainly Experian and CIBIL in India. Based on your past financial discipline this credit score is calculated, while at the same time taking into consideration four main factors such as the amount of credit you have taken in the past, the number of times you have applied for credit, the number of timely payments you have made, any missed payments in the past.
Taking all these factors into consideration, your credit score is calculated, and generally, it has been observed that having a credit score above 750 on a scale of 900 can get you easily approved for a personal loan.
Alternate Source of Income:
While it is true that most of us are dependent on our permanent jobs to support our livelihood, it is equally true that some of us have alternate sources of income. Since for most of us, our alternate sources of income only represent a small portion of the money we earn every month, it may look menial at first, but in times of crisis, these alternate sources can prove to be our savior.
If you want to get a personal loan with no current, but yet you have an alternate source of income then you are in luck. When you approach a lender, make sure you clearly communicate that you have an alternate source of income and it is enough to pay back your EMIs. Along with this, share the last 3 to 6 months of bank statements to showcase how much you have been earning from your alternate source so that the lender can be wary free.
If you play your cards right and you have enough alternate income every month to pay back your EMI, the chances are high that you will get your personal loan application approved quickly and swiftly.
What Not to Do:
When we are in a fix for money, one common mistake most of us fall prey to is applying for too many personal loans from different lenders. While at first glance this move might look completely harmless, you need to be wary of the fact that the credit rating agency is taking each of your hard queries into consideration, and the more the number of hard inquiries you have, the higher will be the negative impact on your credit score.
Thus although you are in dire need of money, do not apply for multiple personal loans at the same time.
A better way will be to check your credit score and then visit a loan comparison website to better understand what offers are available for your needs and then apply with a lender who you feel can meet your needs the best.
Most lender comparison websites have a feature wherein you can share your exact credit score with them and their automated system will match you with lenders where you meet the eligibility criteria. Following this method will not only save you a ton of time but also make sure that the hard inquiries on your credit report are less.
Recovering from a job loss while subsequently keeping your financial stress less is a hard and slow process. But with the right personal loan, you can find a helping hand, and thus go ahead and apply for one today!