A personal loan can come to your rescue at a time of financial crisis. You can apply for a personal loan for any number of reasons- for education, buying your own house or apartment, to pay off other debts or for a wedding. A personal loan can get you out of a fix. Now you have the option of online personal loan, which is another reason these loans are very popular.
Most people believe that the unemployed cannot apply for personal loans but the reality is just the opposite. Most lenders will grant loans to the unemployed. However, a bank or a financial institution will check some parameters before they approve of the loan-
• Credit history- Any lender would want to ensure that you are fastidious when it comes to making payments on time. If you have defaulted or if there are any negative reports, the lender may reject your loan application.
• Credit score- You need to have a high credit score to be given a personal loan.
• Income- You may not be employed, but you should have a steady source of income if you want a personal loan.
Your lender will want to make sure that you can pay back the amount you are borrowing. That is why the lender will look into your credit history and credit score. Moreover, your ability to repay the loan also depends on other factors like the loan amount or the rate of interest. Therefore, all these are taken into consideration when your lender reviews your loan application.
If you are unemployed, you can also apply for a personal loan through Peer-to-Peer lending companies. These companies lend you money without recourse to any financial institution. You could also consider taking a loan from Non-Banking Financial Companies. They offer loans at a sensible rate of interest.
However, even if you are unemployed, you would have to provide your lender with the following documents-
• KYC documents
• Residence proof
• Bank statement for the last six months
The fact that you are not employed will not stand in the way of you getting a loan. You should get in touch with a bank or NBFC and they can explain the process to you in details.
Most people believe that the unemployed cannot apply for personal loans but the reality is just the opposite. Most lenders will grant loans to the unemployed. However, a bank or a financial institution will check some parameters before they approve of the loan-
• Credit history- Any lender would want to ensure that you are fastidious when it comes to making payments on time. If you have defaulted or if there are any negative reports, the lender may reject your loan application.
• Credit score- You need to have a high credit score to be given a personal loan.
• Income- You may not be employed, but you should have a steady source of income if you want a personal loan.
Your lender will want to make sure that you can pay back the amount you are borrowing. That is why the lender will look into your credit history and credit score. Moreover, your ability to repay the loan also depends on other factors like the loan amount or the rate of interest. Therefore, all these are taken into consideration when your lender reviews your loan application.
If you are unemployed, you can also apply for a personal loan through Peer-to-Peer lending companies. These companies lend you money without recourse to any financial institution. You could also consider taking a loan from Non-Banking Financial Companies. They offer loans at a sensible rate of interest.
However, even if you are unemployed, you would have to provide your lender with the following documents-
• KYC documents
• Residence proof
• Bank statement for the last six months
The fact that you are not employed will not stand in the way of you getting a loan. You should get in touch with a bank or NBFC and they can explain the process to you in details.
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