The eligibility criteria for business loan for people searching employment depend on the lender or the loan scheme applied for. Even so there are certain criteria that are common across Banks and NBFCs such as:
- Candidate must hold Indian Citizenship
- Age Limit - Min. 18 years or above
- Good business plan
- No defaults on loan payments
- Good CIBIL score
How to apply for Unemployed Loans?
The process to apply for an Unemployed Loan through Paisabazaar is easy and simple, follow the below mentioned steps:
Step 1: Visit Paisabazaar.com to check and compare loan options
Step 2: Pick the required scheme by filling and submit the loan application form
Step 3: Submit the documents along with the loan form for bank to verify them
Step 4: After verification, the bank shall approve the loan
Step 5: After the loan is approved, the bank shall disburse the loan amount in the applicant’s bank account
Types of loans you can apply for if you are Unemployed
The loans that can be really helpful at the time of dire need are as follows:
- Mudra Loan under PMMY
- Loans under PMEGP
- Loans from Small Finance Banks and Micro Finance Companies
Tenure
The repayment tenure on small business loan for unemployed people is flexible and depends on the lender. Applicants can get loan tenure up to 5 years. The final applicable loan tenure is dependent on the amount of loan secured and business profile.
Increasing the Possibility of Securing Business Loan
Securing a business loan for unemployed people is quite challenging. In addition to the normal challenges applicants must also have to deal with all the challenges associated with being unemployed. For this purpose there are a few things that applicants can do to improve their chances of securing a business loan:
- Good CIBIL Score A CIBIL score over 750 greatly helps in securing a business loan
- Collateral/Security Secured business loans are comparatively easier to avail than unsecured ones
- Co-applicant Applicants who apply for a loan with a co-borrower have a better chance in securing a business loan
- Government Guarantee Another way to secure a business loan is to apply for loans where government or third party provides security
- Income Applicants can also apply for a job, as having a secure income helps in securing a business loan
