Being unemployed doesn't mean you don't have any option to borrow a loan. Banks and NBFCs in India offer a variety of products to help you ease your financial situation. You can add a co-borrower to your loan application, use your savings like an FD to borrow a loan, or pledge your assets, like a house or gold.But do know the downside of borrowing a secured loan, in this case, if you are unable to pay off the borrowed amount with interest, the bank or any other financial institution from which you borrowed the loan will seize your assets to compensate for the unpaid amount. Borrow with a family member or friendWhen you borrow a loan with a co-borrower, it is both your and their responsibility to pay the borrowed amount. So this is a reliable option if you have a working spouse and need a lump sum amount. In such situations, your spouse can pay the EMIs until you get employed again. Using FD and other securities as an asset to borrowSuppose you've a good investment corpus, in equity, Mutual Funds, FD, or insurance. Well, you can use these as assets and take a loan against them. But the loan limit will be based on the value of your assets. If your FD is of Rs 5 lakh, you're allowed to borrow 70-80% of its value as a loan. The actual ratio of the loan limit varies depending on your lender and assets. House, car, gold, any physical assetBesides the cash investment, you can also use your physical assets to secure loans. The interest rate in this type of loan is quite nominal, and you get the approved loan based on the asset market value assessed by the lender's authorised officials.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
Can an unemployed person get a loan: with a co-borrower, against FD, gold, or house
