A Look Into The Types Of Loans Offered To Unemployed People

An unemployed loan is a kind of loan which is given to the people who don’t have any job with them, and they have got out of money. Most of the time, these are those people who have not been into anything and planning to do something in the future. They are unable to do so because of zero funding with them, and this loan helps them to fulfill up their dreams. This loan is categorized into different types of loans, and all of them carry different characteristics with them. It is up to you which one is liked by you, and you are comfortable to repay it.

There are secured loans offered by the firms to us in which you have to give something to the lender in the form of collateral for getting the loan. This loan is given mainly by the big firms and banks to us, and they will ask something in return for this. A gold loan is a kind of loan that will be given to you when you will give gold in the form of collateral to the lender. Then comes the payday loan, which you have to pay in a short span, and everyone takes it when they have a hope of getting a job soon so that they can repay it easily. Let’s have a clear look at all of these loans.

  • Secured Loan

A secured loan is a kind of loan in which the lender wants something as security for giving you the loan in return. This loan is easy to get as so many firms provide this kind of loan to unemployed people. This is different from emergency loansIn this loan, you have to give anything in the form of collateral to the firm, and then you will be provided a loan by that particular firm. Most of the time, people go for unsecured loans as in that loan, they don’t work as for any collateral, but the interest rate is too high. A secured loan has an average interest rate, and you can easily repay this loan.

  • Gold Loan

This is the most convenient and easy kind of loan. This is because you can get this loan by giving your gold as collateral to the lender. There are separate finance companies that just deal in gold loans, and you can easily access them. The main benefit is that they never ask the reason for getting this loan; they will just take the gold from you and keep it along with them and provide you with money. Everyone has gold with them these days, and they can quickly get a loan on it.

  • Payday Loan

This is a very short-term kind of loan. This loan is mostly taken by those people who have a hope of getting a job in the near future. You will be given this loan for a concise period of time, and you can repay it after earning some money by yourself. This is a good option for an unemployed person for fulfilling his/her needs until he/she gets his/her salary or earnings from the job or business.

Loan schemes provided by the government

  • Loan Subsidy scheme

This is a scheme which is implemented by the government of certain countries. The government will provide you the loan under this scheme, but 25% of the loan amount will be kept with the government itself. The 25% of the loan amount is subsidized by the government, which means you don’t have to pay a 25% amount of the loan. The government will ask you to only pay 75%, and the rest of it will be free for you.

  • Agriculture Loan

This loan is specifically for the people who are engaged in the agriculture sector. They can get this loan easily and can make progress in the field of agriculture. There is only one condition for getting this loan that is, your age should be 22 or above it. This scheme is implemented in some of the countries which have a great agriculture sector in it, and a considerable number of youngsters are interested in the agriculture sector.

It has been found in a survey that the number of unemployed people has been increasing day by day and for that, the government has implemented these schemes so that those people will feel encouraged and will start with doing something productive in their life. The government is providing the funding part, and you have to take the initiative to become an employed person.

Summing up

A loan for unemployed people is an essential thing to provide. This is because the people of the country can take it to the heights of development if they work for it. With these loans, they get motivated and encouraged to start something in their life. Some of the different kinds of loans and schemes have been discussed above; check them out.

Written by 

Christine Reay is a veteran journalist from Chicago. She works for ANR Miami as the Head of Editorial Content.