Government Loan Schemes for Unemployed in India

Getting a loan is a tedious process, whether you are a businessman or a salaried individual. There are multiple factors that are considered like credit score, company history, and past payslips and many others while appraising a loan application. In this article we will talk more about the Government Loan Schemes for unemployed in India.

If this is the situation for earning persons, then what will you do if you are unemployed and need a loan to start your startup? You might be in between jobs, been out of the job and planning to start your own. What will you do in such a condition? Don’t worry; here is the solution- Unemployed loan.

What is Unemployed Loan?

People with an unstable source of income can opt for an unemployed loan. The credit terms, interest rates and such other features can be different from those offered to people who are doing a job or have a regular income source. However, you can still avail an unemployed loan even if you do not have a stable source of income.

The Indian government has come up with many new schemes for the unemployed in India with a focus on the creation and provision of sustainable self-employment options to unemployed youths. It mainly works for setting up self-employment ventures in business, services, trade, manufacturing sector, etc.

All the schemes have been rolled out by the government to support unemployed youth in the nation having said that, here is the list of government loans schemes for unemployed youth in India:

5 Government Loan Schemes for Unemployed in India

Minister Rozgar Yojana

The Indian government launched Prime Minister Rozgar Yojana to minimize unemployment problems. This scheme is focused on providing self-employment opportunities to 10 lakh educated unemployed youth.

The basic premise of this government loan scheme is self-employment in the rural areas that are considered as the perfect way of resolving the increasing unemployment problem.

The ultimate goal of this scheme is to offer easy subsidized financial assistance to the unemployed educated youth. With this scheme, they can begin something of their own in different industries like business, manufacturing trade, and service sectors.

Agriculture Loan

Another name in the list of government loan schemes for unemployed in India, Agriculture loan is beneficial especially for those unemployed individuals who are involved in agriculture. Any unemployed graduate engaged in agriculture, aged 22 or above can apply under the scheme. And, they can start something of their own in the promising sector.

To empower this scheme, the Government of India thereby collaborates with many banks and NBFCs to facilitate unemployed youth in the agriculture sector.

NEEDS Scheme

The New Entrepreneur cum Enterprise Development Scheme o NEEDS scheme is the initiative of Directorate of Industries and Commerce, Government of Tamil Nadu. This is one of the best government loan schemes for the unemployed in India under which a subsidy to the tune of 25% of the loan amount is granted to the youths by the state government.

Under this scheme, the age limit is 21-35 to apply. And it can be extended to 45 years for people under SC/ST category, women, differently-abled and ex-servicemen people. Plus, the entrepreneur should have a degree, diploma or vocational training from a recognized institution.

 Gold Loan

If you are unemployed and looking for the best government loan schemes for unemployed in India, the gold loan can be your ideal choice. What makes this a great option is availing it is quick and swift as you just need to walk-in to your nearest branch to get the same. The documentation needed for it is minimal and this is one of the easiest ways to avail loan at lower rates.

Cash Loans

Cash Loans is a state-funded initiative; it was started by the government of West Bengal. Under this scheme, an unemployed individual can apply for a loan of Rs 50,000 under the scheme. Just like all the above plans, Cash Loans was also started to support unemployed people kick off their own business ventures. Any person who is 18-45 years old can apply and avail this loan.

Bottom Line

That’s it for now on government loan schemes for the unemployed in India. Hopefully, now it will be easier for you to avail the right loan and start your own venture.

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