Personal Loan

How a housewife can get a personal loan easily in a few steps


In modern times, women have become financially independent. They are multi-taskers, i.e. managing their homes and work at the same time. Therefore, access to credit from banks and other NBFCs can help women become financially free.

Personal Loans for a Housewife

Personal loans have become popular in India. The application process is relatively simple. Personal loan EMIs can be smaller if you choose longer tenures. A homemaker can either approach a bank branch or apply online for a personal loan for a housewife. They can obtain two types of personal loans — secured personal loans and unsecured personal loans. Here are the details about various loans for women.

Secured Loans.

Secured loans are provided based on offering security to the lenders. This collateral can be a fixed deposit, insurance policy, gold, or property. This list includes a host of movable and immovable assets. If the borrower defaults on paying the loan, the lender can seize the collateral and realize the loan amount.

Unsecured loans.

Banks and NBFCs provide loans that don’t require collateral. However, the lenders would give unsecured loans based on the credit history of the person. In most cases, if the applicant doesn’t have enough income, they would need a co-applicant with a stable income. So if a housewife’s husband has a stable income source, a government job, or a good private sector job, it can easily convince the lenders to give a loan.

Gold loan.

In Indian society, women generally inherit gold from their parents and elders. Gold can be used as collateral to obtain a loan. All banks and NBFCs give loans by taking gold as security. The benefit of taking a gold loan is that there is no need for a guarantor or a co-applicant. Income proof is also not necessary. The documents are minimal, and the processing fee for a gold loan is nil. The approval for a gold loan is instant. In most cases, the loan amount can be disbursed on the same day. A housewife pledging gold can also be assured that her gold will be safe as it is secured in vaults. So, she can approach banks or NBFCs for a personal loan for a housewife by pledging her gold. The money given as a loan is generally 75% of the gold value.

Insurance Policy.

If not surrounded by any emergency, a homemaker can think about getting a personal loan for a housewife through an insurance policy. Getting a loan by giving an insurance policy is becoming popular in the current times. Therefore, a housewife can pledge her insurance policy to obtain a personal loan. The insurance contract would act as collateral. The agreement would be between the insurance company and the lender. Generally, the amount provided is equivalent to 80 – 90% of the policy’s value. The repayment period is flexible. However, it varies across lenders. The interest rates are low in this option. The documents required to obtain the loan are not many. Generally, the loan amount is disbursed quickly. In case of default, the insurance policy would lapse.

Fixed Deposit.

Fixed deposit is common and popular in India. Most banks in India provide loans for fixed deposits. A homemaker can obtain a personal loan for a housewife by pledging her fixed deposit as collateral. Therefore, this is a secured loan. In case of a loan default, the creditor can claim the fixed deposit from the bank. The money given as a loan is generally 70% – 90% of the amount in the fixed deposit. The loan tenure can be the same as the fixed deposit tenure or less than that. One can obtain a loan from the same bank where the fixed deposit is held. In that case, there is no processing fee, and the documents required are the bare minimum. These include a filled application form, fixed deposit receipts, ECS mandate, and a cancelled cheque.


If a homemaker owns a property that includes land or buildings, she can pledge to obtain a personal loan for a housewife. Commercial or residential property can act as collateral. In case of loan default, the bank would seize the property, sell it, and realize the loan amount. If the personal loan amount is high, the amount given by the banks would be equivalent to 65% of the property’s market value. The loan tenure differs across lenders. The benefit of having a property is that the chances of getting a loan are very high.


Having a guarantor and co-applicant to a house, as a wife without income, to obtain a personal loan is common in India. If the housewife doesn’t have a credit score, is new to banking, or cannot meet the bank’s criteria to get a loan, she can also obtain a personal loan without collateral. However, she would need a co-applicant/Guarantor. In the case of the housewife, a husband can be a co-applicant and grantor, and he can submit his proof of income salary slips and IT return documents. And the co-applicant is equally responsible if the loan defaults. A housewife can also have a guarantor who is not her husband. But the person should have a good credit history and be ready to pay in case the loan gets defaulted. Therefore, having a guarantor/co-applicant with a good credit history can help a homemaker get a personal loan for housewives from either a bank or a non-banking financial company.

Application Process.

Traditionally, to apply for a loan, a person would have to approach the bank, talk to the bank officer, and produce the documents. But in the digital era, most banks seem to be taking the online route for application submission and even for loan approval. Generally, the online application is processed by visiting the bank or NBFC’s website, filling out the application form, submitting the KYC documents, selecting the loan amount, and submitting it. Then the bank representative would call back and take the loan application process forward.

A personal loan is one such loan that is obtained quickly. It comes in handy for women if they are starting a business. They can also use the money to help renovate their home, in case of a medical emergency, or to pay any other debt. To learn more about personal loans for housewives and more, and get the best offers, visit Piramal Finance.