Unsecured Loans

Unsecured loans are available from banks, credit unions, and online lenders. Unlike secured loans, they lack collateral backing and may pose a greater challenge for approval. However, they entail less risk since your assets aren't at stake if you struggle with repayments.

Most installment loans fall into the unsecured category, including student loans, personal loans, and revolving credit like credit cards. Eligibility criteria vary among lenders, typically requiring good or excellent credit and a steady income.

Apply Now

Unsecured Loans

Stand Up
Loan

Startup
Loan

Vendor
Finance

Dealer Finance

Supply
Chain Finance

Medical
Equipment
Loan

Capital
Loan

MSME Loan

Machine Loan

Dropline
Overdraft

Business
Loan

Construction
Equipment Loan

Factoring
Finance

Warehouse
Receipt
Finance

Loan
Against Credit Card Receipt

Mudra
Loan

How to Apply for Unsecured Loans?

Company website: Almost all the top lenders in the market now provide their services through their websites. You can visit the official website of the bank and apply for a loan with your credentials.
Loan aggregators: There are third-party loan aggregators like Bankbazaar that can help you find the best deals available in the market. Here, you can compare the different loan products and choose the best product that suits your specific needs. In this way, you can check the interest rates and processing fees of different lenders before making a final decision.
Branch office: You may also visit the lender's branch office and apply for a loan. With the advent of the internet, this is not the most popular choice among today's borrowers. However, if you are not internet savvy, you may use this option to apply for a loan.

Features of Unsecured Loans

Easy and convenient loan application: Unsecured loans generally have an extremely easy and convenient application process. Customers are not required to visit the branch of the lending bank frequently to avail this type of loan. These loans are also available through online application and are very easy to avail.
Quick turnaround time: Banks offer quick and speedy turnaround time on unsecured loan applications. These loan applications are processed fast and sometimes even under 24 hours. This makes unsecured loans an extremely handy financial tool in times of an emergency monetary crisis.
High Rate of interest: Since borrowers do not need to provide any collateral to avail an unsecured loan, these loans are offered at a higher rate of interest than other regular loans. The interest rate on these loans also depends on the monthly or annual income of the loan applicant.
No collateral required: Customers do not need to submit any collateral as security to the lending bank to avail unsecured loans. Your assets are safe with you in case you fail to repay this type of a loan. Due to this unique feature, unsecured loans are becoming increasingly popular among customers.
Higher the income, the greater the loan amount: The more the income of the applicant, the higher will be the loan amount that banks offer as an unsecured loan. This means that a customer can avail unsecured loans in proportion to his or her monthly or yearly income.
Minimum documentation: The documentation process is very minimal for unsecured loans. Most lenders now allow customers to submit these documents online, and the process has become completely paperless.

Eligibility Criteria

You must meet the following requirements to be eligible for a unsecured loan:

Applicant should be in a stable job. Regular employment record plays a vital role in making a customer eligible for unsecured loan

Salaried individuals with a minimum 2 years of professional service or a self-employed person with a minimum 5 years of earning tenure

Age of the applicant should be above 21 years and below 60 years for salaried borrowers, and between 25 and 65 years for self-employed individuals

Current financial statements play a crucial role in determining loan eligibility, therefore, should be provided during the loan application process

Credit history of customers is also taken into account and is instrumental in determining eligibility, rate of interest, and loan amount

Pending EMIs from other loans are also taken into consideration by the lending bank for determining your loan amount eligibility