Currently, we are living a fast-paced life with changes constantly happening around us. This has blurred the line between needs and wants. Today, every want is a need – pushing individuals to pursue new endeavours. This has given rise to new loan applicants who are looking for additional funds to meet their requirements. With the arrival of digitalization, online Personal Loan has gained immense popularity. It has combined convenience with ease to submit loan applications. Another major reason for the rise of new loan applicants is the gradual increase in prices of basic commodities. Hence, it is now easier for a borrower to apply for an Instant Personal Loan Online to meet such expenses.
A loan can be broadly categorized into types – secured loans and unsecured loans. When a borrower applies for a loan without pledging any security, it is categorised as an unsecured loan. Here are a few examples of unsecured loans: Personal Loan, student loans, and credit cards.
Whereas, in the case of a secured loan, a borrower needs to keep personal assets as collateral. In case of default in repayment, the assets are seized. The added advantage of applying for a secured loan is the loan amount, which is higher as compared to an unsecured loan. Here are a few examples of secured loans: Home Loan, Loan Against Property, Loan Against Security, Vehicle loans, Mortgage loans.
Benefits of Unsecured Loans
- No Collateral Requirement
As aforementioned, an unsecured loan is preferred over a secured loan by borrowers mainly due to no collateral requirement. Collateral-free loans help new borrowers as well as a borrower with no assets to get loans easily.
- Flexible Repayment Schedule
An unsecured loan provides you with a flexible repayment schedule ranging from 12 months to 60 months.
To meet the eligibility criteria for personal loan – You should be between the age of 22 and 65 years. Secondly. your business should have a minimum annual turnover of ₹9 Lakh, and lastly, at least 2 years of the business vintage is required.
- Minimal Documentation
Compared to a secured loan, the documentation required for an unsecured loan is minimal. You need to submit the following set of documentation:
- KYC documents like an Aadhaar/PAN Card
- Current address proof (Passport/Utility bills/Rent Agreement)
- Latest salary slips and salary credit bank statements from the last 3 months
- Proof of employment, such as official mail ID confirmation /Emp ID Card
Types of Unsecured Loans
- Wedding Loan
There are various expenses involved in a wedding, such as venue expenses, food, clothes, transportation costs, etc. A wedding loan will help you cover all mentioned expenses without getting any additional financial burden.
Vacations can take a toll on your finances when it is unplanned. There are several expenses involved during a vacation that is unavoidable. To ensure all your expenses are covered, a travel loan is the best possible option. It will help you plan your dream vacation in a stress-free manner.
- Home Renovation Loan
There is a high chance that there can be variations in the cost during your dream home renovation plan. A Home Renovation Loan helps cover such variation in the cost. Generally, a home renovation includes extending a room, a new balcony, adding a room, painting, etc.
Personal Loan Process Steps
The Personal Loan process steps are easy to follow. There are two ways in which a borrower can apply for a Personal Loan – online and offline.
You can follow the below-mentioned steps when you are applying for an online Personal Loan:
- Step 1: Visit the lender’s official website and search for Personal Loan
- Step 2: Click on ‘Apply Now’ and fill up the loan application form
- Step 3: Enter basic details and upload the required documents
- Step 4: Await verification and assessment of the application
- Step 5: Receive confirmation upon approval of the loan
- Step 6: Approve and authorize disbursal of the loan amount
If you are applying for a Personal Loan offline, you can visit the lender’s branch and follow their set procedure. However, it is advised that you must apply for an online Personal Loan as it can save lots of time. Also, features like instant approval, online documentation, and instant disbursal make it a favourable choice over offline Personal Loan applications.