Those looking to borrow money can choose from several financing alternatives. These include secured loans that require collateral, such as jewellery, a house, or a vehicle. Credit cards are another common form of financing, as they offer a revolving line of credit that can be used to make purchases. The most lucrative option, however, is unsecured lending, which does not require collateral and rely solely on the borrower's creditworthiness.
What is an unsecured loan?
Unsecured loans are credit options that do not require collateral. These loans typically offer smaller amounts when compared to secured loans like mortgage loans.
An unsecured loan is usually provided without any end-use restrictions. The credit amount can be used to cover a variety of expenses, including weddings, further education, home renovation, and medical emergency.
The Bajaj Finance Personal Loan is one of the finest examples of an unsecured loan in India, with its high loan value, competitive personal loan interest rates, and flexible loan repayment terms.
What are the types of unsecured loans?
Unsecured loans come in various forms and can be used for a variety of needs. Here are some common examples of unsecured loans:
- Personal loans: These are general-purpose loans that can be used for various personal expenses, such as weddings, home improvements, medical expenses or any other unexpected expenses. The interest rates and terms can vary based on the borrower's credit score.
- Credit cards: Credit cards are a form of unsecured revolving credit. Cardholders can make purchases up to a specified credit limit, and they have the flexibility to repay the balance over time. Interest is charged on the unpaid balance.
- Student loans: Unsecured student loans are loans that help students cover the costs of education, including tuition, books, and living expenses. These loans often have favorable terms and low-interest rates for students.
Additional Read: Personal Loan for Higher Education
How does an unsecured loan work?
The credit worthiness of an applicant is typically taken into consideration before unsecured loans are approved. These loans are frequently approved based on a person's CIBIL Score. The applicant's loan payback history is also considered, along with other aspects including the source of income, age, and employment before the requested amount is approved.
The probability of receiving quick approval for an unsecured loan is typically higher for people with strong credit scores and stable incomes.
What are the benefits of an unsecured loan?
The following are a few advantages of unsecured personal loans:
Simple application procedure
Individuals can get unsecured loans quickly and without any hassle.
Bajaj Finserv Personal Loan are usually disbursed in less than 24 hours* after being approved. One of the main benefits of unsecured loans is that there are not many documents that need to be checked before accepting the loan amount because there are not any collaterals involved.
Minimal documentation
A personal loan can be obtained with the submission of minimal documents. With Bajaj Finance, the following documents are required while applying for a personal loan:
- KYC documents: Aadhaar/ PAN card/ passport/ voter’s ID.
- Employee ID card.
- Salary slips of the last 3 months.
- Bank account statements of the previous 3 months.
Flexible tenures
Bajaj Finserv Personal Loans are popular for their flexible repayment tenures, making them the best choice. For a term loan, customers can choose a tenure of up to 96 months. In addition to a regular term loan, Bajaj Finance also offers two unique variants of Flexi Loans - Flexi Term Loan and Flexi Hybrid Loan. This is the best choice for those who wish to enjoy flexibility in their repayment capacity.
Quick disbursal
Bajaj Finserv personal loans are popular for their speed of loan processing, which can be disbursed within 24 hours* of approval. This makes it the perfect option for funding unplanned and immediate expenses without breaking your savings.
To apply for a Bajaj Finserv Personal Loan, complete the online application form with your basic information, and choose the required loan amount and tenure that best suits you. Submit the required documents and receive a loan of up to Rs. 40 lakh.
*Terms and conditions apply.
