Unsecured loans are credits that can be availed of without any collateral. These loans can be availed of by those who fulfil the necessary eligibility criteria. These credits are also usually lesser in value as compared to secured advances such as mortgage loans.
Nonetheless, the most important point to note while looking for an answer to ‘what is an unsecured loan’ is that the advance comes without any end-usage restrictions. The credits can be utilised to meet diverse funding needs, from medical emergencies to weddings, higher studies, travel, and more.
Bajaj Finserv Personal Loan is one of the best examples of an unsecured loan in India, wherein individuals can access a high loan value against competitive interest rates and a flexible tenor.
These loans are usually approved after taking the applicant’s credibility into account. The approval of such advances are often subject to one’s credit score. In the absence of collateral, the applicant’s loan repayment history, alongside other factors such as proper credit management and source of income are accounted before approving the amount.
Typically, individuals with a high credit score are more likely to enjoy fast approval of unsecured loans.
Since the lender cannot recoup losses when a borrower defaults on a personal loan, the eligibility criteria for these advances are stringent. The rates of interest applicable against these loans are also higher, as compared to secured loan options such as housing finance.
Following are a few noted benefits of unsecured personal loans–
Individuals can avail of a personal loan from Bajaj Finserv in under 24 hours* from the time of approval. This is one of the primary advantages of such unsecured loans. Since there are no collaterals involved, there is not much to be verified before approving the loan amount.
The credits’ unrestricted usage makes for one of the most important points when it comes to answering ‘what is unsecured loan.’ These funds can be utilised to meet any number of financial obligations without hindrance.
Since there are no collaterals involved, the funds can be availed of by submitting only a few documents. These documents are mostly required to support the applicant’s credibility to avail of the funds.
The higher the income of the individual, the higher will be the eligibility of the borrower to avail of a sizeable loan amount. Since the repayment capacity increases with income, those with higher earnings will be eligible for the maximum loan amount available.
These are a few points that can explain what an unsecured loan is and its features. Take a note of the eligibility requirements before proceeding to apply for an unsecured personal loan from Bajaj Finserv.