Types

In the modern day, many people are looking for instant cash amounts for various attributes like medical expenses, education, and more. There is a demand for unsecured loans among people. There is a variety of loans available, providing the primary drivers with unsecured loans. These will be categorized into various types, such as

• Revolving Loan:  These Revolving loans are financial instruments allowing the borrowers to get the amount and repay them within the time limit. These loans are enabled with a credit limit for the borrower. The flexible loan amount is equipped with rapid multiple tenures.

• Term Loan:  The Revolving loans give better flexibility for the borrowers to repay the amount. The Term loan is quite different from the revolving loan. These have fixed tenure and interest rates. People who are looking for money for long-term investments or fixed assets can avail this option.

• Consolidation Loan:  The Consolidation loan is an efficient method of finance that leads to getting the money instantly. The Consolidation loan allows the borrower to easily repay the accumulated loan amount. These are helpful for extensively consolidating the existing loans.

Advantages

• No Collateral Required:
  Collateral-free loans are the biggest benefit of getting instant cash. It is the best source of cash for small businesses. These do not require any security or collateral.

• Fast Funding:
  Normally, the lender does not require more numbers of documents or criteria with a small unsecured loan. The approval process will be quite simple for the unsecured loan. These are also convenient and streamlined to access anytime.

• Minimal Qualifying Criteria:
  Qualifying criteria for unsecured loans will be lower stringent. It is also necessary to provide documents about stable monthly income. You need to submit a financial statement for the last six to twelve months, along with the PAN and UID.

• Larger Loan Amounts:
  There will not be any assets required for collateral to get the loan amount. It is easier to apply for a large unsecured loan without collateral.

• Flexibility:
  Unsecured Loans are the best option for getting a flexible payment solution. A lender could also give you a loan greater in size with repaying the loan amount.

Documents Required

Unsecured Loans also require some documents for verification before approving the loan amount. Some of the documents are

• Duly filled loan application form

• Passport-size photographs

• Proof of residence such as the passport, utility bill, and more

• Salary slips for the last 3 or 6 months

• Identity proof such as a passport, driving license, or PAN card

Eligibility criteria

Are you applying for Unsecured Loans without any collateral? You need to be eligible for the loan before applying for them. Below are the eligibility criteria for the loan

• Applicant must have a stable job

• Current financial statements determine loan eligibility

• Salaried individuals need to have minimum of two years of professional service

• A self-employed person needs to have a minimum of 5 years of earning tenure

• Credit history

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

• For salaried borrowers, the Age of the applicant must be more than 21 years and below 60 years

• For self-employed individuals, the Age must be between 25 and 65 years