Unsecured Loan in Bangalore has gained popularity in recent times due to their boundless benefits. One of the most popular examples of unsecured loans is Personal Loan. A Personal Loan is a type of unsecured loan that does not require collateral against the loan amount. You can avail of the loan without pledging any assets as a security. This helps a lot of first-time borrowers and also borrowers who do not own any personal assets. Generally, a Personal Loan is used for meeting any short-term financial needs such as home renovation, higher education, medical emergencies, travel, etc. as there is no collateral required. You can apply for a Personal Loan with minimal documentation which makes it convenient for a borrower as compared to other types of loan. This reduces the time involved in the overall loan process.
Unsecured Loan vs Secured Loan
There are two types of loans that financial institutions such as banks and NBFCs give, classified as per the requirement of collateral – secured and unsecured loans. A secured Loan requires an individual to pledge their personal asset to avail of a loan. For example, a home loan or car loan. When a borrower avails of a secured loan, they will pledge their personal asset while availing of the loan. This means if the borrower defaults on the repayment or fails to make the repayment, the lender has the full right to seize the asset to recover the remaining loan amount with interest. Generally, a secured loan is offered at a lower interest rate as compared to an unsecured loan.
On the other hand, an unsecured loan is offered at a higher rate of interest as there is high risk involved from a lender’s perspective. An unsecured loan is used for meeting any short-term financial obligations as compared to a secured loan. The loan amount is higher in the case of a secured loan while the loan amount offered in the case of an unsecured loan is slightly lower. Lastly, the tenure for a secured loan is longer whereas an unsecured loan has shorter loan tenure.
Below are the specific eligibility criteria that an individual should meet to avail of a Personal Loan:
Eligibility Criteria for Personal Loan
- You should be between 24 and 58 years of age to be eligible for a Personal Loan
- Citizenship must be Indian only
- You must have more than 6 months of experience with your current employer and have an overall work experience of 24 months.
- You should have a minimum monthly income of ₹40,000
- You should ideally have a credit score in excess of 750
Documentation for Personal Loan
The documentation requirement is minimal for Personal Loan as there is no requirement for pledging assets. Below are a few of the documents that a borrower must submit to avail of an unsecured loan in Bangalore:
- KYC documents like 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
How to apply for a Personal Loan?
You can follow the below-mentioned steps to avail of a Personal Loan instantly:
- Step 1: Visit the lender’s official website and search for Personal Loan
- Step 2: Click on the ‘Apply Now’ link and fill up the entire loan application form
- Step 3: Enter basic details and upload all required documents
- Step 4: Await verification and assessment of the application
- Step 5: Upon successful loan approval, you will receive a confirmation from the lender
- Step 6: You will need to approve and authorize the disbursal of the loan amount
Please note that the above-mentioned steps may differ from lender to lender. However, there are a few steps that will remain the same, irrespective of the lender. As a borrower, it is your responsibility to check all the Personal Loan criteria, documentation requirements, and steps to avail loan instantly. This will save a lot of time and hassle as you will have a clear idea about all the requirements beforehand.
To conclude, you can avail of an unsecured loan in Bangalore quickly by following the instructions mentioned above. Also, an unsecured loan offers several benefits such as minimal documentation, instant approval and disbursal, higher loan amount, attractive interest rate, no collateral requirement, and flexible tenure. Today, there are numerous lenders present in the market which are offering unsecured loans in Bangalore. Before applying for a Personal Loan, you must compare all your requirements such as your desired loan amount, interest rate, tenure, and other charges. Comparing all the lenders will help you avail of a loan at a lower interest rate with your desired loan amount.