Many individuals are under the impression that collateralising an asset is essential to get a loan. However, you can also opt for loans without putting up collateral or security. A Personal Loan is one such credit option. This blog guide to help you choose the best Personal Loan without collateral.
A collateral-free Personal Loan does not require you to pledge any collateral or security. Instead, your eligibility is based on factors like your creditworthiness, repayment history, and credit score.
When a borrower approaches a lending institution for a loan, they require the borrower to put up an asset as a security. The asset is called as collateral such as gold, property, fixed deposits, and businesses. A lending institution reserves the right to sell the collateral to recover unpaid dues.
If the borrowers are able to repay the EMI on time, the lending institution will return the papers and ownership to the borrower. However, searching for a loan that does not require collateral is a good idea to explore.
Every lending institution has eligibility criteria you must meet. Below are few of the criteria that you must meet:
Please note that these criteria may change from lender to lender.
Every online Personal Loan application lists the documents borrowers are required to upload. So, to get collateral-free Personal Loans, here are the most asked documents to submit.
The following points out why you should opt for a Personal Loan without collateral in India:
Every lending institution will have its processes to follow when getting a Personal Loan. However, at Poonawalla Fincorp, you can enjoy simple and hassle-free process. Here is what you need to do:
Step 1: Click on the ‘Apply Now’ button and open the application form.
Step 2: Fill in the required details like name, PAN card number, and other required details.
Step 3: Attach the documents and click on the ‘Submit’ button.
Borrowers can easily get a Personal Loan without collateral or security from Poonawalla Fincorp if they meet the criteria and consider the repercussions of not meeting their debt commitments. You must calculate the EMIs before taking the loan and must not overborrow.
The eligibility criteria for a Personal Loan without security are as follows:
Age: 22 years at the time of loan application and up to 57 years at loan maturity
Work experience: Applicants need a minimum of 1 year of work experience, and they should have been employed steadily at their current job for at least 1 month.
Citizenship: Indian citizenship
Income: Monthly net take-home salary should be a minimum of Rs. 30,000.
The interest rate of a Personal Loan without collateral can vary from a secured Personal Loan. Despite the change in interest rate, you can rest assured knowing that you don’t have to put up any assets as security against the loan amount.
The ideal credit score that you should possess to avail of a Personal Loan without security is 750 and above. This is considered an excellent credit score and can help you get a Personal Loan at low interest rates.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan Against Property disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
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Collateral-free loan refers to any loan that does not require any asset, security deposit or the backing of a guarantor. These are also called unsecured loans.