pro finance blog
Menu
  • About Me
  • Hire Me
  • Contact Me
  • Submit a Guest Post
    • Privacy Policy
    • Disclaimer
Menu
Personal Loan

Boon or Bane: No Collateral Required Anymore for Unsecured Personal Loans

Posted on July 31, 2019November 2, 2020 by Tina Roth

Back in the day when the concept of loans first began, borrowers would have to hand over some of their prized valuables (assets) to the lender as a form of security against the loan they want to take. This is known as providing collateral for a secured loan, and borrowers would have to provide collateral equivalent to in value to the loan amount they wanted to borrow.

Personal Loan

Holding on to the borrower’s possessions until they pay back the loan in entirety protects the lender, in case the borrower could not repay the loan. Secured loans are still very common today. However, many people who want to take out a loan cannot do so because they don’t have enough collateral to pledge; or, they’re not willing to provide collateral against a loan.

This is why unsecured loans are an excellent option. Unsecured loans are provided without the need of pledging collateral to the lender. The interest rates for unsecured loans tend to be a bit higher than that of secured loans. However, they save the borrower the trouble from arranging a sufficient amount of collateral against the loan.

Additionally, unsecured loans are quite easy to avail, since new-age lenders such as Upwards have completely digitalized loan application procedures. If you’re interested in applying for an unsecured loan, let’s take a look at the features and benefits of the same.

Features & Benefits of Unsecured Personal Loans

1# No collateral required: As mentioned, you need no collateral in order to get your unsecured loan. All you need to do is submit your personal details to the lender, who will assess your application based on your personal details such as income, CIBIL score, etc.

2# Minimal documents: Banks require numerous documents for the application process. For unsecured loans from digital lenders, you only need a few easily available KYC documents for submitting your application.

3# Fast processing: Unlike bank loans- which can take several weeks just to review your application, and another few weeks to disburse your loan – unsecured personal loan lenders have super-fast processing. You can apply for a loan and get funds directly to your bank account, in as little as 24 hours!

4# Digital process: No one likes having to fill out lengthy, tedious paperwork! One can get an unsecured loan from the comfort of their own home, simply by applying online.

5# Variety of use cases: You can take a personal loan for any requirement under the sun. Be it for home repairs, purchasing a vehicle, upgrading your mobile phone, unsecured loans are there to help fund it! They’re especially great for emergency situations such as paying medical expenses or high utility bills.

Eligibility for Unsecured Personal Loans

Both secured and unsecured loans have an eligibility criteria, which is basically a set of parameters that determine whether you can apply for a loan from a particular lender.

A great thing about eligibility for unsecured loans is that the criteria are much more inclusive than it was many decades ago. This is because digital lenders such as Upwards aim to empower the masses who require access to loans, but are unable to avail them from traditional lenders such as banks. Therefore, you can avail a personal loan, even if you earn just Rs. 15,000 a month and have no credit history!

Below is a list of common eligibility parameters for unsecured personal loans:

1# Age: Individuals ages 21-55 can easily be eligible for a personal loan.

2# Monthly Income: With most lenders, you can apply for a personal loan on a salary as low as Rs. 15,000 per month.

3# CIBIL score: While banks require a minimum CIBIL of 750 and above, lenders are willing to accept CIBIL scores as low as 625 and higher. For new-to-credit borrowers having no CIBIL score, the borrower’s other criteria such as income and employment details are considered instead.

4# Location: Lenders these days can serve a wide variety of locations across India. It’s still a good idea to check if the lender does indeed provide personal loans in your city.

5#Employment history: Lenders will check how long you have been working for, as well as the duration of your employment tenure with your current company.

If you still aren’t sure whether you’re eligible for a loan, just use our personal loan eligibility calculator to give you a quick and an instant answer! Simply enter your details, and let the eligibility calculator do the work!

Category: Personal Loan

Leave a Reply Cancel reply

You must be logged in to post a comment.

About Me

finance blogger

The idea of starting a blog has been hitting me for long; I took it seriously after falling into a spiral of debt and recovering from it.

I have been anxious all through the financial difficulties. I see that same anxiety in the eyes of people, whose ill fate has put them at odd with financial repose.

It makes me compassionate. Out of this compassion and goodwill, I started this blog. I wanted to help all those, who are facing financial distress..




  • Exante
    Adding and Withdrawing Funds from ExanteMay 2, 2023
  • Inflation Can Affect Your Investment Decisions
    How Inflation Can Affect Your Investment DecisionsApril 15, 2023
  • Stock Market
    Understanding the Gov Tech MarketFebruary 16, 2023
  • Phuket Real Estate
    Why You Should Invest in Phuket Real EstateJanuary 24, 2023
  • Corporate Governance
    Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?December 17, 2022
  • Successful Retirement
    How To Plan For Successful Retirement At 50: 5 Steps To Get Started OnNovember 4, 2022
  • Online Money Transfer
    Do You Still Transfer Money Internationally With Your Bank? There Are Better Online Solutions For ThatOctober 14, 2022
  • finance
    Important Roles of the Minister of FinanceSeptember 16, 2022

    ProFinance Blog is dedicated to help people who are struggling with their personal finances. We have learned the lessons first hand and know how real the struggle is. Being compassionate about the personal finances and blogging about is our way to help people know more about different situations and how effectively they can handle it. So take control of your finances now and take actions towards gaining financial freedom and security. Join us in the mission to self-educate, learn and help others by sharing valuable information on finances. Here you will find information, tools and techniques on various aspects of finances and learn how you can use the information and implement it to make your financial life better than ever.Join us in our mission to financial freedom.

    • Exante
      Adding and Withdrawing Funds from Exante
    • Inflation Can Affect Your Investment Decisions
      How Inflation Can Affect Your Investment Decisions
    • Stock Market
      Understanding the Gov Tech Market
    © 2023 ProFinance Blog | Powered by Minimalist Blog WordPress Theme