Unsecured personal loans are a more popular way to get funds. These loans are easily accessible and can give you instant money when needed. So, whether you choose the YES BANK Personal Loan or one from a lender you have transacted with in the past, know that these loans are easy to avail.
A key reason why many prefer to avail a personal loan is that it is unsecured credit. This means that you do not have to pledge any assets as security with the lender. This allows you to get the funds you need without risking your assets.
Additionally, there are a few other factors, such as easy personal loan eligibility and online applications that make it a popular choice. Read on to learn about the features of an unsecured loan that make it easy and convenient to avail.
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Thursday 19 Dec. 2024
Minimal Requirement For Documentation
A majority of the lenders in India offer unsecured personal loans with minimal document requirements. The documents required generally include those that help them verify your identity and application. Since unsecured loans don’t require collateral, this process is simple.
You don’t need to furnish any documents to prove the authenticity and ownership of the asset. Verifying these also takes time, which is why these loans are often available quite quickly.
You can check the list of documents required by visiting the lender’s website. Generally, the list of documents will include the following:
- KYC documents
- Income proof
- Employment proof
Once you know the documents required, simply keep a digital copy available as modern lenders will accept digital copies. Most do not need hard copies, and you can upload these files when applying.
Easy-To-Meet Eligibility Criteria
Major lenders have simple personal loan eligibility criteria, making it easily accessible. For an unsecured personal loan, eligibility criteria generally revolve around your identity, income, and age.
Generally, lenders have the following personal loan eligibility criteria:
- Age: Between 21 years and 60 years
- Monthly income: Based on the residential area
- Employment status and history
- A credit score of 750
You can check the personal loan eligibility criteria by visiting the lender’s website. If you meet the criteria, you can simply click apply and fill in the application.
Quick Access To Funds
The process of availing a loan can be broken down into stages. These can be:
- Application
- Submission of documents
- Lender’s verification
- Approval
- Disbursal
In most cases, it is a digital process. As a result, processes are quicker, and take little time. With all of these stages being completed quickly, you get access to funds almost instantly. Some lenders even offer full access to the funds within hours.
Flexibility In Loan Amount And Tenure
Personal loan eligibility depends on many factors. One among these is your income, as it reflects on your repayment capabilities. So, with a higher income, you may be able to avail a high-value loan.
On the other hand, the loan tenure is something you can choose quite freely. You have the freedom to decide based on your capabilities and financial goals. You can use a personal loan EMI calculator, a digital tool, to find the ideal terms in just a few clicks.
Your loan amount and tenure both have an effect on your cost of borrowing. Having flexibility in these elements allows you to optimise your loan to best suit your needs. This way, you don’t just fulfil your current obligations but cater to your financial well-being too.
No End-Use Restrictions
A major USP of an unsecured personal loan is its multipurpose nature. You can use a personal loan as and when you want, and for whatever purpose you want. Such a privilege isn’t available with all credit instruments.
To give you an example, here are a few ways you can use your personal loan funds:
- To host a wedding
- To pay for travel costs
- To fund home renovation
- To pay education fees
- To handle medical expenses
Given the freedom you get in using personal loan funds, it is a viable option for many needs. In some cases, depending on how you use the funds, you may even be eligible for tax benefits.
Digital Provisions
In the digital era, it is no surprise that a majority of the lenders offer digital provisions that simplify the process of availing an unsecured loan. Once you meet all the personal loan eligibility criteria, you can simply apply for a loan through the lender’s website.
Generally, the online application only takes a few clicks, and you can complete it in minutes. However, it is not the only way lenders offer simple and convenient solutions to their customers.
Lenders now also offer facilities that allow you to manage and repay your loan, all through their online portal or app. With these, you can know your outstanding loan amount and manage it at any time, from anywhere.
Things To Keep In Mind When You Avail A Personal Loan
- Carefully read through the loan terms to understand your cost of borrowing.
- Use an EMI calculator to compare and choose the best deal.
- Ensure that the repayment plan fits into your monthly budget.
- Understand whether you are eligible for tax benefits for your fund use.
- Make all the payments on time and in full.
While choosing between unsecured and secured credit, you need to thoroughly assess your financial situation. Moreover, you need to compare offerings and pick loan deals that work in your favour.
Your goal should be to prioritise affordability, so that payments never become a burden throughout the tenure. So, whether you choose the Bajaj Finserv, Fibe, or YES Bank Personal Loan, be sure to factor in the cost of borrowing.
That said, if you avail an unsecured personal loan, make sure that you compare and get the best deals. This will ensure that you get the funds you need without straining your finances.
