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 Unsecured Loans – The Why and the How
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Unsecured Loans – The Why and the How

Quick money is definitely the need of the hour. Irrespective of whether the purpose is big or small, when there is a need or a requirement to spend a large amount of money, and the ATM is not all that helpful- turn to Personal Loans for the best possible solution! There are several factors that make unsecured loans most favorable among people, which brings us to the question:

Why are personal loans preferred over other options of quick money?

Personal loans are called unsecured loans for a reason- they require no guarantor. The general features that make these loans so easily accessible are as follows:

-   No guarantor required

-   Easy documentation

-    Quick processing

And the best feature of all: flexible repayment options.

Now, let us have a look at the various other options, and you will come to understand why Personal Loans are preferable. The alternatives include but are not limited to:

1)      Loan against fixed deposits

2)      Loans against Shares

3)      Loan against property

4)      Gold Loans

5)      Loans against Life Insurance policies

The first thing you need to know here is the obvious- all the above mentioned are a form of secured loans, though they may or may not provide quick money. Whether it’s your FD or shares or gold jewelry or property or even Life Insurance policies for that matter- you will have to give up something in order to procure your loan amount. Just think, if you ever come into a financial crisis after using up the loan amount and find yourself in a fix where you are simply unable to pay back your loan. You stand to lose a lot, and it’s not just a matter of money once this happens.

There are so many convenient options when it comes to availing personal loans. Unlike the alternatives mentioned, you can choose a convenient loan tenure so that you can repay easily. This way, you needn’t bother about parting beyond what you’re capable of nor do you end up losing one or more of your valuable possessions (like property, gold ornaments or your Life Insurance policies).

Personal Loans not only mean fast money, quickly. This brings us to the next part of this article: How can you put your Personal Loan to the best possible use? How can you optimize the benefits of your personal loan?

The first call to action would be to define your purpose for availing an unsecured loan. Then, once you identify a suitable loan plan, make sure you have all the necessary documents in order. Remember the following points in order to avoid discrepancies and increase your chances of approval:

1)   There should be no Cheque or emi bounces in the past 1 year.

2)    Applicant must have used a credit card in the past or availed loans to ensure a CIBIL Score and a credit information report.

3)   An outstanding against your previous credit card or loan is allowed, but if a settlement has happened (in case of your credit card) then you may not be eligible for a personal loan.

4)   Be prompt in paying all your installments.

As long as you cooperate well, there isn’t much you stand to lose. But, here’s a look at how much you can stand to gain by availing easy personal loans:

Features

Benefits

Flexible repayment schemes

Pay convenient and easy emis

Foreclosure and part-payment facility

Save money instead of paying high interest rates

Maximum Loan amount value

Up to 25 lakhs

Minimal fees and charges involved

Minimum 2% to maximum 5% of total loan amount

No securities or collaterals required

Pledging of valuables is not necessary

Quick Processing, faster disbursal

You can get the money in hand in a matter of 3 to 4 days!

 Personal Loans are the perfect solution when you are in immediate requirement of money. Although, these are called unsecured loans, the risk involved in availing personal loans are nil or minimal when compared to the other alternatives.

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