Apply for Unsecured Personal Loan
When in need of money, most individuals today prefer to opt for loan as it gives them instant access to money without having to pledge any collateral. Such type of loan that can be availed without any collateral is called an unsecured loan. To avail this type of loan, the loan applicant is not required to pledge his property or asset and can easily get the loan amount on the basis of his income and credit score. In comparison to a secured loan, in case of unsecured loan, a lender cannot claim the customer’s property, jewellery, vehicle or any other asset in case of defaulting on the repayment. However, not repaying the EMI of an unsecured loan on time can in fact land you in legal trouble and require you to pay additional charges; it can also decrease your credit score that reduces your eligibility to secure a loan in the future.
Personal loans, credit cards, instant loans and cash loan are various types of unsecured loan that can be availed at minimum documentation without submitting any collateral. At Upwards, we offer unsecured loan up to Rs. 2 lakhs to salaried individuals drawing minimum monthly income of Rs. 15,000.
How to get Unsecured Personal Loan in India?
There are various options you can resort to, to get a personal loan in India.
- Banks: When looking for a personal loan, you would first go for an obvious option i.e. banks. This has been a traditional way of getting a personal loan. Most banks offer unsecured personal loan starting at interest rate of 13%. However, getting a personal loan from bank would be quite tough as banks do a stringent check of your eligibility criteria as well as need you to have a high CIBIL score. Banks usually prefer lending loans to individuals with minimum score of 750 and above. Also, since this type of loan involves more risk for banks, the interest rate for this type of loan is usually high. So, if you have a bad credit score then your application is likely to be rejected.
- P2P lending: Also known as Peer to Peer lending, this type of platform enables you to borrow loans from other individual investors. A P2P lending platform allows borrowers and investors connect and lend or borrow money from each other at prefixed interest rates. The interest rates charged by P2P lending platform is generally high as the investor is exposed to a large risk here. This type of lending and borrowing activity works on a registration basis i.e. the investor registers himself on the P2P platform for lending, whereas borrower creates his financial profile, submitting different documents. On the basis of borrower’s profile, he is assigned a specific risk category which further determines the rate of interest he would have to pay to get the loan. Loan approval and disbursal is also done through the platform.
- Online lenders: Online lenders like Upwards follow a simple and hassle-free loan application process that allow you to get access to funds instantly. To get an unsecured loan from a digital lender, you simply have to visit the website or download the app and submit your personal and professional details. Further, you can also submit the documents online on the basis of which you get instant approval. On successful loan approval, the loan amount is disbursed directly in the applicant’s bank account. With online lenders, you don’t have to worry about having a low credit score as few lenders also assess a borrower’s eligibility on the basis of his income, job type and social score. Today, almost all lenders in India claim to offer digital loan service, however in realty require you to visit the office for document verification purpose. Similarly, loans are offered at hidden charges and at high interest rates. Therefore, always opt for an online lender like Upwards as you can be assured about transparency at affordable interest rate.
- NBFCs: NBFCs in India are regulated by RBI and do not require you to have a high credit score to be eligible to get a loan. Unlike banks, NBFCs do not follow any specific or legal criteria.
Benefits of availing Unsecured Loan
- Multiple tenure: An unsecured personal loan can be availed for tenure of 12 months-60 months that ensures you can opt to pay EMI depending on your monthly expenses and income. Furthermore, opting for a long tenure attracts low interest rate. However, opting for a longer tenure also increases your overall interest rate.
- Builds your credit score: A part of your credit score is based on the credit mix that you hold. This means the number of secured and unsecured debt you own. If you make timely repayments towards your unsecured loan, then your credit score is likely to get increased.
- Minimum documentation: Unsecured loans by online lenders is offered at minimum documentation. You can simply get a loan using following documents: ID proof, address proof, salary slip and bank statement.
- Instant disbursal: With online lenders, one can get unsecured personal loan instantly in their bank account without having to wait for a week or so. Such lenders operate through algorithms that quick help them assess an individual’s credit eligibility.
Mistakes to avoid when applying for Unsecured Personal Loan
Do not apply with too many lenders at the same time: When in urgent need of money, we often end up making too many loan applications without understanding its impact. Making too many loan applications at the same time can not just decrease your credit score but also have an impact on the entire loan application process. Filtering out lending platform at such times helps you decide on specific platforms that would work in your favor.
Not disclosing your existing loans: There is no point hiding your existing loans as the same would get reflect in your credit report. Also, even if you get a loan without the lender knowing about the existing loan, you may not be able to fit the EMI payment in your monthly budget that might further land you in a debt trap.
Borrowing more than you can repay: Many a times, people end up availing a loan amount they are eligible for instead of opting an amount they require, without understanding that this step could further put them in a financial crunch. Hence, it is always wise to check on the monthly budget, existing liabilities and then opt for a loan amount you can pay for.
How to apply for Unsecured Personal Loan on Upwards?
Applying for an unsecured loan on Upwards is quite simple. All you need to do is:
- Download the Upwards instant personal loan app from Upwards
- Submit your personal & professional details
- Upload documents
- Get approval on the loan amount
- Submit additional details and verify your bank statement
- Get the loan
Eligibility criteria to get Unsecured Personal Loan from Upwards
To avail an unsecured loan from Upwards, you need to fulfill the below eligibility requirements:
- Should be aged between 21-60 years of age
- Should be a citizen of India
- Should be a salaried employee
- Should have a minimum salary of Rs. 15,000/month
Documents required to apply for Unsecured Personal Loan from Upwards
You will have to submit the below documents to get an instant loan from Upwards
- PAN card
- Address proof such as driving license, Aadhar Card or passport
- Past 3 months’ Salary slip and bank statement