An unsecured loan is supported and issued by the borrower’s creditworthiness rather than any type of collateral. Unsecured loans sometimes referred to as personal loans or signature loans are obtained without the use of other assets or property as collateral. The terms of such loans including receipt and approval and therefore must often contingent on the borrower’s credit score. In Unsecured loan, Borrowers generally have high credit ratings to be approved for certain unsecured loans.
What is an Unsecured Business Loan?
An unsecured loan is supported and issued by the borrower’s creditworthiness rather than any type of collateral. Unsecured loans sometimes referred to as personal loans or signature loans are obtained without the use of other assets or property as collateral. The terms of such loans including receipt and approval and therefore must often contingent on the borrower’s credit score. In Unsecured loan, Borrowers generally have high credit ratings to be approved for certain unsecured loans.
Key features about unsecured Loan
No collateral: There is no collateral required. That’s why for a small amount or short-term loan, the borrower can easily think of unsecured loan.
The creditworthiness of the borrower is important: Before offering any amount, the bank or financial institution firstly checks whether the person taking loan has the creditworthiness to pay off the amount in the near future.
Higher interest rate: In this interest rate is much higher than the interest rate for a secured loan
Great personal loan: It would be best suited for personal loans also. If you need money immediately, you can easily go to the bank and ask for a personal loan. If the bank finds you to be a good fit in the creditworthiness, they will offer you a loan without any collateral.
Unsecured loan Eligibility Criteria
Salaried Employees
Salaried doctors
Employees of private and public limited companies
Minimum net monthly income – Rs. 25,000
Private and public limited companies
Government sector employees including central and local bodies, Public Sector Undertakings,
