Secured Loans in India
Secured Loans in India
What are secured loans?
Secured loans are loans that involve a legal asset, owned by the individual applying for the loan. Most common examples of secured loans are car loans and home loans – note that both these types of loans involve legal assets.
As far as loan amounts are concerned, secured loans are bigger in quantum when compared to unsecured loans such as personal loans. However, the interest on secured loans can be comparatively lesser or equal to the interest rate on personal loans (unsecured credit). For instance, currently, in India, the interest rate on personal loans starts at about 11%-12% p.a. and goes up to 24% p.a. The interest rate on car loans is about 12% while home loan interest rates are around the 10% p.a. margin.
Prominent features of secured loans in India
Secured loans usually come with lower interest rates in comparison to unsecured loans (personal loans).
The tenures in the case of secured loans are longer than unsecured loans. Personal loans usually come with a maximum tenure of 5 years while car loans have maximum tenures of 7 years and home loan tenures go up to 30 years.
Sometimes, banks offer two different types of rate packages – this is mostly true in the case of home loans. In the case of home loans, banks usually offer a fixed rate package and a floating rate package. In the case of fixed rate packages, the interest rate will remain fixed throughout the loan tenure, while in a floating rate package, rates can fluctuate on the basis of market parameters and central bank regulations.
In case of non-recovery of the loan amount, the bank will take possession of the asset and sell it in correspondence with the asset’s market value.
What types of loans does Qbera offer?
Qbera is a Fintech company that offers unsecured loans (personal loans) to salaried individuals. Qbera does not offer secured loans currently, neither does it offer personal loans to self-employed individuals.
Features of unsecured loans from Qbera
Online unsecured loans for individuals with low credit scores
Qbera offers unsecured loans to individuals with low credit scores – a score of 600 is good enough to be eligible for a personal loan with Qbera. Most traditional lending institutions require individuals to have a minimum credit score of 750+ in order to become eligible for a personal loan.
Unsecured loans for individuals with low income
Qbera offers unsecured loans to individuals with an income of Rs. 20,000 p.m., quite unlike traditional banking institutions that require individuals to have a minimum income of Rs. 30,000 or Rs. 35,000 to be eligible for a loan.
Flexible loan tenures
If you choose Qbera for an unsecured loan, you can choose from flexible loan tenures starting from 6 months to 60 months. You can also pre-close your personal loan before the loan tenure comes to an end.
Unsecured loans to individuals employed in unlisted companies
Popular financial institutions that are active in the personal loan lending space do not offer personal loans to individuals who aren’t employed with listed companies (companies that are listed in the bank’s database after evaluation of their credit profile and market presence). Qbera, however, offers loans to employees of unlisted organizations/companies.
Digital loan processing
When you apply for an unsecured loan from Qbera, the entire loan application is processed digitally and there is no need to submit physical documents. But in case you don’t have a credit history, Qbera will send a representative to collect your documents as your documents need to be verified. In a majority of cases, documents are verified digitally.
Quick loan disbursal
When you apply for an unsecured loan from Qbera, you can expect to receive the loan amount in 1-2 days, after your documents and credit profile has been verified and you receive your loan offer post approval of your loan application.
How to apply for an unsecured loan online from Qbera?
The application process to apply for an unsecured loan is fast and simple, and can be completed in just a few steps. Here is how you can apply for an unsecured loan from Qbera:
- Login to the Qbera website and click on the option to apply for a loan. Note that Qbera offers loans only to salaried individuals.
- Fill out details as requested including the loan amount, your loan purpose, and your professional and personal details.
- Submit your documents including your bank statements by logging in to a secure web channel through your netbanking credentials.
- You will receive a customised loan offer from Qbera after your documents are verified.
- Once you accept the loan offer, the loan amount will reach your bank account within 24-48 hours.
- Using the Qbera online EMI Calculator
- You can use the Qbera Online EMI calculator to know your loan eligibility based on two parameters – your current monthly income and your current monthly obligation towards any active loans/credit card accounts.
Interest Rate on unsecured loans from Qbera
The interest rate on personal loans offered by Qbera start at 11.99% p.a. and can go up to 24% p.a. Common parameters that influence the interest rate on your personal loan application include your repayment history, credit score, and number of credit accounts.
1. What is the minimum age to apply for an unsecured personal loan with Qbera?
A. If you wish to apply for an unsecured personal loan with Qbera, you should be a minimum of 23 years of age. The maximum age to apply for an unsecured loan with Qbera is 55 years.
2. What are the minimum and maximum amounts that can be borrowed?
A. Qbera offers unsecured loans starting from Rs. 25,000, going up to Rs. 10 Lakhs. Depending on your income and credit profile, you will be eligible for a particular loan amount from Qbera – you can check your loan eligibility using Qbera’s Online EMI calculator.
3. What are the documents that I need to submit if a Qbera executive comes to collect my documents (usually the case when there is no credit history present)?
A. The following documents need to be submitted:
Proof of Address
Payslips for the last 3 months
Bank statements for the last 6 months
Cheque leaves (salary account – 4 nos.)
Photographs (Passport size)
4. Does Qbera offer unsecured loans to self-employed individuals?
A. Qbera offers personal loans only to salaried individuals currently.
5. What is the interest rate on Qbera’s unsecured personal loans?
A. Interest rates start at 11.99% p.a. and can stretch up to 24% p.a.
- Processing Fee deduction of ₹5000 (2.5% of 2 Lacs) from loan amount, thus, the amount credited to your account will be ₹1.95 Lacs
- EMI of ₹7091 per month
- Total payable amount in 3 years = 36 times ₹7091 = ₹2,55,276
- Total Interest paid in 3 years = ₹55,276, hence, annual interest paid = ₹18,425 (which translates to an effective flat annual rate of interest of 9.21%)
- Age: 21-57 years old
- Net Monthly Income must be more than Rs. 18,000.
- No defaults in the last 24 months.
- You must be residing in Delhi/NCR, Bangalore, Pune, Chennai, Mumbai, Hyderabad, Jaipur, Ahmedabad or Kolkata.
Documents Required after Digital Approval
- Aadhaar Card
- PAN Card
- 4 Cheques from your Salary Account
- Current Address Proof
- Permanent Address Proof (in case the permanent address is different from the address on Aadhaar card)
"I am really happy that I got a loan from Qbera. My application has been rejected by lenders in the past without giving any explanation for rejection. Qbera approved my loan with minimum documents. Thanks a lot once again."
I did not want to make many enquiries as many requests can lower the CIBIL score. I contacted Qbera on a Monday and by evening itself they had an offer for me. They kept me informed through every step of the process and were also flexible with regards to my commitments. In the end, the loan was disbursed within two days of documents submission. Thank you Qbera for simplifying the process and helping me find a loan. " Show more...
"It was a nice experience with Qbera. I have never seen such an easy process for getting a loan, especially when you need it the most. Thank you Qbera for your support."
"I had a hassle-free experience with Qbera. It was a very easy application procedure and in a short span of 3 days I got my loan credited to my account. Thank you so much for the support Team Qbera"
"It was very easy to get a loan from Qbera. I just applied on their website and got a confirmed offer immediately. The amount was transferred soon after. Will give it 5 out of 5"
"It's good and quick response from the Qbera team to get the loan. They are very good at the communicating the things properly and appropriately"
Following a Supreme Court Order dated 13th March, 2018, Insurance regulator IRDAI extended the deadline for linking the 12-digit unique identity number with various insurance policies.
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