Types of Unsecured Loans
Types of Unsecured Loans
In this globalized world, the living standards are so high that many a time there arises instances that require urgent cash. The need can be as varied as marriage, hospital bills or urgent home repairs. Where can we get the shortfall amount to fund such requirements? This is where unsecured loans have stepped to help fund the shortage. There are many types of unsecured loans that can be used in different situations as per requirements.
What are unsecured loans?
As the name suggests, these are loans that are given to a borrower without any kind of asset pledged. Your house, vehicle, fixed deposit or your insurance policy are not used as collaterals for this type of loan. Unsecured loans are high-risk loans that are given out based on the borrower’s salary and credit rating. Loans ranging from Rs 50,000 to Rs 25,00,000 can be given with a repayment tenure ranging from 6 months to 60 months.
Types of unsecured loans-
- Over Draft: You have a savings account with a bank and that bank gives you the privilege to withdraw an amount greater than the account balance. This is called as Over Draft. The excess money that can be withdrawn is considered a loan and attracts an interest on it.
- Personal Loan: Personal loans are given taking into consideration the salary and credit rating of an individual. These flexible loans can be used to finance anything. Your marriage, hospital bills, education, or home repairs, everything can be managed by this flexible personal loan. Banks place high importance on the credit score. A score of 750 and above is considered in most cases by top banks. However, there are Fintech companies like Qbera which give personal loans with a marginally less credit score of 575 as well.
- Credit cards: Credit cards are plastic money. You can use your credit card to buy anything from expensive gadgets to booking a luxury vacation. These are ideal if you are already in possession of one, and require funds immediately. You do get an interest-free period - usually a month, post which high interest rates will hold applicable.
- Payday loans: These are short-term loans that are given against your paycheck. These loans are good if you have an emergency requirement before your salary is credited. You can avail this loan, which is to be paid as soon as your next paycheck is in your hand. Speaking of which, payday loans have a repayment period of 1 month.
- Peer to peer loans: These loans are given out by institutions to other institutions or from one individual to another individual. The interest rates are quite competitive and eligibility requirements less rigorous
- 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%)
- You must be a Salaried Employee
- Age: 23-55 years old
- Net Monthly Income must be more than Rs. 20,000.
- No defaults in the last 24 months.
- You must be residing in Delhi/NCR, Bangalore, Pune, Chennai, Mumbai or Hyderabad.
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.
A day after SBI hiked deposit rates across maturities, the largest lender of India also raised MCLR by up to 25 basis points. MCLR is now at 8.15 percent which was earlier at 7.95 percent. This signals a possible increase in the EMIs of all types of loans – starting from personal loans to home, auto and other loans. ICICI Bank and Punjab National Bank (PNB) also hiked their MCLR by 15 bps. PNB home loans will now be at 8.6% and for women it will be 8.55%.