Unsecured Loans in India
Unsecured Loans in India
The young and modern Indians prefer modern ways of lending over the traditional. And well, can we blame them, certainly not, the traditional money lenders would require collaterals, charge exorbitant interest rates and there was simply no transparency in their ways. To power the young individuals of today, the financial institutions have come up with unsecured personal loans. These unsecured loans in India are offered by banks, NBFC as well as Fintech companies.
What does an unsecured loan imply?
The word unsecured means that these loans do not require any type of collateral. For example: if you opt for a home loan, the home you purchased also belongs to the Bank which has financed it. You are staying and using the property but the bank also has custody of the papers and in case of defaults in payment or non-payment, you can be evicted from the house. With an unsecured loan in India, there's no such worry; these collateral-free loans are easy cash to deal with short-term financial deficits.
These unsecured personal loans fall in the high-risk category and so the companies rely heavily on the CIBIL score of an individual to determine their credibility. A score of 750 and above is considered as ideal by Banks and other financial institutions. Fintech companies like Qbera do however, consider your application if it is as less as 575.
Where can personal loans be used?
With these unsecured loans, the institution does not specify the end use of the amount. Home loans are used to buy a home, vehicle loan to buy a vehicle, however, with personal loans you can use it as and how you deem necessary. The amount can finance your marriage or education, can be used to renovate or upgrade your home, Buy that second-hand car or bike, pay medical bills or simply to go on a dream vacation.
How to apply for unsecured loans in India?
It is quite simple to apply for such an unsecured loan in India. All you have to do is go online and fill in the parameters and check for your loan eligibility. Banks have a big list of criteria and quite a lot of paperwork which is a deterrent for the time conscious working population. Fintech companies like Qbera have stepped in with minimal paperwork and instant notifications to bridge this gap in demand and supply.
Qbera lets you know if you are eligible for a loan is as less as 2 mins. Once approved, you can actually see the amount reflected in your bank account statement within 24-48 hours.
The documents required are:
• Aadhaar Card
• PAN Card
• Proof of address
• Salary and income documents
The main eligibility criteria that Qbera requires are:
• You must be a salaried individual
• You must have a min net salary of Rs.20 000/-
• You must be above 23 years of age and less than 55 years
• Minimum CIBIL score of 575 and no defaults in the last 24 months
Interest Rate & Other Charges
||11.99% to 35.99%
|| 1% to 5% of total loan amount
||₹1,00,000 to ₹15,00,000
||12 to 60 months
- 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.
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%.