An unsecured loan is a type of loan which does not require submitting of any collateral. Instead, the lending institution would assess the income capabilities of the borrower to provide loans. Unsecured loans are of different types; one of the most popular among them is personal loans. The salaried class prefers such finance options over others since they are more accessible to avail, involve lesser documentation and faster disbursal of funds.
While on the other hand digitization has accelerated the growth of the financial market in India, the rise of smartphone apps has fuelled the growth further. The below section would throw some light on how you can apply for an unsecured loan using mobile phones with the help of a personal loan app. These online apps are easily available on the play store or IOS store, one can install it and apply for the loan within a few minutes.
Simple Steps To Follow To Get An Unsecured Loan With Online Loan Apps:
The unsecured personal loans can be easily applied through apps by which you do not have to visit the branch for any formalities about financing. Below are the steps for applying for loans through loan app:
- Register in the mobile app of your financial institution. Make sure that you use the credentials (email address and contact details) you had used to transact with your financial institution.
- The online loan app would then ask for your details to determine your eligibility for the loan. You can also find the details related to a loan like a tenure, rate of interest etc. to plan your repayment.
- In case you are eligible for the loan, you would then need to provide the KYC details, other documents which will boost your chances to qualify for the loan. Most commonly, the papers can be income proofs, address proofs, proof of business, etc.
- The financial institution would then do background checks, assess your credit score to decide on your loan amount, rate of interest, tenure and other details. There may be a KYC verification call to verify the identity of the borrower.
- The credit score is vital for any unsecured personal loan application process. The credit score is a numerical value between 300 to 900 and depends on the creditworthiness of the borrower. For example, you had availed loans in the past, and you have made the payments on time, your credit score would be naturally higher, and you are eligible for better loan rates. Alternatively, if you have missed the payments or there are too many bad loans, the lender has the authority to deny you loans citing the low credit score. The lending institution can ask for credit scores more than 700 for unsecured loans as the risk factor is high for these kinds of loans.
Eligibility required for a personal loan:
- Profession: Salaried employee with private/public undertaking or self-employed meeting the eligibilities of the lender.
- Age: 21 to 60 years
- Income: 20-25 k depending on the residing location for salaried employees.
Applying for personal loans with an online loan app for the comfort of your home has become a reality. However, you need to decide on the best financial partner for yourself to avoid any repayment or high-interest rate issues.