Even the best-laid financial plans can come undone due to unforeseen and unpredictable exigencies that life can throw at you. In their time of need, many people end up dipping into their savings or liquidating their long-term funds to get the cash they need. This, however, may not be the most prudent choice, as you will lose out on long-term gains or may have to pay a premature withdrawal fee. Instead, there is the option of applying for an unsecured personal loan to meet your financial needs.
While the specific steps may vary across lenders, typically, here’s how you can apply for an unsecured personal loan online.
Your loan application will undergo a verification process. Upon its approval, the funds will be disbursed to your account.
There is no dearth of companies offering personal loans. Therefore, you need to compare the terms and conditions, and the interest on the unsecured loan offered by them before making your decision.
Your credit score is one of the most important factors lenders use to determine your loan eligibility and interest rate. Before applying for a loan, check your credit score. If you have a poor credit score, you may need to consider a secured loan or work on improving your credit before applying.
Determine how much money you need to borrow. While a personal loan can be used for a variety of purposes, you should borrow based on your ability to repay on time. Missed EMIs and delay in payments can cause a dent in your credit score. Evaluate your income, expenses, and debts to determine whether a personal loan is a viable option for you and what will be its ideal tenure that doesn’t cause a strain on your monthly budget.
You can get an instant loan directly to your Savings Account through the Fi Money app. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our partner bank (Federal Bank) assigns an eligible loan amount to each user (up to ₹5 Lakhs).
Here’s how you can get an instant unsecured personal loan through the Fi app.
Technology has made the loan application process entirely paperless. This facilitates quick verification of the application and supporting documents, quick approvals, and an almost instant loan amount disbursal. Check your lender’s website to know their loan disbursement turnaround time.
An unsecured personal loan is very versatile and can be used for a variety of purposes. These include home repairs and renovation, paying medical bills, sponsoring higher education, paying for wedding-related expenses, domestic or foreign travel, and even debt consolidation.
Here are some of the pre-requisites for an unsecured loan:
Obtaining unsecured loans in India can be relatively challenging compared to secured loans due to the higher risk involved for lenders. Lenders often have stricter eligibility criteria and may require a good credit history, stable income, and employment. However, certain financial institutions and online lending platforms do offer unsecured loans, albeit with higher interest rates and potentially lower borrowing limits.
Yes, banks in India do offer unsecured personal loans to eligible individuals. However, the approval and terms for such loans depend on factors like the applicant's credit history, income stability, employment status, and other eligibility criteria set by the bank.
Yes, it is possible to get a loan without collateral. There are various financial institutions and banks that offer unsecured personal loans based on the borrower's creditworthiness, income stability, and other eligibility criteria. These loans typically do not require any collateral or security but may have higher interest rates compared to secured loans.
The major disadvantages of unsecured loans are that the loan amounts offered are generally smaller with higher risks and in turn interest rates and payments are higher and expensive.