What Is an Unsecured Personal Loan?

Planning for a wedding or the renovation of your old home? An unsecured personal loan can help. Unsecured loans are simply debt products that are offered by banks, NBFCs, and other online lenders without any collateral. Collateral is a guarantee in the form of money or property given to the lender by the borrower to ensure that the lender will recover the amount lent even if the borrower fails to pay back. When we talk about unsecured personal loans, the borrower doesn’t have to keep any collateral for getting the loan.

Related read: What are the Various Types of Personal Loans?

This article will take you through the types of unsecured loans, their eligibility criteria, and more. Keep reading!

Types of personal unsecured loans

There are different types of unsecured loans.

Term Loan

If you need a lump sum amount of money for an emergency or otherwise, you can take a term loan at a fixed interest rate. The due amount can be repaid in monthly personal loan EMIs. You can use the sum to buy new assets, renovate your home, use it for medical emergencies, and more. Airtel Flexi Credit can be a great way to get instant emergency funds with minimal documentation.

Revolving Loan

A revolving loan, as the name suggests, is a type of unsecured credit that can be borrowed, spent, repaid, and borrowed again. A credit limit is set by the lender. The borrower can only spend up to that limit. Credit Cards are the best example of revolving credit.

Consolidate Loan

Consolidate loans can help you close multiple loans and convert them into one with smaller EMIs. The repayment cycle can be eased with such kind of unsecured loan.

All the above-mentioned types of loans don’t require any collateral for the loan.

If you wish to get an unsecured personal loan, here are the eligibility criteria and documentation details.

Eligibility criteria for personal unsecured loans

The lenders check the applicant’s eligibility criteria very thoroughly since the lender’s risk is higher for an unsecured loan. Here are a few  that the lenders look for:

• The applicant must have a stable job or a stable business. Regular employment helps the creditors have a certain trust in the borrower when it comes to repayment.
• Most lenders expect the borrower to be above 21 and in some cases above 23 years.
• Salaried individuals with a minimum 2 years of experience.
• Self-employed should have a minimum 5 years of earning tenure.
• Good credit history with previous payments on time.
• Other existing loans are also taken into consideration.

Documents required for unsecured personal loans

Here are a few documents you need to get an unsecured personal loan:

For salaried applicants:

• Passport-size photographs
• Identity proof – Aadhaar Card, Passport, Voters ID, PAN card, or Driving license
• Residential proof – utility bill, rental agreement, passport, etc.
• Bank statements for the last 3 months
• Salary slips for the last 3 months

For self-employed applicants:

• Proof of continuity of the business
• P&L statements, expense reports, and more
• Bank statements
• Identity Proof
• Residential Proof
• Passport-size photos

Related read: Personal Loans for Self-Employed in India

Get the documents ready if you meet the eligibility criteria to get an unsecured loan online. You can start your application for an personal loan from Airtel Flexi Credit online quite easily.

How to apply for personal unsecured loans from Airtel Flexi Credit?

Follow the below steps to apply for an personal loan from Airtel Flexi Credit:

• Download the Airtel Thanks app.
• Register with your mobile number.
• Now head to the shop section of the app.
• Tap on the financial services section.
• Now tap on the ‘get personal loan’ tab to start the application process.
• Enter your personal details like name, PAN card, etc.
• You will see various loan offers from different lending partners for Airtel.
• Choose one and complete your application.
• Once your application is approved, the loan amount will be disbursed instantly.

Benefits of personal loan from Airtel Flexi Credit

Here are a few benefits you can enjoy with personal loans from Airtel Flexi Credit:

• Low-interest rates up to 10.49%
• Flexible loan tenure ranging from 3 months to 42 months
• Minimal documentation required
• 24 hours for loan disbursal
• Low processing fee
• 100% Paperless and digital process
• Loan up to Rs. 9,00,000

So, what are you waiting for? Now you know everything about unsecured personal loans. Keep your credit score above 750 to get good personal loan offers. A good credit score will also help you to negotiate a better interest rate on the loan.

Also read: Personal loan prepayment