Most personal loans can be taken without any security or collateral. But loans with no security have certain eligibility criteria. So, what are the documents required for personal loans without security? What is the qualification for such a loan? What is the right process to follow if you want a personal loan without collateral security? We have covered all of the details in this article. But before that, let’s read through a short and simple definition of a personal loan.
What is a Personal Loan?
A personal loan can be termed as unsecured debt for medical, household or other emergencies. And since the loan doesn’t require any collateral, they can also be called no security personal loans. Personal loans can be used for any purpose, such as business needs, weddings, luxury, personal purchases, home renovation, etc., and the lender or bank would not examine the applicant regarding the purpose of the loan. The borrower can secure personal loans without documents or collateral, making it the right choice in case of emergencies.
Personal Loan Without Collateral Security – Eligibility Criteria
To qualify for personal loans with no security, the applicant should be:
- An Indian citizen
- Between the age of twenty and sixty years
- Either self-employed or employed in public or private sectors
- Minimum salary based on employment
Moreover, the credit score of the applicant is assessed to determine whether they are worthy of the credit or not. A good credit score is seven hundred and fifty or above. It shows that the applicant repays loans or credit on time. Steady credit history also makes the chances of a personal loan approval higher.
Being an existing account holder with a bank also increases the chances of getting an instant loan without documents.
Documents Required for Personal Loans
Since this loan is unsecured, i.e., collateral-free, you can get a personal loan without documents simply if you have these documents:
- KYC documents (driving license, voter ID card, passport, or Aadhaar card)
- Employee ID proof
- Past two months’ salary slips.
- Past three months’ bank statements
You will not need to show the ownership of an asset.
How to Apply for Personal Loans without Collateral Security?
Here are the steps you can follow to get a no security personal loan if you’re looking to get it from a bank:
- Visit the bank or its website.
- Follow the prompts and click on the personal loan application button. You will see an online form for the same.
- Provide the requested personal, professional, and financial information.
- Choose the amount you want the loan for. Then select the repayment tenor based on how much and how quick you can pay.
- Submit the identity proof and financial documents as discussed above.
If you’re looking to get a personal loan from a private financial institution online or through its app, follow these steps:
- Visit the website or download the lender’s mobile application.
- Create a new account and log in. This step would generally require your personal details along with the loan details.
- Submit KYC documents, such as PAN card, Aadhaar Card, etc., as required.
When the loan is approved, the amount will be transferred automatically to the bank account you have shared the information for.
Personal loans or urgent cash loans without documents are not only easy to take but may often provide easy repayment options. They have a quick disbursal process, and most importantly, you are not answerable about the end-use or the purpose of the loan. So, if you want a loan without security, refer to the details in this article, and you will be able to easily get it.
I hope this was helpful!
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, and personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org.