In earlier times, the person gets loans after providing security only. The customer either has to keep their property or any asset as collateral for availing the personal loan. Then also, loan providers charge high interest rate and provide low amount, that too for shorter tenure. After that banks come into existence and made these secured loans nominal for the average class people. This change helped the customer, as the customer can easily repay the loan amount with easy installments. Even person can avail high loan amount that too at low interest rate with longer tenure, such as home loan, loan against property, and many more.
However, as time passed the banks have designed many products according to customer's requirements and needs. They designed auto loans, gold loans, education loan and many more products that meet customer requirements and customer can also avail these loans quickly and hassle free. All these loans are secured loans; i.e. customer has to provide collateral for availing the loan. In recent years, the bank has designed a product for those customers, who do not have any asset or investment or property for given as collateral for availing any types of loan, i.e. unsecured personal loan.
The person can avail the unsecured personal loan for any of their personal requirements and wants. The person can use this loan for any of purposes, such as for paying off debts, medical emergency, for paying off utility bills, for marriage expenses, for house improvement, higher education, travelling expenses, for purchase of consumer durable goods, for initiating new business, etc. Even the person does not have to provide any information to the loan provider for availing the personal loan. Even person can avail this loan easily and quickly, as it requires minimal number of documents. Various banks and financial institutions provide the unsecured personal loans, such as HDFC, SBI, Axis, Fullerton and many more.
However, the person should compare and then should avail unsecured personal loans. This is so; banks provide this loan at slightly higher interest rate due to its unsecured feature. This is so; if person defaults in loan repayment, then bank has no way to recover their loan amount. They charge 14% to 25% of the interest rate and also provide for shorter tenure, i.e. 1 to 5 years. The person can avail the loan amount from Rs.50000 and avail up to Rs.15lacs. Furthermore, bank provides this loan only on the customer's credit worthiness.
However, as time passed the banks have designed many products according to customer's requirements and needs. They designed auto loans, gold loans, education loan and many more products that meet customer requirements and customer can also avail these loans quickly and hassle free. All these loans are secured loans; i.e. customer has to provide collateral for availing the loan. In recent years, the bank has designed a product for those customers, who do not have any asset or investment or property for given as collateral for availing any types of loan, i.e. unsecured personal loan.
The person can avail the unsecured personal loan for any of their personal requirements and wants. The person can use this loan for any of purposes, such as for paying off debts, medical emergency, for paying off utility bills, for marriage expenses, for house improvement, higher education, travelling expenses, for purchase of consumer durable goods, for initiating new business, etc. Even the person does not have to provide any information to the loan provider for availing the personal loan. Even person can avail this loan easily and quickly, as it requires minimal number of documents. Various banks and financial institutions provide the unsecured personal loans, such as HDFC, SBI, Axis, Fullerton and many more.
However, the person should compare and then should avail unsecured personal loans. This is so; banks provide this loan at slightly higher interest rate due to its unsecured feature. This is so; if person defaults in loan repayment, then bank has no way to recover their loan amount. They charge 14% to 25% of the interest rate and also provide for shorter tenure, i.e. 1 to 5 years. The person can avail the loan amount from Rs.50000 and avail up to Rs.15lacs. Furthermore, bank provides this loan only on the customer's credit worthiness.