Loans are particularly associated with collaterals. Being unaware that there are many loans they can get without providing any security, a personal loan is one of those kinds of loans.
Personal loans, also called unsecured loans, are instant and provided without any collateral involvement. Also, you can borrow a personal loan online if you intend to get the same with paperless documentation. Hence, these loans are believed to be very quick and easy to apply. Are you planning to avail a personal loan? Then you can avail it for yourself by logging into the Buddy Loan website for quick information and a detailed understanding.
However, a common mistake many loan seekers make is that they just read through a few extracts on personal loans and immediately seek to take loans under lenders offering them the same at lower interest rates. This kind of action might cause many issues further.
This article will guide you how to get collateral-free personal loans based on proper knowledge. Let’s start reading the article further, knowing what is collateral and how it works?
What is collateral, and how does it work?
A collateral is a security or asset that you are asked to provide to the lender wherever you approach them for a loan. These assets are secured.
In the case of a secured loan, the lending institution usually reserves your right to set the collateral as a backup to recover your debt if you cannot repay the same.
Hence, sometimes these concepts sound nerve-wracking, and going for a loan that doesn’t ask for collateral is a good decision to take.
Ways to get Personal Loan without collateral.
Meeting lenders’ eligibility criteria –
Every institution has criteria that you must need to fulfill. You can refer to the eligibility criteria mentioned below for reference.
|–||Description of the recipient||Documents required|
|1||Nationality , Indian||Proof of identity – Adhar card , DL, Passport ,|
|2||Age (20 to 65)||Proof of address – Water bill, electricity bill , Adhar card.|
|3||Employed or Self employed||Proof of income –
|4||Credit score more than 700||Income Tax returns of 3 years – Balance sheet , Profit & loss statements|
|5||If self employed business should have minimum turnover of 10n lakhs||Individuals should be associated with current business for a minimum 3 years.|
Meeting the lenders’ requirement for documents –
While applying for a personal loan, there are many documents that are required to produce. However, if you want to go for a paperless procedure, you can always opt to avail an instant personal loan online. Also, you can download the Buddy Loan app quickly and avail instant personal loans in an utter hassle-free manner. However, you can also follow the chart below to have a good idea about the documents needed;
OTHER DOCUMENTS REQUIRED FOR TO GET A PERSONAL LOAN
Quick steps to get a collateral free personal loan
You can always follow the quick steps mentioned below to get a quick, collateral-free personal loan. The steps below will make your loan application approval quicker and easier. So, let’s understand.
The loan amount –
Unsecured loans or personal loans are multi-faced. You can use a personal loan to fund a wedding, medical expense, travel, or even financing expensive stuff. So you can determine the loan amount according to your current want.
Calculate EMI –
Ensure that your EMI is calculated depending on your monthly budget. You can use many free online resources to calculate your tenure.
Fill your application –
You should fill your application properly; if it is filled up accurately, you can make the procedure seamless.
Apply for the loan-
After applying, it will be easier to track your application status using a tracking number.
Wait for confirmation –
The last and crucial step is to wait for the application to be confirmed after receiving a confirmation message.
To sum up, getting a personal loan without collateral involvement is easy, and following the steps above should make it even easier for you to apply for the same.\
Now, applying for a personal loan without any collateral is made even easier with Buddy Loan as this platform provides you with a quick instant loan without any collateral involvement by providing you best deals in interest rates.
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