Are Unsecured Personal Loans Good
Unsecured personal loans are a good choice as the loan approval and disbursal is quick. What makes an unsecured loan good is its collateral free nature. This means borrowers are neither required to mortgage their property/assets nor any personal references are necessary to get unsecured personal loans online. Due to less formalities and paperless documentation, the unsecured loan processing becomes faster that enables quick loan approval within 24 to 48 hours of a working business day.
Borrowers opting for an unsecured personal loan should hold a strong credit history and a higher score. If the grace period for paying EMIs exceeds 30days, it can affect your credit score. Though unsecured loans are easy to get but also involves risk of fines and penalty charges if not repaid on time.
How Does One Qualify for an Unsecured Personal Loan?
The eligibility criteria for unsecured personal loan varies as per the requirements of the various financial institutions. One should also be aware that such loans, being unsecured in nature, charge interest on the higher side as compared to collateral based secured loans. Unsecured Loans are normally granted as:
- Personal Loans
- Credit Cards
- Student Loans
HeroFinCorp, a user-friendly personal loan app, powered by HeroFinCorp, is a very handy online app helping with instant personal loan through a smart phone. Here, borrowers can seek an unsecured personal loan up to a maximum limit of Rs 1,50,000, approved and directly credited to your bank account, within a short span of just 24 hours.
Download HeroFinCorp freely from Google Play Store and begin with the online unsecured loan process:
- Install the app or visit the website
- Register with the mobile number / email id to create an account
- Fill in the loan application details
- Select the loan amount, tenure and interest in the EMI calculator tool
- You may change the above three variables to derive a suitable EMI
- Submit the income proofs and KYC details for verification
- On approval, the loan will be disbursed in the chosen bank account
Pros and Cons of Unsecured Loans
The prime advantage that a borrower can score out of an unsecured loan is the decreased risk factor. If you fail to clear unsecured loan payments, you don't lose your assets; only the credit score is at stake. On the lender’s end, the risk factor is high due to the absence of collateral. Hence, higher interest rate is charged on unsecured loans, making the EMIs heavier.
Which Documents are Required for Unsecured Personal Loans?
The USP of HeroFinCorp is dealing with paperless documentation. This is indeed a hassle-free feature that helps in instant unsecured loan approval. However, some basic details are required for loan acquisition. Keep ready the following documents while registering on the HeroFinCorp app:
- KYC documents, inclusive of Aadhaar Card, Mobile Number Linked to Aadhar, Pan Card and Bank Account details.
- Address proof on Driving License/ Passport/Voter’s ID/Utility bills/Smart Card
- Account holder’s internet banking information
- Income proof such as salary slips for salaried individuals and financial statements with photographs for self-employed.
- Employee details or business details such as name of the company, position at work place, work experience and job stability
Overall, unsecured loans are easy to apply online. Now, it’s a personal choice whether you want a secured or unsecured loan depending upon the urgency of finance. If there is a financial emergency, unsecured loans are a good choice as the time taken for loan approval is quite less.
