How To Get A Personal Loan without Security? - know which is better!

February 24, 2025

For Exp., Leela is a 28-year-old software engineer who wants to renovate her home before Diwali. She requires ₹5 lakhs but doesn’t want to pledge her gold or fixed deposits. Instead, she applies for a personal loan without security. She submits her documents online and gets the loan approved within minutes. The amount is credited to her account within 24 hours, allowing her to complete the renovations on time.

Just like her, if you need funds for an emergency, education, travel, or any other financial goal, a collateral-free personal loan is a great option. In this guide, we’ll cover the eligibility criteria, required documents, and tips to help you get a personal loan easily.

Table of Contents

What is a Personal Loan?

A personal loan is a type of loan that you can take without any collateral. A personal loan can be taken for varied expenses like home repairs, medical bills, wedding expenses and travel costs. It offers you quick access to funds for urgent financial needs.

Personal loans usually have fixed interest rates with flexible repayment. The application process is quick with fast loan disbursal.

Why are Personal Loans Unsecured?

Personal loans are unsecured because they do not require any collateral. To check the creditworthiness of the loan applicant, the lender checks their credit score, employment status, debt-to-income ratio and monthly income source. Checking these factors ensures a higher probability of timely loan repayment.

The interest rates for a personal loan are on the higher side to mitigate the risk involved with an unsecured loan.

Why Should You Choose a Personal Loan Without Security from Zype?

Zype offers a quick and hassle-free personal loan option that has a quick approval process, giving you instant access to funds. Here are its key features and benefits:

Quick Approval: The loan application takes under 6 minutes to complete. After approval, the loan is disbursed into your account within 24 hours.

Interest Rate: Interest rate starts at 1.5% monthly.

Flexible Repayment: Repayment is made flexible with repayment tenure of 6,9 and 12 months.

No Collateral: Zype provides unsecured loans without any collateral. No need to pledge any assets (like a car, property) to get a loan from Zype.

No Documentation: No need to submit any physical documents. You only need to provide basic details along with your PAN and Aadhar number for the loan application.

User-Friendly App: Zype app is available 24/7. A fully online process, no need for any branch visits.

Eligibility criteria for a document-free Personal Loan

Many lenders have hassle-free loan application without any physical documents required. Online platforms like Zype offer personal loans. The eligibility criteria to avail loan on Zype include

Age: Applicant should be 21 years and above

Income: The individual must be salaried with a minimum income of ₹15,000

Valid PAN and Adhaar card details

Credit score of 700 and above is required

Documents required to get approval on a Personal Loan without security

The documents required to get approval on a personal loan without security on Zype include

PAN and Aadhar details

Income proof like salary slips
Bank statement, if you want to apply for a higher loan amount

On Zype, you only need to submit the details of these documents online. No need to submit any physical documents.

What is the interest rate for a Personal Loan without Security?

The interest rate for a personal loan without security depends on the lender’s terms and the borrower’s credit profile. A Personal Loan without security (also known as an unsecured personal loan) comes with interest rates that generally range from 10% to 34% per annum.

The interest rate for a personal loan from Zype ranges from 18% to 36% per year, depending on your risk profile. The exact rate varies based on key factors like.

Credit Score: A higher credit score (700+) improves the chances of getting a loan at lower interest rates and favourable terms.

Income & Employment Type: Many platforms require a salaried individual with a minimum salary to avail of a personal loan. As the risk with a loan without security is high, lenders prefer individuals with a stable income source.

Loan amount & Tenure: Interest rates also depend on the loan amount and tenure. Opting for a higher loan amount or longer tenure may lead to slightly different interest rate structures. Compare multiple loan options to find the best option for you.

Debt-to-Income Ratio: Any existing debt also impacts interest rates. A lower existing debt burden improves your chances of securing a personal loan on better terms.

How to Get a Personal Loan Without Security in India?

You can avail a personal loan without security by opting for a loan from either a bank, NBFC or lending platform. Lending platforms like Zype offer personal loans at flexible repayment tenure. To get a personal loan without security on Zype, here are simple steps you need to follow:

Download the Zype App from Google Play Store / Apple App Store. You can avail the personal loan on Zype’s official website and apply for the loan.

Upon application, you need to provide basic details like name, number, and email address along with PAN and Aadhar card details.

Once the loan eligibility criteria are fulfilled, your loan gets approved in less than 60 seconds.

To unlock your loan limit, you are required to do a real-time selfie verification along with Aadhar details.

Once all these steps are completed, the loan is disbursed and deposited directly in your bank account.

Conclusion

A personal loan without security is basically a loan without any collateral. Such a type of personal loan is a good choice if you have a good credit score and a stable income source. It offers you access to quick funds that can be utilized for urgent financial needs like medical expenses, home renovations, travel costs, or gadgets. Compare lenders to choose the best option that fits your financial goal. To improve your chances of loan approval, maintain a good credit score, low debt-to-income ratio and stable income source.

Frequently Asked Questions

Can I Get A Loan With No Security?

Yes, you can get a loan without security with a personal loan. A personal loan is a type of unsecured loan that doesn’t require collateral or security. You get a loan based on your credit profile, income source and lender eligibility.

Is Security Required For A Personal Loan?

No, security is not required for a personal loan, as lenders rely on other criteria like credit score, employment status, and income sources to approve the loan.

Can I Get A Personal Loan Without Security If I Have A Low Credit Score?

Yes, it is possible to get a personal loan without security if you have a low credit score. Lenders may check other factors like employment status, and monthly income and you can even apply with a co-applicant who has a strong credit profile.

What Is The Maximum Loan Amount I Can Get Without Providing Collateral?

The maximum loan amount you can obtain without collateral varies by lender and their eligibility criteria. Check with the lender to understand their specific loan limits and terms.

How Long Does It Take For An Unsecured Personal Loan To Be Approved?

The time taken for an unsecured personal loan to get approved depends upon the lender processing time, eligibility criteria, accuracy of documents submitted, credit history and income evaluation. Typically, it can take from a few hours to a few days for the loan to get approved.

What Are The Repayment Options Available For Unsecured Personal Loans?

Repayment options for unsecured personal loans typically include equated monthly instalments (EMIs) with fixed or flexible tenures, ranging from 12 to 60 months. Some lenders also offer prepayment or foreclosure options with minimal charges.

What Happens If I Fail To Repay My Unsecured Personal Loan On Time?

If you fail to repay your unsecured personal loan on time, it may lead to loan default, and you are required to pay additional penalties for it. In extreme cases, the lender may take legal action or give your case over to collection agencies. Even a single loan default leads to a significant drop in your credit score, impacting your ability to avail any type of loan or credit in the future.