A personal loan is the money you can borrow to cover any kind of your financial needs. There are different types of loans like education loan, home loan, travel loan, etc. available in the market to meet the diverse needs of people. Based on the terms of borrowing, they’re divided into 2 types – secured loans and unsecured loans.
An unsecured loan is a personal loan where you don’t have to provide any kind of asset like gold, jewelry, car, etc. to get access to the money. You can also use this loan anywhere you like without any restrictions on the end usage. Most personal loans are unsecured loans.
Want an unsecured loan? Look no further because Zype offers personal loans up to ₹5 lakhs starting at 1.5% monthly interest rate. But there are more reasons to choose Zype:
Unsecured loans don’t require a lot. Just submit the required personal details and required documents.
And on Zype, you don’t even have to do any paperwork. Submit some basic information like your PAN and Aadhaar and complete the application in just 5 minutes!
Whether you need cash for an emergency or just want to splurge on yourself, there is no restriction on the end usage of Zype personal loan. You can get instant access to the money you need and use it anywhere you like (no questions asked!)
Zype offers unsecured loans which are collateral-free loans. This means you don’t have to provide any documents to get access to the money you need.
Zype loans are super-fast loans. After you have completed your application, you can get approved for a personal loan in 60 seconds!
Once you’re approved for a personal loan from Zype, you need to complete a 3-step KYC. After that, you will receive the money directly in your registered bank account in 24 hours.
You can apply for an unsecured loan with any NBFC or bank. To complete your application, you will need to submit your personal information and documents required by your lender. The lender will assess your credit profile and check the eligibility for your loan based on which you will get a credit offer. After you’re approved, you have to accept the offer and the loan terms. You will then receive the money directly into your registered bank account shortly. You will then have to repay the loan with interest over a period of time, as per your loan agreement.
Unsecured loans are a popular choice among borrowers and these loans are granted based on your creditworthiness, income stability, and repayment capacity. Unsecured loans can be of different types:
Personal loans from Zype are a type of unsecured loan that can be used for multiple purposes and are collateral-free. From getting funds for emergency medical situations to getting funds for planning your dream vacation, you can opt for a personal loan in a short period with just a few clicks online
Credit cards are another popular option for an unsecured loan. Individuals are eligible for loans based on their creditworthiness. The upper credit limit is decided based on that.
These loans are specially designed for students so that they can complete their educational goals. These loans are mostly accessible at attractive interest rates and professionals assist students to get financial support for their education.
Unsecured loans are loans which do not require any collateral, making them accessible and easy for many borrowers. Check out the few common examples:
1. Unsecured personal loan:
One of the most popular choice is unsecured personal loans. It can be used for various purposes like home renovation, medical emergencies, or any urgent personal
Unsecured loans are loans that do not require any collateral, making them accessible and convenient for many borrowers. Here are some common examples:
2. Personal Loan for Home Renovation:
This is one of the most popular types of unsecured loans. It can be used for various purposes like home renovation, medical expenses, or even a vacation. The loan is based on your credit score and income without needing any security.
Understanding these examples can help you make informed decisions when considering an unsecured personal loan.
3. Credit Cards:
Credit card debt is another form of an unsecured loan. You can borrow up to a certain limit and repay the amount with interest over time.
4. Student Loans:
Some student loans are unsecured, meaning they don’t require collateral. These loans are used to cover educational expenses and are typically based on the borrower’s creditworthiness.
5. Personal Lines of Credit:
This is a flexible unsecured loan where you can borrow money as needed up to a predetermined limit, repaying only what you use.
Understanding these examples can help you make informed decisions when considering an unsecured personal loan.
Before you receive a loan approval, the lender will assess your credit profile based on which you will get a loan amount. There are some important factors that determine this amount:
To check your loan eligibility, the lender will go through your credit profile. This includes all your credit-related information like your credit score, repayment history, etc. A high credit score and clean repayment history indicates that you have a strong credit profile which increases your chances of getting a loan.
Your monthly income shows your ability to repay the money you borrow. Higher your income, higher will be your loan eligibility.
Different lenders have different eligibility criteria to give personal loans. Employment status is one such factor that can look different across lenders. While some offer personal loans to only salaried individuals, many give to only self-employed.
Personal Loans : The most common type of unsecured loan is a personal loan. To apply for this loan you have to complete a simple application by providing the required information and documents, depending on the lender. Once you’re approved, you will receive the money in your account after you accept the offer and the loan terms.
Education Loans: You can fund your higher education with an education loan. This is a collateral-free loan where you don’t have to repay anything for a specific period of time, depending on the agreed terms.
Consolidate Loans: If you have a lot of ongoing debt, taking a loan can help you to consolidate personal loan. With this loan, you can clear all your outstanding repayments and protect your credit profile from any further kind of damage.
When you’re applying for a personal loan, you may come across two types of interest rates:
18 years or above
Salaried individual
Valid PAN & Aadhaar card
Monthly income of at least ₹15,000
If you want to get the lowest personal loan interest rate, it’s important to know the factors affecting them.
You will need to complete a real-time selfie verification to complete a KYC on Zype after you’re approved for a personal loan.
You will need to enter your PAN & Aadhaar number along with a few basic details to get a loan offer & to complete your KYC to activate your credit line. (Physical documents not required)
You can also apply for a higher credit limit by uploading your bank statement for the last 4 months.
When you take unsecured loans, you have to pay it back with interest. The interest you pay on your loan is what determines the affordability of your loan. When you’re choosing your loan provider, make sure you compare the interest rate you’re charged to ensure you’re getting the best offer. The interest rate depends on various factors like your credit score, repayment history and monthly income.
Looking for an affordable unsecured personal loan with transparent terms of borrowing? Zype offers complete transparency on all the charges associated with taking a loan.
| Fees & Charges | Amount Chargeable |
|---|---|
| Interest Rate | Starting at 1.5% (monthly) |
| Loan Processing Charges | Processing fees from 2% to 6% on every loan |
| Penalty on Overdue EMIs | Penal interest and late fees will be charged to your total outstanding loan on a daily basis |
10,000
1,00,000
1
34
1
72
When you are applying for an unsecured personal loan, it is important to ensure that you don’t face any issues during the process. Firstly, you must avoid applying for too many loans simultaneously, as this can severely impact your credit score. Another thing that you should keep in mind is to read the fine print carefully. Understand the terms and conditions of the unsecured loans to avoid any hidden fees and clauses. Another thing is to avoid borrowing more than you need. This leads to higher repayment amounts and financial strain.
Additionally, ensure that your credit report is accurate and up-to-date before applying, as a poor credit history can affect loan approval and interest rates. Finally, avoid ignoring your budget; make sure you can comfortably manage the monthly payments before committing to an unsecured loan. By steering clear of these mistakes, you can secure a loan that best suits your needs and financial situation.
On Zype, you can apply for unsecured loan in less than 5 minutes with no document uploads or paperwork.
Here are 6 simple steps you can follow to take a personal loan from Zype:
1) Download the Zype App from AppStore or PlayStore and complete your sign up.
2) Add your basic details like name, phone number and PAN.
3) Get approved for your credit line based on your profile.
4) Complete a quick selfie verification and Aadhar linked number OTP to complete your KYC.
5) Choose the loan amount you want to take from your credit line along with your desired repayment tenure.
6) That’s it! You will receive the loan amount directly in your registered bank account.
When you take a personal loan without providing any collateral against the money you borrow, it’s known as an unsecured loan. Most personal loans are unsecured loans.
The unsecured loan interest rate you’re offered on your unsecured personal loan depends on various factors like your credit profile, monthly income, and your ability to repay the loan. Zype offers personal loans starting at just 1.5% interest rate.
Anything above 750 is considered as a good credit score to qualify for high ticket unsecured personal loan.
Yes, there are many lenders who offer unsecured loans to self-employed individuals. You can increase your chances of getting a loan approval if you have a stable income, high credit score and a clean repayment history.
The loan tenure offered on unsecured personal loans depends on the lender and the eligibility of the borrower. The loan tenure can range anything between 6 months to 5 years, depending on various factors like the type of loan, loan amount and the lender. On Zype, you can pay back your unsecured loans in 6, 9 or 12 EMIs.
The extra charges and penalties associated with the prepayment of your loan depend on your lender. On Zype, there are no extra charges or penalties for prepaying your loan.
You can improve your chances of getting approved for an unsecured loan by improving your credit score, paying your EMIs on time, and increasing your monthly income.
Anything above 750 is considered a good credit score to qualify for unsecured loans. However, there are lenders who offer loans to people with lower credit scores. Such borrowers will have to pay a high interest rate on their loans.
These are the main parameters for unsecured personal loan eligibility:
Credit Score
Repayment History
Monthly Income
Usually, lenders charge a processing fee to cover their administrative costs for processing the loan. This fee depends on your loan eligibility. On Zype, the processing fee you’re charges on your loans can range anything between 2-6%.
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