Unsecured Loan
Unsecured loans can come in handy when dealing with urgent financial needs. Life can be
unpredictable, and it is important to know your options when you need quick financial
assistance. Unsecured loans, unlike secured financial loans,
are quicker, have less paperwork, and provide you with a loan in no time, saving you from any
such financial burdens.
But how do these loans work, and how do you apply for an unsecured loan? Let us understand.
Understanding unsecured loans
Unsecured loans are loans that do not require any collateral for loan approval. A collateral
means pledging assets such as jewellery, vehicles, real estate property, or any other valuable
possession where the amount of the loan depends
on the market value of that asset. However, unsecured loans do not require you to pledge your
assets, giving you access to higher loan amounts.
How does an unsecured loan work?
Since there are no collaterals, these loans are lent depending on factors such as your credit
score, net income, existing loans, and repayment capacity. You can be eligible for a loan amount
higher than your requirement or sometimes
lower, depending on your financial history.
You can apply for an unsecured Personal Loan to fund a home renovation project, pay an education
fee, cover wedding expenses, or even medical expenses. However, since unsecured loans do not
require collateral, the interest rates tend
to be higher than secured loans. Some examples of unsecured loans are Credit Cards, Personal
Loans, and small education loans.
Features and benefits of an emergency loan
High-value unsecured loan
Emergency loans are unsecured loans that do not require you to pledge
collateral. This gives you access to higher loan amounts without worrying
about the loan sanction limit, which would otherwise depend on the
collateral value.
Flexible repayment plans
Unsecured Personal Loans usually offer a longer repayment tenure, which gives
you the flexibility to manage your finances and plan according to your
affordability. Axis Bank’s unsecured Personal Loans offer
loan tenures ranging from 12 months
to 84 months, so you can choose what is best for you.
Online account
You can track the EMIs, other progressions, and details of your unsecured
loans online by visiting your customer portal. This gives you 24x7 access to
the information you need without visiting or contacting your
bank for updates.
Lower EMIs with flexi options
Unsecured loans allow you to pay interest-only EMIs at the initial part of
your tenure, which lowers your monthly payments. However, it is important to
check these charges beforehand to ensure affordability.
Click here to check your loan
EMIs with Axis Bank.
Large loan amounts
If you have high credit scores, a stable income, and a strong loan repayment
history, you might be eligible for unsecured loans of up to Rs 40 lakh with Axis Bank.
Instant approval
Since there is minimal paperwork involved, unsecured loans provide you with a
quick approval process, so the loan amount gets credited to your bank
account within hours.
Pre-approved offers
If you already have a pre-approved offer, you can explore your opportunities
by simply entering your basic details on the Axis Bank website and
sanctioning a loan of your choice.
Pre-approved offers
You can streamline the application process by providing your name and contact
information to your bank and accessing pre-approved offers. This simplifies
the procedure, enables quicker access to various services
or products, and saves you time and effort in the process.
Types of unsecured loans
Revolving loan
A revolving loan allows you to borrow, repay, and borrow again within a
preset credit limit. You can partially or fully use your limit, and it gets
restored after repayment. An example of a revolving loan is your
credit card.
Term loan
With a term loan, you receive a lump sum at a fixed interest rate that you
repay in regular instalments over a set period. This is ideal for major
purchases that require higher funds.
Consolidated loan
A consolidated loan helps you combine multiple debts into one, easing
payments and potentially lowering interest, offering relief during financial
crunches.
Application process for an unsecured loan
- Visit Axis Bank’s unsecured Personal Loan
page and click on the ‘Apply Now’ tab
- Fill in your contact number, and date of birth or PAN number to log in
- Enter the OTP received on your contact number
- Consent to sharing your personal details in order to verify your documents
- Upload your salary slips and bank statements from the last six months
- Finalise your loan application by completing the eKYC and video KYC procedures
