Unsecured loans are highly sought after in this recessionary economic climate.
Unsecured loans are more popular than secured loans because you don’t need any property to get an unsecured loan. You don’t need to give any documents. In many cases, you can easily obtain an unsecured loan online, from the comfort of your bedroom
Secured loans on the other hand require appropriate documentation to secure the loan against a property such as land, house or car. In other words, you need some collateral for secured loans.
There are many NRIs or Indians living overseas who don’t have land, house or car to secure a loan. They may not have a clean credit record too. Such people can get unsecured loans which are often provided with no credit check.
If you are looking to obtain an unsecured loan, what should you do?
Many banks, non-banking financial institutions and pawn brokers provide plenty of information on their websites.
Borrowers should read the fine print on the websites and familiarize themselves with all the terms. They should visit the websites of at least three lenders and compare rates and terms.
Once they decide on the borrower, all that they have to do is fill up an online form with personal details such as name and address, income source if employed, phone number, email, postal address and bank account details.
Once the application is submitted, lenders get back to the borrowers in a very short time. In most cases the turnaround time is less than 24 hours.
There are a few minimum conditions that most people will be able to fullfill easily to qualify for a cash loan:
1. You must be above the age of 18.
2. You must be the citizen of the country. In some countries, even green card holders or permanent residents can get cash loans.
3. You must meet the minimum income requirements; high income earners find it easier to get a loan.
4. You must have a bank account.
If you have a sizable overdraft on your credit card, and are struggling to pay your credit card debt, then unsecured loan can be a good option, if you get the loan on good interest rate.
–Simon Ronster is a financial planner based in Sydney. If you have any questions about obtaining loan, please send a message.