Unsecured Loans

What are Unsecured Loans?

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.

Features and Benefits of an Unsecured Loan

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:

Easy Application Process

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!

Easy Application

Use anywhere you like

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!)

Use anywhere you like

No Collateral Required

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.

Collateral free loans

Instant Approval

Zype loans are super-fast loans. After you have completed your application, you can get approved for a personal loan in 60 seconds!

Instant Approval

Quick Disbursal

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.

Flexible repayment options

Types of Unsecured Personal Loan

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 consolidate loan can help you. With this loan, you can clear all your outstanding repayments and protect your credit profile from any further kind of damage.

Eligibility Criteria for Unsecured Loans

Zype’s eligibility criteria is simple! You only need these to get approved for a personal loan:

Age
Age

18 years or above

Citizenship
Citizen of India

Valid PAN & Aadhaar card

Work experience
Work experience

Salaried individual

15000 Salary
Monthly Salary

Monthly income of at least ₹15,000

Documents Required to Apply for a Personal Loan

Apply for a personal loan up to ₹5 lakhs without any document upload or paperwork. This is all that you need to complete your loan application:

Mandatory documents

Proof of Photo Identity

You will need to complete a real-time selfie verification to complete a KYC on Zype after you’re approved for a personal loan.

Proof of photo identity

Mandatory Documents

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)

Proof of Income

Proof of Income (Optional)

You can also apply for a higher credit limit by uploading your bank statement for the last 4 months.

Factors Influencing Approval of Unsecured Loans

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:

Credit Profile

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.

Monthly Income

Your monthly income shows your ability to repay the money you borrow. Higher your income, higher will be your loan eligibility.

Employment Status

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.

How do Unsecured Loans Work?

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. 

How to Apply for Unsecured Loan?

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.

Frequently Asked Questions

What is an unsecured loan?

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.

What are the Interest Rates for Unsecured Personal Loan?

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.

What is a good credit score to qualify for an unsecured loan?

 Anything above 750 is considered as a good credit score to qualify for high ticket unsecured personal loan.

Can I repay an unsecured loan early? Are there prepayment penalties?

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.

How can I improve my chances of getting approved for an unsecured 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.