You probably think of your savings whenever you need extra funds, such as during medical emergencies or sudden travel plans. However, when you do not want to drain your savings, you can apply for an unsecured personal loan from an NBFC to get a quick lump sum for the necessary expenses.
Before you apply for an unsecured loan, you must thoroughly understand the loan application process. Why? Because even one little mistake can lead to approval delays or outright rejection of your application.
What is an Unsecured Loan: Discover Features, Benefits, Types
Unsecured loans don’t require you to pledge any collateral, such as property, a vehicle, or other assets as security. That’s why they are also known as collateral-free loans. They are typically available at competitive interest rates, and repayment is usually done through equated monthly installments (EMIs). A few common types of unsecured loans include:
- Unsecured personal loan (ideal for medical emergencies, travel, home renovations, weddings, debt consolidation, and more)
- Unsecured education loan (used to cover higher education expenses)
- Unsecured business loan (supports operational expenses and business expansion)
In addition to the fact that you have no risk of losing assets, borrowing an unsecured loan has many more advantages:
- Easy eligibility criteria
- Minimal documentation
- Easy online loan application process
- Quick application approval
- Prompt access to funds
- Comfortable repayment tenure
- Flexible usage for small or big expenses
A 5-step process for applying for an unsecured loan
Whether you want to apply for an unsecured education loan to fund your child’s studies abroad or an unsecured personal loan for an unexpected trip, the application process for every type of loan is the same. Carefully read and follow the five steps illustrated below:
Step 1: Research your options
First and foremost, you must conduct thorough online research to find out about esteemed non-banking financial companies (NBFCs) offering unsecured loans. It is also a good idea to ask your family or friends for their recommendations. You can filter out the available options and zero in on the right fit using the following questions:
- Is the NBFC registered with the RBI?
- Is the NBFC transparent about its interest rates, charges, and fees?
- Is the NBFC technologically-forward, offering online applications and account management?
- How quickly do they process loans?
- Does the NBFC have positive ratings and reviews?
Step 2: Check your eligibility
Once you select your lending partner, go to the company’s website, navigate to their unsecured personal loan page, and check whether you can apply. For instance, Manba Finance has charted out a straightforward personal loan eligibility criterion:
- You must be between 18 and 60 years old
- You must be an Indian resident
- You must have an operative bank account
Additionally, having a good credit score, employment at a reputable company, and a stable monthly income can significantly boost your personal loan eligibility.
Step 3: Gather the required documents
Documentation is crucial for any type of unsecured loan you choose to borrow. It helps the NBFC verify your identity and prevent fraud. You mainly require three documents: one proof of identity, one proof of residence, and one proof of income.
- Any one proof of identity with date of birth (Pan card, Aadhar card, passport, voter ID)
- Any one proof of residence: (Self/parental electricity bill, purchase agreement, property tax, utility bills, rent agreement, allotment letter)
- Any one proof of income: (Previous 3-month salary credit bank statement and salary slip for salaried professionals, or latest assessment year IT filed and business proof for self-employed professionals)
Before you start the application process, have physical and digital copies of the necessary documents ready.
Step 4: Click ‘Apply Now’
The unsecured loan application form takes less than a minute to fill out. At Manba Finance, here’s all the information you will need to provide:
- Personal details (name, email, phone, location)
- Type of unsecured loan (in this case, select personal loan)
- CIBIL score (between 500-650, 650-720, or 720-800)
Step 5: Complete the onboarding process
Once you finish the initial application form, the company’s representative will contact you and help you submit documents, e-sign the agreement, complete e-mandate formalities, and execute the disbursement.
Get an unsecured personal loan with Manba Finance!
A personal loan can be your savior if you face unexpected expenses or expect them soon. Manba Finance offers collateral-free loans between ₹20,000 and ₹15 lakhs with a flexible loan tenure of 1-5 years.
Submitting an error-free loan application guarantees the loan amount in your account within 48 hours! For more information on what is an unsecured loan, unsecured loan examples, or other queries, contact us today.
