An emergency situation or a down payment for the house can make you in dire need of funds without any prior notice. This is why unsecured personal loans are of utmost importance. A personal loan is a type of unsecured loan and can be applied at any point of time. Unlike the secured loans wherein you keep a property as mortgage with the bank, in unsecured personal loans there is no limitation as to where you have to use the money.
Advantages of Applying for Unsecured Personal Loans
- You do not need to provide any security to the bank as it is an unsecured type of loan.
- The documentation process is very easy, quick, and hassle free.
- You can choose the tenure of the personal loan which can range from 1 year to 7 years.
- You do not have to entail in regards to the usage of the funds as, unlike other funds, you can use it wherever you want to.
- You can even claim the deductions on the interest part in case of loan being applied for construction, renovation or repair.
Criteria for Applying Unsecured Personal Loan
Any bank or a financial agency approves the unsecured loan based on the following criteria:
- The income of the borrower: The income determines the monthly repayment which should not exceed more than 30% of his income. The bank or any financial lending agency will set a limit which is comfortable for the borrower to pay back in case of EMIs.
- The profession of the borrower: The bank will also check the company with which the borrower is employed so as to ensure a steady flow of monthly income in case of the EMIs.
- The credit score and history of the borrower: This will ensure the lender that the borrower hasn’t dealt with any type of debts in the past and can meet the basic criteria for paying EMIs.
Antworks Money is the best financial institution that provides you with an easy home loan in Delhi along with other types of loans. You can easily compare and save money on the interest payable. The interest rates are low and so the paying back of the EMIs is very easy for the borrower.