What are unsecured personal loans?
Unsecured personal loans are loans that don’t require collateral—like a car or house—to back them up. Instead, lenders rely on the borrower’s creditworthiness and financial history to decide whether to approve the loan and what terms to offer. Because there’s no collateral to claim if the borrower defaults, unsecured loans typically come with higher interest rates compared to secured loans. Online unsecured personal loans can be used for various purposes, such as funding home improvements, managing medical expenses, or covering any other unexpected expenses.
How an unsecured loan works
An unsecured personal loan is a type of loan that does not require any collateral, making it a convenient option for borrowers who do not want to pledge assets. Instead of security, lenders assess your creditworthiness based on factors such as your CIBIL score, income, and repayment history.
With instant unsecured personal loans, you can get quick access to funds for various financial needs, such as medical emergencies, home renovations, or debt consolidation. Many lenders offer online unsecured personal loans, allowing you to apply digitally, verify your details, and receive instant approval without visiting a branch.
Since these loans carry more risk for lenders, interest rates may vary depending on your credit profile. Maintaining a high CIBIL score, and a stable income can improve your chances of securing better loan terms.
Types of unsecured loans
An unsecured loan is a loan that does not require collateral, making it an ideal option for individuals who need quick access to funds. These loans are offered based on the borrower’s creditworthiness and repayment history. Some common types of unsecured loans include:
- Personal loans – Used for various expenses like medical emergencies, weddings, or travel, small unsecured personal loans are easily accessible with flexible repayment terms.
- Education loans – Offered to students for funding higher education without requiring collateral.
- Business loans – Unsecured loans designed for entrepreneurs and businesses to manage operational expenses or expansion plans.
These loans offer financial flexibility without the need to pledge assets. However, eligibility and interest rates depend on factors such as income, credit score, and repayment history.
Features of unsecured loans
-
Instant approval, disbursal in 24 hours*
With a quick approval process, your unsecured personal loan with instant approval gets credited to your bank account in just a day* after approval.
-
Flexible repayment plans
Get the option to repay your personal loan over a tenor of up to 96 months.
-
Large loan amounts
Get a personal loan of up to Rs. 55 lakh and manage your expenses with ease.
-
Lower EMIs with Flexi
You have the option to pay interest-only EMIs for the initial part of the tenure, giving you the chance to reduce your instalments.
-
Online account
Keep yourself updated with all your loan details on our customer portal – Bajaj Finserv My Account
-
As an existing customer of Bajaj Finserv, you can enter your basic details on our website and check the offers you are eligible for.
Pre-approved offers
An unsecured loan is a loan offering that doesn’t need any security or collateral. Lenders offering unsecured loans depend on the applicant’s credit score and other eligibility parameters to determine their creditworthiness.
You can choose to avail of an unsecured personal loan from Bajaj Finserv and use the funds to manage your small and big expenses. Borrow up to Rs. 55 lakh and repay the loan amount over convenient tenors of up to 96 months. And with the Flexi facility, you can lower your EMIs by up to 45%* for the initial part of your repayment tenor and make your instalments more manageable.
*Terms and Conditions apply
Interest rates for unsecured personal loans
Interest rates for unsecured personal loans vary widely, reflecting the borrower's credit profile and financial situation. Typically, personal loan interest rates for loans without collateral are higher compared to secured loans due to the increased risk for lenders. The interest on unsecured loans is determined by factors like credit score, income, and repayment history. For precise rates, you can explore options on a Bajaj Finserv website Use a personal loan EMI calculator to estimate your EMIs beforehand, which provides detailed information on personal loan interest rates and terms. Understanding these rates is crucial for managing the overall cost of borrowing effectively.
Eligibility criteria for an unsecured personal loan online
The personal loan eligibility check differs from lender to lender. You can qualify for a Bajaj Finance Personal Loan once you meet the five simple eligibility criteria mentioned below:
- Nationality: India
- Age: 21 years to 80 years**.
- Employed with: Public, private, or MNC.
- CIBIL score: 685 or higher.
- Monthly salary: Starting Rs. 25,001, based on the city you live in.
- *You should be 80 years** or younger, at the end of the loan tenure.
Documents required for unsecured personal loan
The documents required for personal loan can vary from lender to lender. Below are the documents that are required to be submitted when applying for a Bajaj Finserv Personal Loan:
- KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register
- PAN card
- Employee ID card
- Salary slips of the last 3 months
- Bank account statements of the previous 3 months
Eligibility criteria for an unsecured personal loan online
The personal loan eligibility check differs from lender to lender. You can qualify for a Bajaj Finance Personal Loan once you meet the five simple eligibility criteria mentioned below:
- Nationality: India
- Age: 21 years to 80 years*.
- Employed with: Public, private, or MNC.
- CIBIL score: 685 or higher.
- Monthly salary: Starting Rs. 25,001, based on the city you live in.
*You should be 80 years* or younger, at the end of the loan tenure.
How to apply for an unsecured loan
Applying for an unsecured loan online is quite simple. Begin by following these simple steps; you may start your application now and resume it at a later instance.
- 1 Click on ‘Apply Online’ to open our easy application form
- 2 Enter your 10-digit mobile number, and the OTP sent to you
- 3 Share your basic information
- 4 Check the loan amount you are eligible for and select the amount you wish to borrow
Our representative will call and guide you on the next steps.
Existing Bajaj Finserv customers can avail of unsecured loans without applying for a personal loan. If you have availed of a product from Bajaj Finserv before, you can check your pre-approved offer and get the money you need.
Loan applicants new to Bajaj Finserv can apply for an online personal loan by filling up a simple application form. If you are looking to avail of an unsecured loan, please click on ‘Apply Online’ to begin.
Frequently asked questions
A personal loan is typically unsecured, meaning it doesn’t require collateral such as a car or property. Lenders rely on your credit history and financial stability to determine approval and interest rates. This type of loan usually comes with higher interest rates compared to secured loans.
An unsecured personal loan is a type of loan that doesn't require collateral, such as a house or car. Lenders approve these loans based on the borrower's creditworthiness, income, and financial history. Because they lack collateral, unsecured loans often have higher interest rates than secured loans, like mortgages or auto loans.
If you have a good credit score and all your documents are in order, you can expect the unsecured loan to be credited to your bank account within 24 hours*.
*Terms and conditions apply
Your unsecured loan can serve a variety of needs. You can use the loan amount to meet the expenses for almost anything. From a home renovation project to consolidating your debt, managing a medical emergency, to wedding expenses, you can use your loan amount for almost any planned or unplanned expense.
Yes, you can prepay your personal loan by paying a marginal fee. You can read about personal loan interest rates.
No, checking your pre-approved offer or loan eligibility will not affect your credit score.
Your credit score is one of the most critical elements when it comes to your personal loan approval. Bajaj Finserv offers a free CIBIL score check to help you ascertain your credit score. Click to get started.
The choice between a secured loan vs unsecured loan depends on your financial needs. Secured loans require collateral and offer lower interest rates, while unsecured loans do not need collateral but may have higher interest rates.
