Published on Jan 21, 2021Updated on Oct 15, 2026
Whenever you need funds for some purpose, you are likely to take a loan. Thus you don’t need to redeem your investments or savings. The process of taking a loan has become convenient over the last few years. There are multiple types of loans being offered by lenders for a variety of purposes.
If we focus on personal loans itself, there are different types of personal loans being offered by lenders. Some of the most popular types of personal loans are listed below:
Due to the enhanced popularity of personal loans among individuals, you can even get a personal loan by filling out an online application form with all the necessary details. Once you fill out all the details and enter the principal loan amount, interest rates, and the tenure of the loan, you would be contacted by an executive from the bank, and they would disburse the loan within 24 hours.
Personal loan is a form of unsecured loan. Does it make sense to avail an unsecured loan? Let us check out the pros and cons
Whenever you opt for a loan, you need to keep something as collateral. But, if you opt for taking an unsecured loan, you don’t need to pledge collateral. You won’t need to pledge any property, vehicle, or other assets as collateral to get an unsecured loan. This is a pretty risky loan for the lender as he does not possess any leverage over the borrower. This is the reason why a borrower needs to have a pretty high credit score for being eligible for getting an unsecured loan.
There are three types of unsecured loans being offered by the banks or other financial institutions.
Must Read: Secured Loan Vs. Unsecured Loan: What is the Difference?
Must Read: How Many Types of Unsecured Loans Are Available in India
There are plenty of things to look at before taking an unsecured loan. From the above list of pros and cons, you would be able to decide whether it is a good option for you to take up an unsecured loan or not.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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