Unsecured Loans

Unsecured loans help you manage planned or urgent expenses without pledging any assets. If you are looking for a financing solution that is quick and simple, an online unsecured personal loan can help you cover medical bills, travel, home repairs, or other short-term needs.

These collateral-free personal loans are approved based on factors like income, repayment history, and credit score, rather than property or gold. This makes unsecured loans a practical option when you want funds without risking your assets.

What Are Unsecured Personal Loans?

Unsecured personal loans are loans where you do not provide any security to the lender. It is a personal loan without collateral, which means your house, car, or savings are not pledged.

You can apply for an unsecured personal loan to support various financial needs, including weddings, education, or emergencies. Many borrowers now prefer an online loan because the application process is simple, quick, and requires minimal personal loan documents.

Features and Benefits of Unsecured Loans

The features and benefits of unsecured loans are:

• Both salaried and self-employed individuals can apply for unsecured loans
• You can avail a loan amount of up to Rs. 30 lakhs*
• Interest rates are as low as 13%* per annum
• Tenure is between 12 and 60 months
• You can foreclose the loan after payment of the initial 6 EMI

How Does an Unsecured Loan work?

An unsecured loan work process is straightforward. You submit an application form (online or offline) with your personal and financial details. The lender then checks your personal loan eligibility, including your income, existing debts, and cibil score. Since this is a collateral-free personal loan, you do not need to offer any assets. Once approved, the sanctioned amount is credited to your account, and you repay it through monthly EMIs over your chosen loan tenure.

Types of Unsecured Loans

Here are the common types of unsecured loans:

• Personal loan for weddings, travel, or home needs
• Medical personal loan for hospital expenses
• Education-related personal loan
• Small unsecured personal loans for short-term needs
• Personal loan for self-employed professionals like doctors or chartered accountants

Interest Rates for Unsecured Personal Loans

The personal loan interest rates online start from 13%* per annum for salaried borrowers. Some of the other factors we consider to determine the rates are your net income, age, location, existing monthly obligations, nature of employment (salaried or self-employed person), etc.

**Assuming a loan amount of Rs. 50,000 and an interest rate of 13% per annum.

Documents Required for an Unsecured Personal Loan

The list of documents required for a personal loan application includes:

• PAN card or Form 60 of the applicant and co-applicant (if any)
• Recent passport-sized photographs
• Completed personal loan application form
• Age proof (Passport/PAN card/Certificate from a statutory authority)
• Identity proof (Driving license/voter ID card/Passport/PAN card)
• Address proof (Telephone bill/electricity bill/Passport/driving license/ration card/rental agreement/bank statement or passbook)
• Salary slips/proofs of the last 3 months or bank passbook/statement of the last 6 months
• Form 16
• Income tax returns
• Processing fee cheque

NOTE: The documents required for a personal loan may vary depending on the applicant’s profile and employment, as well as SMFG India Credit’s policies at the time of loan application.

Eligibility Check for Unsecured Personal Loans

An unsecured loan eligibility check is essential before you apply, as it helps improve your approval chances.

Basic requirements to apply for an unsecured loan online include:

• Age between 21 at the time of application and no more than 65 at loan closure
• Resident Indian applicant
• CIBIL/credit score of at least 705 (700 for self-employed applicants)

For Salaried Professionals:

• You must be an employee of a public sector undertaking (central, state, or local body) or a private limited company.
• Your monthly income must be at least Rs. 25,000 if residing in Mumbai or Delhi.
• Your monthly income must be at least Rs. 16,000* if residing in any other Indian city.

For Self-Employed:

Your yearly income should satisfy SMFG India Credit’s policy at the time of loan application. Please note that this amount is different for each applicant, depending on other factors such as location, loan amount required, etc. Financial statements that show stability of income are required.

Before applying, consider using a personal loan eligibility calculator. It helps you understand your borrowing capacity, and apply more confidently with the right loan amount in mind.

How to Apply for an Unsecured Loan?

Here is a step-by-step guide for an unsecured personal loan application at SMFG India Credit:

1. Verify Your Mobile Number: Share basic details such as your mobile number, PAN, pincode, and employment type (salaried or self-employed). Confirm your number by entering the OTP sent to your phone.
2. Enter Your Basic Information: Provide additional details including your monthly income and existing financial commitments.
3. Choose Your Offer: Based on key criteria such as income, current obligations, and credit score, you will receive a suitable loan offer. Select the one that fits your needs.
4. Complete KYC and Submit: Finish your digital KYC. Depending on our policy at the time of application, you may also need to upload a few documents.

Applications for loan amounts above Rs. 2.50 lakhs* will undergo further processing. A representative will reach out if any clarification is required.