Articles
Types of Unsecured loans
by Finway FSC Empowering People FinanciallyNo pledging of
collateral, and still getting a loan based on credit score is a matter of
pride. This clearly indicates that you have never been a defaulter and have
developed a stance in the financial market. An unsecured business loan is the best way to gain some extra finances that of course are
for a specific purpose. Let us get an insight into the unsecured business loan.
Approval: For this kind of loan, your credibility and credit
score is all you have to be good at. Completing the documentation that is
rather stringent is the way you get approved for this loan. You are free from
any collateral and the risk of losing it. However, it is important that you repay
the loan back to the bank on time.
Your income: When the banks are in the process of approving the
loan, they tend to understand the income and the consistency of the income.
Although the credit scores are there to justify your credibility, the current
status is clear only by observing the business balance sheet or the salary
receipt in case you are working.
Let us find out the types of unsecured loans:
Unlike loan against property, this loan is given after scrutiny is done to your documents.
The documentation is rather long since the bank's money is at
risk. Nevertheless, the kinds of loans are as follows:
1. Personal loans: These are unsecured loans and are taken for
various purposes. From personal use such as marriage, home renovation, or
buying white goods, this loan does not require collateral. It is this reason
why the interest is higher. This loan can be taken from NBFC's or banks,
depending upon the requirement.
2. Student loan: The typical education loan is of the unsecured
type. however, some banks do take collateral for education loan. Largely this
type of loan is unsecured.
3. Credit cards: Although, credit cards are considered plastic
money, they are kind of loans since you are taking everything at credit. A
small rate of interest is charged against the card and one can enjoy the
benefits seamlessly.
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About Finway FSC 
Empowering People Financially
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Created on Sep 4th 2019 01:43. Viewed 294 times.
