Unsecured loans have an attraction of their own. You do not need any collateral and still they help you in countless situations. Unsecured loans can be used for buying a car, debt consolidation, home improvement, holidaying, education, wedding, etc.
Since unsecured loans do away with the condition of security, lenders want to make it doubly sure that any borrower who takes out unsecured loan has the ability to repay the loan amount.
The bases on which unsecured loans are granted Include:
* Credit history of the borrower
* Income of the borrower
* Repayment ability of the borrower
* Goodwill/creditworthiness of the borrower in the financial market
Unsecured loans are available in the financial market in the form of unsecured personal loans, unsecured liability consolidation loans, unsecured home development loans [http://zatpatloans.com/home-loans.php], unsecured wedding loans, etc. Like all other unsecured loans, the lenders impose greater limits here also. The deficiency of collateral makes the lender wary of his loan amount. Although the lender has legal options open to him in case of non-repayment of the loan amount by any borrower, this process is quite a extensive one. That is why lenders charge more interest rate and try to minimize their risk in case of unsecured loans.
As from the point of view of the borrower, unsecured personal loans are very much beneficial. Firstly, there is no limitation on its practice. Borrowers can use unsecured personal loans for any purpose they want. Secondly, unsecured personal loans help borrowers in avoiding the risk by eliminating the requirement of security.
Normally, unsecured loans can be availed from INR 2,00,000 to INR 25,00,000. The amount of loan is diverse in case of different loan plans. Every lender has several loan plans and they float them in the market to categorize their financial products from the products of the other lenders. So, it is always improved to compare different loans and arrive at a good finish.
The author is business writers specialize in finance and credit products and has written trustworthy articles on the finance industry. She has done masters in Business Administration and is currently secondary online-unsecured-loans as a finance specialist.
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