A personal loan is a definite solution for many financial problems today. Medical emergencies, marriage expenses, a long-planned vacation, or any personal requirements need not be kept on hold anymore. Today, most of the leading financial institutions offer personal loans at attractive interest rates with flexible repayment tenures. The best part about personal loans is that there is no requirement of any collateral for securing these loans. Financial providers look at your credit score, your debt management history, and your current flow of income to appraise your personal loan.
In situations when there is dire need for funds, an unsecured personal loan is indeed an ideal option. There are also secured personal loans, which need to have an asset pledged against them. Unsecured loans can be easily availed by borrowers with high credit scores. If you have a good credit standing, there is no requirement to show any collateral to the banks in case of an unsecured personal loan.
Checking your credit score
Before applying for an unsecured Bajaj Finserv personal loan, be sure to check your credit score. If you are not aware of your credit score, you can check the same through various sources like CIBIL, Experian etc. There are many online resources, which will give you your credit score. The credit bureau will also give you the credit score each year through a report. Once you get your credit score, you will understand whether it is good enough for you to avail of an unsecured personal loan. You can also improve your existing credit score by paying your bills on a timely basis and repaying off any existing unpaid loan.
Advantages of an unsecured personal loan
The benefits of an unsecured personal loan for the borrower and lender are as follows.
Benefits to the borrower
- No need to pledge any asset
It is very liberating to know that you need not worry about pledging any of your assets for the loan. Therefore, you are free from the fear that the lender may permanently seize your asset. There are borrowers, who have a good loan repayment capacity owing to stable income and good credit history, but they do not have assets to offer as collateral. In these situations, an unsecured personal loan is the best option.
- Financial discipline
Another benefit of the unsecured Bajaj Finance personal loan is that it inculcates a sense of discipline in you. You are more watchful about your expenses and cautious about taking on unnecessary credit. You constantly try to improve your credit score, which helps to foster healthy financial behavior in the long run.
- Minimal documentation and lower interest rate
These loans require minimal documentation and are very easy to process. Since the application processing is so quick and hassle-free, the loan approval is also quick. The interest rate on such loans is also lower than usual because of a high credit score.
Benefits to the lender
Granting an unsecured loan requires a lot of trust, especially on the part of the lender. The lender needs to do a thorough check about the credit standing about the borrower before approving the unsecured loan. However, once he grants a loan he can be assured about associating with someone who has a high credit standing and knows how to honor the repayments. Hence, the risk of default is minimal.
Why you should ensure transparency
While a good credit score may help you to get the loan, you need to ensure timely repayment to maintain your credit health. If you have a strong credit history, you will be eligible for loans in the future as well. In case there is any glitch in honoring the payments, make it known to the lender beforehand. If you have suddenly lost your job or undergoing any unforeseen financial difficulty, intimate it to the financial provider and try to rework the terms of credit accordingly. An unsecured personal loan works in the best interest of both when there is complete transparency.
With Finserv MARKETS, applying for a Bajaj Finserv Personal Loan is easy, convenient and completely hassle-free. What’s more? The entire process is online and can be processed right from the comfort of your home. So why wait? Avail your personal loan with Finserv MARKETS, today!
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”