Unsecured Loans

There are many lenders in the country that offer unsecured loans to their customers. There are many top banks that offer personal loans and commercial loans to customers. There are also many other lenders who provide salary advance or instant loans to customers on a short-term basis. Let’s take a look at some of the top lenders in India who provide unsecured loans to customers.

Unsecured Personal Loans from Top Banks

1. ICICI Bank

ICICI is one of the top private banks in the country. The lender is renowned for a diverse range of loan products including personal loans.

Lender	Interest Rate	Minimum loan amount	Maximum Loan Amount
ICICI Bank	11.25% p.a. onwards	Rs.50,000	Rs.20 lakh

1. Loan disbursal within just 3 seconds for pre-approved customers
2. Flexible loan repayment tenure up to 60 months
3. Minimal documentation and hassle-free application process

2. HDFC Bank

HDFC is one of the biggest private lenders in the country. The transparent process in offering loans helps customers with easy access to personal loans.

Lender	Interest Rate	Minimum loan amount	Maximum Loan Amount
HDFC Bank	11.25% to 21.50% p.a.	Rs.50,000	Rs.40 lakh

1. Loan disbursal within just 10 seconds for pre-approved customers
2. Loan disbursal within 4 hours for other customers
3. Hassle-free application process

3. Yes Bank

Yes Bank has a diverse range of loans in its line-up. The personal loan offered by the bank comes with flexible terms for the benefit of customers.

Lender	Interest Rate	Minimum loan amount	Maximum Loan Amount
Yes Bank	10.75% p.a. onwards	Rs.1 lakh	Rs.40 lakh

1. Repayment tenure ranging from 12 months to 60 months
2. Loan disbursal within 4 hours for other customers
3. Option for transferring existing loans (with high interest) from other banks to Yes Bank

4. IDFC First

Capital First is one of the major financial institutions that offers loans to small and medium enterprises in India. The personal loan offered by the company comes with the following terms:

Lender	Interest Rate	Minimum loan amount	Maximum Loan Amount
Capital First	12% p.a. onwards	Rs.1 lakh	Rs.25 lakh

1. Flexible repayment tenure ranging from 1 year to 5 years
2. Online approval in just 2 minutes
3. Hassle-free loan application process

How to Apply for Unsecured Loans?

1. Company website: Almost all the top lenders in the market now provide their services through their websites. You can visit the official website of the bank and apply for a loan with your credentials.
2. Loan aggregators: There are third-party loan aggregators like Bankbazaar that can help you find the best deals available in the market. Here, you can compare the different loan products and choose the best product that suits your specific needs. In this way, you can check the interest rates and processing fees of different lenders before making a final decision.
3. Branch office: You may also visit the lender’s branch office and apply for a loan. With the advent of the Internet, this is not the most popular choice among today’s borrowers. However, if you are not Internet savvy, you may use this option to apply for a loan.

Factors Influencing Approval of Unsecured Loans

A bank or an NBFC will assess certain key aspects before deciding to give you a loan and which includes your income, credit history, job status, etc.

1. Credit history: Your lender will take a look at your previous credit behaviour in order to understand your repayment ability. They like to make sure that their borrowers are financially disciplined enough to repay loans efficiently. With a high credit score, you have more chances of getting your unsecured loan application approved.
2. Income: Lenders typically check your income to get an idea if you will be able to repay conveniently. Many lenders set a minimum income criterion to make sure that individuals with low income do not apply for their loans. You will be asked to provide documents such as latest payslips, offer letter, income tax returns, and bank statements to verify your income details.
3. Employment status: Your lender will be interested in knowing if you are a salaried employee or a self-employed applicant. They would also like to know if you have a steady source of income on a monthly basis. If you are a salaried applicant, you would have to provide your offer letter from your current organisation, relieving letter from your previous company, payslips, etc. to verify your job status. If you are a self-employed individual, you will most likely be asked to show proof of continuity of business and proof of business ownership.