An unsecured loan is simply a loan that can be availed without the need of providing any security or collateral to the lender. In the context of personal loans, unsecured loans enable borrowers to meet their emergency financial requirements like impromptu vacation expenses, medical expenses, unexpected home renovations, laptop purchase etc. without having to pledge their assets with the loan provider. It’s worth noting that an unsecured loan can be of many types and a personal loan is only one of them.
The unsecured personal loans offered in India can vary from as low as ₹ 8000, going up to ₹ 40 lakh, and sometimes even more. The repayment tenure can be anywhere from 3 months to 5 years, depending upon the borrower’s convenience and lender’s flexibility. However, loans with longer tenures usually feature higher interest rates.
Time has shown that despite the decline in consumer credit growth, unsecured personal loan is one product that has witnessed consistent growth all along. Many wonder the reason behind this constant increase in consumption credit. Is it because of lenders pushing such loans, owing to weaker growth in other segments like home loans and auto loans? Or is it because of consumers funding more and more of their needs with such product.
Experts believe that unsecured personal loans doing continuously well, and being always in good demand, has a lot to do with the change in the consumers’ mindset. People nowadays seek small ticket loans to fund purchases such as mobile phones, laptops and other consumer durables. In essence, they don’t view it as a conventional loan per se; but simply as an easy means to obtain finance. There has been a shift away from accessing such credit only for one-time big expenses like home renovations, medical needs, weddings, vacations etc. to also using it for regular purchases.
Furthermore, there are some more factors that make these unsecured personal loans extremely popular. They can be easily accessed without the need of any collateral, and have a low processing time. In addition, the fact that you don’t need to submit heaps of documents to avail these loans also contributes to their success. Last but not the least, platforms like GoSahi play a huge role in the popularity of such products, making it easier for the borrowers to select the right one, based on their needs. On the whole, these loans are rapidly transforming the Indian lending industry, by doing continuously well regardless of the economic conditions.
When it comes to comparing unsecured loans in India, GoSahi is emerging as the go-to platform for a great multitude of prospective borrowers. The platform is extremely user-friendly and can be easily used even by people who have never tried such comparison portals before. The borrowers are asked to input nothing more than a few basic details, and are then provided with the best unsecured personal loan offers from all types of lenders including banks, NBFCs and more.