Over recent years, unsecured personal loans have gained a bad reputation within the financial ecosystem. However, the popularity of unsecured personal loans among the general public has also skyrocketed. Let’s take a look at unsecured loans, as well as the benefits of unsecured personal loans you probably didn't know about.
What are unsecured personal loans?
Unsecured personal loans are personal loans given by financial institutions (like OnCredit) without requiring collateral or much documentation. This means that you can be eligible for unsecured personal loans without needing to provide proof of assets. Unsecured loans are usually of small amounts with shorter repayment periods than secured loans provided by Banks or other Financial institutions.
What is the difference between secured and unsecured loans?
There are a few key differences between secured and unsecured loans. Most traditional banks or financial institutions do not offer unsecured personal loans, opting only for the traditional secured loans where you need to provide extensive collateral such as your vehicle or the title of a piece of property. In the event you are unable to pay back your personal loan, they will take ownership of those assets. Secured loans are unyielding and a long-term financial commitment. More often, it is also called asset backed loans, since they are always collateral based. For more information and better understanding you can watch this video
On the flipside, you have unsecured personal loans which are the opposite of secured personal loans. It is known to be the most convenient type since they are usually short term, consisting of smaller ticket sizes to finance an emergency need. Unsecured loans are also known to be mostly online, making the process much easier and convenient for customers to take advantage of in case of an emergency. They also promise to provide the loan credited to your bank account within an hour of application.
Here are some of the key benefits of opting for unsecured personal loans provided by financial institutions like OnCredit, compared to traditional secured personal loans.
Easy
Applying for unsecured personal loans from OnCredit can’t get any easier. You can do it from the comfort of your own home without having to even leave your seat. The concept is known for its simplicity and being remotely available, making it available for customers to use anywhere, anytime. You can easily start off the process by simply visiting the website, enter the amount required, submit the required photos (just a selfie and a photo of your National Identity Card) and await your verification phone call. The instructions are also given in multiple languages on a website that is responsive to all devices. Even the most unsavvy person or first-time personal loan taker can easily figure out the entire process. Yes it is that easy to work with
Quick
If you need an instant personal loan, unsecured personal loans are definitely your best bet. Due to the incredibly-simple process, the entire application process can be completed within a matter of minutes and you may even find yourself with cash in hand within just a few hours. If you look at OnCredit’s process itself, it takes just under 5 minutes to complete the application process. Upon finishing the application process, you can expect a call from their own verification team who will verify the details entered by you. You can expect this call in under 30 mins. Upon completion of verification, if you are approved, you will have the money in your bank account within the next 30 mins. Usually within 5 minutes you will receive the cash to your bank account.
Short-term
Secured personal loans often stretch out for many years whereas unsecured loans are instant personal loans that can be settled within just three months (or more if you require a longer payment period). The major benefit of short-term unsecured personal loans is that you avoid long-term financial commitments which might see you being tied down to unpleasant jobs you can’t leave. This usually is taken up highly by working individuals as they would like to settle their loans on payday once they receive their salary to their bank accounts.
Reliability
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Imagine having a permanent source of cash available for you should you need it, almost no questions asked, no matter what your financial situation may be. Due to the loan requirements being extremely low, the unsecured personal loan services offered by OnCredit opens doors for thousands of people who would ordinarily not qualify for secured loans from banks and other traditional financial institutions. Unsecured loans are also famously known to support people with bad credit history.
Conclusion
While unsecured personal loans come with their own unique downsides (late payment fees, lengthy terms and conditions etc.), this is usually because of the risk this concept entails. There are situations in which the benefits of unsecured loans far outweigh them as they directly can serve a dire need. Consider all avenues carefully and make your decision. If you do decide to select unsecured loans, get in touch with OnCredit.lk and we will provide you with one of our instant personal loans.
