Want collateral-free loans? These are the available options
What's the story
In India, quick loans without collateral are a blessing for those in immediate need of funds. These loans are usually hassle-free and quick, making them an ideal choice for emergencies. From personal loans to payday loans, Indian lenders have a range of options to meet different requirements. Here are five such loans that can be availed of quickly and without collateral.
#1
Personal loans with instant approval
Personal loans with instant approval are a popular choice for borrowers in need of quick cash. These loans are usually available for amounts ranging from ₹10,000 to ₹500,000 and can be repaid over a period of one to five years. The application process is simple, with minimal documentation required. Many banks and NBFCs offer these loans with approval within hours, making them an attractive option for urgent financial needs.
#2
Payday loans for short-term needs
Payday loans are short-term loans meant to cover immediate expenses until the next paycheck arrives. They are usually available for small amounts, between ₹5,000 and ₹30,000, and have to be repaid within a month or two. The application process is quick, and approval is often granted within a few hours. However, borrowers must be mindful of the high interest rates associated with these loans.
#3
Credit card cash advances
Credit card cash advances let you withdraw cash up to a certain limit on your credit card account. This facility is available at ATMs or bank branches and gives you instant access to funds without any collateral requirement. The interest rates on cash advances are generally higher than regular purchases, but they offer convenience during emergencies when other options may not be available.
#4
Microloans from digital lenders
Digital lenders also provide microloans as a part of their financial services. These are small-ticket loans that can be availed through mobile apps or online platforms within minutes. The amounts usually range between ₹1,000 and ₹50,000, depending on the borrower's profile and repayment capacity. With minimal documentation and quick disbursal times, microloans are ideal for meeting urgent cash requirements.
#5
Peer-to-peer lending platforms
Peer-to-peer (P2P) lending platforms connect borrowers directly with individual lenders through online marketplaces. This way, you can get unsecured personal loans at competitive interest rates without going through traditional banking channels. The process is usually faster than conventional methods, with approvals in as little as 24 hours, depending on the platform's terms and conditions.