How To Get A Personal Loan without Security?

Today’s world is full of opportunities, but these opportunities come at a cost. People who find it hard to survive and provide comfort to their families are working day and night. This makes it difficult for them to manage their money and financial needs often come unexpectedly. Whether it's for a medical emergency, education or house repair, a loan without security can be a lifesaver. In this guide, we'll explore the steps and strategies to secure a Personal Loan without the need for collateral to make your life a bit easier.

What is an Unsecured Personal Loan?

Personal Loans are a versatile financial tool designed to meet a variety of individual needs. What makes them particularly appealing is that they are unsecured, meaning they don't require any security collateral. Individuals can utilise them without any restriction, giving them the freedom to fulfil their needs in a way that works for them.

Why Personal Loans Are Unsecured? 

Personal Loans are granted based on the borrower's creditworthiness rather than the presence of collateral. Lenders assess factors such as credit history, income stability and debt-to-income ratio to gauge the borrower's ability to repay. This focus on creditworthiness allows lenders to manage risk without security.

By not requiring collateral, Personal Loans become more accessible to a broader range of individuals. This inclusivity aligns to promote financial access and inclusion for a diverse population. It also makes the application process simple for both the lender and the borrower.

How does an Unsecured Personal Loan Work?

An unsecured Personal Loan does not need any collateral, and can be applied online via ICICI Bank’s digital platforms like the iMobile app and Net Banking. You need to check your eligibility, apply online by filing out an application form, submit the required documents, and await approval. Once the loan is approved, the bank will transfer money directly into your ICICI Bank account on the same day. The loan is required to be repaid in the form of EMIs as per the agreed tenure.

Types of Unsecured Personal Loan

The most common types of unsecured Personal Loan are:

• Personal Loan – These are unsecured Personal Loans that do not need collateral. They can be used for medical bills, education costs, home repairs, travel plans, or other personal expenses.
• Personal Loan for Education – Covers college fees, books, and other essential higher education expenses.
• Personal Loan for Marriage – Helps manage wedding-related costs like venue, décor, or jewellery.
• Personal Loan for Travel – Ideal for funding holidays, flight tickets, accommodation, or international trips without financial stress.
• Personal Loan for Business – For self-employed individuals or professionals who need funds to expand, manage operations, or cover short-term business needs.

Features & Benefits of Personal Loan Without Collateral

Learn about the important features and benefits of getting a Personal Loan without collateral from ICICI Bank:

1. No Collateral Needed: You don't have to put up any of your valuable assets, like your home or car, to get the loan. This makes the process much easier and quicker.

2. Quick and Easy Process: Because you don't need to provide collateral, the loan application and approval process is faster. This is especially helpful if you need money in a hurry for an emergency.

3. No Hidden Charges: ICICI Bank keeps all charges transparent and clearly explained upfront, so there are no surprises later on.

4. Flexible Repayment: You can choose a repayment period that works best for your budget, with tenures of up to 72 months. This allows you to select a monthly payment you can comfortably afford.

5. Fixed Interest Rates: The interest rate on your loan is fixed, which means your monthly payments will stay the same throughout the entire loan period. This helps you plan your budget more easily.

6. High Loan Amount: You can get a loan of up to ₹50 lakh, all through a simple, 100% digital process. This gives you access to a large sum of money for big expenses.

Why Should You Choose a Personal Loan Without Security from ICICI Bank?

ICICI Bank is regarded as one of the best private banks of India. A market capitalisation of $ 75 billion makes ICICI Bank a household name in India. More than 28 million have placed their trust in ICICI Bank’s iMobile app. Here are a few prominent benefits offered by ICICI Bank:

1. Effortless application process:

   Applying for a Personal Loan with ICICI Bank has become fast and simple, thanks to the modernisation of the application process. Now, you can apply for a Personal Loan in just a few clicks. This simplified and user-friendly approach not only speeds up the application process but also makes Personal Loans more accessible to individuals seeking financial support, without the burden of paperwork.

2. Time-saving procedures:

   Time is precious, especially for those who are working. ICICI Bank understands this and that's why the entire Personal Loan application procedure, from approval to disbursement, can happen seamlessly online. No more running around to visit banks; everything you need is just a click away. This application process is straightforward and cuts down on the time spent filling out repetitive forms. The same can be said for the iMobile app.

3. Data security:

   With ICICI Bank's dedication to security, you can engage in financial transactions with confidence, knowing your information is treated with the utmost care, creating a secure environment for your financial journey.

Eligibility Criteria for Unsecured Personal Loan

Here are the important Personal Loan eligibility criteria to keep in mind:

For salaried individuals

For self-employed individuals

For complete eligibility details and the application process, visit ICICI Bank Personal Loan

Documents Required to Get Approval on a Personal Loan Without Security

When applying for a Personal Loan, you need to provide a set of documents that support your application. Here's a list of Personal Loan documents without security, for both salaried individuals and self-employed people:

For salaried individuals:

• Proof of identity: Passport / Driving Licence / Voters ID / PAN Card (any one)

• Proof of residence: Leave and Licence Agreement / Utility Bill (not more than 3 months old) / Passport (any one)

• Latest 3 months’ Bank statements (where salary/income is credited)

• Salary slips for the last 3 months

• 2 passport size photographs.

For self-employed individuals:

• KYC documents: Proof of identity; Address proof; DOB proof

• Proof of residence: Leave and Licence Agreement / Utility Bill (not more than 3 months old) / Passport (any one)

• Income proof (audited financials for the last two years)

• Latest 6 months’ Bank statements

• Office address proof

• Proof of residence or office ownership

• Proof of continuity of business.

How to Get a Personal Loan Without Security in India?

Through Website:

• 1. Enter your desired loan amount
• 2. Provide your basic personal and work-related information
• 3. Review your loan amount and tenure
• 4. Confirm your application
• 5. Get the loan disbursed

Through iMobile App:

• 1. Download iMobile and log in using your MPIN or fingerprint
• 2. Navigate to ‘Get Instant Loan’ and click on ‘Apply Now’ under the Personal Loan section
• 3. Enter your required loan amount
• 4. Validate all loan details
• 5. Accept the Terms and Conditions and click on ‘Disburse Now’
• 6. Authenticate using Aadhaar-based eSign and submit the application.

Interest Rate for Unsecured Personal Loan

The Personal Loan interest rate at ICICI Bank are attractive. However, the exact rate depends on your individual profile. Factors like your credit score, income stability, and existing relationship with the bank all play a significant role. A higher credit score and a stable income can help you secure a lower interest rate. Use a Personal Loan EMI Calculator to estimate your monthly payments based on the rate and tenure.

FAQ’s

How soon can I get an unsecured Personal Loan?

You can get an unsecured Personal Loan quickly, often within the same day. ICICI Bank even offers instant disbursals for existing customers, especially if all your documents are in order.

What can I use my unsecured Personal Loan for?

You can use the money for almost anything, from a medical emergency or wedding to a home renovation or vacation. There are no restrictions on how you can use the funds.

Can I pay off my loan amount early?

Yes, you are allowed to pay off your loan early. However, there are certain charges that are levied by the bank, known as prepayment or foreclosure fees. Check your loan agreement for details.

What is the limit of an unsecured loan?

The maximum limit for an unsecured Personal Loan from ICICI Bank is up to ₹50 lakh. The final amount depends on your income, credit score, and repayment history.

Are unsecured loans good for credit?

Yes, if you manage them well. Paying your EMIs on time helps build a positive credit history, which can improve your credit score and help you get better loan terms in the future.