Unsecured Loans

An unsecured loan is a type of loan that does not require collateral. Instead, approval is based on the borrower’s creditworthiness, income, and financial history.

Unsecured loans do not require any collateral, while secured loans back an asset, such as a car or house. Because no collateral is involved, unsecured loans typically have higher interest rates and stricter eligibility criteria than secured loans.

Unsecured loans can be used for a variety of purposes, including debt consolidation, home improvements, medical expenses, education costs, vacations, or other personal expenses. The flexibility makes them suitable for a wide range of financial needs.

Interest rates for unsecured loans typically range from 5% to 36%, depending on the lender, the borrower’s credit score, income, and other financial factors. Borrowers with excellent credit scores usually receive the lowest rates, and you can get the best loan rates from Airtel Personal Loans!

To qualify for an unsecured loan, you generally need a good to excellent credit score, stable income, and a low debt-to-income ratio. Lenders will review your credit history, employment status, and financial situation to determine your eligibility and the loan terms.

The maximum amount you can borrow with an unsecured loan varies by lender and your creditworthiness. At Airtel Finance, you can borrow up to ₹9,00,000 as an unsecured loan.

If you default on an unsecured loan, the lender may report the default to credit bureaus, negatively impacting your credit score. The lender can also pursue legal action to recover the debt, which may result in wage garnishments or bank account levies. Additionally, defaulting can lead to increased interest rates and fees.