An unsecured loan, as its name implies, is a lending operation by a bank or financial institution, wherein money is provided in advance to a borrower by means of a loan, credit card or cash credit facility without seeking collateral, security or hypothecation of an asset as a precondition to provide such facilities.
Unsecured loans can be utilised for multiple purposes and offer various benefits:
1. Personal loans – Personal loans from SC are essentially a type of an unsecured bank loan and can be used for any purpose, from planning your dream vacation and renovating your house to medical and other unanticipated expenditures.
2. Credit cards – As the world is embracing the credit based system, you’ll be surprised to know that credit cards are one of the most common examples of unsecured loans. Credit cards are issued based on the creditworthiness of an individual with the upper credit limit being adjusted accordingly.
3. Education Loans – Students can apply for unsecured loans in order to fulfil their educational ventures. These loans are availed at attractive interest rates and the dedicated team at SC will assist students and provide solutions for financial aid for their education both nationally and globally.
1. Reduced complexity- As unsecured loans do not necessitate any collateral, the process of acquiring this loan is much quicker and seamless as it does not involve any collateral.
2. Security- There is reduced risk for the borrower when choosing an unsecured loan as there is no involvement of assets involved.
3. Low interest rates- Excitingly low interest rates makes unsecured loans an alluring option. You can calculate these tempting quotes by accessing the unsecured loan interest calculator on the SC website which will provide you with information such as EMI, interest rate, interest component, etc.
4. Fast loan approval- Unsecured loans are approved much quicker when compared to secured loans as the hassle of processing these loans are much simpler when compared to the latter.
5. Transparency- Standard Chartered offers the highest level of transparency when it comes to obtaining an unsecured loan and you can calculate everything from the EMI to the total outflow by making use of the Loan Calculator provided on our bank website.
6. No physical interaction required- Get instant approval on your application and also complete your KYC online through a video. Learn more.
1. Avoid misrepresenting your current loans while applying for an unsecured loan as the bank will be able to view this information on your CSR.
2. Avoid the folly of signing the documents without perusing it with utmost care as this will save you from paying unnecessary charges.
3. Do not furnish the bank with incorrect information while applying for an unsecured loan as this will just cause unwanted delays in securing the loan.
4. Do not borrow more than you can repay as there is a high chance that you will fall into the vicious cycle of a debt trap.
To apply for an unsecured loan from Standard Chartered you need to provide the bank with your ID in order to process the loan. The following government issued IDs can be used to in order to secure the loan:
- Aadhar Card
- PAN Card
- Driving License
- Voter ID
- Ration Card
It is mandatory to provide proof of address issued by the govt. in order to obtain an unsecured loan with Standard Chartered. The following are the list of documents that can be provided as proof:
- Telephone Bill
- Electricity Bill
- Driving License
- Life/Medical Insurance Policy
- Rental Agreement
- Apartment Allotment Letter
Standard Chartered mandates that the borrower:
- Must be between 22-58 years of age in order to apply for unsecured loans.
- Must have a minimum salary of INR 25,000 in order to qualify for the loan.
What is the Difference Between Secured and Unsecured loans?
The prime difference between secured loans and unsecured loans is that secured loans require the use of collateral in issuing loans whilst the latter does not, making it a faster and more seamless process. Unsecured loans are issued in a matter of a few days and merited based on the creditworthiness of the applicant and their income level amongst other factors. Another principal difference between the two types of loans is that unsecured loans usually have a specified upper limit prescribed by the bank which is much lower than that of secured loans.
Is it Safe to Apply for Unsecured Loans from Standard Chartered?
Yes, it is safe and in fact beneficial to apply for unsecured loans from Standard Chartered for multiple reasons. SC offers attractive and low interest rates as well as flexibility while repaying the loan, making it an enticing option for many. You can also take up secured loans ranging from INR 1,00,000 to INR 15,00,000 in order to help you with your initial expenses while setting up a business.
What are the benefits of an unsecured Personal Loan from Standard Chartered?
The main benefits of getting an unsecured Personal Loan from Standard Chartered are:
- Flexible repayment rates up to 60 months
- Part payment facility up to a maximum of 25% in a year
- Attractive interest rates at a discounted processing fee
- Loan amount up to INR 15,00,000
What is the Minimum Credit Score Requirement to Qualify for an Unsecured Loan?
It is essential to have a satisfactory credit score requirement in order to get an unsecured loan from Standard Chartered. These types of loans are given out, based primarily on the creditworthiness of the applicant, depending on which the bank determines whether the individual will be able to pay off the loan in a given period of time.
Can a Self-employed Professional Take an Unsecured Loan?
Yes, a self-employed professional can apply for an unsecured loan given that they have a minimum monthly income of INR 25,000 per month. Unsecured loans in the form of personal loans can also be taken by individuals in order to secure financial aid while setting up their own businesses.
What are the Parameters for Unsecured Personal Loan Eligibility?
Standard Chartered mandates that the borrower must be between 22-58 years of age in order to apply for unsecured loans. The applicant is also required to have a minimum salary of INR 25,000 in order to qualify for the loan.
How can I Calculate EMI for my Unsecured Loan?
In order to calculate how your repayment options may look like, you can use the Standard Chartered Personal loan EMI calculator. You will have to enter the amount you want to borrow on this calculator and also the estimated time you need to repay the loan. After this, you will be presented with information pertaining to monthly repayment, interest rate, the calculated interest component and the total outflow.
What Should I do if my Unsecured Loan is Rejected by Standard Chartered?
If your loan has been rejected by Standard Chartered, it could be because the necessitated criteria prescribed by the bank to apply for a loan has not been met. In such an event, you can reach out to the bank personnel for further information; alternatively, you can improve your credit score and reapply for a loan after the stipulated period mentioned by the bank.
What is VKYC?
VKYC, or simply Video KYC, is a feature that allows you to complete your KYC through a video from the comfort of your home while applying online for a Standard Chartered credit card, personal loan, or savings account. With this feature, our application process becomes even more simpler and completely contactless. Click here to learn more.