How to get Personal Loan without Salary Slip

Even without having to provide proof of income, obtaining a personal loan has become easier through technological advancements. Throughout time, these loans—now referred to as Instant Personal Loans—have grown more widely available. Because they are unsecured, personal loans provide people the flexibility to budget their money for a range of uses. People can get personal loan without salary slip or having to provide proof of income because of the fast approval process and the lack of collateral.

The lengthy seven-to-eight-day processing period that was once required for loan approval has been drastically reduced to just twenty-four hours. Online platforms, which serve people regardless of whether they are students, a salaried employee, or self-employed, have become one of the fastest ways to obtain funds.

When meeting necessities for daily living through personal loan, financial institutions often request evidence of income, which salaried workers may easily supply with pay slips. Nonetheless, it could be difficult for students or independent contractors to provide proof of income.

Different Ways to Get Personal Loan without Salary Slip

This article explores methods for getting a personal loan without providing proof of income, focusing on the difficulties experienced by people who find it difficult to provide such documentation.

A Guarantor or a Co-Borrower

Since you don’t have any evidence of your income, you must offer some sort of guarantee. Including your parents as co-borrowers and dividing the debt is one sensible option.

Applying for a personal loan jointly with a co-borrower is an alternate course of action if your application is denied for lack of ability to provide evidence of income. In such cases, you would have to provide the co-borrower’s income evidence, which would include salary pay slips, Form 16, ITR etc. This joint borrowing, which depends on the co-borrower’s financial records, increases the odds that the loan will be approved.

Keeping up with a CIBIL Score

Further when you find a guarantor or a co-borrower you need to be aware of their good CIBIL score. It holds a lot of importance in how much of loan you will be availed with a possible low interest rate.

In another case, lenders may offer a borrower a higher interest rate than other applicants if they believe the borrower does not match the income proof requirements. When applying for a loan without requiring an income verification, choosing an interest rate that is a little higher than the minimum could work, depending on the length of the loan and your ability to repay it. Keeping your CIBIL score high is essential to this process because it has a big impact on the loan’s terms and conditions.

Good Relationship with Lender

Your credit and payback history have a major effect on how likely you are to get approval for the loan you’re currently requesting. Building a strong relationship with the lending institution on the basis of your previous financial behaviour encourages loyalty and trust. The lender can evaluate and predict your potential to return the loan, which in turn makes it easier for the necessary money to be provided.

To increase your odds of approval, it’s also a good idea to look into lenders who have flexible qualifying conditions. It is more probable that you will be successful at getting the loan you need if you scroll around for such lenders and associate yourself with companies that have more accommodating conditions.

Present your alternate income proof

If an individual works as a freelancer, they have the choice to provide other documentation to support their income. These people can prove their financial earnings with documentation such as an Income Tax Return (ITR) certificate or a bank account statement, rather than only the traditional salary slip. Since most banks and Non-Banking Financial Companies (NBFCs) recognize that self-employed people and freelancers have a variety of income sources, they accept this alternative paperwork in place of a standard salary slip. The ease with which various income verification formats can be accepted contributes to a more seamless financial services application process.

Collateral if needed

Even though personal loans are usually unsecured, you can still get approved if you can provide security in place of documentation proving your income. Collateral can be a good option if your loan application is rejected because the necessary income paperwork is not available. If you choose this course of action, you must, however, proceed with great caution because Equated Monthly Installments (EMIs) must be repaid on time. If you fall behind on your payments, the lender may be able to take possession of the collateral you pledged. To prevent any repercussions, borrowers applying for collateral-backed loans must be fully aware of the responsibilities involved and pledge to fulfil their repayment commitments.

Online Platforms to get Personal Loans

Online platforms like Zap Money offer a convenient and accessible avenue for individuals to secure personal loans without salary slip. These platforms often leverage alternative methods of assessing creditworthiness, such as analyzing banking transactions, evaluating spending patterns, and considering the individual’s financial behavior.

This approach enables a broader segment of the population, including those without a fixed salary or traditional employment, to access much-needed funds quickly. By embracing technology and innovative credit scoring models, online lending platforms like ZapMoney open up possibilities for individuals with varied income sources, freelancers, or self-employed individuals as well as students to obtain personal loans without the typical documentation hurdles, making financial assistance more inclusive and responsive to diverse financial scenarios.

In conclusion, while not having a paycheck presents difficulties, there are ways to improve your chances of getting a personal loan: getting a co-borrower; keeping up a strong credit history; providing alternate forms of evidence of income; and thinking about collateral can be few points to remember and go with for your future borrowing.

If you are student, you can also get some information through this article: How to Get Personal Loan for Students in India  which provides a brief knowledge on what requires to get start on borrowing as a student with ZapMoney, so might not fall short on money when the cash constraint.

How to Get Personal Loan for Students in India

Don’t let finances limit your academic or career ambitions! While an education loan offers lower rates and specific benefits, a personal loan provides quick, flexible funding for education with potentially less stress to repay while studying. Whether pursuing higher education or professional certifications, carefully planned loans can be steppingstones to success. Just remember, to get a personal loan as a student can be tricky, so explore all options and borrow responsibly. Go get those academic dreams and career goals!

Look up for the expenses

When assessing your expenses, consider various factors, including travel expenses, tuition fees, the cost of study materials, any additional coaching requirements, and the expenses related to lodging and boarding that aren’t covered by your education loan. By obtaining a precise estimate of total costs, students can better determine the amount of a personal loan required to meet your financial needs.

Loan Eligibility for Students

  • Age Requirement: Users must be over 18 years of age. This is a common age restriction to ensure that individuals using financial services are legally considered adults.
  • Residency Requirement: Users must be Indian residents. This means that the financial services provided by “Zap Money” are available to individuals who are living in India.
  • Bank Account: A valid and active bank account is required. This is likely for the purpose of transactions and fund transfers.
  • PAN Card: A Permanent Account Number (PAN) card is required.
  • Aadhaar Card: An Aadhaar card is required.
  • No Mandatory Credit Card: Unlike some financial services that may require users to have a credit card, “Zap Money” does not have this requirement. This could be advantageous for individuals who may not have a credit card but still want to access the services offered by “Zap Money”.

Steps to Get Personal Loan for Students on ZapMoney

  • Download the Zap Money App. Download to the official Zap Money app on Google Play Store.
  • Create an Account. Create a user account on the “Zap Money” platform. This may involve providing personal information and creating login credentials.
  • Verify Eligibility. Check the eligibility criteria for loans. Ensure that you meet the required conditions, which may include factors such as age, income, or credit history.
  • Choose Loan for Students. Select the type of loan you need and determine the loan amount based on your financial requirements.
  • Complete the Application. Fill out the online loan application form provided by Zap Money. Be prepared to provide details about your personal information and any other required documentation.
  • Upload Documents. Submit any necessary supporting documents, such as proof of identity, residence verification etc. Ensure all documents are accurate and up-to-date.
  • Review Terms and Conditions. Carefully read and understand the terms and conditions of the loan agreement, including interest rates and repayment terms.
  • Submit Application. Once you have completed the application and provided all necessary documents, submit your loan application through the app.
  • Wait for Approval. Allow “Zap Money” some time to review your application. They may conduct a check of the details you have provided.
  • Receive Funds: If your loan application is approved, ZapMoney will provide instructions on how to receive the funds. This may involve linking a bank account for direct deposit.

Benefits of ZapMoney Loans for Students

  • Quick Approval. With Zap Money’s student loans, experience the benefit of swift approval processes, ensuring that you can access the financial support you need for your education without unnecessary delays.
  • Minimum Documentation. Enjoy the convenience of minimal documentation when applying for a student loan with ZapMoney. Streamlined documentation requirements make the application process efficient and hassle-free.
  • Completely Online. Embrace the digital age with ZapMoney’s student loans, offering a seamless online application process. Enjoy the convenience of applying, submitting documents, and managing your loan entirely through a user-friendly app.
  • Financial Support for Education. Student loans from ZapMoney can provide crucial financial assistance to cover tuition fees, textbooks, and other educational expenses, ensuring that students can focus on their studies without financial strain.
  • Flexible Repayment Options. Flexible repayment plans allows students to choose options that align with their financial situation.
  • Building Credit History. Responsible repayment of student loans can contribute to the establishment and improvement of a student’s credit history. This can be valuable for future financial endeavors, such as applying for credit cards or other loans.

Final Thoughts

Decide your repayment plan in advance. This choice is crucial, as the monthly repayment amount is determined by the tenure you select. Keep in mind that as a student, your income might not match what you earned in a professional capacity. Therefore, it’s essential to prioritize affordable Equated Monthly Installments (EMIs). Strive to find the right balance between the loan amount and tenure to achieve an optimal monthly expenditure.

Different Types of CIBIL Score

In today’s world, getting access to credit is crucial—whether you’re looking forward to owning a house, starting off a business, or just managing your everyday expenses. Many of us turn to banks or financial institutions for help, be it through loans, credit cards, or personal loans. Though, these lenders do not hand out the money to anyone who comes for an ask. They want to know if you’re a safe bet, financially speaking. That’s where credit or CIBIL scores and reports come into play, acting like the resume for your financial life.

Just like a report card reflects academic success, a CIBIL score is either a green or red card to your financial health. These credit scores are three-digit numbers ranging from 300 to 900, and they’re all about showcasing how well you handle your money and how trustworthy you are for future loans.

Knowing how to read your credit report is powerful. It puts you in the driver’s seat of your financial journey, opening possibilities for loans and securing your financial future. So, it’s worth taking the time to understand where you stand and how you can make the most of it.

Understanding Your CIBIL Scores

In India the credit bureaus like CIBIL works on the credit scoring system given below. Which then tends to range between 300 and 900. While the highest being 900, any score generally above 700 is considered the good one.

However, if there is an individual who has not taken loan ever will perhaps be counted as no credit history. Or this lack of credit/no credit history can also occur for people who’re new to the crediting system. Which means there is no basis for evaluating their creditworthiness.

Credit score of 750-900 (Excellent)

A score between 750 and 900 falls within the “Excellent” category, which is the highest tier in most credit scoring systems. This score reflects an exceptionally strong and responsible financial history. This range indicates that you have consistently made your credit payments on time and in full. You’ve demonstrated a reliable track record of managing debt, showing lenders that you’re a trustworthy borrower.

Credit score of 600-750 (Good)

Having a credit score in the 600-750 range falls under the “Good” category, which is a positive position to be in! Your score indicates that you’ve generally managed your credit well, making timely payments and avoiding major defaults. This demonstrates financial responsibility and trustworthiness.  Good credit score holders are typically accepted for loans by most banks and NBFCs. You’ll have access to various loan options, unlike individuals with lower scores. While you might not get the absolute best rates, you’ll likely qualify for lower interest rates than borrowers with Fair or Poor credit.

Credit Score of 500-600 (Average)

This range suggests that you’ve experienced some difficulties managing your credit in the past. This could include late payments, missed payments, or even defaults on loans or credit cards. While not as problematic as the “Poor” category, these incidents have impacted your credit score. Lenders perceive more risk with borrowers in this range, so they’ll likely charge higher interest rates to compensate for that risk. You might face stricter loan terms, such as smaller loan amounts, shorter repayment periods, or additional collateral requirements. Not all lenders might be willing to work with you, especially for larger loan amounts or specific types of loans.

Credit Score of 300-500 (Poor)

It’s a Red Flag which indicates a significant history of credit management struggles, potentially including frequent late payments, missed EMIs, or even defaults on loans. These red flags raise concerns for lenders about an individual’s ability to repay future debts. This range can bring to you smaller loan amounts, shorter repayment periods, and additional collateral requirements are more likely to be imposed.

Types of CIBIL Score in India

Down below are 4 Credit Bureaus in India which help in determining and analyzing your creditworthiness-

  1. TransUnion CIBIL
    • TransUnion CIBIL Established in 2000, it’s the oldest and most popular credit bureau in India. It acts like a central repository of credit information, like loans, credit cards, and payment histories. This information is used by lenders to assess your creditworthiness when you apply for a loan or credit card.
  2. Equifax
    • Founded in 1898, it’s a global information solutions company with a presence in India since 2010. Like TransUnion CIBIL, it collects and maintains credit information on individuals and businesses in India. Both Equifax and CIBIL serve similar roles in the Indian credit market, providing credit information and tools for consumers and businesses. Equifax charges Rs 400 for a combined credit report and score.
  3. Experian
    • Established globally in 1970, it entered the Indian market in 2006 and obtained its license from the RBI in 2010. Like Equifax and CIBIL, it acts as a credit bureau, collecting and maintaining credit information on individuals and businesses in India. Like other bureaus, Experian provides detailed reports on your credit history, including loans, credit cards, payment history, etc. This helps you monitor your credit health and identify potential errors.
  4. CRIF High Mark
    • Established in Italy in 1988, this company started operating in India in 2007 and secured its RBI license in 2010. Like other bureaus, it functions as a credit bureau, gathering and managing credit details about people and businesses in India. Lenders and other service providers use this data to evaluate financial risk and make well-informed choices. It furnishes thorough details about your credit past, covering loans, credit cards, payment history, and defaults. This aids in keeping track of your credit well-being and spotting potential mistakes. Specifically designed for individuals borrowing from microfinance institutions, it offers lenders valuable insights into their financial behavior and ability to repay.

Final Thoughts

Understanding the types of CIBIL score empowers your financial decisions with personalized insights to improve or maintain your creditworthiness. Remember, responsible credit practices and consistent repayment are the investments that yield the highest returns in the game of building a healthy credit score.

How to Increase CIBIL Score from 600 to 750?

In the world of lending and borrowing, one key factor that really matters for loan approval is your Credit Information Bureau (CIBIL) score. This is a three-digit number, ranging from 300 to 900, that measures how reliable you are with credit and affects the loan conditions set by banks.

In this article you will know how having a good CIBIL score, ideally 750 or more, is crucial for getting the best loan terms. On the other hand, if your score is below 650, you might face higher interest rates or even have your loan application rejected. There are chances to get a loan at low CIBIL score, but the interest might be on the higher side. Here are some steps for you to improve your credit score and get better deals on loans.

Steps to Increase CIBIL Score from 600 to 750

  • Pay on time
  • Raising a CIBIL Dispute
  • Keeping Credit Utilization Ratio Low for a High Score
  • Credit Score Checks
  • Holding onto old credit cards
  • EMI payment is crucial

Deeper into the details of CIBIL scores, highlighting how they play a big role in how loans work. To understand and manage this important aspect of financial dealings, these articles together explore practical tips to raise your CIBIL score from 600 to 750, providing a guide for borrowers looking for better loan terms

Pay on time

Paying off the full amount due on your loan at the end of each cycle is one of the most effective ways to improve your credit score. Payment history holds the most weight: Credit scoring models heavily prioritize your payment history as an indicator of your creditworthiness. Making consistent on-time payments shows lenders you’re responsible and capable of managing your debt.

While paying the minimum due might seem manageable, it often leads to accumulating interest and accruing debt over time. By this, you avoid potential interest charges, and paying off your loan early shows you can handle larger financial commitments.

Raising a CIBIL Dispute

Absolutely! Raising CIBIL disputes can be a crucial step in improving your credit score and ensuring the accuracy of your credit report. Here’s a breakdown of the process in an elaborate way.

 A CIBIL dispute is a formal request you raise to CIBIL if you find any such inaccuracies in your report. Inaccurate information can negatively impact your credit score, making it harder to get loans, credit cards, or even rent an apartment.

Correcting errors can highly improve your score, for better financial opportunities. It helps maintain the overall accuracy and integrity of the credit reporting system. Carefully review your CIBIL report and pinpoint any inaccuracies.

Keeping Credit Utilization Ratio Low for a High Score

Credit utilization ratio (CUR) is a crucial factor in determining your credit score. It simply refers to the percentage of your credit limit that you’re currently using. Essentially, it tells lenders how “heavily” you’re relying on available credit. Keeping your CUR low is key to maintaining a healthy credit score.

In Lenders’ view, Lenders want to see responsible borrowers who manage credit cautiously. A high CUR (exceeding 30%) indicates you’re maxing out credit, which could imply financial overextension and potential risk of default. CUR heavily influences your credit score (around 30%!). Keeping it below 30% (ideally even lower) shows a responsible credit usage and boosts your score.

Credit Score Checks

Credit score checks can be confusing, but understanding the difference between soft and hard credit checks is essential for maintaining a healthy score.

  • Soft Inquiries: These are credit checks initiated by you or any entity with your permission, like banks offering pre-approved loans. Checking your own credit report regularly falls under this category. Soft inquiries do not affect your CIBIL score.
  • Hard Inquiries: These are credit checks initiated by lenders when you apply for new credit, like a loan or credit card. Each hard inquiry leaves a temporary mark on your report, and multiple inquiries within a short period can lower your score.

While soft inquiries have no impact, frequent hard inquiries can temporarily bring down your score. This is because lenders might interpret frequent applications as a sign of financial instability or increased risk. However, the impact usually diminishes within a few months, and responsible credit management over time can compensate for it.

Holding onto old credit cards

This can be a surprisingly beneficial strategy for bolstering your credit score. This factor impacts your score, contributing about 15%. The longer your credit history, the more confident lenders feel in your ability to manage credit responsibly. Closing an old card reduces your overall credit history length, potentially harming your score.

This measures the percentage of your total credit limit you’re currently using. Ideally, you want to keep this ratio below 30%. Closing an unused card decreases your available credit, while your actual balance (even if it’s zero) remains the same. This can inadvertently increase your utilization ratio and negatively impact your score.

EMI payment is crucial

CIBIL score heavily weighs your payment history, particularly your ability to repay debt consistently and on time. Timely EMI payments showcase your creditworthiness and responsible borrowing habits.

Paying your EMIs on time consistently increases your CIBIL score, making you a more attractive borrower to lenders. This translates to potentially better loan terms and interest rates in the future.

Conversely, late or missed payments, even by a few days, significantly harm your CIBIL score. This can lead to difficulty obtaining loans, higher interest rates, and even legal repercussions in extreme cases.


A higher CIBIL score (ideally above 750) significantly increases your chances of getting your loan application approved. Maintaining a good CIBIL score encourages responsible financial habits like timely payments and debt management, ultimately leading to improved financial health and stability.

Pros and Cons of Personal Loans in India

Dive into the world of personal finance and maximize your financial potential with insights into the pros and cons of personal loans in India. Make informed choices by weighing the positives and negatives of this loan for strategic financial planning.

What is a Personal Loan?

A personal loan is a type of unsecured loan that individuals can borrow from a bank, credit union, or online lender. Borrowers receive a lump sum amount, and they repay the loan in fixed instalments over a specified period, typically ranging from 1 to 5 years.

The interest rates can be fixed or variable, depending on the terms of the loan. Personal loans are versatile and can be used for various purposes, such as debt consolidation, home improvement, or unexpected expenses. Lenders assess the borrower’s creditworthiness, income, and other factors to determine eligibility and interest rates.

 In short, a personal loan is a way to borrow money without putting up any assets as collateral. You can use the funds for different things like education or vacations. Unlike specific secured loans for cars or homes, personal loans don’t tie the money to a particular purchase.  Secured loans are different from unsecured loans as they do require collateral while unsecured loans like personal loans don’t require collateral.

Lenders consider your credit history, income, and other factors to decide if you qualify and what interest rate you’ll have. You can get personal loans from banks, credit unions, or online lenders, so it’s good to compare options before choosing one that fits your needs.

Pros of Personal Loans

  1. Versatility:
    • Personal loans are incredibly versatile and can be used for a wide range of purposes, including debt consolidation, home improvement, medical expenses, education, wedding expenses, travel, and more.
    • Borrowers have the flexibility to allocate the funds based on their individual needs, making personal loans a versatile financial tool.
  2. No Collateral Required:
    • Personal loans are unsecured, meaning they do not require any collateral. This reduces the risk for borrowers since they don’t have to worry about losing assets like a house or car if they are unable to repay the loan.
    • Approval for a personal loan is primarily based on factors such as credit history, income, and debt-to-income ratio.
  3. Quick Access to Funds:
    • The application process for personal loans is generally quicker compared to secured loans like mortgages. Online lenders often provide rapid approval and fund disbursement.
    • This quick access to funds can be beneficial for handling urgent expenses or taking advantage of time-sensitive opportunities.
  4. Predictable Repayment:
    • Personal loans typically come with fixed interest rates and fixed monthly payments. This predictability allows borrowers to budget more effectively, as they know the exact amount, they need to repay each month.
    • Fixed-rate loans also protect borrowers from interest rate fluctuations in the market.
  5. Consolidation of Debt:
    • Personal loans can be used for debt consolidation, where high-interest debts, such as credit card balances, are paid off using the loan amount.
    • Consolidating debt into a personal loan may result in a lower overall interest rate, reducing the total interest paid and simplifying debt management by combining multiple payments into one.
  6. Establishing or Improving Credit:
    • Responsible management of a personal loan, including making timely payments, can have a positive impact on your credit score.
    • Successfully repaying a personal loan demonstrates financial responsibility and can contribute to building or improving your credit history.
  7. Competitive Interest Rates:
    • Depending on your creditworthiness, personal loans can offer competitive interest rates compared to other forms of credit, especially high-interest credit cards.
    • A good credit history may qualify you for lower interest rates, reducing the cost of borrowing.
  8. No Restrictions on Use:
    • Personal loans provide complete freedom regarding the use of funds. Borrowers are not restricted to a specific purpose, allowing them to address a variety of financial needs based on their priorities.

Cons of Personal Loans

  1. Higher Interest Rates for Some Borrowers:
    • While personal loan interest rates can be competitive, they may be higher for individuals with lower credit scores. Those with excellent credit typically qualify for the lowest rates.
    • Borrowers with poor credit may face significantly higher interest rates, making the cost of borrowing more expensive.
  2. Unsecured Nature:
    • The lack of collateral means that personal loans are unsecured. Because of this, lenders may consider them riskier, leading to higher interest rates.
    • In case of financial hardship and inability to repay, lenders do not have specific collateral to seize, but they may pursue other collection methods.
  3. Processing Fees and Other Charges:
    • Some lenders may charge processing fees, application fees, or prepayment penalties associated with personal loans. 
    • These additional fees can increase the overall cost of the loan, reducing the amount of money available to the borrower.
  4. Fixed Repayment Terms:
    • While the fixed repayment schedule can be an advantage, it may also be a disadvantage for some borrowers.
    • If unexpected financial difficulties arise, the fixed monthly payments can become burdensome. Unlike credit cards with minimum payments, personal loans require a fixed amount to be paid each month.

Though, before getting a personal loan, think about the con parts too and check how it fits your money situation. Also, read the dos and don’ts of personal loan in India before making the application. As with any financial decision, individuals should carefully weigh the advantages and disadvantages of personal loans based on their unique circumstances and financial goals.

For swift access, apply for personal loan at Zap Money and experience the ease of quick financial solutions tailored to your needs.

Understanding the Loan Approval Process in India

If you are not well-prepared, the loan approval process in India can be intimidating and overwhelming. Let’s understand the loan application procedure step by step in this tutorial. Applicants will learn that the key stages and specifics differ from one lender to the next. However, the loan approval process is, for the most part, the same for all lenders. Now, let’s look at some of the stages involved in applying for a loan.

Stages of Loan Approval Process

Loans are versatile and can be used for almost any reason, including debt consolidation, weddings, and paying children’s education.

1. Status of eligibility

Determine why you require the loan and how much you require to meet those demands before applying. Check your credit score to check whether you are eligible for the loan.

2.Interest rates and other fees

Different financial institutions charge different interest rates based on factors such as creditworthiness, loan length, and loan amount. So, go to the lenders’ official websites and compare the prices. Choose the most fair and economical charges. Consider the processing fee and any other fees that the lender may levy.

3. Determine the EMI

Most lenders offer EMI calculators online. It assists in calculating your monthly EMI for the required loan amount as well as understanding your repayment burden. There are numerous EMI calculators available online that are simple to use and free of charge. 

4. Document requirements

The process of obtaining a loan begins with the submission of an application form. A few basic pieces of information about the applicant will be required for this loan application. This usually includes:  

  • The applicant’s personal information (name, phone number, etc.) 
  • The applicant’s residence address 
  • The applicant’s monthly or annual income
  • The applicant’s educational background
  • The applicant’s employment information
  • The specifics for which the loan is applied
  • The estimated cost

After completing the formal application, the following step is to attach all of the valid documents necessary by the bank. Typically, this includes:  

  • Proof of income 
  • Identity (or ID) verification
  • Age verification 
  • Address verification
  • Details about employment 
  • Proof of education (school/diploma/degree certificates)
  • Account statements
  • Details about the property to which the loan will be applied (if finalised)

5. Submit the application

Fill out your loan application, either online or in person, and include all necessary papers. Allow time for the lender to assess your application and creditworthiness.

6. Sign the loan agreement and wait for the loan to be approved.

If your lender is satisfied with all of the information you’ve provided and has checked the safety of the property you want to buy with the loan, they’ll give you the final loan agreement. This loan agreement must be signed in person at your lender’s nearest office, as it is the only step in the process that cannot be done online. Before signing, loan applicants must thoroughly read the entire agreement and verify they understand every issue addressed. Seek clarification if anything raises worries or is unclear. Consider contacting a loan legal expert if necessary, but do not sign anything until you fully understand everything mentioned in the agreement.

Your lender will sanction and disburse the final loan amount into your account once you have completed the final loan agreement, allowing you to pay the builder and complete your home purchase.

The loan approval procedure 

Application submission, credit and financial assessment by the lender, documents verification, and approval or rejection decision are all part of the loan approval procedure. Credit history, income, debt-to-income ratio, and other characteristics are all taken into account by lenders. If authorised, arrangements are offered: money are disbursed upon agreement, beginning the repayment period. 

• Peer-to-peer lenders

The benefit of peer-to-peer lending is that you can interact directly with the person who is prepared to fund your need. It eliminates the need for middlemen and allows you to obtain a loan online with low CIBIL score. This is due to the fact that these lenders do not have a set of application standards. Similarly, the processing time is far faster than that of a bank. Finance is usually available within a few business days.  

• Online direct lenders

Online direct lenders are prevalent these days, and reputable ones are easy to find. If you have all of the necessary documentation and thoroughly fill out the form, approval should take only a few minutes. A delay occurs only when there is a discrepancy and the lender must manually check your application and supporting papers. 

• Banks

Banks have by far the longest loan approval periods due to tight lending regulations and stricter credit standards. When you apply for a loan from a bank, it usually takes a few days to a week to get authorised.

7. The Loan Disbursal

The loan amount is disbursed via cheque after the applicant signs the paperwork and everything is legally clear. However, the applicant must first provide a few important documents to the bank, which will serve as his/her personal contribution to the house property.

If the applicant is attempting to raise additional cash from outside sources, more evidence must be provided. Only then does the bank release the loan’s partial payment. The cheque is always in the name of the seller, the development/society authority, or the builder.

However, there may be a few rare circumstances. Assume the applicant has made an extra payment from his or her own account, and the cheque is presented to him or her straight by the bank.

8. Repay the loan

To avoid default and subsequent legal action, repay the loan according to the agreed-upon timeline. Many lenders also offer online information on the status of your repayment. To avoid a negative influence on your credit score, keep track of your EMI.


Take the time to investigate, calculate eligibility, and select the best loan provider, as this can have a huge impact on your total house loan experience. You may successfully handle the loan procedure if you follow our detailed loan approval process step by step. For instant loan under INR 5000 you can apply at Zap Money.

Dos and Don’ts of Personal Loan in India

You can smartly and effectively navigate financial gaps generated by COVID 19 in your life with the help of a Personal Loan. Whether you need money to pay medical expenses, company invoicing, or household maintenance, you can apply for an Instant Personal Loan from the comfort of your own home.

You can select an Instant Loan option based on your needs from banks, NBFCs, and digital-only lenders. Customers of different types can take advantage of the personalized offers. However, you should be aware of the dos and don’ts of applying for a personal loan in India. 

Dos for an Instant Personal Loan

1. Determine why you require a loan in the first place.

Remember that all loans must be repaid on time and will incur interest charges. So your purpose for obtaining a loan should justify it. Popular causes include medical emergencies, house renovations, purchasing a new item when one is desperately needed, and so on.

While there is nothing wrong with taking out a personal loan for vacation or purely recreational purposes, you must ensure that you will be able to return it (which we will cover in the next point).

2. Compare the rates of interest of different lenders

Because personal loans have the highest interest rates, they should be the primary decision factor when choosing an instant personal loan. The interest rate typically runs from 11% to 28% p.a., but might go higher depending on the lender. While the Equated Monthly Instalment (EMI) appears to be inexpensive, when the loan term is 4-5 years longer, you wind up paying much more than the principle amount. Many banks entice clients with various offers that reduce yearly interest rates by 20bps to 50bps (i.e. 0.20% to 0.50% p.a.). If your credit history is solid and your credit score is high, you should use it as leverage to negotiate a lower interest rate with your bank.

3. Read the Fine Print

Make sure you read the fine print of your loan agreement before signing on the dotted line. You must grasp the personal loan’s terms and conditions, including the interest rate, any hidden fees, and payback terms. Take notice of any potential penalties for late payments or early repayment. If you have any questions or concerns, please contact your lender for assistance.

4. Plan a repayment strategy

You should have a viable repayment strategy in place before asking for an immediate personal loan. Obtaining a personal loan has become a child’s play with an online application process, yet imprudent borrowing can lead to unmanageable debt or debt overhang. A repayment strategy will ensure that you repay your debt without incurring any financial hardship. Personal loan calculators, which are available on numerous financial websites, can help you determine your EMI and prepare accordingly. When arranging your repayment strategy, keep in mind your fixed and variable expenses, as well as any existing EMIs.

Don’ts of Taking a Personal Loan

  • Don’t Apply for more than one Loans at the Same Time

Taking or applying for many loans at the same time, regardless of your income, can lower your credit score. You will also find it challenging to track and repay many loans at the same time.

Also, your loan should not exceed 30% to 50% of your FOIR (Fixed Obligations to Income Ratio). Your FOIR is a crucial statistic for loan eligibility, and if a significant portion of your income is dedicated to loan repayments, your loan eligibility will suffer.

  • Borrow From Questionable Lenders

People can now apply for fast personal loans through a variety of channels and apps. Though these offers may appear very appealing to you, they may be scams that take a person’s identity and money. As a result, it is best to choose lenders only after thoroughly investigating. Also, avoid offers that appear too good to be true. Consumer reviews can be found on the official websites of many lenders.

  • Choose the loan term based on your needs.

Personal loans and fast personal loans often have loan terms ranging from one to five years. To make the EMI appear more inexpensive, lenders present you the EMI calculator with the longest loan length without even revealing the interest rate. However, keep in mind that the longer the loan term, the more expensive the loan. As a result, rather than choosing the longest loan tenure, you should examine the rate of interest and calculate the cost of the loan for your selected loan tenure. This will assist you in selecting the appropriate loan tenure based on your needs.

  • Apply for more than you can afford

You may be eligible for a larger loan amount; nonetheless, it is recommended that you only accept what you need. Personal loans have significant interest rates; therefore, it is critical to assess your repayment capacity before applying. Even if the payment is acceptable, it is critical to consider any unexpected situation, such as job loss or a medical emergency. Saving for retirement, your goals, emergency savings, and so on may be difficult while repaying the debts.

  • Don’t Forget a Single Repayment

If there is one rule that cannot be broken when it comes to loans, it is this: do not skip even a single repayment. In some cases, the lender may grant you an extension, but in most cases, you will be required to pay a fine. This will also have a substantial impact on your credit score.

In Conclusion

Obtaining a personal loan is very simple these days thanks to online apps, but when presented with various options, decisions may not always be correct. The preceding dos and don’ts will assist you in this regard.

Before applying for a personal loan, keep your credit score in mind and make sure you have a repayment plan in place. Get a loan just when you need it, and shop around before deciding on the best one.

Why Personal Loans are the Best Option During a Financial Crisis

Personal loans often include fixed interest rates, regular monthly payments, and a predetermined repayment schedule. Personal loans are thus far more predictable than credit cards, which frequently feature variable interest rates and fluctuating instalments.

Furthermore, because most personal loans are unsecured, qualifying applicants will not be required to provide collateral. The fact that personal loans give borrowers with a lump sum of cash for almost any purpose can also be appealing. This is especially great for borrowers who intend to use their loan funds for many purposes.

Advantages of Personal Loans


One of the most significant benefits of personal loans is their flexibility. Personal loans, unlike other types of loans such as auto or home loans, can be utilized for a variety of objectives. It means you can spend the money on nearly anything, from medical bills to a dream vacation. Personal loans also allow you to personalize your monthly payments and payback period to meet your budget.

Lower interest rates

Personal loans typically have lower interest rates than other types of borrowing, such as credit cards. This means that borrowing money through a personal loan will save you money on interest. Lower interest rates also allow you to pay off your debt more quickly. This is because a larger share of your payment goes towards the principal rather than interest charges. One of the most significant benefits of personal loans is that if you have high-interest debt, such as credit card debt, consolidating it with a personal loan can save you thousands of rupees in interest payments over time.


Another benefit of personal loans is that they can help you manage your debt and achieve financial security. Personal loans allow you to consolidate various loans or credit card obligations into a single loan. It might help you save money on interest by simplifying your debt repayment process. Debt consolidation can help you boost your credit score by reducing the number of open accounts and decreasing your credit utilization ratio.

Emergency expenses

Life is unpredictable, and bills might occur at any time. Personal loans can help you pay unexpected needs such as a medical emergency, car repair, or home improvement. Another significant benefit of personal loans is that they can help you avoid high-interest credit cards or payday loans. High interest rates can trap you in a debt cycle.

A personal loan allows you to acquire the money you need immediately and return it at a cheaper interest rate over a predetermined period of time.

Investment opportunities

Personal loans might help you enhance your investing opportunities and achieve your financial objectives. 

A personal loan could be used to start a business venture, continue your education, or make home modifications that will boost the value of your property. You could get a return on investment that exceeds the cost of the loan if you invest in yourself or your assets. However, be cautious when investing because you will still have to repay the loan.

Personal loan: Benefits in times of crisis

If you do not want to deplete your emergency fund or if the amount required exceeds your available funds, you can take out a personal loan. Banks provide personal loans for a variety of reasons, including financial emergencies. Individuals must present their financial records to a lender to demonstrate their loan eligibility. The loan will be issued if their paperwork and credit history show that they will be able to repay the money.

This option allows people to keep their emergency savings and gives them another way to earn money while keeping their finances as a repayment option.

Reasons to Use an Instant Personal Loan During Emergencies

  • Quick Access to Funds: An instant personal loan provides rapid approval and disbursement, ensuring that you have the funds you require as soon as possible. 
  • No Collateral Required: Personal loans are normally unsecured, which means you do not need to pledge assets such as your home or car as collateral. Borrowing becomes less risky as a result.
  • Flexibility in utilize: Whether it’s for medical bills, house repairs, or any other unplanned need, personal loans provide you the freedom to utilize the funds as you see fit. 
  • Predictable Payments: Fixed interest rates and defined repayment plans make personal loan installments predictable, helping you to successfully plan your budget. 
  • Financial Security: Having access to finances during an emergency keeps you from sliding into debt trap. This will allow you to meet immediate financial responsibilities without borrowing from friends or using high-interest credit cards.


Financial emergencies can happen to anyone at some point in their lives. This occurs when a person’s expenses exceed their typical source of income at any particular time.

While short-term savings can assist, they may not always be enough to get you out of the woods. In such cases, a personal loan comes in helpful.

Personal loans of up to Rs 5 lakh are available from ZapMoney, with flexible payback terms of up to 3.5 years. It guarantees rapid approvals and disbursements with minimum documentation that may be filed online.

Different Types of Loans in India

Explore the different types of loans in India with insights on personal, home, education, and business loans, empowering informed financial decisions for a secure future.

We may not always have the necessary funds to do or purchase certain things. In such situations, individuals and businesses/institutions opt for loans from lenders.

The process of lending or taking a loan occurs when a lender offers money to an individual or corporation with a guarantee or based on faith that the recipient would repay the borrowed funds with specific added advantages, such as an applicable interest rate.

A loan has three components:

  1. The principal or borrowed amount
  2. The interest rate.
  3. Tenure or duration for which the loan is granted. 

Most of us prefer to borrow money from a bank or a reputable non-banking financing business (NBFC) since they are bound by government laws and are reliable. Lending is a primary financial product offered by any bank or NBFC (Non-Banking Financial Company).

Different Types of Loans in India

Loans are further classified as secured and unsecured, open-end and closed-end, and conventional.

1. Secured and Unsecured Loans

A secured loan is one that is supported by collateral. For example, most financial institutions require borrowers to submit title deeds or other documents proving ownership of an item until the loans are fully repaid. Stocks, bonds, and personal property are examples of collateral assets. When borrowing substantial quantities of money, most people ask for secured loans. Because lenders are unlikely to grant significant sums of money without collateral, they use the recipients’ assets as a type of guarantee.

Lower interest rates, rigorous borrowing limitations, and long repayment periods are all prevalent characteristics of secured loans. Mortgages, boat loans, and vehicle loans are examples of secured borrowings.

An unsecured loan, on the other hand, requires the borrower to provide no security. When it comes to unsecured loans, lenders are highly diligent in examining the borrower’s financial situation. They will be able to determine the recipient’s repayment capabilities and decide whether to give the loan or not. Credit card purchases, student loans, and personal loans are examples of unsecured loans.

2. Open-End and Closed-End Loans

A loan can also be classified as either closed-end or open-end. An open-ended loan permits an individual to borrow repeatedly. Although both credit cards and lines of credit have credit restrictions, they are excellent instances of open-ended loans. A credit limit is the maximum amount of money that can be borrowed at any given time.

Depending on his financial needs, a person may opt to spend all or a portion of his credit limit. Every time this person uses his credit card to purchase something, his available credit lowers.

Individuals who have closed-end loans are not permitted to borrow again until they have returned them. The loan balance reduces as repayments are made on the closed-end loan. If the borrower needs more money, he must apply for another loan from the beginning. The procedure comprises submitting paperwork to demonstrate creditworthiness and waiting for approval. Closed-end loans include mortgages, auto loans, and student loans.

3. Conventional Loans

When applying for a mortgage, the term is frequently used. It is a loan that is not guaranteed by government entities such as the Rural Housing Service (RHS).

Different Types of Secured Loans

The following are the various types of secured loans that borrowers can obtain from lending institutions:

Home Loans

Borrowers most commonly obtain these forms of secured loans. Home loans, as the name implies, are used by the borrower to acquire or build a home. In this case, the home itself serves as collateral for the lender. While the home is the primary security, the lender may want collateral security as well, depending on the borrower’s profile and the value of the home. This could be a fixed deposit or another asset. Home loans are long-term loans with loan terms ranging from 10 years to 25 years.

They are normally large loans in the lakhs, but they are also the most inexpensive. The interest rates on house loans range between 7% and 7.5% each year. The loan must be paid back in Equated Monthly Installments (EMIs). Typically, the loan-to-value (LTV) ratio is 80%. This means that the borrower can get a loan for up to 80% of the property’s worth.

Car Loans

Borrowers’ gold is used as collateral for gold loans. In this case, gold serves as a security for the lender, allowing the borrower to pledge the gold with the lender and obtain funds from them. Until the loan is repaid, the lender keeps control of the gold. The interest rate on a gold loan starts at 7.50% per year. Most lenders in this situation demand customers to pay simply the interest on the loan amount each month. Borrowers can repay the principle at any time, and they can reclaim control of the gold. Interest on the unpaid principal must be paid each month until the principal is repaid. Furthermore, the LTV on gold loans might reach 90%.

Gold Loans

Borrowers’ gold is used as collateral for gold loans. In this case, gold serves as a security for the lender, allowing the borrower to pledge the gold with the lender and obtain funds from them. Until the loan is repaid, the lender keeps control of the gold. The interest rate on a gold loan starts at 7.50% per year. Most lenders in this situation demand customers to pay simply the interest on the loan amount each month. Borrowers can repay the principle at any time, and they can reclaim control of the gold. Interest on the unpaid principal must be paid each month until the principal is repaid. Furthermore, the LTV on gold loans might reach 90%.

Loans against mutual funds and shares

Mutual funds can also be used as collateral for loans, making them an excellent vehicle for long-term wealth growth. You can obtain a loan by pledging equity or hybrid funds to a financial institution. To do so, you must write to your banker and sign a loan agreement. Your financier will next write to the mutual fund registrar and place a lien on the precise quantity of pledged units. Typically, you can obtain a loan for 60-70% of the value of the units pledged. Similarly, financial institutions create a lien against the shares for which the loan is accepted, with the loan value equal to a proportion of the share value. 

Loans against fixed deposits

A fixed deposit not only provides guaranteed profits, but it can also be useful should you need a loan. The loan amount might range between 70 and 90% of the FD’s value, depending on the lender. It is important to note, however, that the loan tenure cannot exceed the FD’s tenure. 

Loan Against Property

This is a type of mortgage loan in which borrowers obtain funds by mortgaging their property with the lender. Loans against property are available for both residential and commercial properties. Loans against property have greater administration fees than home loans. The lender may utilise the funds for either business or personal purposes. In the case of a loan against property, the LTV might range from 65% to 70%. Furthermore, the interest rates for loans secured by real estate are slightly higher than those on home loans. The interest rate starts at 8% each year.

Unsecured Loan Types

The following are the several forms of unsecured loans that borrowers can obtain from lending institutions:

1. Personal loan

A widely favored form of unsecured financing, the personal loan provides immediate liquidity, albeit with higher interest rates compared to secured loans. Securing a competitive interest rate on a personal loan is contingent on maintaining a good credit score and possessing a high and stable income. This versatile financial tool can be utilized for diverse purposes, including managing expenses for a family wedding, financing a vacation or international trip, funding home renovation projects, covering the cost of a child’s higher education, consolidating multiple debts into a single loan, and addressing unexpected, unplanned, or urgent expenses.

2. Short-term Business Loans

Uncertainties might occur at any time in the business. If a company is experiencing financial difficulties, it can seek short-term business loans. These bank loans are designed to assist firms in dealing with short-term uncertainties and financial difficulties. The eligibility conditions are straightforward, and the amount of loan that can be disbursed is determined by the profitability of the business and the borrower’s profile. Short-term company loans can have interest rates ranging from 1% to 1.5% per month, or 12% to 18% per year. firm loans have a higher interest rate than personal loans since there is a risk of losing borrowed funds in the firm. The danger falls on the shoulders of the lenders in such circumstances.

3. Education Loans

The expense of education is rapidly rising. If one wishes to pursue quality education, he or she has to dish out lakhs of rupees. In such circumstances, an education loan offers financial aid. The interest rate on education loans can start as low as 8.85% per year, and the loan amount is determined by the cost of school. Education loan repayment typically begins 12 months after the completion of the education.

4.Loans on Credit Cards

Credit card loans are associated with a user’s credit card account, which may or may not be linked to the card’s credit limit. Loan repayment EMIs are frequently combined with the card’s monthly bill. While these loans can be obtained fast with no paperwork and used for any financial need, their interest rates are often substantially higher than those of personal loans. As a result, they should only be employed as a last resort and for as little money as feasible.

How to Apply for a Loan?

Applying for a bank loan is easier than you would believe. However, before applying for one, you should be mindful of your financial status, as you will be required to repay the loan amount later. 

You must first evaluate your needs, and if you believe it is the best option for you, you can either go to the bank and speak with a loan manager, or you may skip all of that and apply online.

Step 1: Based on your research, select the lender you want to borrow from and check your eligibility.

Step 2: Apply for the loan at a bank location or on their official website.

Step 3: Send or upload all required documents and proofs.

Step 4: The bank will process your application and contact you within the specified time frame to tell you of their decision.

Bottom Line:

Individuals in India can discover suitable financial solutions to fit their various demands thanks to a wide range of loan alternatives. It is critical to thoroughly evaluate each loan’s terms and conditions, compare interest rates and payback terms given by different lenders, and select the most appropriate loan that matches with their financial goals and capabilities. 

Borrowers should also keep their credit score healthy and practice careful budgeting to ensure timely repayment and avoid any bad impact on their credit history.

Difference Between Secured and Unsecured Loans

Banks and financial institutions offer loans in two basic categories: secured loans and unsecured loans. Understanding the distinction between the two is a critical step towards acquiring financial literacy, which can have long-term consequences for your financial health.  

A secured loan requires borrowers to provide collateral or security in exchange for the loan, whereas an unsecured loan does not. The difference has an impact on your interest rate, borrowing limit, and payback conditions.  

There are advantages and disadvantages to choosing a secured loan over an unsecured loan, which is why we have emphasized the differences. 

What is a Secured Loan? 

A secured loan is a loan that requires you to provide security, which is tangible security appropriately charged to the bank and excludes intangible securities such as guarantees to the lender if you want to borrow money from them. Banks accept real estate, automobiles, securities, jewels, and other assets of great monetary worth as collateral.  

Secured loans typically provide borrowers with a cheaper interest rate and more flexible borrowing conditions. This is because collateral-backed loans are typically less risky for lenders because they are guaranteed to be repaid.  

However, life is unpredictable, and you may find yourself unable to make the monthly EMI payment. If you fail to make EMI payments on a secured loan, the lender has the legal authority to seize the collateral. This is done so that the lender can recoup the money you owe them. Fortunately, lenders often allow you three months to clear all of your defaults and get back on track with your EMI payments. 

Where can I obtain a secured loan?  

Banks, credit unions, and online lenders are among the financial entities that provide secured loans.  

Advantages of Secured Loans   

  • Eligibility restrictions are less severe.   
  • Frequently have cheaper interest rates than unsecured loans.   
  • Borrowing restrictions are higher than for unsecured loans.  

The Disadvantages of Secured Loans  

  • If you default on the loan, collateral may be taken.   
  • Failure to return the loan on time can harm your credit.  
  • There are usually limitations on how the funds can be used. 

What is Unsecured Loan? 

When you take out an unsecured loan, you are not required to offer any tangible security to the lender. Because of the lack of security, these may have higher interest rates than secured loans. The creditor approves your loan primarily based on your ability to repay the obligation. This is accomplished by reviewing your bank account statements and CIBIL score, among other things. Having a steady source of income can make it easier to obtain an unsecured loan. Banks will also evaluate your employment history and references when considering your application for an unsecured loan. Lenders also analyse your monthly income along with your previous loans. This enables them to appropriately assess your financial capacity to repay the loan.  

Unsecured loans are ideal for people who need to borrow money but do not have any collateral to put up. As a result, even if you do not own a home or jewellery, you can still obtain the funding you require. 

Where to get an unsecured loan 

Unsecured loans, like secured loans, are available via a bank, credit union, or internet lender.  

Advantages of Unsecured Loans   

  • If you default on your debt, a lender cannot seize your assets unless the court orders it.   
  • There is no need for collateral.   
  • Flexibility in how you can spend your money.   

The disadvantages of unsecured borrowing  

  • Interest rates on unsecured loans are frequently higher than on secured loans.  
  • Some lenders may charge up to 10% in origination costs.  
  • With bad credit, it may be difficult for them to qualify.   
  • Defaulting on the loan can have major consequences for your credit. 

Difference Between a Secured and an Unsecured Loan?  

  1. The main difference between a secured and an unsecured loan lies in the collateral required to secure the loan. To secure a loan, you must furnish the lender with an asset to serve as collateral. Conversely, obtaining an unsecured loan does not necessitate providing an asset as collateral.
  1. Differing in interest rates is another crucial distinction between secured and unsecured loans. Generally, secured loans boast lower interest rates, attributed to lenders perceiving unsecured loans as riskier.
  1. Secured loans are easier to obtain than unsecured loans since it is less risky for a banker to make a secured loan.   
  1. With longer repayment terms than unsecured loans, secured loans generally offer borrowers a more advantageous arrangement for repaying the loan. 
  1. Obtaining secured loans is relatively easier due to lower risk for lenders, whereas acquiring unsecured loans presents more challenges.

How to settle debts, both secured and unsecured  

Having a plan to pay off debt, whether secured or unsecured, can be beneficial.   

As part of any plan, it is critical to make at least the minimum payment on all debts. However, it may make sense to pay extra money towards secured debt to avoid losing collateral, especially if that collateral is a property or a car. If you’re worried about rising interest rates, it can be a good idea to prioritise unsecured loans to avoid paying more in the long run.  

The Consumer Financial Protection Bureau (CFPB) suggests two options for repaying secured and unsecured debts: 

The snowball method  

Paying down your smallest debt first is the debt snowball strategy. Make a list of all your secured and unsecured debts and rank them in order of how much you owe. Make the minimum payment on all debts except the smallest. Then, allocate more funds in your budget to the smallest debt. Once you’ve settled it, move on to the next smaller debt using the snowball method. 

Avalanche method 

The debt avalanche strategy is referred to by the CFPB as the “highest interest rate method.” This technique focuses on high-interest debt first. Make a list of all your debts to begin. Then, sort them by interest rate, from highest to lowest.   

Except for the one at the top, pay the minimum on each debt. Then, as with the snowball method, apply the remainder of your planned funds to the debt with the greatest interest rate. Once you’ve paid it off, apply the avalanche strategy to the debt with the next highest interest rate.  

Another alternative is to refinance your debt or use a balance transfer to consolidate or simplify payments. However, make careful to investigate the total cost of transferring a debt as well as interest rates. Transfer fees, for example, could make consolidation more expensive.  

Speaking with a financial advisor before making any decisions could help you make the best choice.  


Finally, whenever you need money, you should ask your bank or financial institution for both secured and unsecured loan possibilities and compare the terms. If you possess a property that can be used as collateral, a secured loan may be a lot less and make your monthly outgo reasonable. You must, of course, consider the time frame in which you require the loan, as secured loans often take longer for a bank/financial institution to process than unsecured loans.