When it comes to availing a loan, many borrowers are confused between secured loans vs unsecured loans. But which is the best option for you? Let’s check out which is the best between secured loans vs unsecured loans in this quick post! Secured loans vs unsecured loans 1. The rate of interest Since you need to submit collateral for secured loans, lenders charge a lower rate of interest on them. It helps you pay reduced EMIs and manage the cost of the debt easier. On the other hand, the unsecured loan like the personal loan comes with a higher rate of interest and leads to the payment of higher EMIs. Your creditworthiness is the key parameter while approving the loan request. You don’t need to pledge any security. Having a higher credit score of 750 and more can help you get the unsecured loan approval fast and at a lower rate. 2. The loan amount Between secured loans vs unsecured loans, the loan amount that lenders can approve depends on your overall eligibility and their policies. To know how much you will get, you can use the loan eligibility calculator on a lender’s website for free. Unsecured personal loans from top lenders can get you up to Rs.25 lakhs. 3. The repayment tenure When it comes to secured loans vs unsecured loans, the repayment tenure of unsecured loans is lower than that of secured ones. Secured home loans may have a tenure of 20 years, and it could be up to 60 months for unsecured personal loans. 4. The money disbursement period The money is disbursed into your bank account within 24 hours* in an unsecured loan. In a secured loan, it may take a bit of more time to get the approved amount credited. Based on your needs, and your repayment capacity, you should decide to choose between secured loans vs unsecured loans. Bajaj Finserv brings to you pre-approved personal loan offers, home loans, and more. It can ease off your loan processing and make it less time-consuming. You can share your basic details like the name and the mobile number to explore your pre-approved loan offers today. Additional Read: Choose The Better Option Between Secured and Unsecured Personal Loan
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |