The Best Ways to Qualify for a Personal Loan (Without Putting Up Collateral)

You may think that you might never need a loan in life.  But emergency situations like sudden hospitalization or business requirement may prove you wrong and give rise to situations where we need a personal loan immediately.  Always ensure the following points so that you qualify for a personal loan without putting up collateral:

Have a good credit score:  Banks prefer borrowers who have a good credit history and rating.  Especially when the loan is unsecured, they totally rely on the credibility of the borrower for getting back the money.  Hence maintain a good credit history.  Any delay or non-payment of existing loans will affect your credit history.  Ensure that you pay all your existing debt EMIs promptly.

Find the best lender:  Without proper research do not end up with a lender demanding collateral.  Use online sites like so that you get the loan faster and easier comparing the products and selecting the best loan where the terms and conditions are simple and favorable.  Such sites give full information on the requirements on the part of the borrower and the various personal loans in the market with full details like interest rate, repayment tenure, other conditions etc.

Income proof:  Banks may be convinced to lend without collateral when you offer them proof that you earn sufficient income for repaying the loans.  Hence you can produce proofs for your income like tax returns and financial statements in case you earn from the business.  If you are salaried, you can give your pay slips or bank statement of that account in which salary is credited.

Cosigner:  Banks insist for collateral only when income is not sufficient or when you have a bad credit history.  In case your income is insufficient for the loan amount, approach your friend or relative who has sufficient income and requests them to jointly apply for the loan.  If the income and credit history of the cosigner is good, then banks give personal loans without collateral easily.

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