How to Get Personal Loan Without Collateral or Security?

A personal loan is a great way to handle unexpected expenses or emergencies . By unexpected expenses , I'm referring to needs such as medical care, education, home improvement , or even weddings. The best part about personal loans without collateral is the fact that they are unsecured , meaning you don't have to give any collateral or security - like property, gold or fixed deposits. 

 

So how do you obtain an unsecured personal loan? 

1.  Know What an Unsecured Personal Loan Is

A personal loan without collateral is a loan in which the lender provides funds based on your income, credit history and repayment capability—not based on things you own. This is in contrast to secured loans (like a car loan or home loan), where you must provide some asset of value as collateral.

 

2.  Qualifying Rules

Lenders must still ensure that, even without collateral, you are going to be capable of repaying the loan. 
The following are some of the criteria you typically need to qualify:

• Age: Between 21 to 60

• Income: Reliable monthly income (lender minimum applies)

• Employment: You can be salaried or self-employed but you need a consistent work history

• Credit score: A fairly good credit score (preferably 700 or more)

Each lender may have slightly different requirements, so check their eligibility list before applying.

 

3. Maintain a Good Credit Score

Lenders will rely heavily on your credit score because a personal loan is unsecured and, therefore, there are no collaterals. A good credit score tells the lender that you repay and service your dues on time and are less likely to default. 

To improve or maintain your credit score:  

• Pay your credit card bills and EMIs on time

• Avoid using your full credit limit

• Don’t apply for too many loans or cards in a short period

• Monitor your credit report for errors
  
  

4. Choose the Right Lender

You can get an unsecured personal loan from:

• Banks

• Non-Banking Financial Companies (NBFCs)

• Fintech platforms and apps

Different lenders offer different interest rates, tenures, and loan amounts. Comparing offers online through aggregator websites or apps can help you find the best deal that suits your needs.

 

5. Keep Your Documents Ready

Though there’s no need for collateral, you still need to submit documents that prove your identity, income, and address. Usually, lenders ask for:

• Aadhaar Card, PAN Card, or Passport

• Salary slips or income proof

• Bank statements (last 3–6 months)

• Address proof

Online lenders often accept scanned copies, and some even allow paperless KYC using Aadhaar-based verification.

 

6. Apply Online or Offline

Most lenders today offer easy online application processes. You just need to:

• Visit the lender’s website or app

• Fill in your basic details

• Upload the required documents

• Submit the application

If everything is in order, the loan can be approved and credited to your account in just a few hours or within 1–2 business days.

You can also visit a bank branch to apply offline, but that usually takes more time.

 

7. Borrow Responsibly

It's very important that you only borrow what you want and can pay back, even if you won't provide collateral. Unsecured personal loans usually require higher interest rates than secured loans for the lender to take out more risk. That would mean planning for how you'll pay back the loan and your budget, consider the interest as well. 

If you miss your EMIs, it may affect your credit score and you could incur other charges, so just ensure you have some sort of planned approach to the repayment process.

 

Conclusion

Accessing a personal loan without collateral has never been simpler—thanks to online lenders, fast approvals, and terms that often work with your wallet. All you need is a positive credit profile, a reliable income, and some documents to apply for one. Whether it be for an emergency transfer or a planned expense, an unsecured personal loan can be a savvy, secure, and available way of accessing the funds that you need.

Tags

Share