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Posted on Friday April 26th, 2019

Loans are the significant financial product helpful in buying a house, purchasing a car, meeting an emergency, funding higher studies and so on. They are helpful in leveraging your financial capacity. Loans are of two types- secured and unsecured. Secured loans require collateral while unsecured loans are borrowed on the basis of creditworthiness of borrower without the need of collateral. Some examples of secured loan products are home loan, car loan, loan against property, gold loan etc. and personal loan and credit cards are the example of unsecured loan product. Both of them serve different purposes and while applying you must aware of the fact that why loans are the right choice for you. Nowadays, there are so many financial institutions that serve you with various loan products in the market. In terms of popularity and requirement, banks and NBFC’s have segregated the concept of lending and borrowing into Secured and Unsecured Loan types. ShubhBank provides you the best loan schemes with various benefits from which you can pick the one that suits your need.

You can choose the loan type depending upon your requirements in terms of tenure, loan quantum, purpose, rate of interest etc. Secured loans would cost you a relatively Lower Rate of Interest and you can go for them if you have sufficient liquidity and collateral available to pledge against the borrowing. We typically ask for collaterals to cover the risk of long term loans. If your CIBIL is not sufficient for unsecured loan, you have to pick the secured loan and you can improve your score eventually by repaying the loan on time. If your requirement is for short term then bank assess your repayment capacity based on your income and offer a loan without asking any collateral. These loans come with comparatively higher rate of interest. We usually offer unsecured loans to the borrowers who have a good transaction history and an excellent CIBIL score. ShubhBank provide you simple and eye-pleasing interface that helps you sort through probable loan options and associated pros and cons of loan plan.

The interest rate on secured loans is low as collateral is pledged and they are easily available. The loan quantum is relatively higher as the loan money depends upon the availability of collateral. It takes longer duration of processing time but rejection chances are low. The unsecured loans are easily available when there is an urgent requirement for liquidity. Don’t put too many applications for such loans, as it will reflect your credit-hungriness which would erode your credit score. Never pledge collateral with a higher value than what’s required by lender. Instead of that, you can pledge two or more smaller assets to match the loan value. Review your loan balance time to time and repay your loan payment in a timely manner that also helps in improving your credit score. Choosing ShubhBank helps you to save your time and efforts, assuring you the best Loan schemes that specifically address your requirements.