You can use money obtained through unsecured loans in various ways according to your needs like paying bills, school fees, purchasing a car or some other household things. Anyone like a tenant, a student or a non-home owner can apply for this kind of loan because of its collateral free advantage.
The rate of interest is very high in these kinds of loans. However, if you have a good credit record, getting an unsecured loan will not be a big problem.
Basic requirements for taking an unsecured loan-
1. You should be above 18 years of age
2. You should be a U.S.A. resident
3. Should have a sound mind to contract
4. Should have the repaying capability
Homeowners, tenants, business persons, professionals, people with good credit rating or low credit rating-all are eligible to apply for unsecured loans. The only criteria that lenders check is -whether you are capable of repaying the borrowed amount or not.
Documents to keep ready for unsecured loan
1. Employment and income proof certificate
2. Documents on tax return and salary slip
3. Bank statements
4. Documents on credit record
Salaried persons have to show their income tax income returns and salary slip. Businessmen can show their audited balance sheets, profit and loss accounts and tax returns.
The repayment duration is shorter in these types of loans and falls in between 6 months to 5 years based on amount of loan and the prevailing circumstances.
Unsecured loans have many benefits. These include quick processing, few documents, varied uses and risk free borrowing. Absence of collateral is the important plus point in these loans. Very few formalities are involved in such loans. Since no security is required for unsecured loans, therefore it becomes very important for lenders to verify your repaying capability.