- What are those loans that you can get without any hassle?
- Know about Gold Loan, Loan Against Security, Pre-approved Personal Loans that you can get easily.
When individuals face monetary needs, they usually go for loans if they don’t have savings with themselves. Loans are mainly of two types – Secured and Unsecured. But before going for any kind of loan, customers want to know the answer to this question – Which loans are easy to get? The reason: they don’t want to face the rejection from the lender when going for a loan. So, when we talk about loans that are easy to get, there are some quite popular among customers. These are Pre-approved Personal Loans, Gold Loans, Loan Against Securities such as Fixed Deposit, Mutual Funds, Life Insurance Policy, etc. In this article, we will cover everything about the loans that are easy to get. But first, you should know what is the reason that makes a loan easy or difficult to get for customers.
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What is the Reason that Makes a Loan Easy to Get for Customers?
Well, you must be thinking about why we have not mentioned personal loan or home loan above and what is the reason because of which some loans are easy to get while some are not. Everybody wants soft eligibility criteria when going for a loan and this is the reason that makes a loan easy or difficult to get for a customer. Let’s understand it in simpler terms.
A Personal Loan is a completely unsecured loan, hence customers have to meet different eligibility conditions like Income proof, ITR, Bank Statement and Credit Score to get a loan amount. If your income and credit score are on an edge, you may not get quick approval for a personal loan. Similarly, in the case of a Home Loan, lenders check your property value, location, monthly income, credit score, etcetera before sanctioning a loan amount. Since a home loan comes after quite a few checks from the lender, so it might take time for approval.
On the other hand, loans like Gold Loans and Loan Against Securities come under the secured loans which means customers pledge some kind of collateral or security against the loan amount. Lenders do not check the credit score or monthly income before sanctioning the loan. Pre-approved personal loans against Savings Account or Credit Card also come in the list of loans that are easy to get. The reason: lenders themselves offer the loan amount to select customers based on their existing relationship. Also, there are some mobile applications that offer small personal loan amounts with softer eligibility criteria.
So, now you have known the reasons that make Loans easy to get, it’s time to know these loans in detail one after another. We are starting with Pre-approved Personal Loans and then we will talk about Gold Loans, Loan Against Securities, Personal Loan Lending Applications.
Pre-approved Personal Loan
The first loan, which is the easiest to get, is the Pre-approved Personal Loan. As you can see from its name, this type of loan is pre-approved and customers cannot apply for this by themselves. So how do lenders offer this loan? Well, everyone usually has a savings account in their names. Other than this, customers can also have credit cards. Lenders offer a pre-approved personal loan at affordable interest rates to those customers who have an excellent credit history, high-transactional salary or savings account, long relationship with the lender, and responsible repayment behavior.
As we said, customers cannot apply for this loan. Lenders usually select customers by themselves and give them an offer. The pre-selected customers only need to give their consent if they want a loan. However, customers can ask their respective lenders to know if they are eligible for a pre-approved personal loan. Some of the prominent advantages of pre-approved personal loans are lower processing fees, Minimal documentation (basic KYC documents), Instant Loan Disbursal and 24×7 convenience.
The loan amount will be decided by the lender based on your overall profile. But a customer can choose the repayment period according to his/her repayment capacity. Also, the tenure and interest rates may vary from one individual to another. Do remember this fact that different lenders can set different parameters for pre-approved personal loan offers..
Gold is one of the most common assets that people in our country usually have in the form of ornaments and coins. In times when you need money urgently, you can get the required loan amount with the help of a Gold Loan. Several lenders provide a Gold Loan to customers at affordable interest rates, and the best thing is that this loan is so easy to get. People who have faced rejection from lenders due to poor credit scores can easily get the gold loan. The reason: lenders only ask for one condition to provide a Gold Loan and that is, you must have pure gold.
Customers put their gold ornaments and coins minted by banks as the security, and lenders provide the loan amount against the overall price of the Gold. The loan amount generally varies from 65-90% of the overall gold price. So, higher prices can get you a higher loan amount. What’s more, Gold Loans have softer eligibility criteria. Just submit your gold and the lender will authenticate your assets and approve the loan amount basis the submitted quantity of the yellow metal.
Apart from this, customers can also choose a repayment period according to their convenience as there are mainly four repayment options – EMI Payment, Interest Payout at Regular Intervals, Bullet Repayment, and Interest Payment at the end of tenure. Also, due to lower interest rates ranging from 10% to 16% per annum on average, customers can easily repay the loan on time. We are showing interest rates of some of the top gold loan lenders below. Have a look.
|Gold Loan Lenders||Interest Rates (In Per Annum)|
|Muthoot Finance||12.00% - 27.00%|
|ICICI Bank||11.00% Onwards|
|HDFC Bank||10.05% - 17.95%|
|State Bank of India (SBI)||7.50%|
|Manappuram Finance||12.00% - 29.00%|
|Union Bank of India||7.00% - 10.10%|
|YES BANK||9.00% - 15.00%|
|Kotak Mahindra Bank||10.50% - 24.00%|
Loan Against Securities
As you can see clearly from the name, this type of loan is provided against securities like Fixed Deposit, Mutual Fund, Life Insurance Policy, etc. And as customers provide security or collateral against the loan amount, these loans are pretty easy to get. Several lenders provide the loan against securities to customers so they can fulfill their needs. Due to its secured nature, lenders do not have much credit risk as they can always fall back on the security in case of any default from the customer’s side.
Customers do not need to go through the strict eligibility criteria like they do in a personal loan. This is the reason behind the popularity of these loans among customers. So, we are talking about loans against these securities one after another. We are starting with a Loan Against Fixed Deposit.
Loan Against Fixed Deposits
If you have a fixed deposit in a bank or NBFC and are looking for urgent funds, your FD can get you the required loan amount. Lenders provide a loan against a fixed deposit at interest rates, which will be around 2% – 3% above the interest you get on on your FD. Talking about the loan amount, customers can get as much as 70-90% of the overall FD value which they need to repay within the remaining tenure of the deposit product. For example, if you have an FD for 10 years and take a loan after 6 years, you will need to repay the loan within the remaining 4 years.
We are mentioning the interest rates of some of the top lenders in India that you can check below.
|Lenders||Interest Rates (In Per Annum)|
|Axis Bank||2% above the FD rate|
|SBI||1% above the FD rate|
|ICICI Bank||2-3% above the FD rate|
|HDFC Bank||2% above the FD rate|
|Bank of Baroda||10.60%-11.10%|
Loan Against Life Insurance Policy
Do you know that your life insurance policy can easily help you in availing the required loan amount? Yes, it can! Several lenders provide a loan against a life insurance policy, which is one of the easiest loans to get. You only need to submit your life insurance policy as collateral, and lenders will provide the loan amount against it. You need to remember that the loan amount can be as high as 80-90% of the surrender value (the value you get if you exit your policy before its maturity) of your policy and not the overall value. The interest rates are also quite affordable ranging from 10-13% per annum. The best thing about this loan is customers face lesser chances of rejection while applying for this loan with this collateral.
Loan Against Mutual Funds
The reasons that make a Loan Against Mutual Funds favourable for customers are affordable interest rates, minimal documentation, and lenient eligibility criteria. A loan against a mutual fund comes into the list of loans that are easy to get as customers submit their mutual fund units as security. Since the loan amount is backed by the mutual fund units, lenders feel safe and comfortable in offering the loan amount.
The loan amount will be decided by the type of mutual fund against which you want the loan amount. If the loan is against Equity Mutual Fund, the loan amount can be upto 50% of the overall Net Asset Value (NAV), and if it is against Debt Fund, the loan amount can go as high as 70-80% of the NAV. Customers only need to pay the interest amount on the utilized amount and not on the total amount. The interest rates tend to range from 10-13% per annum and having an existing relationship can also make it lower.
Several banks and NBFCs offer Loan Against Mutual Funds at lower interest rates. We are showing some of them. Have a look.
|Axis Bank||10.50%-12.75% per annum|
|SBI||9.75% per annum|
|ICICI Bank||Depends on the investment value and market movement|
|HDFC Bank||Depends on the investment value and market movement|
|Bank of Baroda||7.35% - 8.10% per annum|
For staff 7.10% per annum
Personal Loan Lending Apps
A large portion of our population is using smartphones these days. What if we tell you that you can fulfill your funding needs with your smartphone. Well, it is possible with Personal Loan Lending Applications. These apps have emerged as an excellent option for customers who want to get easy loans without any hassle. It is possible that with these personal loan avenues, customers may not avail of as high an amount as they would get with a traditional personal loan but something is better than nothing for a person who urgently needs money.
There are several lending apps for a personal loan but some of the most popular ones are MoneyTap, Dhani by Indiabulls, KreditBee, etc. The best thing about these lending apps is the ease and convenience with which customers can get the required loan amount. Customers only need to download their respective applications on their smartphones. Register on it, enter the basic details (Name, Date of Birth, City, etc,) submit the required documents, and you will get the eligible loan amount in your bank account instantly.
Customers can apply for a loan through these lending apps without providing any security. However, you need to remember that the loan amount, interest rates and tenure may vary from one lending app to another. For example, KreditBee offers Personal Loan to Salaried at an interest rate of 1.5% per month where customers can get a loan amount as low as INR 1,000. The maximum amount will depend on their monthly income.
Similarly, Dhani App provides a facility with which customers can get a loan amount ranging from INR 3,000 to INR 3 lakh with minimal documentation. The interest rates start from 13.99% per annum. On repaying the first loan, the loan amount will be bigger every next time. You only need to Register on Dhani App, enter your mobile number & other details, upload PAN Card & Address Proof, and your loan amount will be disbursed into your account directly.