At times, you may need financial help to cope with a medical emergency, tax payment or car repairs. Some banks would provide you loans without insisting for collateral provided your credit score is good. Loans that are offered in the absence of collateral are called unsecured loans or collateral free loans. In the absence of any guarantee of your paying back the borrowed amount, such loans make a risky proposition for banks.
Unsecured Personal Loans
Usually, consumers may ask for collateral free personal loans for paying bills against their credit cards or loan instalment for car etc. Your bank may offer such loans if you possess a good credit score and charge low APR (annual percentage rate.) In the absence of a good credit score, you may need to borrow from some private lending companies for quick approval of your loan.
The essential documents needed for availing such loan include evidence of stable income, social security number and some additional financial information. You can expect the loan to be sanctioned by private lenders within two to three days. The loan amount is deposited in your bank. Usually, the amount of these loans is low as there is no security, making it a dicey proposition for the lender.