Top 5 Advantages of a Collateral-Free Loan
A collateral-free loan comes with several advantages for salaried employees and self-employed business owners. The main advantage of this type of loan is that it does not require any security as collateral to avail the loan. When you need money and you don’t have any assets to pledge as security, a collateral-free loan will be a boon to you. In this article, let us discuss the top five advantages you can enjoy while you avail a collateral-free loan.
Quick and Easy Application Process
Usually, the loan application and approval process are quick and easy for collateral-free loans. Hence, individuals can take advantage of these loans when they need funds urgently. The lender may ask you to submit some basic documents like bank statements, income tax returns and income proof. Documents required varies based on the requirement of the lenders. You can avail an easy loan online without any paperwork through Chola One mobile app.
Chola’s loans are tailor-made to suit the fund requirements of our customers. You can choose a flexible tenure suitable for your monthly cash flow. A security-free loan comes to you with a stress-free loan process. This is what every individual wants.
Security is not needed
A collateral-free loan is also called an unsecured loan, where a lender provides a loan without asking you for collateral to pledge as security for your loan. So, if you are a budding entrepreneur who does not have collateral to avail a loan, this type of loan can be a helpful financial tool for you. Also, it is important to know the consequences if you default on your monthly repayments. Failing to repay your loan may attract legal action against you by the lender. This will directly reduce your credit score. This will place you in a situation where your future loans may get rejected due to your undesirable credit history. So, paying your monthly dues on time is mandatory if you opt for an unsecured loan.
Best choice for unplanned expenses
For unplanned expenses, you need funds urgently and the timeline to get the funds will be very short. Collateral-free loans can help you in this kind of emergency. You can avail loans with instant approval from Chola.
The Chola Advantage
The Chola CSEL mobile app makes the loan process completely paperless and gives customers the ultimate comfort of applying for a loan easily with a smartphone. Chola ensures exceptional customer care with dedicated staff working at our PAN India network of branches. Quick sanction and disbursal of loans help customers with their urgent fund needs. Chola’s collateral-free loans come with many advantages to give its customers a seamless loan experience.