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Secured Loans

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₹65k Cr+Loans Disbursed
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HDFC Bank
10 Second Disbursal*100% Digital Process*Quick Disbursal
Max Loan Amt.Upto 25L
Rate of Interest9.99% - 12.5%
Tenure upto1-5 Years
Processing Fee6,500
ICICI Bank
100% Digital Process*Quick Disbursal
Max Loan Amt.Upto 25L
Rate of Interest11% - 13%
Tenure upto1-5 Years
Processing FeeUpto 2%
Axis Bank
Low Processing fee
Max Loan Amt.Upto 25L
Rate of Interest9.99% - 17.15%
Tenure uptoUpto 6 Years
Processing FeeUpto 2%
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How Can I Apply for a Personal Loan Online?

Get up to 40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Purpose of Secured Loans

These loans give an opportunity to applicants to get the necessary finance on better terms. Since the applicant has pledged an asset to avail the loan, it puts them in a comfortable position as they can bargain for lower interest rates and flexible tenures, as compared to an unsecured loan. In addition, the applicant can get higher loan amounts based on the value of their collateral.

Types of Secured Loans

Features of Secured Loans

The features of each specific secured loan differ from one another. However, they have a few general characteristics in common:

  • Asset Required as Collateral: It is taken against a property or asset which is given as collateral. The loan can be up to 85% of the value of the property.
  • Low Interest Rates: When compared with unsecured loans, the interest rates for these loans are much lower. This is because banks face lower risk in case of default.
  • Available for All: It can be taken by salaried as well as non-salaried individuals, as well as proprietorship and corporate businesses.
  • Customisable: The loan can be customised according to the applicant’s needs. For instance, the loan offers flexible repayment options. Additionally, the applicant can choose the type of interest they want. Most banks offer a mix of fixed and variable interest rates. Banks also offer flexible loan tenures.
  • No Guarantor Needed: There is no need for a guarantor for this loan.
  • Quick Processing: The processing and approval are quicker.
  • Improves Credit Score: Timely repayment of the loan improves your credit score.
  • Possibility of Asset Takeover: Banks and lenders can repossess your assets if you fail to repay your loan.

Eligibility Criteria for Secured Loans

As with the features, the eligibility criteria are different for each specific type of secured loan. However, they do have some common criteria. For instance:

  • The applicant must be at least 18 years of age.
  • The applicant must be a resident of India.
  • The asset put up as collateral must be the same or exceed the value of the loan.
  • In case of a business loan, the business in question should have in operation for at least 3 years.
  • Salaried, non-salaried and self-employed individuals can apply but need to meet the specific criteria needed for each.

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Documents Required for Secured Loans

The following documents are required for different types of secured loans:

Mortgage Loans / Loan Against Property

  • ID Proof: Copy of one of the documents: Voter Card / Aadhaar Card / Passport / PAN Card
  • Age Proof: Copy of one of the documents: Passport / Driver’s License / Aadhaar Card
  • Residence Proof: Utility Bills / Rent Agreement / Passport
  • Income Proof: Salary slips for the last 3 months. Banks also ask for IT returns and / or Form 16
  • Bank Statement: Bank Statement of the last 6 months that have been duly authenticated
  • Proof of Signature: This is done to authenticate your signature on documents
  • Property Papers: Original documents of the property that has been put up as collateral
  • Passport size photographs
  • Duly filled application form

Home Loan

  • ID Proof: Copy of one of the documents: Driver’s License / Aadhaar Card / Passport
  • Age Proof: Copy of one of the documents: Passport / Driver’s License / Aadhar Card
  • Residence Proof: Copy of one of the documents: Utility Bills / Passport / Lease Agreement
  • Income Proof: Salary slips of the past 3 months in addition to IT returns and/or Form 16
  • Bank Statement: Authenticated statements of the past 6 months are needed
  • Proof of Signature: This is done to authenticate your signature on documents
  • Property Papers: All property papers in their original form need to be submitted to the bank
  • Passport-size photographs
  • Duly filled application form

Car Loan

  • ID Proof: Copy of one of the documents: Voter Card / Aadhaar Card / Passport / PAN Card
  • Age Proof: Copy of one of the documents: Driver’s License / Passport / Aadhaar Card
  • Residence Proof: House Tax Receipt / Electricity Bill / Water Bill
  • Income Proof: Salary slips of the past 3 months / IT returns / Form 16
  • Bank Statement: Authenticated bank statement of the previous 6 months
  • Proof of Signature: This is required from the bank
  • Passport-size photographs
  • Application form, duly filled

Business Loans

  • ID Proof: Copy of any one of the following documents: PAN Card / Driver’s License / Aadhaar Card
  • Residence Proof: Copy of any one of your Telephone Bill / Lease Agreement / Electricity Bill / Water Bill
  • Company Profile: Information regarding the company’s products and services
  • Financials: The balance sheet and profit and loss accounts of the company for the past 3 years.
  • IT Returns: The IT returns filed by the company for the last 3 years
  • Bank Statements: The bank statements for the last few months are needed
  • Management: Profile of the promoter
  • Property Papers: Original documents of the property if put up as collateral
  • Passport-size photographs
  • Application form, duly filled

Benefits of Secured Loans

The secured loans offer a number of benefits for the borrower. Some of these are:

  • Low Interest Rates: Since the loan is taken against collateral, the bank can offer loans at low interest rates. This is because the mortgaged property minimises the risk, so the bank has faith in the repayment capacity of the applicant.
  • Higher Amount of Loans: Large loans can be taken based on the value of the property that has been put up as collateral. It must be noted though, that the loan amount cannot exceed the value of the mortgaged property (in most cases, the upper limit is 75-85%).
  • Quicker Processing and Approval: The loan procedure is not time consuming. Quick processing and approval make this a comfortable experience.
  • Flexible Loan Repayments: Secured loans give the applicants multiple ways of repaying the loan. The applicant can pay back the loan through ECS mandated EMIs or post-dated cheques, for instance. They can also prepay their loan if they have additional money on them.
  • Bad Credit Score Applicants: Individuals with a bad credit score can also avail this loan. Timely payment of a secured loan will greatly boost the credit score of the applicant. Here are the top 5 alternatives for Bad Credit.
  • Tax Deductible: In case of home loans, the interest on the loan is tax deductable. This will save the applicant a lot of money.
  • Low Minimum Income Standard: The minimum income bar for secured loan applicants is low. This is because the applicant has already assured the bank of their repayment capacity by mortgaging their property.

Points to Note for Secured Loans

Though secured loans are a great way to finance large purchases, there are certain factors that one must keep in mind when they take such a loan.

  • Collateral: In a secured loan, a property or asset has to be kept as collateral in order to avail a loan. If the applicant is unable to repay the loan, then they will end up forfeiting the said property.
  • Paperwork: This loan requires more paperwork than an unsecured loan. This may make the whole process cumbersome for certain applicants.
  • Loan Based on Collateral: The loan amount taken can only be up to a certain value of the asset or property that has been kept as collateral. This limits the amount of loan that an applicant can borrow.
  • Full Owner of Property: The applicant must be a complete owner of the property that has been kept as collateral.
  • Floating Rate of Interest: The EMI amount paid on a floating interest rate fluctuates. This is because on a floating rate of interest, the rate of interest keeps changing based on the market conditions and RBI policies. This creates problems for loan applicants as their EMI amounts will keep going up and down. This may disrupt the applicant’s expenditures and budget.
  • Lender at an Advantage: In a secured loan, the lender is always in an advantageous position. The deal is tilted in their balance. It does not matter whether the applicant is able to pay back the loan or not, as the lender will recover the cost.

How Can I Apply for a Personal Loan Online?

Get up to 40 Lakh in 5 Simple Steps

Step 1: Enter your mobile number in the application form

Step 2: Provide your personal details

Step 3: Enter OTP to verify your mobile number

Step 4: Select the loan purpose and loan amount

Step 5: Compare offers and apply for the best-suited loan

Avail Personal Loan for
All Your Needs

Avail Personal Loan Banner

Avail Personal Loan for
All Your Needs

FAQs

Why should one go for a secured loan?

Secured loans are the best option for many reasons. The loan can be taken up to the value of the property. The borrowers get low interest rates and they can pay back the loan amount over a period of time. Moreover, applicants who do not have a strong credit history can get the loan easily.

What happens to the mortgaged asset if the applicant is unable to repay the loan?

If the applicant is unable to repay the loan, then the mortgaged property changes hands. The bank / lender become the new owner of the property and they choose to sell or rent the said property in order to recover their losses.

Is there a penalty on late EMI payments?

Yes, banks charge a penalty on late EMI payments. Therefore, it is advised that applicants make their repayments on time. 

Is there a charge on prepayments?

Banks have certain conditions on prepayments. For instance, banks will charge a penalty on prepayments if these payments are made within a six month period. But, they might not charge anything if the prepayment is made after six months from the date the loan was taken. Readers should note that most home loans do not have a prepayment fee. They should contact their bank for more details on these charges, if any.

What is the maximum amount that can be borrowed?

In secured loans, the amount of loan that can be borrowed depends on the value of the property that has been mortgaged. The loan amount can either be equal to or less than the mortgaged property. It, however, cannot exceed it. In most cases, the amount of loan does not exceed 85% of the market value of the asset or property.

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What our customers say

Smooth & hassle-free loan approval experience

I want to express my gratitude for your exceptional support & guidance throughout my loan application process to Aman (EW17239). Your professionalism & clear communication made the journey smooth and manageable. I appreciate how you helped during loan approval & fast-tracked the documentation. It is rare to find someone so committed to their clients. I truly value the effort you put into ensuring a successful outcome. Thanks again for your invaluable help.

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Sanjay Kumar GuptaMar 30, 2026

Exceptional guidance throughout the process

I’d like to express my sincere appreciation for Mr. Aman Kumar (EW32023) for the excellent assistance provided. His professionalism & willingness to help made the experience smooth & pleasant. Aman Kumar demonstrated patience & clarity while addressing queries and ensured that everything was handled efficiently. Such dedication & customer-focused service truly deserve recognition. Please convey my thanks and appreciation to him for his outstanding support.

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Jyotirmoy SinghaMar 23, 2026

Very helpful and easy to reach

I really wants to appreciate Mohankumar Dhandapani for closing my loan requirement in such a short time and nice manner. He is very much approachable helped me based on my requirements. He explained me all the options in very short time even one option failed immediately helped me to get other options worked. Excellent job done by Mohankumar Dhandapani all the best keep you same way approachable you will get more customers. Thanks to Paisabazar too.

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Kirubagaran GanesanFeb 24, 2026

Reliable help when i needed it most

I am writing this email to express my sincere thanks for your excellent support and guidance on Paisabazaar. My experience was very smooth and satisfying because of your help. You explained everything clearly and made the whole process easy and comfortable for me. I truly appreciate your professionalism, patience, and quick response. I am very happy with the service and would definitely recommend to others because of the great support I received from you. Thank you once again

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DharmeshFeb 22, 2026

Committed support that made everything easy

I’d like to appreciate the Paisabazar team for the excellent loan service. I especially want to recognize one of your agents, Mr. Prince Kumar, for his outstanding support. For more than a month, he continuously followed up with me and assisted me. His commitment & professionalism made the experience smooth & hassle-free. I appreciate his efforts and dedication. Kindly acknowledge his performance and consider rewarding such a sincere employee.

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BhupendraFeb 18, 2026

My Trust in Paisabazaar has Increased

I would like to take a moment to share my sincere feedback regarding the support I received from your team. The executive who assisted me was extremely professional, polite, and knowledgeable. They patiently understood my concern, explained the process clearly, and guided me step by step toward the right solution. I truly appreciate the transparency, timely responses, and genuine effort shown to help me.

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Lalit MaviFeb 12, 2026

Best Place for Taking Loans

I contacted customer care with a few queries, and I am very satisfied with the support I received. The representative was polite, patient, and explained everything clearly. My questions were resolved properly, and the overall experience was smooth and helpful. Thank you for the excellent customer service

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Kokil BarnwalFeb 12, 2026

Easy loan approval with good guidance

Thank you for the support provided for getting personal loan approval. During this process I worked with Mr. Aman Bajpai (EW17239) who was co-ordinator for this entire process of Personal loan, I was incredibly impressed by his efficiency and problem-solving skills. He went out of their way to ensure all my questions were answered and that the disbursement timeline stayed on track. His coordination was really appreciable.

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Riyaj AtarFeb 9, 2026

Apne higher education ke liye loan liya tha

Muhje higher education ke liye loan chahiye tha. Paisabazaar pe apply kiya. Got it at the right time. Quite helpful.

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Puja DanuJan 22, 2026

Sabse jada helpful log the yaha

Maine bht jagah try kiya tha personal loan ka, yaha try kiya toh helpful log mille. Har steps mai aram se samjhaya or usse muhje loan lene mai jda dikkat nhi aayi.

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Anuradha GuptaJan 21, 2026
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Anubhuti Agrawal profile
Written ByLinkedIn icon
Anubhuti Agrawal
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Shamik Ghosh

Paisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners.

The APR (Annual Percentage Rate) of a personal loan is its annualised cost of borrowing, which includes the interest rate as well as the processing fees, documentation fees and other fees charged during the loan origination. The APR is expressed in the form of a percentage and thus, allows personal loan applicants to detect personal loan schemes offered at lower interest rates but with higher processing fees and/or other charges.

The APR of personal loans usually ranges between 11.29% to 35%. For example, assume that you have availed a personal loan of Rs. 5 lakhs @ 10.50% p.a. with a repayment tenure of 5 years. The processing fee charged for this loan is 1.5% of the loan amount, which amounts to Rs 7,500. Therefore, the total borrowing cost of your personal loan will be Rs 1,52,317 and its APR will be 11.16%.

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