Some common types of unsecured loans are as follows:
- Personal Loans - Unsecured loans offered without end-use restrictions that can be used for medical expenses, weddings, vacations, or debt consolidation.
- Business Loans - Loans offered to self-employed, professionals, or small businesses based on financial records and creditworthiness without any collateral.
- Credit Cards - Unsecured credit product for making purchases that need to be repaid by the end of every billing cycle.
- Line of Credit - A flexible credit facility where borrowers withdraw money as needed up to a set limit, and pay interest only on what they use.
- Education Loans - Loans granted without collateral to meet education expenses, depending on the amount, the applicant’s profile and the institute’s reputation.
- Payday Loans - Small-ticket, short-term, unsecured loans to meet urgent financial needs that need to be repaid once the salary is credited.
- Consumer Durable Loans - Quick finance for gadgets, electronics, or household appliances, often available with offers such as low/no cost EMIs.
