You Should Know: The Benefits of Unsecured Personal Loans

Recently, unsecured personal loans have gained a bad reputation in the financial sector. However, the popularity of such unsecured personal loans among the population has grown significantly. Let's take a look at unsecured loans, as well as the benefits of unsecured personal loans that you probably didn't know about.

What are unsecured personal loans?

Unsecured personal loans are personal loans given by financial institutions (like OnCredit) without requiring collateral or much documentation. This means that you can be eligible for unsecured personal loans without needing to provide proof of assets. Unsecured loans are usually of small amounts with shorter repayment periods than secured loans provided by Banks or other Financial Institutions.

Unsecured Personal Loans - Best Lenders of Sri Lanka

0% for first loan
Lotus Loan

Lotus Loan to Rs.40 000

Loan Amount 10000 - 40000 Rs.
Loan period 10 days to 122 days
Interest Rate 0.01 to 1% per day (max APR 12%)

Apply Now

0% for first loan
robocash

RoboCash to Rs.25 000

Loan Amount 5000 - 25000 Rs.
Loan period 120 days to 180 days
Interest Rate 0.01 to 1% per day (max APR 180%)

Apply Now!

0% for first loan
FastRupee

FastRupee to Rs.50 000

Loan Amount 3000 - 50000 Rs.
Loan period 1 days to 180 days
Interest Rate 0.01 to 1% per day (max APR 365%)

Apply Now

What is the loan term?

  • Minimum loan term: 122 days
  • Maximum loan term: 122 days for first loan
  • Maximum loan term: 182 days for repeat loan

The loan is calculated as follows

  • Loan amount: RS 30.000
  • Loan period: 122 days
  • Consulting fee: RS 3.600
  • Service fee: RS 13.920
  • Interest rate (12% / year) : RS 754
  • Total payment: RS 48.274

Am I eligible for a loan?

You are eligible to apply for a loan if you are:
  • A citizen of Sri Lanka
  • Residing in Sri Lanka
  • Between the ages of 20 to 65 years old
  • Currently employed or generating a steady income

What is the difference between secured and unsecured loans?

There are a few key differences between secured and unsecured loans. Most traditional banks or financial institutions do not offer unsecured personal loans, opting only for the traditional secured loans where you need to provide extensive collateral such as your vehicle or the title of a piece of property. In the event you are unable to pay back your personal loan, they will take ownership of those assets. Secured loans are unyielding and a long-term financial commitment. More often, it is also called asset backed loans, since they are always collateral based.

Unsecured Personal Loans

On the flipside, you have unsecured personal loans which are the opposite of secured personal loans.  It is known to be the most convenient type since they are usually short term, consisting of smaller ticket sizes to finance an emergency need. Unsecured loans are also known to be mostly online, making the process much easier and convenient for customers to take advantage of in case of an emergency. They also promise to provide the loan credited to your bank account within an hour of application.

Here are some of the key benefits of opting for unsecured personal loans provided by financial institutions like GostFinance Sri Lanka, compared to traditional secured personal loans.

Easy

Applying for unsecured personal loans from GostFinance can’t get any easier. You can do it from the comfort of your own home without having to even leave your seat. The concept is known for its simplicity and being remotely available, making it available for customers to use anywhere, anytime. You can easily start off the process by simply visiting the website, enter the amount required, submit the required photos (just a selfie and a photo of your National Identity Card) and await your verification phone call. The instructions are also given in multiple languages on a website that is responsive to all devices. Even the most unsavvy person or first-time personal loan taker can easily figure out the entire process. Yes it is that easy to work with

Quick

If you need an instant personal loan, unsecured personal loans are definitely your best bet. Due to the incredibly-simple process, the entire application process can be completed within a matter of minutes and you may even find yourself with cash in hand within just a few hours. If you look at GostFinance’s process itself, it takes just under 5 minutes to complete the application process. Upon finishing the application process, you can expect a call from their own verification team who will verify the details entered by you. You can expect this call in under 30 mins. Upon completion of verification, if you are approved, you will have the money in your bank account within the next 30 mins. Usually within 5 minutes you will receive the cash to your bank account.

Short-term

Secured personal loans often stretch out for many years whereas unsecured loans are instant personal loans that can be settled within just three months (or more if you require a longer payment period). The major benefit of short-term unsecured personal loans is that you avoid long-term financial commitments which might see you being tied down to unpleasant jobs you can’t leave. This usually is taken up highly by working individuals as they would like to settle their loans on payday once they receive their salary to their bank accounts.

Reliability

Reliability of Unsecured Loans

Imagine having a permanent source of cash available for you should you need it, almost no questions asked, no matter what your financial situation may be. Due to the loan requirements being extremely low, the unsecured personal loan services offered by GostFinance Sri Lanka opens doors for thousands of people who would ordinarily not qualify for secured loans from banks and other traditional financial institutions. Unsecured loans are also famously known to support people with bad credit history. 

Conclusion

While unsecured personal loans come with their own unique downsides (late payment fees, lengthy terms and conditions etc.), this is usually because of the risk this concept entails. There are situations in which the benefits of unsecured loans far outweigh them as they directly can serve a dire need. Consider all avenues carefully and make your decision. If you do decide to select unsecured loans, get in touch with GostFinance Sri Lanka and we will provide you with one of our instant personal loans.

FAQ - Unsecured Personal Loans

How do I get the money

You will receive the money into your bank account that you provided in the application form. Once we transfer the money we will inform you with an SMS.

What can I use the money for❓

It’s up to you how to spend this money. We are helping you with any plan you have in mind to improve your life or to resolve a problem.

Any prerequisites before applying for a loan❓

You won’t need to submit any personal documents. Just have the following details ready when you apply: Personal Information; Your bank account details.

How long does it take to receive the money from the loan application❓

Generally, once your loan is approved upon verification, within 2 hours your money will be credited to your Bank account provided in the application process.

When is my loan due❓

You can check when your loan is due during the application process, or upon approval you will receive an email with the agreement attached which will state the loan due date. If you are still in trouble finding it, you may reach us through our general line or general email for details.