What is an unsecured loan

personal finance

What is an unsecured loan: Get over N200k loans without collateral

What is an unsecured loan: Get over N200k loans without collateral

What is an unsecured loan – The term loan has been an elementary language everyone grows up with, it deals with money and lending. This typically shows that in most cases loan involves two or more parties.

However, loan is the practice where a party called the lender, gives money to a second party called the borrower.

The money is agreed to be paid back by the borrower at a determined fixed date in the future. The borrower is likewise expected to pay a certain amount aside the borrowed principal called interest.

Moreover, there is an extra condition which could back up this loan, though not in every case depending on the type and dynamics of the loan, this condition is however called collateral.

In this guide, I walk you through the following:

  • Unsecured loans examples
  • Unsecured loans for bad credit
  • Unsecured loans rate
  • Types of unsecured loan
  • Unsecured loans in balance sheet
  • Unsecured personal loan
  • Unsecured installment loan
  • What is a secured loan and manymore.

WHAT IS AN UNSECURED LOAN?

According to investopedia, an unsecured loan is that issued and supported only by the borrower’s creditworthiness, rather than by any collateral.

In simple and plain language, a loan is said to be unsecured when it does not require or being backed up by collateral of any kind. These kind of loans are as well referred to as soft loans.

Example:

Say Mr. Benson is in financial need of N50k to pay his children’s school fees, he probably got referred to a credit facility outfit who could offer him assistance with this sum. In cases like this, Mr Benson may not be required to provide collateral as a backup for this loan, however could require he gets a guarantor etc, which is very easy to get than keep a collateral he might not afford.

You may also like this: Best banks for small business loan

WHAT IS AN UNSECURED LOAN: WHERE TO GET PERSONAL UNSECURED LOANS IN NIGERIA

Financial services had improved a great deal in Nigeria that you can access unsecured loan almost immediately, provided you know how.

In this guide, I will do well to list various easy to get unsecured loan companies and how you can go about it.

The companies will be listed based on track records so far in financial service delivery considering how they have aided individuals in short term financial needs.

1 WHAT IS AN UNSECURED LOAN: PAYLATER UNSECURED LOAN, this is one of the most effective ways to access an unsecured loan in Nigeria.

Paylater is a simple online lending platform that provides short-term loans to help you cover unexpected expenses or urgent cash needs.

It can be accessed 24/7 a day and can know your application status almost instantly on application, this platform however, requires you have an android device.

The most interesting thing about paylater is that not guarantor, collateral or application fee is required, personally, I have used their services and can confirm to that, click here to visit paylater.

  1. WHAT IS AN UNSECURED LOAN: GROFIN UNSECURED LOAN, is a private development institution specialized in financing and supporting Small and Growing Businesses (SGBs) across Africa and the middle east by combining medium term loan capital and value added business support.

Grofin is mostly ideal if you are sourcing funding for your Small and Medium Enterprise, specifically in Africa, they provide you business solutions with an eye to the African all round financial inclusion project.

Their activities had overtime brought about improved living conditions in low and middle income countries.

Grofin was established in 2004, and since then had invested in over 675 SMEs across 14 countries.

Do not waste this opportunity, kindly click here to visit Grofin and start your application. You do not need collateral to access this loan.

  1. WHAT IS AN UNSECURED LOAN: QUICKCHECK UNSECURED LOAN, this is basically a Nigerian Fintech Startup with the responsibility and aim of providing banking services to the under served. Build by people who work towards solving real world problems including your unsecured loan. Looking at a population with no access to proper banking services, they want to fill the gap.

They use machine learning to predict user behavior and evaluate loan applications. This has been their competitive advantage ahead of traditional banking being that they match current market trends. Kindly click here to contact quickcheck.

  1. WHAT IS AN UNSECURED LOAN: PALMCREDIT UNSECURED LOAN, Palmcredit is an adroid app that makes getting a mobile loan very easy in Nigeria, with Palmcredit you can access a short-term loan without collateral. Visit here to learn more

 

  1. WHAT IS AN UNSECURED LOAN: SNAPCREDIT UNSECURED LOAN, this system provides instant credit solutions to employees. They collaborate with employers of labor to provide employees’ with an online platform to access loans.

Snapcredit eliminates all the hassle and gives employees’ instant 24/7 access to credit at a very competitive and fair rates. To learn more click here.

 

  1. WHAT IS AN UNSECURED LOAN: CREDITVILLE UNSECURED LOAN, with Creditville you can get an urgent unsecured loan in your account within 48 hours of application, documentation confirmed Ok.

You have the grace to pay back in full at any time if you so wish without any penalty, you can as well apply for a top-up loan without a waiting period.

They operate a low interest unsecured personal loan, no hidden charges involved. The online application is very easy without collateral, identifying them as one of the best credit companies in Nigeria. Visit here to know more.

 

  1. WHAT IS AN UNSECURED LOAN: KIAKIA UNSECURED LOAN, Kiakia utilizes Psychometric, big data machine learning and digital forensics for its proprietary credit scoring and credit risk assessment algorithm to provide direct and peered personal and business loans to millions of individuals and SMEs without credit information.

This platform makes it possible for business people to receive loan easily, it enable people receive loan as quick as possible without collateral, go here to start your application.

 

  1. WHAT IS AN UNSECURED LOAN: C24 UNSECURED LOAN, c24 understands how it feels to be down and out of cash, to this end they created a simple way to get back up on your feet almost immediately and actualize opportunities, they give loan without collateral.

The work with this drive to provide first class financial services in an atmosphere of transparency with competitive interest rates and a simplified repayment structure.

They however only operates within Lagos at the moment with a vision to expand their boundaries soonest, if you are in Lagos hook up with them here.

 

  1. WHAT IS AN UNSECURED LOAN: ZEDVANCE UNSECURED LOAN, Zedvance Limited is a consumer finance company. They are committed to providing consumer credit to their target market in the most effective and efficient way while upholding best practices without collateral.

With a vision to be the retail banking experience of choice in Africa, surrounded around a mission of providing customer-centric financial solutions for all strata of the market, through user friendly technological innovations. Do you care about this service, go here.

You may also like this: 24 hour payday loans in Nigeria for your emergency cash needs

  1. LIDYA UNSECURED LOAN, is a financial services platform to improve access to credit and finance across frontier and emerging markets starting with Nigeria.

It was launched in November 2016, with a mission to close that yawning credit gap, both in Nigeria and across emerging markets where there is $2.6 Trillion SME credit gap worldwide. It offers unsecured loan as well.

Lidya assists businesses who are looking for $500 to $50k in working capital, application is online or via mobile phone, get a decision within 24 hours. If you are interested, go here.

 

  1. AELLA CREDIT UNSECURED LOAN, it provides instant loan to Africans who can prove a source of income either through their employers or individually. We are at the forefront of financial inclusion and empowerment of the under-banked. Download Aella app here and start your application.

 

  1. 12. BRANCH UNSECURED LOAN, Is a bank in your pocket, there for you at all times. Their service is credit, they use technology to dramatically reduce the cost of delivering financial services in emerging markets. Visit branch here and commence application.

 

  1. ALAT UNSECURED LOAN, this is Nigeria’s first fully digital bank. ALAT allow you to make and schedule transfers, save and pay bills automatically, get your bank card delivered to you anywhere in Nigeria, get a virtual dollar card, get up to 10% interest on your savings and apply for quick loans without collateral. Check out Alat here and register.

 

  1. KWIKCASH UNSECURED LOAN, is a service that allow you get quick loan from N1k to upward of N100k credited to your account in few minutes.

Never get stranded again, kwikcash is always an option and works only for 9mobile subscribers, simply dial *561#, select from range of loan amount, confirm your bank, enter your account number and your account gets credited, it’s that easy.

 

  1. SMEDAN UNSECURED LOAN, the idea of Smedan is to create a data base of information in all the 36 states of the federation. It has a specific objective to identify the types of credit facilities available in the financial institutions in each state, find out if there’s a credit facility actually tailored for women by financial institutions as well as challenges faced. Find out more about them here.

 

  • Unsecured loans example: These are loans for say, may be you access for school fees, rent, hospital bills, emergency and even small business startups. The draft you get from the bank is an unsecured loan, the funds in your credit card as well is termed an unsecured loan. Given on the premise of your sound financial character and ability to pay back.

 

  • Unsecured loans for bad credit: There are no specifically loans backed by this claim, however, a loan can go bad either secured or unsecured. The distinctive point there is that the loan eventually goes bad, which has to be written off.

 

  • Unsecured loans rate: Now this is one aspect people tend to dwell on while trying to access unsecured and secured loan. Generally two factors determine to a great extent what a rate should be in loan assessment. These factors are duration for payment and security. The principle here is that the rate payable for an unsecured loan tend to be a bit higher, being that there’s no collateral to back it up and in most cases you have a long duration to pay back.

 

  • What is a secured loan: A secured loan is just an opposite of unsecured loan, a secured loan is that loan backed by collateral. Which means you get a loan for placing a security in place of such loan. This type of loan is very difficult to come by as it goes with arrays of stressful documentations. In practice, the commercial banks are mostly in charge of secured loans. It is however necessary to have a serious thought before you decide on this type of loan to avoid possible hearth attack.

You may also like this: See how you can get paylater loan without collateral

Conclusion

Unsecured installment loan is the practice of paying back such loan in installment, you have a grace to pay gradually a certain amount until you are able settle in full all accrued and the principal. However, there’s no special place in the balance sheet for an unsecured loan, loans are treated evenly except when they go bad to be written off.

Now what is an unsecured loan? It’s very certain you can now draw possible conclusions, on how loans can help sustain individual needs as well small enterprises in a time Nigeria is vigorously routing for financial inclusion to better the quality of lives. Are there challenges you are facing with any loan company in Nigeria, are there areas you wish to get further clarification, share your thoughts and experience if any. Kindly remember to share this article, thank you and warmest regards.

Image source: Getty image

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