Direct Tax Services
Audit
Consulting
ESG Advisory
RBI Services
SEBI Services
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Growing
Developing
ME-1
ME-2
EU-1
EU-2
SE
Others
Select Your Location
In the financial year 2015 and 2018 personal loans, small and medium enterprises and credit loans under the unsecured loan market reached a compound annual growth rate of 27%. This phenomenal growth rate was almost four times the growth in bank credit. It came to pass at a time when banks were struggling with corporate loans that went bad. As per CRISIL (Credit Rating Information Services of India Limited) research the total unsecured loan may reach a 24 to 25% compound annual growth rate by the financial year 2021 owing to higher credit penetration in extant markets and due to increased emphasis of lenders on smaller cities.
Table of Contents
This is the simplest of all unsecured loans as it can be sanctioned on the basis of your signature only. Your signature would be deemed as an assurance for repayment of this loan where you promise your lender to repay the loan in time. This loan can be acquired from a bank or an NBFC (Non-Banking Financial Company). A signature loan shall be paid in installments on a monthly basis until the loan is fully paid.
This form of a loan is the common of all loans as one doesn’t need to state the reason for availing this loan. This loan can also be paid in installments over a fixed tenure. This loan can be acquired from a bank or an NBFC (Non-Banking Financial Company) either offline or online.
It is very easy to understand that this loan is used to fund education courses. It is also referred to as a student loan. It has the moratorium feature where a borrower doesn’t require paying anything for a period of time. It also offers interest rate subsidy and flexible repayment modes.
This is a form of loan which can be borrowed by an individual or your peers and not from banks or NBFCs. It has a fixed interest rate. It is maybe an easy form of obtaining loans but it is quite risky as compared to loans from banks.
Read, Also: Secured vs. Unsecured Loans in a Nutshell.
The growth in the unsecured loan market is owing to multiple factors as discussed below.
The basic difference between secured and unsecured loans is provided in the table made below.
Despite the relatively slow progress of the Indian economy in the last few years the unsecured loan market in India has seen good growth. It may be linked to consumers change in mindset where they are looking for smaller ticket loans.
Also, Read: Things Your Business Loan Application Must Include.
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
Many investors use fixed deposits as their primary investment vehicle. Investors with a high-ri...
The main idea of CDS, which was initially to give banks a way to transfer credit exposure, has...
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Are you human?: 5 + 6 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!