OFWs have the two loan options. They can either get a secured loan or an unsecured loan. Each of the loan types has its pros and cons.
- In secured loans, the borrowers have to put their assets as collateral.
- Unsecured Loan for OFW does not include putting assets as collateral.
Let’s read the reasons of getting a loan with no collaterals.
- Risk is less in unsecured loan or non-collateral loan
Imagine keeping your car or house as a security just to take a loan. If you are not able to pay the loan, your assets are gone. Are you feeling stressed? This will not occur with you if you opt for the non-collateral loan. The non-collateral loan is a low- risk option. Your assets are not compromised against getting the loan. You can have good night sound sleep!
Private Banks and commercial agents will take more time to approve your loan application. This is because they need to complete the required verification process. They do the additional background checks and another assessment process. They verify borrower’s identity. It is necessary so that lender can give you credit safely.
- It is easy to complete the requirements
Get relieved!! Less paperwork! You are not required to submit tax declaration. Neither don’t deposit tax receipts or original title of your owned property. You are not required to sign any documents to guarantee your loan.
They require your proof of income and proof of residence. Proof of residence is required to verify that you are living there. It is very easier to apply as compared to secured loans. They can also ask for credit history, contact details, id proof and the purpose of the loan.
In proof of residence, you can deposit water/ electricity bill or any other postpaid bill. Attach pay slips or employment certificate under proof of income. In id proof, you can submit company id and government issued ID card.
- It is a quick, easy and convenient solution to your cash needs
Many times you come with the situation that you require cash on urgent basis. You have the confidence that you will pay the loan in few months only. In such situations, the non-collateral loan is the best option.
It is an easy, fast manner to process your loan without compromising your assets. You are also not required to risk your savings. It is a good option, if you are looking for some quick cash to pay the monthly bills, and if you are looking for some quick cash to pay the monthly bills. Personal loan lenders lend you the loan in the case of emergency.
You must opt for the non-collateral loan if you are in the urgent need of some cash. Ensure the lender that you will pay the money back within the set time limit or before that. Good news for OFWs is that many commercial banks and private lenders are giving non-collateral loans.