How To Avail a Personal Loan Without Collateral/ Security?


Here are some tips for getting a personal loan application approved without any security. Read on to learn more and see if this is something you’re interested in pursuing further.

Can you get a personal loan without giving up the rights to some of your property? Yes, lenders will make loans without asking for collateral or security.

Personal loan availability is quick and easy. After submitting the application, approval and disbursement happen quickly—it’s up to you how you want use that money!

  • Business needs
  • Luxury/abroad travel
  • Higher education
  • Personal purchases
  • Health-related crisis 
  • Wedding
  • Home renovation

A bank or a lending institution gives you a personal loan, which is offered to subsidize an immediate need for money. Personal loans can be used for anything from paying bills and debts to funding family weddings and other obligations that require cash up front. When one submits their loan application, the bank or the lender won’t examine you concerning the end-use.

The most convenient feature of this kind of loan is that it does not ask for security or collateral. Unlike other kinds loans, personal loans are more accessible because there’s no need to put in any documents


To qualify for personal loans without security, certain aspects are considered. They are-

  • Credit Rating/ Score
  • Credit Worthiness

A credit score is an indicator of a person’s creditworthiness, or likelihood to make payments on time. A good score ranges from 750-850.

A good credit rating and history show that the applicant is responsible for repaying the loan or credit.

If you have a steady history of loan/credit payments and display financial responsibility, your chances of getting a personal loan are good.

>> MORE: 5 habits that can help you maintain a good credit score

There are a few general requirements that must be met in order to qualify for a personal loan without security.

  • The applicant should be an Nigeria citizen.
  • The desirable applicant’s age is between 20 and 60 years.
  • The applicant should be either employed in a sector or self-employed.

To get a personal loan from a bank, it helps if you are an existing client. Existing clients have higher chances of getting their loan applications approved quickly.

Personal loans are considered unsecured, as there is no collateral or guarantee offered with them. This is why banks and lending institutions will check the applicants’

  • Salary or income
  • Flow of cash
  • Soundness and steadiness in business or work (to ensure that the applicant can repay the loan advance)

Therefore, when applying for a loan it is important to focus on your financial stability in order to ensure that you will be approved.

To get a personal loan from a bank, you can visit the bank in person and fill out an application form. Some banks also let you apply for loans online through their official websites.

The following is a general list of documents that have to be submitted to banks for personal loan approval-

  • Proof of age, address, and identity
  • Passport size pictures of the applicant
  • Duly filled loan application
  • Proof of income – salary slips and the likes.

Another way to avail a personal loan is through online lending portals and applications. The applicant has to –

  • Download the lender’s application or visit their website.
  • Login and fill the loan application. It generally includes the personal details of the applicant along with the loan details.
  • Submit KYC documents like the BVN card, etc.

When the loan is approved, the amount is directly transferred to the borrower’s bank account.

The below are two commonly asked questions with answers regarding personal loans without security-

Does a personal loan without security/ collateral accompany higher financing costs?

Personal loans are not known for requiring any guarantees from applicants. The interest rate that accompanies a personal loan is dependent on several factors, like—

  • Credit profile and history
  • Required loan amount
  • Income proofs and history

When the loan is approved, the amount is directly transferred to the borrower’s bank account.

>> MORE: How much personal loan can I get on a 20000 naira salary?

How does the loan repayment process of personal loans without collateral work?

Personal loans are usually taken for short or medium tenure periods. Loan terms can range from twelve months to sixty months. They require equated monthly installments like any other type of loan—one where the borrower makes payments every month at a set amount until the principal is paid in full.

Borrowers can adjust the monthly payments to make them more affordable. The loan repayment process is similar to that of other types of loans as well.

However, it is important to read the terms and conditions of the loan repayment process before proceeding with any personal loans. Personal loans may have different foreclosure terms or charges that should be considered.

>> MORE: Check Online Loan Eligibility Criteria & Requirements at flypay

Personal loans, in general, are transferred within a short period after getting approval. All it requires is a decent credit profile. Many online platforms provide personal loans with minimal documentation. With the rapid advancement in the digital age, many borrowers are showing interest in these online platforms.

Not only is obtaining a personal loan without security possible, but it is also simple. Personal loans come with a number of advantages. A few of them include

  • Easy personal loan application process
  • Flexible loan repayment tenure
  • No end-usage restrictions (loan amount can be used for different purposes)
  • Quicker approval and disbursal processes

With the online lending platforms, one need not even step out of the comforts of their home to apply for a personal loan. They provide a window to access money quickly during urgent financial emergencies/situations. They approve loans and transfer the amount to the bank account on the same day.

In short, personal loans are simply a click away with an easy and convenient application process.

Now that you’ve grasped how unsecured personal loans work, apply one now and move a step closer to realizing your dreams that were otherwise unattainable owing to lack of funds. Apply for a personal loan today!

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