An unsecured loan is a loan that does not require the borrower to submit any assets as collateral. The practice of taking unsecured loans in Sri Lanka has risen in popularity with the emergence of financial institutions (like OnCredit) offering facilities to obtain unsecured loans online. As the entire process is extremely fast and easy, unsecured loans are preferred by those who need a quick and short-term cash loan to tide them over until payday.
How much can I get using an unsecured loan?
To apply for an unsecured loan online, you need register on our website with your telephone number and provide a photo of yourself and your National Identity Card (NIC). If you are first-time borrower, unfortunately you might not be eligible for a larger unsecured loan amount right off the bat. This is due to the very nature of unsecured loans. As unsecured loans online do not require collateral or proof of assets, the lender has little to no guarantee that you will be able to repay your loan amount and the risk of default is high. At OnCredit, the loan limits for a first-time borrower starts from a minimum of LKR 2,000 and can go up anywhere from LKR 9,000 to LKR 40,000, repayable in four months with a fixed monthly payment that should not be delayed even by a day. However, you can greatly expand the unsecured loan limit, which will be explained further along.
How is my loan amount calculated?
The exact loan amount you are eligible for in unsecured loans depends on a plethora of variable factors. We look at your personal details such as your credit history, employment history, your workplace etc. to determine the loan limits applicable for you. The unsecured loan amount is entirely up to discretion of your selected financial institution.
How can I apply for larger unsecured loans?
You can apply for, and receive, unsecured loans of much higher loan amounts if you are a regular customer of unsecured loans. If you have proven that you are a good paymaster and tend to make your payments on time over a period of time, you will become a valuable customer. Consequently, your selected financial institution will be more than willing to lend you larger amounts as they trust that you can pay back your unsecured loans. You can also be eligible to receive larger unsecured loan amounts in a shorter time period by improving your overall credit history.
How can I improve my credit score?
Improving your credit score can be done by taking several steps, such as paying your utility bills on time as they are of (mostly) public record. Try to reduce your overall debt. If you have payments that are greatly overdue, try and settle those by taking out a personal loan which you can later settle.
Building a good relationship with lenders of unsecured loans can be a lifesaver when faced with a crisis or unexpected emergency and you have nowhere to turn. At OnCredit, we are committed to building sustainable, mutually-beneficial relationships with our customers.