Unsecured loans are also called unsecured loans and credit loans. This type of loan does not require any collateral, and lenders can apply for loans from banks or formal online lending platforms.

Characteristics of unsecured loans

No collateral: This type of loan does not require any collateral;

Convenient application: the procedure is simple and can take as little as 4 working days It can be issued immediately;

Long loan cycle: the loan cycle can be selected according to actual needs, up to 36 months;

High loan amount: based on the borrower’s income and credit After comprehensive evaluation, the maximum loan can be RMB 500,000;

Fixed interest rate: The interest rate of this type of loan is fixed, which is less affected by market fluctuations and has lower risks.

Application conditions

Applicants are generally Chinese citizens aged 18-60 years old, in good health, have a local household registration, or have worked for more than one year and have a fixed income.

The specific application conditions vary according to different mortgage institutions. Banks’ unsecured loans have higher thresholds and stricter reviews. The application requirements for state-owned banks are more stringent than those for commercial banks.

The lender’s personal credit record, overdue credit cards, overdue loans, etc. will all affect loan approval. It is worth noting that the nature of the lender’s job also falls within the scope of the lender’s qualification assessment. Lenders who are regular employees of state-owned enterprises, public institutions, Fortune 500 companies, and have stable and high-paying jobs are more likely to apply successfully.

Online loan platforms have different loan application conditions. For example, cash loans on the Alipay platform are assessed based on the lender's social data, credit data, shopping records, etc. Applying for a loan on an online platform is relatively simple, but the interest rate is higher.

Risk Warning

With the increasing prosperity of the financial market and the change of consumption patterns, more and more non-bank channels have carried out unsecured loan business, but private loans have also appeared The market is a mixed bag.

Lenders need to identify the authenticity, avoid being deceived, and choose large platforms and reliable loan channels.

Unsecured loans have strong advantages for urban white-collar workers. Lenders choose the most suitable loan method based on their own needs and conditions when choosing unsecured loans.