Clean Loan Vs Personal Loan: Compare, Eligibility & Advantage

What is Clean Loan? A clean loan is a form of personal loan which is offered to individuals without any security at stake. It is extremely useful for customers to meet their urgencies with limited hassles. It is fully free of collateral/ security. You do not need any security/collateral while availing it. However, you need to have a third party guarantee for the individual borrowing. The income of the guarantors must atleast equal the salary of the individual. When the documents are submitted amount is granted and the individual makes use of the money in whichever way he likes. This is a good consideration for all those who have needs planned or unplanned. The time period for a clean loan falls between 36-60 months. The total amount of personal loan is based on the credit standing of the individual. The loan amount has been fairly fixed at a maximum threshold of 10-15 lacs, whichever seems fit. The limits fluctuate depending on the category of individuals and their salary structure. In case of shorter loan tenures, repayment is much easier. That’s not the same case with long term personal loans. What are the points of difference between clean loan and personal loan? Whenever an individual takes a clean loan, they do not need primary or secondary security asset. A guarantor in this case becomes extremely crucial for a long term association. The chosen guarantor must have salary equal or more than the individual’s salary. He would need third party guarantor for a long term association. On the contrary, a Personal Loan is a typical form of loan procured without any collateral or guarantor per se.  The time period for a clean loan ranges between 36- 60 months, whereas the loan tenor can be between 12-60 months. The eligibility criteria for a clean loan can be starting 21 years atleast, must be a working employee in the government or public sector, companies of value or self-employment/ businesses.  The salary must be a good 50% of the total income minus the loan installment. The eligibility criteria of a Personal Loan fall in the age bracket of 25-58 years, within the working class with a top international company whether public or private and maintains a superior standard of living. A clean loan is dependent on a guarantor, however that’s not the case with a personal loan. Though, in case of both the loan types, money gets credited instantly and can be allotted as per need. Whether the need is planned or unplanned. The good points are that no security needs to be mortgaged and can be put to convenient use. Personal Loan is an instant solution for immediate cash which can be used for different purposes like marriage, travelling, home improvement, medical needs, etc.

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