What is the eligibility criterion for an unsecured loan?

An unsecured loan relies primarily on the borrower's creditworthiness rather than any collateral, which is what distinguishes it from secured loans that require specific assets to back the loan amount. The eligibility for an unsecured loan hinges largely on the borrower's credit score and credit history.

A good credit score indicates a history of responsible borrowing and timely repayment, which lenders use to assess the risk of lending to an individual. A strong credit history reassures lenders that the borrower is likely to repay the loan on time, thereby making them more willing to provide the funds even without collateral.

While factors like income level, property ownership, and employment status may influence a lender's decision and are relevant overall in the lending process, they are secondary to the assessment of credit score and credit history when it comes to unsecured loans. If a borrower has a strong credit score and positive credit history, they are more likely to be approved for an unsecured loan, regardless of other financial factors.