Myths about Personal Loan

Finance has taken a new step in this era. People are getting benefited financially in so many ways with the help of banks and NBFCs. Now people can easily avail medical loan, car loan, home loan, business loan by just clicking a single button.

Personal Loans can be very helpful because of quick approvals, no restrictions, no collateral requirement and also with Pre-approved offers. A Personal Loan can be helpful in so many ways in your financial crisis. But, there are so many rumors or misconceptions around personal loans which often can stop you to meet your urgent funds. So, in this article, we will find out those rumors or misconception about Personal Loan.

  • Long Process – Several applicants think personal loan’s “Loan approving” process is a time-consuming process which is not true. Now day’s personal loan processed with minimum document especially if you go for the online route it can be much easier to get. Lenders now days extend pre-approved offers instant online approval so they can ensure that the loan gets disbursed timely and you don’t have to wait for your fund. With the help of correct document, you can get a personal loan in a day.
  • The bank is not the only place where you can get a personal Loan – Another myth is several people think that banks are the only lenders of the personal loan but this is not true. Out there are so many NBFCs and Digital Lenders who also give personal loans.  So if your application is rejected by bank don’t think that you are done you have places to go. As banks have more strict eligibility criteria’s so that application can be failed but there are NBFCs who are ready to accept them.
  • Interest rate Comparison is easy – If you are thinking that interest rate checking is a long process you are wrong. It just takes 2-3 minutes to check the interest rate in online. You can check the interest rate anywhere at any time.
  • “Credit Score”– Credit is one of the most important things to avail a personal loan but that does not mean you can’t avail a personal loan if you have a lower credit score. A low credit score does not necessarily imply an outright rejection of your personal loan application. Even if you have a lower credit score the institution will check your repayment capability if you have a stable income. But people wilt poor credit score have to pay more interest rate than others.
  • “High Interest”-What’s that! – Often people think that personal loan has a higher interest rate. A personal loan’s interest starts at 10.99%. If you have strong repayment capacity and nice credit score your personal loan interest can be so low. Basically, people with lower credit get a higher interest rate.
  • You are still eligible if you already have a loan – Even you already had taken a loan from another lender you are still eligible for getting another. But your lenders will compute your eligibility of repaying that loan. So if you have the capacity you can easily take another loan.
  • Prepayment Option – So some of the people think that there is no prepayment option in thepersonal loan as this loan do not have long tenure but this is completely wrong. Personal Loans do have prepayment option.
  • Online Application – People thinks that visiting every bank individually will help them to get a personal loan easily but it a hassle process. But if you apply online you will get a loan instantly.
  • Apply what you need – It is not right to take much as your credit score is high and you have eligibility to get a higher amount. You will receive cold calls e-mails or texts from that financial institution. Because at the end of the day you have to repay that loan.
  • Applicant – You may think that only salaried persons get personal loans but also self-employed people can get it easily.
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