Thinking of a safe option to fund your requirements or emergencies? Well, what can be better than obtaining a personal loan! Any personal loan is a great financial tool that can literally fund your unforeseen expenses. Be it a medical emergency, home renovation, higher education, purchasing advanced gadgets or getting married – a personal loan is always by your side to back you up! In fact, unlike some vehicle loans or home loans, you can avail of personal loans without any end-use restriction to feed your financial crunches.
Besides, if you are thinking of personal loan apply online, the convenience of personal loans might impress you. Moreover, it’s unsecured by nature. However, apart from some notable plus factors, there are some myths persisting around, making borrowers think twice about availing of personal loans.
So, in this blog, we will capture some myths associated with personal loans that you should avoid trusting.
High-level Interest Rates:
Most people believe that interest rates against a personal loan are generally heavy to carry out. Thankfully, it’s not entirely true. Personal loans are unsecured loans with comparatively high-level interest rates than secured loans. Yet, it doesn’t indicate an average person cannot avail of it. The rate of interest under personal loans can range from 10 to 16%. In general, it depends on the applicant’s profile, income proof, repayment capacity and creditworthiness. A person with great credit scores, good payoff history and repayment capacity is an ideal applicant to avail the lowest possible interest rates.
Applicants Should Only Consider Banks For A Personal Loan:
A number of people always consider banks in terms of obtaining personal loans. According to them, banks are the only authentic and reliable organizations. Yet, the truth is more interesting. A lot of financing institutions in India conveniently offers personal loans, offline and online. And the number of these institutions are increasing at a skyrocketing number. Availing of a personal loan always from a bank isn’t compulsory. In fact, the digital lenders and NBFCs have simplified their loan eligibility criteria and processing stage than national banks. And, if any bank rejects your personal loan application, you can always consider personal loan apply online for the loan with the NBFC or digital lenders, which are much flexible and relaxing.
Only Salaried Individuals Are Eligible:
Another most common myth regarding personal loans is that only salaried individuals with a fixed income are eligible candidates and can avail of this loan. However, in reality, it’s not true! Eventually, a self-employed professional can also apply for the loan, and his application can easily get approved without any hassle. Of course, it depends on their credit score and ITR file.
Low Credit Score Means Application Rejection:
We all are aware of the case that credit scores play a significant role in the approval of any loan. Basically, it represents the history of your repayment of prior loans or borrowings. It also creates a great impact on future loan approvals. However, a common myth about a personal loan is that your low credit score can heighten the chances of getting your loan application rejected. It isn’t entirely true.
A bank set up strict criteria regarding loan eligibility and offers no flexibility. Hence, your application might get rejected with a low CIBIL score. Yet, with NBFCs and digital lenders, the chance of getting your loan application approved with a low CIBIL score.
Takes a Long Time To Process:
Generally, some borrowers assume that personal loans take a longer time to proceed with documentation. With the traditional loan process, this is the real fact, indeed. Of course, that’s the case several years ago. Presently, the disbursement of a personal loan within banks and other financing institutions take less time. All thanks to the involvement of advanced technology. Banks and NBFCs are way more capable of providing instant loan facilities with flexible disbursement and loan amounts after receiving the application. Besides, the loan application and approval process are now accessible online. It saves ample time consumption, and human effort and makes the process hassle-free for the applicants.
These are some myths associated with the thought of personal loan apply online. And a borrower needs to avoid these; otherwise, he will get mislead. It’s always advisable to cross-check facts before you believe any myths are going around in the market.