Myths have an innate quality of growing in people’s minds. Some myths that may have entered your mind may have sprouted a life of their own. So, it is essential to be aware of the reality by busting off the myths from time to time.
Does your home badly need a repair, are you soon going to host a wedding, or does your daughter’s higher education needs to be taken care of? Or, are you just looking for a good online personal loan app that can lend you enough so that you can consolidate your high-interest debts into one? Whatever may be your reason for availing of a personal loan, the myths associated with the loan can make you think twice.
Know that personal loans are a great resource of funds and the number of myths made to scare you away are just myths. Here are some of the tallest myths, followed by the truth.
Below are listed the 4 personal loan myths that are just not true:
Myth 1: Availing of a personal loan is complicated
While there may be a thinking going on that getting a personal loan is a complex procedure, know that getting a personal loan is now easier than ever with quick loans online. The application process is straightforward on an online personal loan app. See for yourself.
Steps of getting a personal loan:
- Apply for a personal loan with multiple lenders. Ensure the credit check they run on you is a soft one, which does not impact your credit score. Once your credit check is fine, the lender notifies you of your term options and interest rate.
- Now that you have the interest rates and terms of different lenders, compare those features between different lenders; see any other costs or fees associated with providing a loan. Decide whether you want to move forward with one of the lenders.
- Provide any additional information that your chosen lender needs, like information about your proof of income, other private loans, and your account number where you want the funds to get deposited.
- Let the lender process your loan, and the funds will be seen disbursed into your bank account soon. The period it takes to get a loan is from a few business days to a couple of weeks. If you need the loan quickly, you can apply for quick loans online on an online personal loan app.
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Myth 2: Only individuals with a good credit score can apply
One of the other myths doing rounds is that only individuals with an excellent credit history can apply for a personal loan. The truth is that anyone can apply for a personal loan, Just that people with a good credit score are offered a personal loan at a better interest rate as compared to someone with a low credit score. But a poor credit score is not always a barrier. You can turn to one of the several personal loan lenders that offers loan even to individuals with poor credit.
Even when you have a low credit score, you can get a personal loan at a slightly higher interest rate and fees. But you sure can avail the personal loan. For example, if you have a credit card debt or an auto loan with high interest rates, you can apply for a personal loan and check the interest rate you are getting. If the interest rate approved for you is lower than what you are currently paying, you can consolidate all your existing debts into a single lower-interest personal loan.
Myth 3: Personal loans are costly
One of the other prevalent myths is that personal loans are a costly way to borrow money. But know that you can apply for a personal loan through a bank, an NBFC, or an online lender and as the competition for business is fierce, you are sure to get a competitive interest rate. Most personal loan lenders would want to tempt you into borrowing with low interest rate and other beneficial terms.
Myth 4: You can only have a single personal loan going on at a time
This is a myth as well. Because as long as you can repay for more than one personal loan, the lenders will let you take out more loans. Let’s say you wanted to remodel your kitchen three years back, but you want to now pay for your kid’s higher education, and because you have good credit, you are getting another loan at a convenient interest rate. You can take that second loan as well.
So, as long as your repayment capacity is good and your credit score high, you can easily carry more than one personal loan.
Many personal loan myths apart from the above ones listed can make you question the credibility of the system of personal loans. But you can take personal loans for any of your financial needs as they can help you with your financial crisis every time. Also, if you want to take a quick loan, you may want to consider quick loans online from new-age online personal loan apps that disburse money within hours.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs