A Personal loan is repaid in monthly installments. A lot of information prevails in the market without justification or correct reasons. Such information can be a myth, and individuals believe it. In the loan industry, a lot of myth is believed by individuals in the case of a personal loan.
Myths About Personal Loan
A personal loan is a very common and popular form of debt, and there is various misinformation about it. To all the misconceptions and doubts, you need to have clarity. A personal loan is the most useful tool for quick and easy funding in your account easily.
When you believe in the myth, you believe something wrong. Many individuals don’t get a personal loan because of some false myth. Every piece of information that you take from the market or any source should be verified before you take it seriously.
So that you do not believe anything wrong with a personal loan, we are here to discuss some of the most common myths. It will give you the best of your knowledge, and you can easily clear your doubts.
Common Myths About Personal Loans
The term “personal loan” is sometimes misunderstood. Many people, particularly first-time borrowers, are affected. The followings are some common myths about personal Loans:
- Low credit score leads to loan rejection
- Personal loans have a high rate of interest
- Available from banks only
- You already have an existing loan
- Only salaried individuals can apply for personal loans
- Personal Loans Are Only for People Who Are Employed
- It’s Difficult to Apply for a Personal Loan
- Personal loans do not have a prepayment option
- Processing time is so long
- Getting Approved for a Personal Loan Takes a Long Time
- Used for Personal Expenses
- To Get a Personal Loan, You Must Have a Stellar Credit Score
- Personal Loans Require Collateral
- Personal Loans Trap a Person in Debt for a Long Time
- It Doesn’t Matter Where You Take Out Your Loan
- The credit profile is not the same as earlier
- Do not apply for more than what you need
You can get a personal loan only from banks.
The loan industry has seen a lot of advancement and new tools. It is an utter myth that you get a personal loan only from the banks.
Apart from traditional banks, you will find many good and authentic loan options. There are some well-known Fintech organizations, NBFC, and other online platforms for borrowing. They are equally good and come up with instant personal loan options for the customer.
It would be best if you expanded beyond the traditional banks with little to offer you. Try out the other options for the best offers, instant approval, and other features.
Having a bad credit score can get your loan rejected.
The loan industry has not given all the powers to just one criterion. It is, of course, true that a credit score is the most important thing, but it is not everything.
If you have a credit score, your process gets easier and faster, but you can still get a loan. There are various other ways by which you can get a loan. You can try out options like a loan guarantor, secured loan, a high income, or any other negotiation to get a loan.
A bad credit score does not mean you cannot get a loan, as other factors also work. You can always improve your score, but with a good Income or a property, you can get easy approval.
You can get a personal loan only with a salary.
A personal loan applies to anyone that earns. The mode of earning is not at all important to get a personal loan. A self-employed and salaried employee is equally eligible to get a loan. An employer is optional to get an instant personal loan online.
If you are an entrepreneur and have a business, you can easily get a loan if your income is good. The main criteria for offering a loan are stability and income. If you have a good income from your business, you are an asset to the loan provider. So, be it a self-employed or a salaried employee, you can get a loan with an income.
The processing time of a personal loan is very long.
The personal loan is the only loan that is the fastest. The advancement that has happened in the personal loan can get you the fund in a few hours. Is there any other loan that gets you in 3-5 hours of disbursement? This is a myth and should not be believed.
A personal loan is the fastest approval, as you get the approval very quickly. It is the best one to meet all your urgent and emergency needs because it gives you instant funds in your account. You can easily manage all your expenses quickly without waiting for long weeks.
The interest rate is high.
A personal loan is one of the most affordable loans. That is why it has been so popular and often used for debt consolidation. If you have all your eligibility criteria in place and have enough comparisons made, you can get a good rate of interest.
It depends on how well you have researched the loan providers and got yourself the best deal. Compared to home and auto loans, a personal loan is not at all an expensive form of a loan. You can easily manage the low EMI with a low-interest rate and other charges.
Required Documents
| Requirements | Salaried Individuals | Self Employed |
|---|---|---|
| Proof of Identity | Passport, Voter’s ID, Driving License or PAN Card | Passport, Voter’s ID, Driving License or PAN Card |
| Proof of Residence | Passport or utility bills | Passport or utility bills |
| Proof of Income | Bank statement of salary account for the past two years | Audited financial statement of the past two years |
Wrapping up
A personal loan is very useful and an important part of daily life. It has been a support for all the mishappenings and undesirable situations. Get an instant personal loan online from the comfort of your home.
