In this fast-paced life, we rarely get time to fulfill our personal desires. One of the main reasons is our financial condition. However, a personal loan is a great way of funding your expenses to fulfill such desires. When you borrow a personal loan, you are not answerable to the lender for the purpose of its usage. It can be availed for the desire to travel abroad, to fund a small startup, for emergency usage, or for a grand wedding party. In addition to this, another good feature of a personal loan is that the borrower does not have to place any asset as collateral for such a loan.
These factors and today’s reality that a personal loan can be easily taken from a personal loan app have led to the creation of multiple myths about it. So, we will be discussing the 7 top myths related to a personal loan, availing a personal loan online, functionality and processing of a personal loan app, etc.
7 Top Myths Related to a Personal Loan:
1. Lower credit score = Loan rejection
It is agreed that a lower CIBIL score (credit score) is bad for your financial health. However, to be clear, it does not mean that your loan request will be immediately rejected due to a lower credit score. Lenders take various factors while processing your personal loan application online. Factors like an individual’s financial status, annual income, and ability to repay the loan are assessed, in addition to their CIBIL score.
However, even if the lender agrees to lend you a personal loan, the interest rate will probably be higher.
1. Lenders levy a higher rate of interest on a personal loan
It is widely believed that the rate of interest charged on a personal loan is usually high. However, today you can easily get a personal loan online using a personal loan app. In addition, google play store apps like TrueBalance offers you a personal loan or cash loan at a comparatively affordable interest rate.
The rate of interest charged on a personal loan is flexible and is decided by the lender by the RBI guidelines based on the individual’s credit score and financial track record. Therefore, if you have managed your financial scores correctly, you can avail yourself of a large amount of personal loan at affordable interest.
1. Only banks lend personal loans
Many people believe that only the banks offer you a personal loan. However, this is not true, like today, you can get a personal loan from various sources like a personal loan app or NBFCs in addition to the banks.
1. Existing loan means that no new loans will be processed
It has been noticed that many loan applicants believe that if they have an ongoing loan, they cannot borrow a new personal loan. This is a false claim and should not be entertained. The same procedure is followed by the lenders for any new loan application. Factors like credit score, financial status, and ability to repay the loan are taken into consideration. Therefore, you can always get a personal loan even if you have an existing loan, given that you match the lenders’ eligibility criteria.
1. Only people with monthly income or salary can apply for a personal loan
This is not true. You can easily get a personal loan if you are salaried. However, if you are self-employed or a business owner, you can still apply for a personal loan online and get it approved by fulfilling the lenders’ criteria.
1. Prepayment options are not available on a personal loan
It is advised that before believing such statements, you must check the loan documents carefully. However, as far as it is known, an individual can always repay the Kiwi car loans earlier than the given tenure.
1. The Time taken to process a personal loan is high
It is just a myth that the processing time of a personal loan is very high, and it can take months. Today various personal loan apps in India offer you a personal loan online in just a single day.
Lastly, you must note that if NBFCs on personal loan apps are not licensed by RBI for lending money, then it can be a fraudulent and illegal loan app, and you must check for it before borrowing money or sharing any documents with such loan apps. One of the best personal loan apps in India is TrueBalance. You can always rely on this app during the time of financial emergency. Download the TrueBalance loan app from the Google Play Store and avail of an instant personal loan at any hour of the day without any hassle.