Taking up a personal loan has become one of the easiest and quickest sources of accumulating money at the time of emergency. On the top of that, with the hassle-free procedure, people don’t think twice before submitting their application. Still, there are some myths related to this type of loan prevailing among Indians. Let’s debunk those myths.
If you have taken up a loan to meet your requirements, you would surely agree with the statement that these quick and hurdle-free loans are nothing but saviours. After all, there might not be any other way to get an accurate amount instantly when you need it.
However, there are several people out there who are living with certain myths. So here, let’s debunk some of the myths related to loans. Read on and increase and make sure you don’t ponder upon the pros and cons for too long while in need.
- Myth 1: You would have to give excessive interest rate
If you compare the interest rates of Personal Loans with the rates of other sources, you will get to know the reality. Lenders charge anywhere between 12-14% of these loans, which is comparatively much lower than what you might expect. Moreover, it has become quite easier to accrue these loans these days; thus, you wouldn’t have to face any hassles.
- Myth 2: Those with No or Less credit history cannot avail loan
Most of the people think that no credit history may affect the eligibility for taking up the loan, which is not true in a way. Even if you don’t possess an adequate credit history, you can still avail a loan. However, it will have an impact on the interest rate. Furthermore, the lender may pose some limitations on your application as well.
- Myth 3: Only Salaried employees are eligible to take this loan
Another misconception that is prevailing out there is that only those with salary slips can take this credit. Apart from the salaried individuals, even businessmen, self-employed, and NRIs can take up this loan. But, you must ensure that you are applying in only one institute at a time to get the loan faster.
- Myth 4: Loans will add up to your debts
If you already have some small debts on your head, you can use this loan to pay off the other credits. In this way, you wouldn’t have to pay different EMIs at various interest rates. Instead, everything will cut down to only one. Thus, with the help of this loan, you can eliminate a huge part of your monthly headache and consolidate your debts.
- Myth 5: Every lender has the same rate
This one misconception always hinders people from searching a bit and getting the best deal out there. The interest rate varies from lender to lender. Hence, you must compare a handful of proposals before zeroing down on any. It will help you gain the best loan at the lowest price. Even if the interest rate is same, additional charges can make a huge difference in what you may end up paying.
If you are all set to submit a loan application, you must get rid of these myths once and for all. Also, don’t forget to compare as it will churn out the best deal for you. So, don’t hesitate and get the loan if you are in need.