Personal loans may be a reasonable option for meeting a short-term liquidity demand. Certain consumers, however, are put off by some widespread misconceptions about such loans. These myths, fortunately, are untrue. Continue reading to learn more about them.
Personal loans online are unsecured loans that borrowers can use to meet immediate or ongoing financial requirements. For example, you may utilize these loans to pay for vacations, weddings, medical crises, and other expenses without having to put up any collateral.
While personal loans are popular because of the multiple benefits they provide, there have been a number of misunderstandings about them over the past year.
Let us debunk some of the most common personal loan fallacies that no longer hold water in today’s world.
Loan Processing Time is Long
Long and time-consuming application processes, followed by an equally lengthy approval process, are relics of a bygone age. The entire process is now seamless and painless, with little documentation and lightning-fast approvals. You may apply for a personal loan online with ICICI Bank, and the loan amount is quickly credited to the borrower’s bank account.
Higher Interest Rates
Yes, personal loan interest rates can be relatively higher than home loans, auto loans, etc., as they are unsecured loans. Interest rates, on the other hand, are influenced by a variety of other variables. You may be able to acquire a favorable loan offer based on your credit score, credit history, income profile, and connection with the bank.
Not Possible with a Low Credit Score
Your credit score is used by banks to determine your creditworthiness. A good credit score might assist you in obtaining a bank loan. A poor credit score, on the other hand, does not automatically rule out a loan application. Even though your credit score is low, you can get a personal loan provided you meet other criteria such as income, employment stability, and a lesser loan amount.
- Read more: How to Get a Personal Loan with Bad Credit?
Only Salaried People Are Eligible
Having a solid job with a regular and reasonable pay will undoubtedly help you receive the loan amount you want. It is not, however, the only criterion for qualifying. As long as you have the requisite loan repayment capabilities, self-employed people, business owners, consultants, and others are eligible for a personal loan.
Personal Loans Can’t Be Taken With an Existing Loan
Before granting a new loan, banks and other lenders assess the condition of your previous debts. However, if you already have a loan, this does not guarantee your application will be denied.
Even if you already have a loan, if the bank is happy with your income and loan payback capabilities, it will authorize your loan amount.
If utilized wisely, personal loans might be a viable solution to your financial problems. All you have to do is disregard the myths that surround them and base your judgment on the facts. Speak with a customer service professional to obtain the accurate information and make an informed decision.
