Few Common Personal Loan myths busted! - Loan Trivia


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Tuesday 31 May 2016

Few Common Personal Loan myths busted!

Personal Loans can be your helping hand when you are in need of immediate funds. Read on to clear any doubts you have about them.

Though Personal Loans are the most common instruments for quick finance, there still are many half-baked theories that discourage people to apply for one. Many people think that loans are nothing but debt traps. For now, let’s separate the facts from the myths so that you know exactly what to expect when you choose from the various Personal Loan offers available in the market.

Myth 1# You Need a Good Credit Score to Apply for Personal Loans
It is partially true as you need a decent credit rating to get your loan request approved. However, that is not the only thing on which your loan credibility depends. Your financial history, profile, and income stability have a significant role to play when it comes to get your loan approved.

Also, there are few financial institutions that offer online loans in India even if you have a bad credit score. And with a Personal Loan, you can even pay off your previous debts, which in turn will improve your credit score.
Myth 2# It is Best to Avail Personal Loans from Big Banks

Indian middle class people have a typical mindset that only few of the ‘big banks’ can be trusted when it comes to loans and that they offer the lowest interest rates. This is nothing but a myth as, today, there are a number of NBFCs and other financial institutions that have come with attractive Personal Loan schemes. Many of these offer you a loan at low interest rates and the procedure involved is much easier and simpler.
Myth 3# Applying from Multiple Lenders is the Best thing to do as it
Increases the Chance of Getting one
That is completely baseless as when you apply for a loan from a bank or NBFC, each application is showcased on your credit history. So, chances of your request getting rejected is high if your history shows scores of applications. Keep in mind some reasons for personal loan rejection which that you should avoid while apply only to one lender at one time.

This should be enough to help you figure out exactly how Personal Loans function. So, if you are in a financial bind, apply for a Personal Loan and address your financial issues with ease.

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