Do not Fall in the Trap of These 5 Personal Loan Myths!
Personal loans are a great alternative when it comes to meeting cash requirements in order to satisfy your entire personal needs. Everyone is faced with the scarcity of money in his/her life at one point or the other. This is the time personal loans really helps you stay strong financially.
When something as useful as this exists, a lot of people talk about the same. However, it is not the talking that creates the predicament but the wrong facts that people exchange between each other. If you are looking for online personal loans in Kenya, do not fall into the trap of the following myths associated with it.
5 Personal Loan Myths Debunked
Myth 1: The Interest Rates Are Very Unfair
Personal loans have interest rates that are different and higher than the standard loans but this does not mean it includes any unfair interest rates. The interest rates on these loans are way lower than the credit card interest rates which are anywhere between 35%-49%. Despite this, people opt for credit cards instead of personal loans during times of an emergency. So, it is always sensible to go for a personal loan when you need cash at a short notice.
Myth 2: All Lending Companies Charge Similarly
This is just not true as no two companies can charge the same due to their different style of working. People make the mistake of comparing two different personal loans based on just the interest rates. There are times when lenders charge a starting fee of the loan ranging from 1% to 5%. Moreover, a lot of companies impose penalty fee in case you return the loan ahead of time. This way each and every company operates differently and offers dissimilar interest rates for online personal loans in Kenya.
Myth 3: Personal Loans are Available for Only Salaried Jobs
This myth is pretty insane. There are a lot of people out there who think that you require a salary slip and a company ID in order to avail a personal loan. This is not true at all as all the businessmen and the self-employed are equally eligible for availing this loan. There are companies who even provide personal loans against the income from house rent. Interest rates may vary but complete rejection is a very rare thing.
Myth 4: No Loan against Bad Credit Rating
Credit ratings do matter but not to such an extent that it exempts you from availing a loan. There can be higher interest rates based upon your previous credit history. There is no such rule amongst most of the lending companies that people with bad credit ratings do not qualify for personal loans. There can be few limitations and other precautions attached but straight rejection is just not true in the case of availing online personal loans in Kenya.
Myth 5: Personal Loan can be used For a Personal Cause Only
This statement is not true at all. The lender has nothing to do with your way of using the loan as long as you are regular with the payments. You can even use the money for your personal loan in your business dealings and more. So, get these things out of your head and use your loan amount as you wish to.