5 Myths About Personal Loans You Must be Aware About
Personal loans can be availed within one working day, thanks to the competitive lending market. Despite such benefits, people often shy away from applying for such credits. Such reluctance can be directly attributed to the myths and misconceptions prevalent in the marketplace about a personal loan.
Knowing the difficulties, people often do not want to go through the actual information and tend to rely on the myths. This creates a fuss among other individuals as well who were looking forward to availing such lines of credit.
Myths related to personal loan
Here is a list of myths and incorrect information on a personal loan online that leads to the reluctance among borrowers –
- Longer processing time
Since there is no collateral involved, lenders often tend to disburse the loan within 24 hours of application.
2. Higher interest rate
With a decent credit score and creditworthiness, and on meeting other personal loan eligibility criteria, you can gain a lower rate of interest from your lender too.
3. Fixed repayment option
There are multiple repayment options where you can party prepay the loan amount or even transfer the existing balance to another lender.
4. Application rejection due to low score
Not having a decent credit score could affect the personal loan rate of interest charged on the borrowed loan, but it will not lead to the rejection of your application.
5. Tedious application procedure
With the introduction of the online mode of application, it has become easier to apply for a personal loan by submitting a couple of essential details to the lender.
In a nutshell, availing personal loans is a lot convenient now. Individuals need to find the correct information and process of availing the same through credible sources, before believing others.
Must Read: Myths About Personal Loans You Must Be Aware About
