The Myths about Personal Loan you Should not Believe

Getting a personal loan is a perfect way to deal with a financial crisis. There are many benefits of availing of a personal loan in India. Since, It is an unsecured loan, thus no need to submit collateral. And The approval process is quick, with no control on how to use it.

However, when there are so many benefits, it leads to confusion too. There are many misperception and myths about an instant personal loan. So, here we wanted to clarify some of the personal loan myths. Keep reading to know more.

You Can Get a Personal Loan Only from Banks 

Many people believe only traditional bans give personal loan. However, this is not the case. In today’s time, there are many NBFCs and digital lenders who provide a personal loan. So, three platforms offer instant personal loan. Traditional banks such as HDFC and SBI, NBFCs such as Aditya Birla personal loan, Mahindra finance personal loan, TATA Capital personal loan and Digital lenders such as Nira and Credy.

If You Have a Low Credit Score, Your Loan Application will Get Rejected 

There is no doubt; the credit score is one of the essential parameters to check applicant eligibility. It leads to rejection too. But it does not happen with every case. There are other factors, which are involved who play an essential role. A credit score above 750 is considered excellent getting a personal loan in India. However, lower than 750 does not mean you won’t get an instant personal loan. There is an Income factor, where you work and the loan amount you need. However, when you need a personal loan on a low credit score, you likely have to pay a higher interest rate.

You will Get a Personal Loan only if you are a Salaried 

This is one of the biggest myths about personal Loan in India that it is impossible to get a personal loan for Self-employed. However, it is not even remotely true. Similar to a salaried professional, an independent professional such as a doctor, Businessman and other professionals. Whether it is a salaried personal or independent professional, both have an equal chance of getting a personal loan. Here are the Tata capital personal loan eligibility criteria for Self-employed.

• The borrower age should be a minimum of 22 years to apply.
• The borrower should have a minimum of 1 year of work experience.
• The borrower income should be at least Rs 15,000 per month.

The Processing Time to Approve the Loan is too Long 

When you heard people saying the processing time is too long, how long does it mean? In the case of a personal loan, the approval time is from 3 hours to 24 hours. However, if you compare it with a traditional loan process, you can say it is not very long. 

The Interest Rate is too High 

If you analyze, you will see the interest rate depends upon the applicant profile. If the applicant credit score is low, the income is not high, the interest rate will be higher. So, you can see how a lot of factors decide the interest rate. For some applicant, it could be low; for some, it could be high. It won’t be always top like 21%, 25% or 30%. If the applicant has a good history, one can get personal loans as low as 10.99%.

Conclusion

So, these are the popular myths about Personal Loan in India. You can see how far they are from reality. The best way to deal with these myths is to get actual facts. If you are looking for a personal loan, connect with an online loan marketplace such as Afinoz or WishFin. Apart from this, talk to a lender directly before you apply.