Popular for its simple eligibility criteria, quick disbursal, and its collateral-free nature, an instant personal loan can help you manage a number of expenses: from debt consolidation to medical emergencies and even home renovation. Moreover, with the rapid adoption of technology in the financial industry, availing of a loan has become easier than ever.
But despite its many useful features, personal loans are also the subject of several misconceptions and these may deter you from availing one. Instead of being misinformed about this offering or choosing a less viable option when you need money, read this report as we debunk five common myths about personal loans.
Myth Number 1
Application procedures are lengthy and disbursal times long
Many borrowers, especially first-time applicants, believe that the application and ensuingverificationprocess for a personal loan is long-winding. However, this cannot be any further from the truth.Being collateral-free in nature, instant personal loan does not require extensive verification or valuation,ensuring a quick processing, and disbursals within a day to a weeks’ time of approval.
Myth Number 2
Personal loans attract high interest rates
There is a common misconception that a personal loan is an expensive financing option, owing to high interest rates. However, in most instances, lenders gauge your repayment capacity and financial standing and offer you an interest rate accordingly. If you have a good credit score and a high repayment capacity, you can avail an instant personal loan at an affordable rate of interest. Further, when compared to some other unsecured forms of credit, personal loans tend to be cheaper.
Witha good credit score, of 750 and above, you can secure a reasonable rate of interest from Bajaj Finserv. Moreover, the lender also offers instant personal loans with complete transparency: There are no hidden charges.
Myth Number 3
A low credit score makes you ineligible for a personal loan
Since a personal loan is a collateral-free offering, your credit score becomescritical to eligibilityterms. While a high score is ideal, a low score does not translate to outright rejection. Some lenders may consider other factors, such as your salary and repayment capacity, which play an importantrole in your eligibility. However, do not forget that, a low credit score may attract less favourable terms, including a higher interest rate.
Myth Number 4
Personal loans are only offered by banks
Another misconception among borrowers is that personal loans can be availed from banks alone. The fact is that banks comprise a significant portion of the lending institutes in the market. But there exist several Non-Banking Financial Companies (NBFCs) that offer instant personal loans with easy eligibility criteria and attractive terms. Bajaj Finserv is among the NBFCs offering personal loans and eligible customers can go online for a loan and get the loan to meet their financial needs without any hassle.
Myth Number 5
Personal loan repayment will strain your finances
This holds true only if you plan badly and have a debt outgo larger than what your income can sustain. When planning, you need to take into consideration your household expenses, fixed obligations, and existing debt outgo. Your personal loan EMIs should not put your monthly budget in disarray, nor make it impossible for you to meet your obligations and pay existing loans. You can use an online EMI calculator to calculate personal loan EMI and estimate your expenses accurately.
Now that you know the truth about personal loans, you can proceed to borrow without doubts. For a truly transparent experience, choose a Bajaj Finserv Personal Loan and get approval on your personal loan application within five minutes, once you have met all the eligibility criteria.
Avail funds at competitive interest rates and repay over a flexible tenor of up to 60 months. Further, choose their flexi facility to reduce your EMIs by up to 45%*!
Also Read:-
Personal Loan vs. Flexi Hybrid Loan: Which one suits you more?
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