A personal loan is a saviour when you need short term liquidity, don’t you agree? Unfortunately, certain myths have turned it into a debt trap for many. Let’s clarify them for you.
Myth # 1: Personal loans are expensive
This is one of the most common reasons why people keep away from personal loans. Usually available at 12-14% interest rates they are way lower than credit card interest rates making them the best option when you need immediate cash flow. Looks can be deceiving!
Myth # 2: Only Salaried employees are eligible
The misconception that you need an offer letter, salary slips and a company ID to get a personal loan is just a myth. Even self-employed, businessmen and NRIs can also get personal loans. That’s good news, isn’t it?
Myth # 3: Tedious approval process
This usually makes people mentally “sign off” a personal loan. But a personal loan is usually approved within 24 – 48 hours and requires minimum documentation. A dream come true?
Myth #4: Apply for more than what’s required
Borrowing more than what you require even if you’re eligible is a big mistake. The misconception that you need to apply for more to pay off the first installment and the processing fees will just create an additional burden and a poor credit score if you don’t repay on time. BUSTED!
YOU MAY ALSO WANT TO: Scope out your EMI options before you apply – Use our Personal Loan Calculator