In times of financial emergency, personal loans stand out to be extremely useful. You can avail of a personal loan to go on a vacation, handle wedding expenses or attain higher education. You will not need to pledge any collateral, the documentation procedure is hassle-free and the loan gets swiftly credited.
Regrettably, there’re a few personal loan blunders hovering around that prevent people from applying and enjoying the benefits of personal loans. Thus, in this post, we’ve busted the top 5 common but big personal loan myths that have caused apprehension among personal loan applicants. Let’s take a look at them!
Only Salaried Individuals Can Apply
- There is a general widespread myth that only salaried employees can apply for personal loans. It is believed that as the salaried individuals hold a gentle income, their credit history is easily assessed and income can easily be anticipated, are away from the odds of defaulting due to the constant flow of income.
- Yet, the reality is that anyone that features a regular and guaranteed income flow, including a self-employed individual, also can borrow personal loans based on their eligibility.
- Their past credit records are cautiously taken into consideration and assessed, the income in their books is correctly evaluated, moreover, the income tax returns are accounted for prior to sanctioning of the loan.
- The current business nature of the associated industry might not be comprised within the evaluation as a business is subjected to recurrent cycles of highs and lows.
- Therefore, self-employed people such as entrepreneurs, chartered accountants also as salaried employees can avail of personal loans.
Only Banks Supply Personal loans
- One of the general personal loan myths is that personal loans can only be applied only in banks.
- Many NBFCs and online moneylenders give personal loans with further pliability and fewer easy to meet criteria for sanctioning of the loans than banks.
- Thereby, if a bank rejects a personal loan application, NBFCs with their personalized and wide loan offerings and a comparatively higher probability of sanctioning can come to the rescue.
- Moreover, there are abundant instant loan apps in India such as Indiabulls Dhani personal loan app, MoneyTap personal loan app, etc. Yet, Afinoz stands out as the best instant personal app for loans.
- To apply for personal loan from Afinoz (the best instant personal Loan app for a loan), you can visit Afinoz.com or download the Afinoz instant loan app from the Play Store.
- Afinoz being the best fintech lender in India provides multiple sorts of advantages on personal loans that can make you stress-free throughout the entire tenure.
High Credit Score is Required
- A CIBIL score is a significant aspect that determines the fate of the loan application, and also the interest rates applicable. A CIBIL score below 670 is accounted to be highly unfavourable, while 750 is taken into account as a superb score.
- Nevertheless, other elements sometimes take precedence over a low credit score like a borrower’s income and creditworthiness which will tilt the scales in their favour.
- There is an ample number of moneylenders available at the press of a mouse button who may supply personal loans to you at convenient interest rates.
- Even though, the interest rates could also be slightly higher considering your excellent credit score.
- There could also be the event where the interest rates are left untouched, and the terms and conditions of the contract are altered or revised to guard the interests of the moneylender and also meet your loan needs at affordable interest rates.
- You can also function towards enhancing your credit score over time.
The Approval Process is usually Tedious and Time-Consuming
- In this new age, a personal loan online can be availed with a few taps of the fingers. In this data-centric age, important elements like income, cash flow, existing loans, credit records, and credit score is out there within the property right and readily accessible by banks and NBFC’s for scrutiny and evaluation.
- Also, at the convenience of your home, you’ll avail a web personal loan by uploading scanned copies of all the specified documents. Hence, you’ll enjoy a secure and hassle-free experience.
Personal loans are just for Personal Reasons
- Once you are ready to avail of the personal loan, you are not limited to use the money for any certain reason. A personal loan is simply a loan with no collateral required. Thus, once you attain a personal loan, you can utilize it for private expenses.
- You can also invest a number of funds in your business. Multiple businessmen avail personal loans to handle capital needs.
The Out-Turn
To conclude, once we’ve revealed the untold myths, you can easily comprehend widely about personal loans. Moreover, you can turn around Afinoz instant loan app to obtain the best deals on personal loans. Besides, you can also compare multiple loan offers across business loans and home loans. Get the Afinoz instant loan app from the Google Play Store!
