A loan is the new age ‘genie in a bottle’, it’s an easy and hassle-free way to take care of your needs and responsibilities.
Personal Loans top the chart and are one of the most availed categories. This is because they cover a lot of our needs, whether it is for funds to organize weddings, travel, education and more. But still, there are many misconceptions attached to them that put us off. Some of these myths, I have listed below:
Myth 1: I can get the loan only if I am a salaried individual
Many of us believe that company IDs and salary slips are the pre-requisites when it comes to getting personal loans. This is definitely not true. Even a self-employed person can apply for a personal loan. These loans are being given on house rent income as well.
Myth 2: My loan would get rejected as my credit rating is bad
Credit rating is an important aspect but a bad credit rating doesn’t translate to the rejection of the loan. All it can affect is the rate of interest or the total amount of the loan that is offered by the lender.
The good news is that there are schemes that specially cater to individuals who have bad credit ratings.
Myth 3: I should go with the lender that offers the best rate of interest
We should look beyond the interest rate while comparing loans from various lenders. Check for any additional charges like monthly fees, initiation charges, etc. On the surface loans with lesser interest rates may look tempting, but they can work out to be more expensive in the long run as they might come with additional charges.
Myth 4: I can apply for only one loan at a time
Actually, you can take as many loans as you can afford. The lender will look at your income and credit history to determine your paying capacity. You can get more than one loan if you have a good credit history and higher affordability.
Myth 5: Personal Loans charge very, very high rates of interest
12%-14% interest is what you’re usually charged on a Personal Loan. Compare this with the rates that’re offered by Credit Cards that could range between 36%-48%. What’s more, you don’t always need to pledge a collateral. So, make the wiser decision by opting for a Personal Loan.
No matter who you are or what your credit rating looks like, choose the hassle-free way to live your dreams with a Personal Loan!
