A personal loan today comes with a variety of benefits:
- A quick, easy and hassle free process
- Pre-approved offers and faster approvals
- 24-hour loan disbursal
- Minimal documentation
And many more!
However, many people are reluctant to take a personal loan due to the various misconceptions and myths around them.
Here are few known Personal Loan Myths and Misconceptions
Myth #1: You need to mention the purpose of availing a personal loan
You are never asked about the purpose for which you are availing a personal loan. It has no end use and can be utilized basis your needs and requirements. No bank / NBFC will ever include “Purpose of Availing” as a part of their application process.
Myth #2: Availing a personal loan is too complicated and lengthy
Absolutely not true! Personal loans today can be quickly processed online with minimal documentation and significantly quick turnaround time for loan disbursal. On top of that, many banks and NBFCs extend pre-approved offers and instant approvals to help you obtain funds as fast as possible. With Finserv MARKETS, your loan application requires minimal documentation and can get approved within 3 minutes. Once approved, you the loan amount will be credited to your bank within 24 hours!
Myth #3: You can take a personal loan only through banks
A bank is not the only lender / financial institution that can give you loans. You can avail a personal loan with a NBFC (Non-Banking financial company) or a digital lender. Finserv MARKETS provides pre-approved offers on a personal loan with key facilities like flexible tenures (ranging from 12 -60 months), flexi hybrid repayment, easy eligibility, minimum documentation and eligibility hassle-free process.
Myth #4: You cannot take a personal loan if your credit score is low
You can avail a personal loan with low credit score as the same is not the only determinant for loan approval. If you have a favorable repayment capacity and personal income, you can avail a personal loan online instantly!
Myth #5: Personal loans have high-interest rates
Personal loan interest rates are lower than many other borrowing options. For example, personal loan interest rates are significantly lower than that of a credit card. With strong repayment capacity and good credit score, you can easily avail a loan at a 13% interest charge. Moreover, these loans offer convenient as there no requirement of a guarantor or collateral!
Myth #6: You are not eligible if you already have an existing loan
A bank / NBFC will process your application on the basis of your repayment capacity and personal income. The application process extends a bit further to analyze your net disposable income after repaying existing loans/credit card payments. Having said that, you can easily avail a personal loan online even if you have an existing loan at the time of the application process.
Truths about Personal Loan
Some of the major facts about personal loans are mentioned below:
Personal Loans can either be Secured or U nsecured
A secured loan is the one wherein you have to pledge collateral to borrow the loan amount. Your valuable assets, property, jewelry, etc. can act as collateral. In case of unsecured loans, you can avail the loan amount without providing any security. You can avail a Bajaj Finserv Personal Loan at Finserv MARKETS of up to Rs. 25 lakhs for a repayment tenure ranging from 12-60 months.
Personal Loans are Multipurpose Loans
The loan amount availed through a personal loan can be utilized for various purposes. You can avail a personal loan to fund your children’s higher education, manage wedding expenses, travel expenses, medical emergencies, etc.
Ideal for Instant Fund Requirement
With the growing competition in the Banking and Finance Sector, a large number of banks and other financial institutions offer instant personal loans online. The application process is simple, and with leading lenders, you can avail funds within 24 hours.
Now that you have a fair understanding of some facts as well as personal loan myths, ensure that you keep all these factors in mind before applying for a personal loan.
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!