5 myths of personal loans that you should dodge

personal loans

“Loans” a term many people hesitate upon. If you are a lender or a borrower, you will think numerous times about the money debit or credit. Though gone are the days of loan fear. Today loan has become an essential part in one’s life. Fast online loans are new and present-day scenarios of availing loans. A loan, in the form of a car loan, home loan, education loan, emergency loan, and even a personal loan comes in handy when needed. With fear came too many myths. Let’s break a few one by one.

1. Only salaried employees are eligible for a personal loan:

It’s true that on applying for a loan, the requirement of guaranteed income is necessary. Hence the myth ran around that only salaried employees are eligible for a personal loan as they have a steady flow of income. Moreover, their credit score and history can be assessed and evaluated easily. Truth be told, being a salaried person is not an obligatory qualification. However, it remains a crucial requirement that a guaranteed flow of income is mandatory. So if you are a salaried employee or a self-employed person, anyone can avail of personal loans.

2. Banks are the only place to seek loan:

Fast loan apps are one of the convenient places to apply for a loan. It’s paperless, quick KYC & you can get a loan from home itself. Banks sure are the place to get a loan from, but they are not the only place. Banks for loans today sound conventional when you can get a loan quick sitting at home.

3. The approval process is long:

Technology has made everything easy and accessible for everyone. If you are a borrower, it has become easy for you to choose a best-suited loan online and match the given requirements for it. If you are a lender, crucial data like income, cash flow, credit score, current loans & liabilities is easily accessible to banks and loan servicing tools like loan apps and websites.

4. A low credit score is equivalent to loan rejection:

This doesn’t hold true. There are other factors that are considered along with the credit score. Factors like disposable income, employer’s profile, current loans also sums up the eligibility of the borrower. A person with a low credit score and a steady income can still have a loan approved.

5. Approval is a difficult chance:

Another myth that can easily be believed. Today if you search “Get loan online” the results will seem enticing to you. Though you might bounce away from the search believing that loans can’t be made available so easily and even if they are, there is no way approval can have a high probability. This is where people excuse themselves from a good opportunity. Today applying for a loan online is as easy as filling an online application. Just a few minutes wait and you get your results.