Personal Loans in India

Busting 4 Common Myths About Personal Loans

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A personal loan is probably our top choice every time we’re in a financial emergency. But despite the flexibility offered by this financing option, many people think twice before availing it. This is primarily because of the baseless misconceptions associated with it. In this article, we will discuss these misconceptions in detail and reinstate the benefits of a good personal loan offer. 

Myth #1: You Can Only Get a Personal Loan From Banks

Many people think twice before taking a personal loan deeming the process to be long-drawn, extensive, and hassling. Since banks take several days to process applications, people ditch this option and look for other potential solutions instead. Luckily, that is not always the case! With the advent of NBFCs and Fintechs, you can now get a personal loan in minutes. 

Yes, as opposed to bank loans, a personal loan from P2P lenders, NBFCs and Fintechs are much simpler and faster. The amount is disbursed in 24 to 72 hours and you’re saved of the unnecessary hassles. 

Myth #2: Personal Loans Involve Extensive Documentation

Gone are the days when you had to upload tons of documents to get your personal loan application processed. Thanks to Fintechs, the documentation process is much simpler. All you’ll practically need is a copy of your salary receipts, a copy of your bank statements, and a copy of any government authorized identity card. Unlike banks, these lenders won’t ask for your tax receipts, ration card, or any other unnecessary documents. 

Myth 3#: Only Salaried Professionals Can Get Personal Loans

Although salaried professionals have a better edge in getting instant personal loans, it doesn’t necessarily mean self-employed professionals can’t qualify for the process. Many leading lending institutions allow self-employed professionals to apply for an unsecured personal loan. You will, however, need to furnish additional documents and meet some specific eligibility parameters. That said, the process is still as simple and hassle-free.

Myth 4# I Cannot Pre-Pay Personal Loans

While taking a personal loan, you are required to choose a tenure. Eventually, you can pay your loan throughout the tenure, in fixed monthly installments. While this is the conventional process of repaying the loan, it doesn’t mean you cannot pay off your loan early. Most lenders allow pre-payment facility after you’ve repaid your loan for at least one year. Others also have provisions for part payment. It is best to read the fine print of your lending institution for complete clarity on the process. 

Myth #4: I Cannot Get a Personal Loan Because I Already Have an Active Loan

This is yet another baseless myth because you can always qualify for a personal loan despite having other active lines of credit. Do note that your interest rate might be higher if you have too many high-interest loans. 

Bottom Line

Now that we’ve busted these common myths about personal loan, put your thinking caps on and check the best personal loan offers online. At Qbera, we offer personal loans starting from 11.99% p.a. Visit our website, apply for the loan, and get your coveted cash in minutes!

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