Busting the Myths Around Online Personal Loans

Financial difficulties can arise at any time in life. You can plan, cut corners, and save all you want, but an unwanted financial emergency could catch anyone off guard. During these times, personal loans can act as a lifeboat that can help you navigate troubled waters.

Since time is always running out during times of financial instability, loans make sense if they come to you when you need them.

Thanks to the internet and secure payment and processing gateways, loan seekers can obtain the necessary funds in less than a day. An online application and submission of a few relevant documents is all you need to get a personal loan in a day from tech-focused NBFCs like Poonawalla Fincorp. This way, you don’t waste time in an emergency and take care of it without worrying about the rigmarole of getting a loan.

As with any novelty, the advent of Online personal loan apps has also raised some apprehensions that put off new online borrowers. Let’s take a look and dissipate some of them:

1. Only banks can offer personal loans: Previously, only banks could offer loans, but this is no longer the case. Non-bank entities also have the right to offer loans, which are often available at competitive rates. Borrowers no longer have to jump through the hoops of a conservative and time-consuming conventional banking system.

2. Long loan processing time: This is now an outdated belief. With innumerable paperwork and paperwork out of the way, one can submit basic paperwork and receive their loan in just a few hours or days.

3. A low credit score equals a rejection: Sometimes a financial dilemma, among other reasons, can cause an individual’s credit rating to plummet. While this may influence the terms of the loan and the overall outcome, it does not result in outright rejection.

Providers look at other aspects of your financial situation to assess whether you can repay your loan on time. Your employment status and purpose come into play, and if they’re compelling, you can get the loan, perhaps on different terms.

4. Existing loans may deny you a subsequent loan: Any existing loan doesn’t have much impact on your personal loan application as long as your application is strong and your cash flow and employment status convince the financial institution. Remember to continue making regular payments on your existing loans on schedule.

5. The deposit is mandatory: Not true. One of the reasons personal loans are so popular is that they don’t require collateral. You don’t need to tie up your assets to get a personal loan.

6. No salary, no loan: Fake. A personal loan can be used by anyone, even if they do not have a regular or monthly salary. These people can apply for a personal loan from a co-signer or salaried guarantor who can repay the loan in case the original applicant is unable to repay it on time.

seven. High interest rates: Often, borrowers assume high interest rates for personal loans, but this is not always true. Whereas Personal loan interest rate calculators differ between lenders, the difference is not so big in the context of credit card and loan rates, where you have to give collateral. You can get the loan at attractive interest rates depending on your credit score.

8. The loan approval process is mysterious and complex: If we’ve learned anything so far, it’s this: getting personal loans online is as easy as filling out an online application form, because that’s all it is now.

They are a simple and smart way to get back to your basics after a financial downturn, which many people experience in unpredictable economic situations. and it is perfectly acceptable to ask for financial assistance if needed.

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