Instant Personal Loans take away your stress of how you will manage all the expenses, mainly when you do not have a high budget but doing all the necessary festive rituals is equally important. Several websites today offer personal loans, such as PaySense. They offer instant personal loans from Rs.5000 to Rs.5 lakhs, considering you meet all the eligibility criteria. Personal loans solve a lot of purposes. For example, if there’s a wedding, or you want to go on a holiday, or some kind of serious emergency has come up out of the blue, personal loans will be your saviour in every possible scenario you can think of. And with the availability of instant personal loans, things have been more convenient and faster to access.

And there are always several opinions available on the same topic, and what to believe and what not to depends clearly on our strength of knowledge. So, in order to keep yourself from considering all the myths disguised in the name of facts, you must be aware of the real facts about a personal loan. Therefore, this article will primarily focus on busting some of the myths surrounding personal loans.

What is a Personal Loan?

Any expenses that don’t qualify for a traditional loan are paid for with a personal loan. Personal loans can be useful for several purposes, including paying off debt, buying a new car, or covering startup costs for a business. They are unsecured loans, which means they are granted only on the strength of the borrower’s credit and lack any form of security. Personal loans are typically more expensive than other types of loans due to their higher interest rates and shorter repayment schedules. But if you need money right away and can’t get it through refinancing your mortgage or getting a home equity loan, they might be able to help.

Myth 1: You Must Have a Good Credit Score to Avail a Personal Loan

Though having a good credit score indeed increases your chances of securing a loan, having a low or poor credit score does not necessarily mean that you will be rejected from getting a loan. A credit score of or below 670 is considered to be an average score, whereas anything above 700 is considered a good credit score. However, there are situations when other variables, such as a borrower’s income and repayment capacity, take precedence over a poor credit score and may tip the scales in their favour. Numerous lenders are available at the click of a mouse and may provide you with personal loans when it’s convenient for you.

Myth 2: Only Banks Provide Personal Loans

This statement is false because we have already discussed how technology transforms the loan industry’s financial health. One of the prevalent misunderstandings surrounding personal loans is that banks are the only sources for them. Compared to banks, a lot of NBFCs and online lenders, such as PaySense, offer personal loans with more flexibility and laxer loan acceptance standards. Therefore, NBFCs, with their tailored and varied loan offerings and a substantially higher likelihood of acceptance, can step in to help if a bank rejects a loan application. You can apply for instant personal loans through a personal loan app.

Myth 3: You cannot get a personal loan if you already have an existing loan

This statement is irrelevant because getting loans depends on your credit score and repayment terms. A bank or NBFC will process your application based on your ability to repay and your personal income. The application process is extended a little more to examine your net disposable income after repayment of previous loans and credit card bills. Having said that, you can easily apply for a personal loan online even if you already have a loan at the time.

Final Thoughts

People today want nothing more than quick access to things and hassle-free work. And PaySense, one of the leading platforms for personal loans, helps you get a personal loan within a few minutes of the application process. You can also make use of the Personal Loan EMI Calculator according to your convenience and find out the necessary details regarding your loan before applying for it. And as this article has busted some of the prevailing myths, you can now make a sound decision regarding your loan application and decide what to do and what not to.