Busting Myths Around Online Personal Loans
5 Dariya News
27-Oct-2022
Financial challenges can come up at any point in life. You can plan, cut corners, and save all you want, but an unwanted financial emergency could catch anyone off guard. During such times, Personal Loans can serve as your lifeboat that can help you navigate troubled waters.
Since time is always of the essence during financially unstable periods, loans make sense if they reach you as soon as you need them.
Thanks to the internet, and secured payment & processing gateways, loan seekers can get the required finances in less than a day. An online application and submission of a few relevant documents are all you need to secure a Personal Loan within a day from tech-driven NBFCs like Poonawalla Fincorp.This way, you don't lose time in an emergency and deal with it without worrying about the rigmaroles of securing a loan.
As with anything new, the advent of online Personal Loan applications has also brought about a few misgivings which put off first-time online borrowers. Let's take a look and dispel some of them:
1. Only banks can offer Personal Loans: This used to be true that only banks could offer loans but that’s no longer the case. Non-banking entities have the right to offer loans too, 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 Long loan processing time: This is now an outdated belief.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 countless documentation and paperwork out of the way, one can submit basic documents and receive their loan within hours or just a few days.
3. Low credit score equals rejection: Sometimes, a financial dilemma, among other reasons can cause an individual's credit score to plummet. While it may influence the terms of the loan and overall outcome, it does not translate to a plain rejection.
Providers look at other aspects of your financial situation to assess if you can pay back your loan on time. Your employment status and purpose come into play, and if it is convincing, you can get the loan, perhaps on different terms.
4. Existing loans can deny you a subsequent loan: Any existing loan does not have much of an impact on your application for a Personal Loan as long as your application is solid and your cash flow & employment status convinces the financial institution. Remember to keep making regular payments on your existing loans as per schedule.
5. Collateral is mandatory: Not true. One of the reasons why Personal Loans are so popular is that they do not require security. You do not need to tie up your assets to secure a Personal Loan.
6. No salary means no loan: False. A Personal Loan can be availed of by anyone, even if they do not have a steady or monthly salary. Such individuals can apply for a Personal Loan with a salaried cosigner or guarantor who can pay off the loan in case the original applicant is unable to pay it off in time.
7. High-interest rates: Often, borrowers assume high-interest rates for Personal Loans, but it is not always true. While Personal Loan interest rate calculators differ across lenders, the difference is not that big in the context of credit card rates and loans, where you need to pledge collateral. You can get the loan at attractive interest rates depending on your credit score.
8. The loan approval process is arcane and complex: If we have learned anything so far, it’s this: securing 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 find your grounding again after a financial downturn, something that lots of people experience during unpredictable economic situations; and it’s completely okay to apply for financial assistance when required.