To finance a significant an unexpected expense like paying off debt or to fund college education fee, a Personal Loan is a useful tool. There are several lenders, banks, NBFCS, and digital lenders are available to offer it.
However, due to its popularity, there is also misinformation regarding personal loans. Keeping this fact in mind, today in this post, we will demolish few personal loan myths. After reading about it, whether you take an ICICI Bank Personal Loan or CASHe Personal Loan, you will have confidence for further process. Myth 1 It is an expensive way to borrow money The first myth is getting a personal loan is an expensive endeavor. This is whereas a borrower your awareness of the rate of interest and other charges will help to keep it low. The loan cost varies from borrower to borrower. For you, the cost may be the lowest, while for other borrowers; the same loan could be costly. The essential aspect is to get a low personal loan interest rate, avoiding late payment fees or other charges. So, the idea is to keep looking for a lender who would offer a reasonable interest rate. In this way, you get to have a loan and help yourself get out of a financial crunch. Here are some lenders with the lowest interest rates currently available in the market as for interest rates.
Your negotiation tactics will also help you lower the overall cost. Hope by now this myth is debunked for you. Myth 2 Only a good CIBIL score would help to get a personal loan Undoubtedly, a good CIBIL score makes it easy to apply for a personal loan. However, it does not mean those who do not perfect a score can't get the loan. Yes, a bad score exists. But it cannot get in the way of finding the loan. Some lenders would offer a good deal if you could show an extra income get a guarantor or co-signer. It significantly increases the odds. If you cannot do it, then the way is to increase the score then apply. Lenders such as ICICI bank personal loan or Kreditbee Personal Loan offer the loan to borrowers with low scores. If you need a loan instantly, go with a smaller loan amount. So the lender would be convinced you would be able to repay on time. If your score is low, work on improving. The lender's confidence will increase as well as other charges such as processing fee; late payment charges may get more down. Myth 3 Apply at multiple lenders get a loan quickly This is not only a myth; several borrowers do it without knowing the consequences. Never do it, no matter what someone says. Applying with multiple lenders will lead to disasters. It highly affects the credit negatively. It does not matter whether you apply for ICICI bank personal loan or HDFC Bank Personal Loan; if they see you have already applied somewhere else, the application rejection chances increase. The best way to do this is to apply to one lender at a time. It will not show desperation also giving a chance to improve the loan application. The bottom line I hope by now; you have got a better idea about the personal loan. It will help you to take a personal loan on your own. However, if you are still not sure, do consult a professional financial adviser to get valuable advice. Read More: FlexSalary Personal Loans – Avail Instant Cash Loan
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