Are you someone who always gives second thoughts while applying for a personal loan because of something you’ve heard or read? Well, you’re not alone. Personal loans are a great financial tool for someone needing funds in emergencies like medical, education, home renovations, or any other planned situation. Still, due to some myths, many often prevent themselves from taking advantage of it.
Personal loans have been a lifesaver for many people, but for some, the myths about personal loans are always on their minds. Fortunately, most of these myths are not true. This blog will bust all the misconceptions, providing the correct information to help you make an informed decision and mentioning when to use the best loan apps like Stashfin to make the process convenient and hassle-free.
What is a Personal Loan?
Personal or unsecured loans are funds borrowed from banks, financial institutions, or other online platforms. The borrowed sum can be used for several purposes, such as medical emergencies, home renovation, weddings, or a dream vacation. Although personal loans do not require collateral, lenders mostly ask for proof of stable income and creditworthiness.
Common Myths of Personal Loans
While you have understood the meaning of personal, let’s dig a little deeper and clear all the misconceptions related to it:
Myth 1: Interest rates of personal loans are high
Being an unsecured type of loan, it is often believed that the interest rates are higher. This is true; interest rates for personal loans can be quite high depending on the specific lender and the credit history/score of the individual. However, due to the wide threshold of interest charged by various insurers, personal loans can be a lot cheaper than their competitors. In comparison, for certain types of loans, interest rates can be higher than the original principal sum in home loans or any other loans; they also depend on factors like the borrower’s credit score, income, and type of lender.
With technological advancement, online cash loans can also be applied via digital platforms, and these apps are user-friendly, offering users competitive interest rates.
Myth 2: The application process is lengthy and complicated
While many people believe that processing personal loan applications is lengthy and time-consuming, only some know that it is an outdated take. Now, you can apply via the best loan apps in India, and the whole process is quick and requires minimal to no paperwork.
With online platforms like Stashfin, you can apply for a loan without special requirements and get approvals faster, sometimes on the same day.
Myth 3: Only people with high credit scores can apply for a personal loan
While a high credit score undoubtedly makes it easy for borrowers to get loan approval as it proves their reliability in paying back the loan, it is not the only factor determining whether one is eligible for a loan. Even if you have a good credit score, you can still qualify for personal loans.
Many online cash loan platforms also consider other factors, such as income, employment history, and repayment capacity, to determine creditworthiness.
Myth 4: Only salaried people can apply for personal loans
Another common misconception about personal loans is that only salaried employees can apply. However, it definitely helps if you have a stable and decent income to get the desired loan, but it’s not the only eligibility for application. Self-employed or business professionals can also apply for the position by providing the required proof of income to determine repayment ability.
Myth 5: A personal loan can’t be taken if you have an existing loan
Financial platforms and banks do check your eligibility, current borrowing status, and debt-to-income ratio to see if you can repay the loan at the right time. But if you have the required proof of income and a good credit history, then you can still apply and get your personal loan approved.
Stashfin: Best Loan App in India
Numerous options are available when discussing the best loan apps, but the one that stands out the most is Stashfin. The platform offers a user-friendly interface with transparent terms and conditions, providing borrowers with a fast and hassle-free loan approval experience. You just need to qualify the eligibility criteria and look for the amount you aim for.
The application process for a personal loan through Stashfin is relatively straightforward:
- Download the app from the Play Store or App Store.
- Sign up using your mobile number.
- Add your personal details, and don’t forget to check your credit limit.
- Complete the KYC and apply for the loan.
- After approval, the funds will be transferred to your bank accounts.
Why Stashfin?
From offering competitive interest rates to flexibility of repayment, learn about the benefits of using the app:
- When applying for an online cash loan, you can get speedy approvals.
- The application process is digital, including minimal to no paperwork, and you can get funds from anywhere.
- The platform offers transparent terms and conditions, avoiding hidden or any other costs.
- You can choose the repayment tenure from the options available.
Conclusion
When used responsibly, personal loans have many benefits. Myths are just rumours and should not be taken seriously beyond a particular level. Instead, do your research, analyse the current situation, make the right decision, and choose the best loan app.
Whether planning a wedding, needing money for home renovations or other expenses, applying for a loan through the Stashfin app is a wise decision. By understanding the facts behind the myths, you can confidently apply for a personal loan and manage your finances.