{"id":581,"date":"2022-03-30T10:56:20","date_gmt":"2022-03-30T10:56:20","guid":{"rendered":"https:\/\/blog.paymeindia.in\/?p=581"},"modified":"2024-09-04T07:09:40","modified_gmt":"2024-09-04T07:09:40","slug":"myths-and-facts-about-personal-loan","status":"publish","type":"post","link":"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/","title":{"rendered":"Decoding myths and facts about Personal Loan"},"content":{"rendered":"\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#overview-myths-and-facts-about-personal-loan\" >Overview: myths and facts about Personal loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#before-availing-of-a-personal-loan-involves-multiple-problems-such-as\" >Before availing of a personal loan involves multiple problems, such as:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#here-are-some-most-common-myths-linked-to-personal-loan\" >Here are some most common myths linked to personal loan<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#myth-%e2%80%931-personal-loans-have-a-high-rate-of-interest\" >Myth \u20131 Personal loans have a high rate of interest.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#myth-%e2%80%93-2-only-salaried-people-can-apply-for-personal-loans\" >Myth \u2013 2 Only salaried people can apply for personal loans.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#myth-%e2%80%93-3-low-credit-score-leads-to-loan-applications-rejected\" >Myth \u2013 3 Low credit score leads to loan applications rejected<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#myth-4-only-banks-lend-personal-loans\" >Myth- 4 Only banks lend personal loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#myth-%e2%80%93-5-personal-loans-do-not-have-a-prepayment-option\" >Myth \u2013 5 Personal loans do not have a prepayment option\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.paymeindia.in\/blog\/myths-and-facts-about-personal-loan\/#myth-%e2%80%93-6-existing-loan-borrowers-cannot-avail-of-a-personal-loan\" >Myth &#8211; 6 Existing loan borrowers cannot avail of a personal loan<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"overview-myths-and-facts-about-personal-loan\"><\/span>Overview: myths and facts about Personal loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Emergency expenses come without warning, financial crises might emerge anytime unplanned. Personal loans are an apt method to address a variety of expenditures that require immediate funding. There are numerous benefits of availing of <strong>personal loans<\/strong> as they are unsecured loans, as the applicant doesn\u2019t have to provide any security or asset for the borrowed loan amount.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Though personal loans being unsecured and easy to avail of has made an air of mystery around personal loans. Often, people are filled with misconception and distrust when it comes to <strong><a title=\"applying for a personal loan\" href=\"https:\/\/www.paymeindia.in\/personal-loan-online-apply\">applying for a personal loan<\/a><\/strong>.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"before-availing-of-a-personal-loan-involves-multiple-problems-such-as\"><\/span>Before availing of a personal loan involves multiple problems, such as:<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>From which lender should I opt for a loan?<\/li>\r\n<li>Which kind of personal loan to pick?<\/li>\r\n<li>How to be qualified to get a personal loan?<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>Answering these questions is prime, also it is equally important to bust the myths and unleash the fact first that&#8217;s around <strong>personal loans<\/strong> as it may fog an individual&#8217;s judgment to avail a personal loan.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"here-are-some-most-common-myths-linked-to-personal-loan\"><\/span><strong>Here are some most common myths linked to personal loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"myth-%e2%80%931-personal-loans-have-a-high-rate-of-interest\"><\/span><strong>Myth \u20131 Personal loans have a high rate of interest<em>.<\/em>\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Many individuals believe that personal loans generally come with a high rate of interest. But, that\u2019s not always the case. In many occurrences, financial institutions and lenders set interest rates based on a person\u2019s credit score or loan repayment capacity. Individuals with a low repayment capacity are usually given a loan at comparatively higher interest rates. Individuals with a high credit score are benefited generally from low-interest rates.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"myth-%e2%80%93-2-only-salaried-people-can-apply-for-personal-loans\"><\/span><strong>Myth \u2013 2 Only salaried people can apply for personal loans<\/strong><strong><em>.<\/em><\/strong><strong>\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Numerous individuals believe that only salaried people with a regular flow of funds are qualified to get a personal loan. However, salaried individual loan applications are accepted easier as they have a steady inflow flow of income. But, self-employed individuals can also avail of personal loans based on their credit history.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"myth-%e2%80%93-3-low-credit-score-leads-to-loan-applications-rejected\"><\/span><strong>Myth \u2013 3<\/strong> <strong>Low credit score leads to loan applications rejected<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Many borrowers think that a low credit score leads to the rejection of a loan application. However, the interest rate is charged higher for individuals with a low <strong><a title=\"credit score\" href=\"https:\/\/www.paymeindia.in\/blog\/how-to-improve-your-credit-score\/\">credit score<\/a><\/strong> and low-interest rates for individuals with a high credit score.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"myth-4-only-banks-lend-personal-loans\"><\/span><strong>Myth- 4 Only banks lend personal loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Several loan applicants believe that personal loans can be only availed through banks. But that\u2019s not true, there are a few NBFCs who provide personal loans.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"myth-%e2%80%93-5-personal-loans-do-not-have-a-prepayment-option\"><\/span><strong>Myth \u2013 5 Personal loans do not have a prepayment option\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Some borrowers believe that they cannot repay the loan amount before the end of the loan tenure. Most individuals believe this as personal loans tend to have a much shorter repayment tenure. However, personal loan repayment can be done before the end of the loan tenure.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"myth-%e2%80%93-6-existing-loan-borrowers-cannot-avail-of-a-personal-loan\"><\/span><strong>Myth &#8211; 6 Existing loan borrowers cannot avail of a personal loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n\r\n\r\n\r\n<p>Many individuals believe that they cannot get a personal loan if they already have an existing loan. This is just a myth. You are eligible to apply for a new loan regardless of whether you have existing loans or not. The lender will evaluate your application based on your loan repaying capacity, income, cash flow, and current liabilities.<\/p>\r\n\r\n\r\n\r\n<p>If any of the mentioned myths are stopping you from getting a personal loan, this is the correct time. Just remember, do not borrow more than you cannot repay as this might lead to a debt- trap, and choose a suitable tenure for a stress-free payment process.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Overview: myths and facts about Personal loan Emergency expenses come without warning, financial crises might emerge anytime unplanned. Personal loans are an apt method to address a variety of expenditures that require immediate funding. There are numerous benefits of availing of personal loans as they are unsecured loans, as the applicant doesn\u2019t have to provide [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Decoding myths and facts about Personal Loan","_seopress_titles_desc":"","_seopress_robots_index":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8],"tags":[55,65,75,82],"class_list":{"0":"post-581","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-loan","8":"tag-instant-personal-loan","9":"tag-myths-about-personal-loans","10":"tag-personal-loan","11":"tag-personal-loans"},"blocksy_meta":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2022\/03\/myths-and-facts-about.jpg?fit=1200%2C768&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/posts\/581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/comments?post=581"}],"version-history":[{"count":2,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/posts\/581\/revisions"}],"predecessor-version":[{"id":268351,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/posts\/581\/revisions\/268351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/media\/585"}],"wp:attachment":[{"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/media?parent=581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/categories?post=581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paymeindia.in\/blog\/wp-json\/wp\/v2\/tags?post=581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}