Are you in dire need of financial assistance? Your friends and acquaintances boast about meeting all their financial obligations without burdening themselves by borrowing from their family and friends. A personal loan online may be the ultimate solution for all your problems, but are you skeptical about applying for one? Then, you probably have a preconceived notion about this subject which may not be rational or valid. Follow this article till the end to debunk your myths so that you conclude that the loan app is no less than the magical lamp which had a genie.
Application and allocation of funds through online loan applications may take half a day or more. Such is the extent of technological advancement that if there is an unprecedented situation demanding monetary aid, then the banking organizations and other financial institutions always have our backs. Before we dive into the details of do’s and don’ts of mobile loan applications, we need to bust the following myths surrounding it.
- Only banks offer personal loans:
Banks are part of and are just some financial institutions that provide loan assistance. Several Non – Banking Financial companies (NBFCs) can sanction loans with similar EMI options as the leading banks offer.
- It’s time-consuming and tedious:
One can apply for an urgent loan and avail of immediate benefits because it hardly takes a day. Online application and uploading a few valid documents takes a few minutes. Approval and disbursement take a few hours, and you are good to go.
- Low credit score means rejection:
Maintaining a good credit score is of utmost importance while applying for a loan, but it doesn’t necessarily mean you get rejected for a bad credit score. Other aspects, such as age, the authenticity of documents, source of income, education, etc., are also considered for approval.
- No multiple loan options:
If you are already paying EMIs for some of your small loans applied in the past, you can still apply for another one. The lender will analyze only the required documents, current income and existing liabilities to assess your creditworthiness.
- Online personal loans require collateral:
Personal loans are processed quickly because no asset or security is needed as collateral, making it an easy and fast loan application platform.
- Only salaried professionals can apply:
There is no such limitation on the borrower’s profession to avail of a personal loan online. Small business owners and self-employed individuals can apply online, provided they regularly service the loans.
- They need to provide the prepayment option:
Shorter tenure doesn’t imply that borrowers cannot make the advanced EMI payment of the loan amount and walk free. Although some banks sometimes charge an extra fee for the earlier closure of personal loans, some digital lenders nowadays provide a minimum tenure to borrowers for mandatory EMI payments for 3-6 months. Once it is completed, borrowers can prepay the loan for the closure.
The entire online application framework of personal loans is designed to make borrowers meet their financial obligations hassle-free. Any new technology or trend is surrounded by a cloud of speculations and assumptions, which can be baseless sometimes. So, it’s our responsibility to dig deep to unearth the logical explanations and facts associated with it, and then only we can adapt and go with the flow.