It’s probably safe to say that most of us have at some point in the past few decades either taken out a personal loan or have at least thought about doing so. Ever questioned why?
Both the benefits of the product and the simplicity with which credit may be secured, especially in recent years with the automation of the entire loan procedure, may be responsible for its attractiveness as a type of credit.
It’s critical to dispel common personal loan misconceptions because many people mistakenly believe them, which in turn has a lot of negative financial effects, including damaging your ICICI personal loan eligibility.
Therefore, it is necessary to bust these misbeliefs before they have a bad impact on the loan application and repayment procedure.
Loan processing takes far too long
Personal loan applicants frequently underestimate how long it will take for their application to even be reviewed, which prolongs the already protracted processing period. But the truth is somewhat different. After providing the necessary information and ascertaining that you fall into ICICI personal loan eligibility criterion, personal loans can be granted fast; this can be done online even in a few minutes in case of pre-approved loans.
In other usual cases, the money will be deposited into the borrower’s account within 2-3 days of the loan being approved. The paperwork needed is significantly less than it would be for secured loans like mortgages or auto loans because personal loans are quick and unsecured and do not require collateral.
Having poor credit score means no personal loan
One of the most crucial criteria that personal loans take into account when deciding whether or not to approve your loan application is your credit score. As a result, your loan application will probably be turned down if you have a poor credit score. They consequently have an effect on whether your loan is approved. You might be approved for a quick loan without cibil even if your credit score is bad. Even if your income and repayment capacity are on the lower end of the scale, you can prevent having a low credit score. However, since the lender sees you as a riskier borrower having weak ICICI personal loan eligibility when your credit score is low, you can be charged a higher ICICI personal loan interest rate.
Banks are the only sources as lenders for personal loans
People frequently believe that banks, such as Best Bank for Personal loan, are the only venues where people may obtain personal loans. Sadly, that is not the case. Peer-to-peer (P2P) lenders and non-bank financial companies (NBFCs) both offer personal loans. When applying for personal loans at banks, many clients wrongly believe they are out of choices if their applications are denied. Since they have quicker Loan without cibil approval standards than these institutions, NBFCs are frequently willing to grant loan applications that traditional banks refuse (NBFCs).
There isn’t a way to pay in advance prepayment
There is a common misconception that prepayment is not an option during the loan’s duration due to the shorter loan maturities of personal loans. But that is untrue. Like with any loan, a personal loan borrower has the opportunity to prepay the loan amount; however, depending on the terms and circumstances offered by the Best Bank for Personal loan, there can be penalties and fees connected with doing so. Personal loans normally have terms of one to seven years, although borrowers may be able to reduce their interest costs as per applicable ICICI personal loan interest rate, by making extra payments whenever they are able to.
All borrowers pay high interest rates
This is another misconception that every borrower pays high interest rates on personal loan.
The truth is, if you have a solid track record of paying your payments on time and a high credit score, a personal loan may have an interest rate as low as 9-10%. Lenders today place a lot of weight on a borrower’s credit score when determining the ICICI personal loan interest rate
for an urgent loan. Personal loans normally have annual percentage rates between 12 and 24 percent, while those with strong credit histories may have ICICI personal loan eligibility
for lower rates. Personal loans are less expensive than high-interest borrowing options like credit cards.
If you currently have a personal loan, you cannot apply for another.
The choice of a lender to provide you credit is heavily influenced by your creditworthiness. Your net disposable income, which is the amount of money left over after paying off all of your fixed expenses and debts, can be used to gauge your capacity to do so. As a result, if you apply for a personal loan while you are already in debt, the lender can still approve you if they think you will be able to make your payments on time and in a way that works for them.
Online application procedures are complex
The number of applicants for personal loans from diverse sources who visit branch offices is still significant. Instead of submitting an online application because they believe it will take too long, they go in person to the stores to check their ICICI personal loan eligibility and apply for the loans. However, the truth might not be at all what is being said here. A borrower must personally go to the locations of several different banks and other lenders in order to choose the fast Loan without cibil that is best for them. They won’t have access to the best finance for their needs until after that, and only then. This could develop into a difficult undertaking that takes a lot of time and energy.
After looking over numerous loan institutions, it seems that submitting an online application makes the most sense. You may get all of your loan-related questions answered at one location rather than making many trips to various banks or nbfcs.