One of the main reasons people get personal loans is to pay for unexpected costs, such as medical bills or urgent travel costs. People also take out loans and other types of loans these days to pay for things like home improvements, engagement rings, wedding costs, and so on. A personal loan has a lower interest rate than a credit card and can be paid back over a longer period of time.
But even though it only takes a few minutes to get a personal loan and the facility of SBI personal loan EMI calculator is present too, there are still some people who don’t want to take one and would rather borrow from family and friends. Here, we debunk some of the most common myths about personal loans that can make it hard to choose the right one:
Personal loans can only be given out by banks.
This is the biggest misunderstanding about personal loans. Banks are one type of financial institution that can give out loans, but there are also many non-banking financial companies (NBFCs) that can give personal loans to consumers. Now, there are a number of online platforms that can offer you apt personal loans involving much better terms when compared to a traditional bank. In many cases, people who are turned down by traditional banks can certainly get required personal loans easily from such online platforms at a better sbi personal loan interest rate 2022.
But, as with everything else, make sure that the app listed under “Certified Loan Apps” has a license from the RBI, and if you see anything strange in it, avoid it and inform the RBI. During the Pandemic, a lot of these online platforms that offer good deals but aren’t licenced by the RBI have popped up and even claim to give low EMI through Sbi personal loan EMI calculator.
It takes a long time to process
Many people don’t get personal loans because they think it will take weeks to get approved. So, they choose a credit card, which has a relatively higher rate of interest, vs a personal loan because it is easier. This might have been true in the past, but not so much in 2022. From application to loan approval, the whole process can now be done in 24 to 48 hours. All you have to do is go to their website, fill out the application, upload the necessary documents, and click “submit.” Within a few hours, the bank will let you know if they need anything else, and before you know it, the money will be in your account. It would be prudent if you utilize Sbi personal loan EMI calculator before application submission as it would make you prepared regarding the expected EMI amount as per tenure, interest cost and amount of loan needed.
If my credit score is low, my loan application will be turned down.
Some parts of this statement are true. A low credit score can make it harder for you to get a loan, but it doesn’t mean that your application will be turned down. When deciding whether to give you a loan, lenders also look at other things. Income, your status of job and job description, any other ways you make money, etc. If your application is turned down by one bank, you can use certified and trusted loan apps to narrow down the list of banks to which you want to apply. Different lenders may have different rules about who can get a personal loan, but all of them want to know if you can pay back the money or not. If you can show that you can pay it back with other income, your chances of getting a personal loan are good.
Personal loans can only be taken out by people who have a steady income
This used to be true about ten years ago. But now, people who don’t work for a salary but have other jobs too can apply to get a personal loan. All they have to do is show a bank statement that shows a steady flow of money.
Getting a personal loan adds to the amount of debt you have
This is partly true. If you take out a personal loan, it will add to your budget, but you can also use it to combine all of your other debts into one. So, you’ll only have to pay one EMI at the end of the month.
It requires collateral
Personal loans are surely unsecured loans, which means that you don’t have to put anything up as security. It requires little paperwork, and the loan is usually paid out in a day or two. If you have good credit, you might be able to get a loan that has already been approved, i.e. pre-approved. You can also check the estimated EMI as per the pre-approved amount online through Sbi personal loan EMI calculator tool.
One thing to note though
If you have never borrowed money before, you might be nervous about it. People have the wrong idea that getting a personal loan takes a long time, costs a lot of money, and requires them to put up collateral. Some people don’t get personal loans because they believe these and the other myths above.
With the help of real loan apps and technological advances, it is now possible to apply for a personal loan and know ahead of time how much sbi personal loan interest rate 2022 the bank will charge. But the whole process, from applying to getting the money, takes at least a day. As with any other financial decision, getting a personal loan does involve questioning yourself about which lender to choose, which term to choose, and how to qualify for a personal loan. When answering these questions, you should think about whether you can repay back the outstanding debt along with sbi personal loan interest rate 2022 without going into default. If you don’t pay back your personal loan, you’ll have to pay a fee. This will hurt your credit score, which will make it harder for you to get credit in the future. Also, remember that Sbi personal loan EMI calculator is a tool you wouldn’t want to ignore. Using it timely and properly can work wonders in your loan application preparation and process.