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Big Misconceptions about personal loans debunked

Personal loans are a wonderful borrowing choice for those who are in desperate need of money because they are approved quickly, do not demand collateral, and do not have any restrictions on how the cash can be used. But there are a few misunderstandings about personal loans that keep many potential borrowers from applying for these loans in the first place. Because of these misunderstandings, borrowers are forced to hunt for alternative, less acceptable borrowing solutions.

In this section, we debunk the most frequent fallacies about personal loans so that you won’t be discouraged from taking out a personal loan the next time you require finances for whatever reason.

A lengthy processing time is involved- A commonly heard misconception about Indiabulls personal loans is that they require a longer processing time and a time-consuming approval process. This, however, is not the case. Personal loans are being completed swiftly with minimal documentation, and instant online approvals are being given within a few minutes of applying. 

Aside from that, the loan amount is disbursed into the borrower’s account within 24 hours of the loan approval being granted, and else you can contact the Dhani loan customer care number for further updates. Because they are unsecured loans that do not require any sort of collateral, the documentation required is significantly less complicated than that required for other types of loans and borrowing alternatives such as home loans or auto loans.

If you have a bad credit score, you will most likely be denied an Indiabulls personal loan- Your credit score is one of the most crucial variables reviewed by lenders when reviewing your loan application. As a result, they have an impact on your prospects of receiving loan approval. A low credit score, on the other hand, does not necessarily suggest that your personal loan application will be denied outright. While your credit score may be on the lower end of the spectrum, factors such as your income and repayment capabilities can surely work to your advantage. However, because a lower credit score may portray you like a more likely defaulter and dangerous borrower, the interest rate charged may be slightly higher. If you are unsure about your credit profile and loan eligibility, feel free to contact the Dhani loan customer care number.

Personal loans can only be obtained through banks- Another prevalent misconception about personal loans is that they can only be obtained through banks. NBFCs and peer-to-peer lending are two types of lenders that provide personal loans in addition to traditional financial institutions. A common misconception among borrowers, even when contacting the Dhani loan customer care number, is that they have no additional borrowing options if their personal loan applications are rejected by banks. In many circumstances, loan applications that are denied by banks are accepted by other lenders, such as non-bank financial institutions (NBFCs), because banks often have stricter eligibility and loan approval standards than NBFCs.

Personal loans are regarded to have no prepayment option- Since they have shorter tenures than the majority of other loan alternatives, many assume the absence of prepaying facility. This, however, is a fallacy. The opportunity to prepay an Indiabulls personal loan, like any other loan, is available to borrowers, subject to a few terms and conditions and the payment of a prepayment charge, if applicable, imposed by the lender. Personal loan prepayment can help borrowers save money on interest costs because their loan tenures are typically between one and seven years. Borrowers can save money on interest costs by prepaying their loans anytime they have extra funds.

Personal loan interest rates are high- Many borrowers who contact Dhani loan customer care number for personal loan enquiries ask and even believe that personal loans charge unfair interest rates because these rates may be slightly higher than those charged by other types of loans. Individual loans, on the other hand, can be obtained at interest rates as low as 10.99 percent if you have a strong repayment capacity as well as a high credit score. Borrowers’ credit scores have become increasingly important to lenders, who are increasingly basing loan interest rates on them. Compare personal loan interest rates to those charged by other borrowing alternatives such as credit cards, which have rates that range from 18 to 48% per annum; personal loans are a less expensive option whose interest costs can be reduced significantly depending on the customer’s profile.

If you currently have a loan, you are not eligible for a personal loan- Even if a borrower is already obligated to another loan, they can still apply for a personal loan. Lenders consider your repayment capacity when determining whether or not to grant you a loan. Your repayment capacity is calculated by subtracting your net disposable income from your total debt repayments, which includes loan EMIs and credit card payments. As a result, even if you have outstanding loans at the time of your personal loan application, your loan application may still be approved, provided your repayment capacity appears to be adequate to the lending institution.
The process of submitting an online application is time-consuming- Many customers still go to the physical locations of various lenders to obtain Indiabulls personal loan rather than applying for them online because they believe it is a time-consuming process. The reality, on the other hand, is quite the contrary. It is necessary for borrowers to visit several bank branches and other lending institutions in order to obtain the finest personal loan for their needs. As you may imagine, this can be a time-consuming and difficult task. Personal loans are being offered by online financial portals with the added convenience of rapid loan approval and a completely paperless process, allowing customers to save time. Even the particular lenders, especially after the pandemic, have been offering online personal loans. You can call the Dhani loan customer care number to enquire about the same and even know your loan eligibility quickly. Remember, in today’s world, things are becoming extremely convenient, so don’t shy away from taking the benefits of technology and innovation.

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