Personal loans are the most feasible option when in need of instant funds. To fulfil quick emergency needs, people opt for a low interest rate personal loan. Many a time, it happens that low interest loans are loaded with the burden of misconceptions. These misconceptions can be dilemmatic for a person who requires a loan.
It is necessary to unclog myths around the market about a low interest loan so that people don’t deter from availing of loans with low interest rates. In this blog, we will debunk myths about low interest loans.
Myths Affecting the Decision to Avail Low Interest Loans
- Only People with Good Credit Scores are Eligible
Lenders consider the credit score history of a borrower before the approval process of a loan. So, having a high credit score improves the chances of getting a loan approved at a quicker rate.
However, this doesn’t mean that people with a low credit score won’t be able to enjoy the benefits of a low interest loan. Many lenders offer loans to borrowers having diverse credit scores.
- Collateral is Essential for Availing Loan
One of the most widely known myths about low interest loans is that a borrower must submit substantial collateral to get loan approval. This condition makes it difficult for individuals who do not have any assets to keep as collateral.
The truth is opposite to what’s said earlier. These loans are unsecured and can be easily availed without any collateral. This benefit helps the borrower to avail of a loan without the worry of any asset seizure in future.
- Low Interest rates are only for Large Loan Amounts
A unique feature of a low interest loan is they are available for variable loan amounts from minor financial needs to larger ones. Individuals who require small funds for instant needs like weddings or travelling can avail of a loan starting from ₹ 1000 to ₹ 5 Lakhs. Small personal loans can be availed from lenders available in the market who offer smaller loan amounts at lower interest rates.
- Application for Low Interest Loan is a Cumbersome Process
The application process is very straightforward and streamlined. The borrower can apply online and submit all the documents on the digital lenders’ platform. The verification process takes only a few hours, leading to approval. Once the approval is received, the loan amount gets disbursed in no time or sometimes within 5 minutes of approval.
The borrower must be ready with all the documents during the verification as well so that there is no unnecessary delay in the process. Ease of processing and hassle-free documentation are the main advantages of low interest loan that make them usable for emergency fund requirements. Also, this loan can be applied from anywhere and anytime because of its digital availability.
- Low Interest loans are for Specific Purposes Only
A borrower can avail of this type of loan irrespective of the purpose for borrowing. The purpose won’t hinder the approval process of the loan from the lenders’ side. Hence, low interest loans are best when an individual requires funds for instant necessities such as medical emergencies, home renovations, educational purposes, travel expenses, etc.
It is a myth that low interest loan will serve specific purposes; anyone can avail of these loans for various purposes and manage their fund requirements.
- Banks are the Only Source to Avail Low Interest Loans
It is another prevailing myth in the finance field that an individual can avail of a loan with a low interest rate from banks only. It is not true, and there are many digital lenders present in the market who offer a low interest loan in a very short time.
Borrowers can explore and compare multiple online lenders and select the one that fits their requirement list.
- Low Interest Loans have a Tricky Repayment Process
Repaying a loan with a low interest rate is extremely simple. Borrowers get the flexibility to select a repayment tenure and EMI according to their capability. Additionally, they have a facility to repay the loan amount in full at once as well.
Individuals can go for a combination of short repayment tenure with higher EMIs or long repayment tenure with lower EMIs.
Secure a Low Interest Loan for Instantaneous Financial Needs
Myths should not hinder the decision to avail of a low interest loan. So, put your misconceptions aside and apply for an instant personal loan to fulfil all your needs. There are many trusted online lending platforms available, such as KreditBee, which offer loans at a lower interest rate. They disburse loan amounts within a few hours of time and hassle-free documentation. You can visit their online portal for detailed information. So worry less and borrow more!
