MYTHS ABOUT PERSONAL LOANS [Blog 185]

In order to make out a prudent financial decision, it is crucial to separate fact from fiction. Alertness and info can aid individual in the same. Numerous people shy away from approaching to lenders due to common personal loan myths. Let’s have a discussion on these #myths and the truth behind these myths –
• Only Salaried Persons Can Avail The Personal Loans
It is most common myth about personal loan. But it’s not true. Both salaried and self-employed people can borrow personal loans. Self-employed people can borrow personal loans, on the basis of their credit score. In a circumstance of a personal loan, the moneylender assesses the cash flow and credit records of the borrower. His business is not assessed for a financing of the personal loan.

• Personal Loan Always Essential Good Credit Score
A credit score is a significant factor for determining the eligibility of personal loan. Above 700 credit score makes a winning personal loan application. Though, this does not mean if individual have poor credit score, they will not receive personal loans. With few clicks of the mouse, individual can find out moneylenders who would be concerned in lending personal loans. The loan may come at a high-interest rate but individual may get the finance.

• There Are No Tax Benefits On Personal Loan
Yes, there are tax benefits on a personal loan. Individual can claim the tax deduction on the interest portion of their EMI. There is no deduction on a principal component. The tax benefit is permitted if there is a legal expense from individual side.

• Personal Loans Can Only Be Used For Personal Reasons Only
No, just the once individual take the personal loan, individual are free to use it for any purpose. Even can invest the money into their business. Numerous businessmen have invested the borrowed personal loan into their business.

• Tedious Approval Process
In this information age, receiving a personal loan has become fast and easy with digital channels. Express Personal Loan is an example, where individual can get their loan disbursed within 8 hours. Personal loan eligibility check is possible within 1 minute and online authorisation can be done within 5 minutes.

• Individual Can’t Apply For Personal Loan As they are Tied Up With Another Loan
Even if individual are tied up with another loan, they can apply for a personal loan. There is no such restriction that if they are tied up with any loan, they can’t apply for a personal loan. If individual have the repayment capacity, you can apply for a personal loan. Individual eligibility is determined by their repayment capacity. In this perspective, individual should know about debt consolidation facility. Under this, all debts are combined into one personal loan. By this way, individual pay a single instalment and can manage their debt load in a suitable way.

Here, we have broken the myths to assistance individual proceed towards the right direction. If still, individual are stressed for some cash, go for personal loans. With a good credit score, individual can avail the loan at low interest rate.
As we get to know that this all are myths about personal loan but as we all know there are always some of difficulties coming up with every types of loan then it can be personal loan, home loan or business loan. Both personal loans and small business loans are effective ways to cover expenses to get your small business off the ground. Your choice may come down to how much money you actually need, where you can get the lowest interest rate and whether or not you want to put your personal credit on the line. A business loan is an unsecured form of credit offered by banks or non-banking financial companies (NBFCs) designed to cover various expenditures in a business. The borrowers of a business loan do not need to keep any asset as mortgage to avail the loan from the lenders. Self-employed or non-professional individuals can apply for and obtain business loans if they fulfill the required eligibility criteria of the bank or the non-banking finance company.
With many common myths around business loans, the process looks complicated and time consuming, especially for those who are apply for a business loan for the first time. However, like several other types of financing options, processing of business loans differs from applicant to applicant. But when someone wanted to start their own business off course this all things help them for sure but before that they need to provide a proper bankable project report so that they are able to get a bank loan to run their daily business activities but before that they need to know how to make a project report, what is project report, what is CMA, etc. or they can get to know that How to Prepare Project report for Subsidy or Business Project Report for Subsidy. Or they can download CMA for free and can use CMA DIY tool, CMA online preparation tool etc. and with help of loanDPR.com they can get easily project report for their big project like Project Report for Industries, Project Report in entrepreneurship, Company Project Report, etc. or they can get Mudra Loan Project Report as well.

 

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