TATA Capital PERSONAL LOAN
TATA CAPITAL
Check Eligibility, Get Instant Approval in 2 minutes and Disbursal in 3 Hrs*
Interest Rate Range
10.99% - 29.00%
Processing Fee
Upto 3.00%
Max Loan Amount
Upto Rs.35L
Tenure Range
Upto 6 Years

5 common myths about personal loans demystified

blog-img

Fincrif India

Dec 23

05:45 AM

Discover the truth about personal loans as we debunk five common myths. Learn about the quick application process, interest rates, credit score impact, and more to make informed financial decisions.

Instant personal loans are widely used for a variety of purposes, including debt consolidation, emergency medical care, and home improvement. They are well-liked for their straightforward qualifying requirements, speedy disbursement, and lack of collateral requirements. Furthermore, it's now simpler than ever to apply for a loan because of the financial sector's quick adoption of technology.


However, despite all of its beneficial qualities, personal loans are also the focus of a few myths, which can discourage you from applying. When you need money, read this research as we dispel five prevalent myths regarding personal loans, so you won't be deceived about this product or end up selecting a less desirable option.

Myth Number 1

Both the application process and the payout times are drawn out

Many applicants—especially those who are applying for a personal loan for the first time—think that the application and verification process are drawn out. But this is not possible to be more untrue.Since immediate personal loans don't require collateral, they can be processed quickly and disbursed anywhere from a day to a week after approval. This is because they don't require lengthy verification or appraisal.

Myth Number 2 

High interest rates are associated with personal loans

Due to their high interest rates, personal loans are sometimes mistaken for being a costly form of financing. Generally speaking, though, lenders examine your ability to repay and your financial situation before determining what interest rate to charge you. You can obtain an immediate personal loan at a reasonable interest rate if you have strong credit and the ability to repay the loan. Furthermore, personal loans are typically less expensive than many other unsecured credit options.


You can obtain a fair interest rate if your credit score is 750 or above. Additionally, the lender provides quick personal loans with total transparency—no additional fees of any kind.


Myth Number 3 

You cannot obtain a personal loan if your credit score is too low

Your credit score becomes essential to eligibility requirements for a personal loan because it is an offer without collateral. Even though a high score is preferred, a low score does not automatically mean that you will be rejected. Some lenders could take into account additional elements that are crucial to your eligibility, like your earnings and ability to repay loans. But keep in mind that a low credit score could lead to less attractive terms, including a higher interest rate.

Myth Number 4

Only banks are able to provide personal loans

Borrowers also mistakenly believe that banks are the exclusive source for personal loans. The truth is that banks make up a sizable share of the lending institutions available in the market. Still, there are a number of Non-Banking Financial Companies (NBFCs) that provide quick personal loans with convenient terms and minimal qualifying requirements. 

Myth Number 5 

Paying back personal loans will be expensive

This is only true if you make poor financial decisions and your debt payments exceed your income. Your household spending, set responsibilities, and current debt repayment should all be taken into account while making plans. The monthly payments on your loans shouldn't throw your finances into turmoil or make it difficult for you to make ends meet and settle debts. To precisely estimate your spending and compute the interest on your loan, utilize an online calculator.


Loan Disbursal in 3 hrs*
100% Online Process

More Blogs

blog-img
2024: The Year of Climate Finance

Learn about climate finance and its role in climate action with CSE's online training course. Open to all, this six-day course covers global financial systems, UNFCCC policies, and funding for green technologies—no prior knowledge is required.

View
blog-img
RBI Repatriates 100 Tonnes of Gold from the UK to India: A Strategic Move After Three Decades

Discover how the RBI's repatriation of 100 tonnes of gold from the UK signifies India's economic strength and strategic diversification. Learn about the logistics, historical context, and future plans of this significant move.

View

Compare the best Personal loan offers

idfc-first-bank
IDFC First Bank
Interest Rate Range
10.49%*
Processing Fee
1-2% off loan Amount
Max Loan Amount
₹ 100000 to 1 cr
Tenure Range
6 month to 5 year
Apply
iifl
IIFL
Interest Rate Range
12.75% -13.50%
Processing Fee
2% -4%
Max Loan Amount
Rs 1lacs to 25 lacs
Tenure Range
1 to 5 year
Apply
standard-chartered-bank
Standard Chartered Bank
Interest Rate Range
11.49%
Processing Fee
2%
Max Loan Amount
Rs 1lacs to 50 lacs
Tenure Range
1 to 5 year
Apply
bajaj-finserv
Bajaj Finserv
Interest Rate Range
11%
Processing Fee
3.93%
Max Loan Amount
Rs 1lacs to 35 lacs
Tenure Range
1 to 7year
Apply
tata-capital
Tata Capital
Interest Rate Range
10.99% - 29.00%
Processing Fee
3%
Max Loan Amount
upto 35 lacs
Tenure Range
upto 6 Years
Apply
icici-bank
ICICI Bank
Interest Rate Range
10.50%
Processing Fee
2.50%
Max Loan Amount
Rs.50,000 to 25 Lakhs
Tenure Range
1 to 6 year
Apply
fullerton-india
Fullerton India
Interest Rate Range
11.99% - 25%
Processing Fee
6%
Max Loan Amount
Rs 50,000 to 25 lacs
Tenure Range
1 to 5 year
Apply
indusind-bank
IndusInd Bank
Interest Rate Range
10.49%
Processing Fee
3%
Max Loan Amount
Rs. 3 Lakhs to 75 Lakhs
Tenure Range
1 TO 50 years
Apply
kotak-bank
Kotak Bank
Interest Rate Range
10.99%
Processing Fee
3%
Max Loan Amount
Rs.50,000 to 25 Lakhs
Tenure Range
1 to 5 year
Apply
rbl-bank
RBL Bank
Interest Rate Range
17.50 - 26.0%
Processing Fee
3.50%
Max Loan Amount
Rs 1lacs to 20 lacs
Tenure Range
1 to 5 year
Apply
hdb-financial
HDB Financial
Interest Rate Range
12.0% - 31.0%
Processing Fee
2.50%
Max Loan Amount
upto 20 lacs
Tenure Range
1 to 5 year
Apply
idbi-bank
IDBI Bank
Interest Rate Range
11.0% - 15.50%
Processing Fee
1 %
Max Loan Amount
Rs. 25,000 to 5 Lakhs
Tenure Range
1 to 5 year
Apply
hdfc-bank
HDFC Bank
Interest Rate Range
10.50%
Processing Fee
2.50%
Max Loan Amount
Rs.50,000 to 40 Lakhs
Tenure Range
1 to 5 year
Apply
karur-vysya-bank
Karur Vysya Bank
Interest Rate Range
6.82%
Processing Fee
1.50%
Max Loan Amount
upto 75 lacs
Tenure Range
1 to 6 year
Apply
union-bank-of-india
Union Bank of India
Interest Rate Range
11.40% - 15.50%
Processing Fee
0.50%
Max Loan Amount
upto 15 lacs
Tenure Range
1 to 5 year
Apply
canara-bank
Canara Bank
Interest Rate Range
7.65%
Processing Fee
0.50%
Max Loan Amount
upto 3 lacs
Tenure Range
0 to 1 year
Apply
bank-of-maharashtra
Bank of Maharashtra
Interest Rate Range
10.0% - 12.80%
Processing Fee
1 %
Max Loan Amount
upto 20 lacs
Tenure Range
0 to 7 year
Apply
federal-bank
Federal Bank
Interest Rate Range
11.49% - 14.49%
Processing Fee
2.50%
Max Loan Amount
Rs 1lacs to 50 lacs
Tenure Range
1 to 5 year
Apply
syndicate-bank
Syndicate Bank
Interest Rate Range
7.50%
Processing Fee
0.50%
Max Loan Amount
Rs 1lacs to 5 lacs
Tenure Range
1 to 5 year
Apply
bank-of-baroda
Bank of Baroda
Interest Rate Range
7.25%
Processing Fee
2%
Max Loan Amount
Rs.10,000 to 15 Lakhs
Tenure Range
1 to 7year
Apply
pnb
PNB
Interest Rate Range
10.40% - 16.95%
Processing Fee
1 %
Max Loan Amount
upto 20 lacs
Tenure Range
1 to 6 year
Apply
axis-finance
Axis Finance
Interest Rate Range
13.0% - 18.0%
Processing Fee
2%
Max Loan Amount
Rs 25000 to 15 lacs
Tenure Range
0 to 3 year
Apply
yes-bank
Yes Bank
Interest Rate Range
10.99%
Processing Fee
2%
Max Loan Amount
Rs 1lacs to 40 lacs
Tenure Range
1 to 5 year
Apply
axis-bank
Axis Bank
Interest Rate Range
10.49%
Processing Fee
2%
Max Loan Amount
Rs.50,000 to 15 Lakhs
Tenure Range
1 to 5 year
Apply
aditya-birla-capital
Aditya Birla Capital
Interest Rate Range
11.75%
Processing Fee
2%
Max Loan Amount
Rs.25,000 to 15 Lakhs
Tenure Range
0 to 3 year
Apply
paysense
Paysense
Interest Rate Range
16.80% - 27.60%
Processing Fee
3%
Max Loan Amount
Rs.5,000 to 15 Lakhs
Tenure Range
3 Months to 5 year
Apply
moneyview
Moneyview
Interest Rate Range
15.96%
Processing Fee
2%
Max Loan Amount
Rs. 5,000 to 5 Lacs
Tenure Range
1 to 5 year
Apply
moneytap
MoneyTap
Interest Rate Range
12.96%
Processing Fee
2%
Max Loan Amount
upto 5 lacs
Tenure Range
2 months to 3 years
Apply
faircent
FairCent
Interest Rate Range
9.99%
Processing Fee
6%
Max Loan Amount
upto 10 lacs
Tenure Range
6 months to 3 years
Apply
upwards
Upwards
Interest Rate Range
24%
Processing Fee
2%
Max Loan Amount
Rs.20,000 to 3 Lakhs
Tenure Range
1 to 5 year
Apply
incred
INCRED
Interest Rate Range
16.0% - 36.0%
Processing Fee
2%
Max Loan Amount
Rs 75000 to 15 lacs
Tenure Range
1 to 5 year
Apply
finnable
Finnable
Interest Rate Range
1.3% to 2.3% per month
Processing Fee
3% - 4%
Max Loan Amount
Rs. 50,000 - Rs. 10 Lakhs
Tenure Range
5 years
Apply