Are you in need of a credit loan? But still, fall short and hesitate because of the big, bad, and scary misconceptions portrayed in movies and media? Worried about hidden interest rates or complicated terms and conditions written to confuse rather than ease you?

Welcome to the age of technology, where loans can be availed through an app on your phone, and with a few clicks, instead of waiting for hours juggling paperwork – you have yourself a loan! 

Many things have gotten easier with the accessibility of the internet, but who would’ve thought getting an online loan securely, without any worries, would be an easy possibility, too?

Loans allow people to purchase their dream home or car upfront and pay the money back over time with ease. However, as we mentioned in the beginning, myths and misconceptions about every online loan app can lead borrowers astray.

Let us debunk some of these common myths with facts, never to confuse you again –

Myth: You need a perfect credit to get a loan

• Fact: With the integration of Artificial Intelligence, you may get a loan even without a credit history, if you’re lucky! Many instant loan apps use technology and AI to help you build a credit score using your recent purchase history, bank statements, etc. While good credit can certainly improve your chances of securing a money loan, there are a plethora of options available for lenders with a less-than-perfect score as well.

Myth: All loans have high-interest rates

• Fact: Interest rates vary widely depending on different factors, such as the type of loan, the lender, and the loan app india you download. Looking around is important, and finding the best interest rates for you can be crucial. Using online tools and resources can come in handy while comparing interest rates with local banks, credit unions, or online lenders.

Myth: Loans are only for people with financial struggles

• Fact: Loans are utilized by all types of borrowers, including financially stable ones who want to retain cash flow or leverage credit for major purchases. Needing to borrow money doesn’t necessarily mean you’re financially irresponsible. Quite on the contrary, taking out a loan requires careful consideration of your finances and a promise to repay the loan as agreed. 

Myth: You can’t refinance student loans

• Fact: Refinancing student loans can be an effective way to lower your interest rate, reduce your payments, or consolidate multiple loans into one. Many lenders offer student loan refinancing options with competitive rates and flexible repayment terms.

Myth: It’s better to avoid loans altogether

• While it’s essential to borrow responsibly and avoid taking on more loans than you can afford to repay, loans can be valuable financial tools when used wisely. Whether you’re investing in education, purchasing a home, or starting a business, loans can help you achieve your dreams and improve your financial well-being when managed effectively.

Separate fact from fiction, debunk myths, and make better, informed decisions with the help of useful facts. Act according to your financial needs and situation, rather than following any trend or ricocheting piece of news. By educating yourself about online reputable lenders, knowing your rights as a borrower, and carefully evaluating loan terms, you will be on your way to responsible borrowing.