Common myths about personal loans

Personal loans, in general, are known to provide quick and easy solution  to manage any shortfall in your planned budget, from time to time. You can use them to finance important expenses like weddings, debt consolidation, travel, house renovations, and medical bills. Despite the significant demand of personal loans, there are several myths surrounding them. These myths often mislead borrowers about the terms and benefits of personal loans.

Now, with so many credit options out there, you can rely on multiple alternatives to manage your expenses. One such option is IDFC FIRST Bank’s FIRSTmoney, a smart Personal Loan through which you can get a credit line for your varied expenses.

Go through this blog which debunks some of the most common personal loan myths and then explains more about FIRSTmoney and why it is much better than standard personal loans. 

Myth 1: Personal loan interest rates are very high
 

While personal loan rates can be higher compared to secured loans (where you pledge security or collateral), these rates vary widely based on the bank, your credit profile, and market conditions. Not all personal loans are exorbitantly priced. You need to research, compare, and choose the right option to make your loan journey affordable and hassle-free.

Myth 2: The personal loan process is lengthy

The belief that obtaining a personal loan is a lengthy and complicated process is outdated. Today, digital banking solutions have simplified the entire application process. With paperless documentation and lightning-fast approvals, you can receive the money on the same day you apply for the loan.

Myth 3: Personal loans are only for emergencies

Personal loans are no longer just for emergencies. These days, a lot of people use personal loans to consolidate high-interest debts, boost credit scores with timely repayments, pay for education, enjoy spontaneous trips, and so on.

Myth 4: Personal loans can lower your credit score

Taking a loan does impact your credit score, but it is not always negative. In fact, if you responsibly manage a loan and pay your personal loan EMI on time, this borrowing option can improve your credit score.

FIRSTmoney - A smart personal loan solution for borrowers
 

Now that you have gone through the myths surrounding personal loans, it’s time to look at a loan alternative that can be beneficial for you. IDFC FIRST Bank’s FIRSTmoney is a new-age, smart personal loan that offers an instant credit line to manage a lot of your expenses. From affordable interest rates and unlimited withdrawals to ZERO foreclosure charges, take a look at the key benefits that FIRSTmoney has to offer in detail:

• Multiple withdrawals
  With FIRSTmoney, you can make withdrawals from your approved credit limit in multiples of ₹5000 as many times as you want. This can help you manage both planned and unplanned expenses effortlessly.
  
  
• No maintenance charges after the initial setup
  When you apply for a FIRSTmoney loan, you get a credit line based on your creditworthiness, with no maintenance fees on your credit line.
  
  
• ZERO foreclosure charges
  FIRSTmoney has a zero-foreclosure charge policy. So, you can use the funds the way you want and foreclose the loan in full without worrying about any penalty fee.
  
  
• Instant approval and disbursement process
  The process to apply for a FIRSTmoney smart personal loan is 100% digital. The approval and disbursement processes are fast as once your documents are verified, your FIRSTmoney credit line is sanctioned right away. Once this is done, you can immediately start withdrawing funds to manage your expenses.
  
  
• Flexible repayment tenure
  You have the option to withdraw the full amount at once or in smaller portions as needed. Repayment plans for FIRSTmoney loans are flexible, with tenures ranging from 2 to 60 months.
  
  
• Both Salaried and Self-Employed Individuals can apply.

How to apply for a FIRSTmoney smart personal loan?
 

• Start by scanning the QR code or clicking loan from your smartphone.
• Register using your mobile number and confirm basic/personal details to check your eligibility.
•  Select the loan amount of your choice starting from as little as ₹5,000 up to your full credit limit and choose flexible repayment terms.
• Link your bank account where you wish the funds to be disbursed.
• Complete the video KYC verification process with your physical PAN card.

Taking a financial decision based on facts

The myths surrounding personal loans could become the cause of wrong financial decisions and missed opportunities. So, clear any misconceptions and make practical decisions based on facts. The next step is to think about the type of loan to go for. Choosing FIRSTmoney over traditional personal loans is a wise decision for managing multiple expenses. With a 100% digital application process, instant approvals, interest charged only on the amount used, zero foreclosure fees, and no ongoing maintenance charges, the FIRSTmoney credit line can prove to be a financial lifeline for all your monetary requirements!