Debunking 5 Personal Loan Myths: Know the Truth Before You Borrow!

• Personal loans are not just for salaried individuals; self-employed, business owners, and pensioners can also be eligible based on income stability and repayment capacity.
• A low credit score doesn't guarantee rejection; banks consider income, job stability, and existing debt, though interest rates might be higher.
• Personal loan interest rates (10-15%) are often lower than credit card rates (35-45%), making them a potentially cheaper financing option.
• Having an existing loan doesn't prevent a new one; banks assess your debt-to-income ratio and repayment history for eligibility.
• Personal loans can be used for various purposes beyond personal expenses, including business investments, education, debt consolidation, and medical emergencies.

Why It Matters: Understand personal loan truths to make informed financial decisions and avoid unnecessary burdens.