Personal loans are often misunderstood, leading to myths that can deter individuals from leveraging them effectively. This post aims to clear up these misconceptions and provide a clearer picture of personal loans.

Myth 1: Personal Loans Are Only for Emergencies

Myth 2: Personal Loans Have Exorbitant Interest Rates

Myth 3: Applying for a Personal Loan Will Hurt Your Credit Score

Myth 4: You Need Perfect Credit to Get a Personal Loan

Myth 5: Personal Loans Have Hidden Fees

Myth 6: You Can’t Use Personal Loans for Business Purposes

Myth 7: Early Repayment Attracts Penalties

Myth 8: You Can Only Get Personal Loans from Banks

Myth 9: Loan Approval Takes a Long Time

Myth 10: Fixed Interest Rates Are Always Better Than Variable Rate