Personal loans, like most other loans and financial products, are often perceived as confusing and risky. It may be suggested that personal loans offer zero tax benefits and are only offered by banks. But that is not necessarily true.

Read on as we bust five common myths about personal loans:

  1. Personal loans do not offer tax benefits

There is a belief that personal loans do not come with any tax benefits. However, personal loans taken for home construction and business do offer tax benefits.

  1. Only banks offer personal loans

Banks are not the only source of financing in the form of personal loans. Other lenders, such as non-banking financial companies (NBFC), offer a range of financial products including personal loans, and it make sense to compare all products before availing one.

  1. You can’t get a loan with a low credit score

There is also the perception that there has to be an excellent CIBIL score for personal loans. While the credit score is definitely a vital factor for getting loans approved, people with a poor credit may also get their loans approved albeit at higher rates of interest.

Also Read : How To Get A Personal Loan When You Have A Bad CIBIL Score

  1. You should borrow more than you need

There is a potentially risky perception that you can borrow a higher amount than you need with a personal loan. Remember, a higher loan amount means a higher amount to repay. It is thus not advisable to borrow more money than what is actually needed.

  1. Only salaried people are eligible for personal loans

When it comes to personal loan eligibility, it’s not just salaried professionals who are eligible for loans but NRIs, businessmen and self-employed professionals too. It all depends on the terms laid down by your lender.

Whatever your needs are, Bajaj Finserv has got them covered with personal loans up to Rs.25 lakh at attractive interest rates. Get instant online approvals, money in your bank in 72 hours, and the benefit of flexi loans.

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