8 Myths Indians Have About Personal Loans

5. Multiple loan applications will hurt your credit score

Online loan application is so easy and readily available nowadays, and many people take advantage of the situation. They do this in order to find which ones will give them approval or which ones have the lowest interest rates. This can negatively affect credit scores, but it greatly depends on how the lending company checks credit history.

Most credit scoring methods can recognize when you are simply rate shopping through a certain time limit. Depending on the lending institution, this time limit can be as short as 14 days or as long as 45 days. So if you find the loan you need within these days, the lender will realize you were only surveying your options so your credit score should be safe and you should have nothing to worry about.

6. You need to go to a major bank for personal loan

While Majority of loan applicants prefer approaching major banks for loans, you have to know that smaller banks and other financial lending institutions sometimes have competitive interest rates and personal loan package that is more flexible.

That is because the smaller banks and money lending institutions trying to attract more customers by conducting exciting promotions.