Top 5 Personal Loan Myths You Should Stop Believing Today

By BANKBRIZ™

Personal loans are one of the most popular ways to manage sudden expenses, be it a wedding, travel, education or medical emergency. But despite their popularity, many borrowers still fall for common myths that stop them from making smart decisions.

At BankBriz.com, we’re here to bust these myths and help you borrow with confidence.

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Top 5 Personal Loan Myths (Busted!)

1. Myth: Personal Loans Are Only for Emergencies

Reality: While they’re helpful during emergencies, personal loans can also be used for home renovation, education, debt consolidation, or even travel.

2. Myth: Only People with High Salaries Get Loans

Reality: Lenders also give loans to self-employed and middle-income earners, provided they meet eligibility and repayment criteria.

3. Myth: Applying to Multiple Banks Improves Chances

Reality: Each loan application reduces your credit score due to “hard inquiries.” It’s smarter to check eligibility first and apply only where you qualify.

4. Myth: Personal Loans Always Have Very High Interest

Reality: Rates depend on your CIBIL score, income, and relationship with the lender. With a good profile, you can get competitive rates.

5. Myth: Prepayment of Loan Is Not Allowed

Reality: Most lenders allow part-prepayment or foreclosure (sometimes with minimal charges), helping you save big on interest.

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BankBriz Expert Tip

Before believing any loan myth, always compare offers and check facts. Use the BankBriz Free Eligibility Calculator to know your chances and avoid unnecessary rejections.

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Conclusion

Don’t let myths stop you from making the most of personal loans. By knowing the truth, you can borrow smarter, save on EMIs, and achieve your goals stress-free.

Visit BankBriz.com today to compare loans, check eligibility, and apply confidently.