Personal loans account for 96% of the total lending market in India. It grew at a rate of 20.4% between February 2017 and 2018. The total amount of such loans stands at Rs. 576,600 Crore at the end of the fiscal year 2018.
Even with such a market share which clearly depicts that taking a personal loan in emergency situation is okay and those who need it should go ahead with it, there are people who hesitate due to the myths prevailing around personal loans in India. While we are talking about it, the same happens with people planning to apply for a personal loan for engineers - a customized version of personal loan for engineers. Thus. today we would talk about and bust myths around the same in detail.
Takes a long time for processing: On contrary to this belief, personal loan for engineer or for any other professional takes the least time for processing and approval.
Only Government-backed financial institutions offer these credits: If you Google the word “personal loan in India”, you would get a list of at least 100 different lenders offering the said facility. Out of them, 75% of lenders would be a commercial bank or an NBFC.
Personal loan negatively affects credit rating: Again, opposed to the myth, taking the said credit scheme allows people to improve their credit rating. Though taking the same loan again and again too frequently can affect your credit rating.
Bottom line: Irrespective of what you believe, personal loan is the best credit option available in the market.