Gone are the days when applying for loans, whether it’s a vehicle loan to buy your dream car or a loan against property to fund your dream project, involved managing lengthy paperwork and waiting in long queues. Thanks to the introduction of loan apps, you can conveniently research, compare and apply for any of the loans with a few taps on your smartphone from the comfort of your home at any time without any hassle. However, many people still hesitate when it comes to applying for large loans due to some of the common myths or misconceptions.

In this article, we’ll be busting these myths and giving you a reality check, helping you take advantage of these home credit apps or other loan apps for large borrowings.

Myth 1: Loan Apps are Only for Small and Short-Term Needs

One of the most common misconceptions among users is that you can only apply for small personal loans through the loan apps. While this was possible in the earlier days, there are apps that have evolved and started providing loans for diverse needs, including property loans, home loans, car loans and more. 

These platforms are equipped with advanced safety features, offer transparency, have a robust verification system, flexible EMIs and transparent terms and conditions, helping you apply peacefully and manage the process without any hassle. 

Myth 2: Loan Apps are Not Safe for High-Value Transactions

Using mobile apps for large transactions makes many people hesitant due to the security concerns. However, many reputed loan apps are equipped with advanced safety features, including end-to-end encryption and two-factor and biometric authentication, to keep users’ financial and personal information safe and secure. These platforms have strict safety protocols and are regulated by higher authorities that protect users’ data. So, whether you are applying for a vehicle loan or a home loan, it is safe to say that you can make an application via the app.  

Myth 3: Loan Apps Charge Higher Interest Rates

Another myth that people believe to be true is that the loan apps charge high interest rates as compared to traditional banks. However, in reality, the interest rates can be changed as they depend on several factors, such as credit score, repayment tenure, loan amount and more. Loan apps charge competitive rates, and many users who have used home credit apps for loan applications are said to grab better and attractive deals. 

Myth 4: High Loan Amounts Mean a Lengthy and Complicated Application Process

Just like the traditional process, many people believe that the high loan amount application process involves a lengthy process and multiple bank visits. However, this is obviously not true. Loan applications through online apps are designed for the convenience of the user, allowing them to research, upload documents, complete KYC verification, submit an application, and track their applications, all from the comfort of their own homes without needing to visit anywhere. Whether you need a home loan, a vehicle loan, or a loan against property, the process is usually faster, simpler, and hassle-free.

Myth 5: You Need a Perfect Credit Score to Use a Loan App

While a strong credit score definitely helps to get a loan at better terms, the whole approval process isn’t totally dependent on it. Lenders also consider your income, employment status and repayment history before giving you a loan approval. Some platforms even offer pre-approved loans, which are quicker and easier.

Conclusion

It is concluded that loan apps have revolutionised the entire lending landscape and made the process much more convenient and hassle-free for borrowers. Trusted apps like Bajaj Finserv are one such platform that offers a wide range of loans, including home loans, vehicle loans, personal loans, loan against property and more at better rates. A wide range of users trusts the platform as it is not only user-friendly but also safe to use, offers an easy application process, and maintains transparency. 

So, next time you contemplate making a significant purchase, be sure to consider obtaining loans from online platforms and make the most of the convenience offered by technology.