Personal loans are a popular financial solution for many people, offering quick access to funds for various needs like emergencies, weddings, or home renovations. However, there are many misconceptions about personal loan eligibility that can cause confusion. Understanding the facts can help you make better financial decisions and avoid unnecessary rejections when applying for a loan, whether through a bank or a personal loan app. Let's debunk some common myths and clarify the facts.

Myth 1: You Need a Perfect Credit Score to Get a Personal Loan

Fact: While having a good credit score can certainly help, it is not the only factor that determines your personal loan eligibility. Lenders consider several aspects, including your income, employment status, and existing debt. Even if your credit score is less than perfect, you may still be eligible for a personal loan, especially with lenders who offer instant loans. Some personal loan apps even cater to people with lower credit scores by offering loans with higher interest rates to balance the risk.