Some people might not be sure what to believe about loans. While it’s easy to listen to hearsay about acquiring credit, be sure to do your research as well. We’ve previously debunked that not all loans are scams, especially when they’re acquired from banks and legitimate lending organizations. At the same time, we know that the loan application process is not as complicated as one may think. We know there are still a few questions left unanswered, so here are more loan myths, debunked.
Myth 1: Employed applicants are the only ones eligible for a loan.
Debunked: Generally, lending organizations accept applicants with stable income to be able to pay the loan back on time. While those employed have their salary, business owners, freelancers, and entrepreneurs with a steady income who meet the other requirements are also considered when applying for a loan. Usually, banks ask applicants for proof of income, such as income statements, regardless of your livelihood.
Myth 2: A personal loan is used for emergencies only.
Debunked: While a number of people use personal loans for emergencies, there are many other reasons why Filipinos apply for loans. For starters, a loan can help you achieve your goals and even get you closer to where you want to be in life. If you’re looking to pursue further education, a loan could help you out. Additionally, acquiring credit could play a vital part in your road to financial freedom. If you’re ready to finally put up that business or side hustle you’ve been dreaming about, a loan could come in handy to fund the equipment needed. It can also be used to make home improvements and more!
Myth 3: All loans require collateral.
Debunked: Lenders face risks when borrowers acquire credit, such as borrowers being unable to repay on time. Lending institutions need some sort of security in such cases, which can come in the form of a car, house, or savings account collateral. A common misconception however, is that all lenders require this of their borrowers. There are many banks that accept loan applications without collaterals and rely on a borrower’s credit score instead.
Myth 4: It’s easier to loan from informal lenders.
Debunked: With today’s technology and innovation, customers have more options for financial products and services. Digital banks allow an all-digital application for a more seamless experience and faster application process. Additionally, official lending institutions offer regulated interest rates that in turn give borrowers protection. Take charge of your finances and be sure to choose a personal loan that suits you and your lifestyle best.
Now that these myths have been debunked, are you ready to achieve your life’s goals? A loan can help you get started.
Applying for a Personal Loan is easy with CIMB Bank!
At CIMB Bank Philippines, you can loan as much as PHP 1 million with ZERO PROCESSING FEE. Apply in as fast as 10 minutes on the CIMB Bank PH app.
Get rewarded for responsible payment habits! You can also get interest rebates up to 30% on your CIMB Personal Loan when you pay your monthly dues on time. Take a step towards your goals!