5 personal loan myths, debunked

Citibank Philippines

Posted at Feb 07 2018 06:41 PM | Updated as of Feb 12 2018 02:59 PM

There are many misconceptions about loans. 

Most people, especially first time borrowers, have fears or preconceived notions that can sometimes lead them astray when they make financial decisions. Belief in these myths might prevent people from growing financially, or fulfilling their life goals.

To help people understand personal loans better, here are some myths that they should think twice about believing:

1. It's only for employed individuals

While having a regular job can give one an advantage in paying a loan, it is not a prerequisite to getting a personal loan. Even private businessmen or self-employed professionals can be eligible for a personal loan.

2. It's a tedious process

Many think that getting a personal loan requires a lot of paperwork, and that they might need to take some time off work to process the requirements. Compared to other loan schemes, personal loans require minimum documentation. There is also no need for a guarantor or collateral.

3. It takes time to get approved

For urgent financial needs, a personal loan may be one of the best options available. Nowadays, approval can be as fast as 24 hours. Borrowers can receive the funds in less than a week, as long as they submit the necessary requirements.

4. The money can't be used for business purposes

A personal loan does not necessarily have to be spent on personal expenses. The money can also be used to start a business.

5. It'll drown borrowers in debt

With flexible payment options, borrowers can actually pay debts in about 1 to 5 years. As long as borrowers have a stable income and a strong commitment to pay, they will never be drowned in debt.

Those who have made up their minds and have decided to get a personal loan can try Citi Philippines, which offers one of the fastest loan approvals in the country. 

Borrowers can get approved for a Citi Personal Loan in as fast as 24 hours. They also provide flexible payment terms and allow borrowers to get as much as P2 million. 

To learn more about Citi's personal loan offer, click here or visit their website and Facebook page.

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