Most people choose loans based on the lowest interest rate — but that’s not the only thing that matters. In reality, there are hidden charges, loan terms, flexibility, and other factors that can make or break your borrowing experience.
At Vizzve Finance, we believe in transparent lending. Here’s how to compare loan offers smartly — and not get trapped by fine print.
📌 Why Not Just Look at Interest Rates?
A loan with a lower rate may come with:
Higher processing fees
Strict repayment terms
Prepayment penalties
Lower loan amount or approval delays
These can increase your total cost or limit your financial flexibility.
✅ Factors to Compare Besides Interest Rates
1. Processing Fees & Hidden Charges
Some lenders charge 1%–3% of the loan amount upfront.
Also check for:
GST on processing fee
Legal/documentation fees
Loan insurance cost
💡 Vizzve Finance discloses all charges upfront — no surprises.
2. Prepayment & Foreclosure Rules
Want to close your loan early? Some lenders charge 2%–5% of outstanding balance.
✔️ Look for:
Zero or low prepayment charges
Flexible foreclosure options after 6–12 months
3. Loan Tenure & EMI Flexibility
Longer tenure = lower EMI but higher total interest
Shorter tenure = higher EMI but lower total payout
🎯 Use Vizzve’s EMI calculator to balance both.
4. Disbursal Speed & Eligibility
Need funds urgently? A lender that takes 5–7 days may not help.
Compare:
Documentation process
Time to approval
Minimum income or CIBIL requirements
💡 Vizzve provides instant approval for pre-verified customers.
5. Customer Support & Digital Experience
Do they have an app? 24/7 help? Is loan tracking easy?
A good digital experience = better control over your loan.
6. Credit Score Impact
Too many hard inquiries hurt your CIBIL score.
⚠️ Avoid applying to multiple lenders directly.
Instead, use Vizzve’s soft check tools to compare options without affecting your credit.
🧠 Pro Tips to Choose the Right Loan
Use a loan comparison platform like Vizzve for pre-approved offers
Don’t fall for zero-interest traps — check processing and hidden fees
Choose based on your repayment ability, not just rate
Always read the loan sanction letter & terms carefully
Keep EMI < 40% of your monthly income
🙋♂️ FAQs
Q1. Is the lowest interest rate always the best loan offer?
Not always. You must also check fees, terms, flexibility, and penalties to assess the true cost.
Q2. What are prepayment and foreclosure charges?
These are fees charged when you repay your loan early. Some lenders waive it after a certain period.
Q3. Can comparing multiple loans affect my CIBIL score?
Yes, if you apply directly. But Vizzve compares offers using soft checks, so your credit score remains safe.
Q4. How does Vizzve help in comparing loans smartly?
We offer a free loan comparison tool, pre-approved offers, and expert support to help you choose the right loan, not just the cheapest one
published on 2nd july
Publisher : SMITA
www.vizzve.com || www.vizzveservices.com
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.