Instant loans have become a go-to solution for quick cash needs—whether it’s a medical emergency, education fee, or lifestyle upgrade. But many borrowers hesitate because of myths surrounding interest rates. Some believe instant loans are too expensive, while others think hidden charges make them unsafe.
In reality, most of these are misconceptions. Let’s bust the biggest interest rate myths in instant loans and see what borrowers often miss.
Myth 1: Instant Loan Interest Rates Are Always Too High
Truth: Interest rates vary depending on credit score, loan amount, and repayment tenure. Apps like Vizzve Finance offer competitive and transparent rates, often comparable to personal loans from banks.
Myth 2: There Are Hidden Charges in Instant Loans
Truth: Reputed instant loan apps disclose all charges upfront—processing fee, GST, or late payment penalties. Unlike loan sharks, there are no surprise deductions. Borrowers miss that transparency is built into digital lending.
Myth 3: Low Interest Rate Means Best Loan Deal
Truth: Borrowers often focus only on the interest rate and ignore the APR (Annual Percentage Rate), which includes processing fees and tenure. Sometimes a slightly higher interest rate with flexible EMIs is better than a low rate with rigid repayment.
Myth 4: Interest Rates Don’t Change Once You’re Approved
Truth: If borrowers delay payments or default, penalty charges apply, which increases the effective cost of borrowing. Staying disciplined with EMIs ensures the rate remains low and stable.
Myth 5: Instant Loans Won’t Improve My Credit Score
Truth: On-time repayment of instant loans directly boosts your CIBIL score, helping you qualify for larger loans at lower interest rates in the future. Borrowers miss this hidden benefit.
Myth 6: Longer Tenure = Lower Interest
Truth: While longer tenure reduces monthly EMI, it increases the total interest paid over time. Borrowers often miss calculating the overall cost of the loan.
Why Instant Loan Apps Like Vizzve Are Safer
Transparent rate structure – No hidden charges
Customizable EMIs – Flexibility in repayment
Credit score friendly – Boosts future borrowing power
Digital approvals – Fast and paperless process
Key Takeaway
Borrowers often get trapped in myths about instant loan interest rates. The reality is that with responsible repayment and the right loan app (like Vizzve Finance), instant loans are affordable, transparent, and credit-score friendly.
FAQs
Q1: Why do people think instant loan rates are high?
Because they compare them with secured loans, forgetting that instant loans are unsecured and offer speed + convenience.
Q2: How can I get a lower interest rate on instant loans?
Maintain a good credit score, borrow only what you need, and choose shorter tenures.
Q3: Do instant loan apps really help build credit?
Yes, timely repayments improve your CIBIL score and future loan eligibility.
Published on : 21st August
Published by : SMITA
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