Personal loans are among the most misunderstood financial tools in India.
From believing they’re only for emergencies to thinking approval takes forever — the myths are everywhere.
In this 2025 edition, Vizzve Finance busts the top 5 myths that might be holding you back from using a personal loan smartly and confidently.
Myth 1: Personal Loans Are Only for Emergencies
Truth: Personal loans can be used for travel, weddings, home renovation, business expenses, or even debt consolidation.
They offer versatility, not just emergency help.
Myth 2: Only Salaried People Get Approved
Truth: Self-employed, freelancers, gig workers, and even housewives can get loans — if they have sufficient income proof, bank records, or a joint application.
Platforms like Vizzve Finance offer tailored solutions for diverse income types.
Myth 3: Approval Takes Too Long
Truth: Thanks to digital KYC and instant verifications, loans through fintech apps like Vizzve can be sanctioned and disbursed in under 24–48 hours.
Myth 4: A Low CIBIL Score Means Instant Rejection
Truth: While a low score affects your chances, it doesn’t mean automatic denial.
Lenders now use alternate credit scoring, income flow, and co-applicants to evaluate risk.
💡 Tip from Vizzve: You can still get small-ticket loans or secured personal loans even with poor credit history.
Myth 5: All Personal Loans Come with Hidden Charges
Truth: Trusted lenders like Vizzve Finance offer transparent personal loan options with clear interest rates, no hidden fees, and zero processing fee offers during campaigns.
Always read the fine print, but don’t assume foul play everywhere.
Vizzve’s Promise
✅ Fast, transparent loan process
✅ No myths, no hidden clauses
✅ Friendly for salaried, freelancers, and gig economy professionals
✅ Real-time loan eligibility check in 2 minutes
FAQs
Q1: Are personal loans risky?
Only if you borrow more than you can repay. With proper planning, they are useful tools.
Q2: Can I use a personal loan for shopping or gifting?
Yes. There's no restriction on usage unless it’s specified by the lender.
Q3: Do all loans require collateral?
No. Personal loans are unsecured, meaning no collateral needed.
Published on : 22nd July
Published by : SMITA
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