Loans are a powerful financial tool when used wisely — but in India, many borrowers fall into the same traps. A hasty decision or missed detail can cost you lakhs in interest or even damage your credit health.
Here are the top 5 mistakes Indians make when taking a loan, and how Vizzve ensures you never repeat them.
❌ 1. Not Comparing Lenders or Interest Rates
Many borrowers go straight to their salary account bank — without checking other lender offers.
Why it’s a mistake:
You may end up paying 2%–5% more interest annually.
Hidden charges like processing fees may go unnoticed.
Vizzve Fix:
✔️ Vizzve compares offers across multiple trusted lenders
✔️ Personalized interest rates and transparent fees
💡 “A 1% lower interest can save you over ₹20,000 on a ₹3L loan.”
❌ 2. Ignoring Your Credit Score
A lot of Indians either don’t know their credit score or apply without improving it.
Why it’s a mistake:
Low scores = higher interest or loan rejection
It hurts your long-term financial health
Vizzve Fix:
✔️ Free soft-check of credit score with no impact
✔️ Tips to boost your score before applying
❌ 3. Borrowing More Than Needed
People often overestimate their needs or add unnecessary buffers when applying.
Why it’s a mistake:
Larger loan = larger EMIs and more interest paid
Can lead to debt stress or missed payments
Vizzve Fix:
✔️ Smart budgeting tools to estimate the right loan amount
✔️ EMI calculators to plan comfortably within your income
❌ 4. Choosing Longer Tenure Just for Lower EMI
Lower EMI sounds great, but long tenure = more interest overall.
Why it’s a mistake:
You might pay almost double the interest over time
Debt stretches for years unnecessarily
Vizzve Fix:
✔️ Shows a clear breakup of EMI vs tenure
✔️ Suggests optimal repayment periods that balance EMI + interest
❌ 5. Overlooking Hidden Charges
Processing fees, prepayment penalties, late EMI charges — these small details add up.
Why it’s a mistake:
Can add ₹5,000–₹15,000 extra to your loan cost
May impact repayment flexibility
Vizzve Fix:
✔️ No hidden fees — everything is upfront
✔️ Partner lenders with zero or low prepayment charges
🔁 Bonus: Two More Mistakes You Should Avoid
❌ Not Reading the Fine Print
Always read terms related to foreclosure, penalties, and floating rates.
❌ No Backup Plan for Repayment
Emergency fund = peace of mind. Don’t rely on future income alone.
✅ How Vizzve Helps You Borrow Smart
With Vizzve Loans, you avoid these mistakes through:
Instant loan eligibility check
Customized interest offers
Free credit insights
Transparent documentation
Easy prepayment options
💬 “Vizzve isn’t just about loans — it’s about lending confidence, clarity, and control.”
📌 Final Thoughts
Taking a loan doesn’t have to be risky. By avoiding these 5 common mistakes — and with Vizzve’s expert guidance — you’ll borrow smarter, save money, and stay stress-free.
Whether it’s your first loan or your fifth, let Vizzve be your financial ally.
🔖 FAQs – Vizzve Loan Mistakes Guide
Q: What’s the #1 loan mistake to avoid?
Not comparing interest rates and blindly trusting one lender.
Q: Can I get a loan if my credit score is low?
Yes, but expect higher interest. Vizzve can suggest ways to improve it first.
Q: Should I always go for the lowest EMI?
Not always. Lower EMI with longer tenure = more interest.
published on 1st July
Publisher : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.