Whether you're taking a personal loan, home loan, or car loan, the agreement you sign is legally binding.
Unfortunately, many borrowers skip the fine print — only to get shocked later by hidden charges, strict clauses, or harsh penalties.
At Vizzve Finance, we want you to be fully informed. Here's what you must check before saying “yes.”
✅ Top 10 Things to Check in a Loan Agreement
1. Interest Rate (Fixed or Floating)
Is it fixed (unchanged throughout) or floating (subject to RBI changes)?
Compare it with other offers using Vizzve before locking in.
2. Loan Tenure & Repayment Schedule
How many months/years is the tenure?
Review the EMI start date, due date, and total repayment amount.
3. Processing Fee & Hidden Charges
Look for one-time or recurring charges like:
📂 Processing fee
🧾 Stamp duty
🔁 Loan insurance fee
💳 Mandate setup charges
4. Prepayment & Foreclosure Clause
Can you repay early?
Are there prepayment penalties or limits?
💡 Vizzve Tip: Choose lenders with zero or low foreclosure charges.
5. Late Payment Charges & Grace Period
What happens if you miss an EMI?
Check:
Grace period (if any)
Late payment penalties
Interest on delayed EMI
6. Collateral Terms (if any)
Is the loan secured (backed by asset) or unsecured?
For secured loans (like gold/home), ensure you understand asset seizure clauses.
7. Disbursement Conditions
Will you receive the entire loan amount or after deductions?
Some lenders deduct:
Processing fees
First EMI
Insurance premiums upfront
8. Default Conditions
What qualifies as default?
Even non-payment for 30 days can trigger legal action or credit downgrade.
9. Dispute Resolution Process
If things go wrong, how are disputes handled?
Arbitration?
Legal jurisdiction?
Ombudsman?
10. Your Rights and Obligations
Read about your obligations as a borrower, but also your rights — like receiving periodic statements, NOCs, etc.
📘 Bonus Tip: Ask for a Draft Copy
Always request a draft loan agreement before finalizing — especially for big-ticket loans. Review it at home or with a Vizzve expert if you need help understanding legal terms.
🧠 Vizzve Finance: Your Loan Clarity Partner
With Vizzve, you get:
📋 Simplified loan documents
✅ Verified & regulated lenders
💬 Expert help to review agreements
⚖️ No legal jargon — just clarity
Before you sign, let Vizzve decode the fine print for you.
💬 FAQs
1. Can I negotiate loan agreement terms?
Yes, especially for interest rates, prepayment clauses, or insurance add-ons.
2. What if I’ve already signed and found a hidden charge?
You can request a review or raise a complaint via Vizzve’s support. Depending on the lender, resolutions may vary.
3. Are digital loan agreements valid?
Yes, e-agreements with valid e-signature are legally binding in India.
Published on : 17th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.