Many loan-related beliefs in India are myths. Understanding how eligibility, documentation, and lender policies actually work helps borrowers avoid rejection, protect credit scores, and make better financial decisions. A factual view of the loan process reduces confusion and prevents avoidable mistakes.
Loan myths spread due to misinformation, social media claims, and limited financial awareness. Borrowers often rely on word-of-mouth advice, which may not match lender policies. Marketing claims, outdated assumptions, and confusion between different loan types also contribute to inaccurate beliefs.
Fact: Income is important, but lenders also consider credit history, existing debt, and repayment capacity. High income alone does not guarantee approval.
Fact: Loan services can guide and improve application quality, but approvals are decided only by banks or NBFCs based on policy.
Fact: A low score limits options, but some lenders consider other factors such as income stability or collateral. Eligibility varies by lender.
Fact: GST registration can strengthen a business profile, but approval still depends on turnover, cash flow, and lender policy.
Fact: Multiple applications can lead to multiple credit inquiries and may reduce credit score. A targeted approach is safer.
Fact: Personal loans are assessed mainly on personal income and credit score, while business loans consider business cash flow, turnover, and vintage.
Believing in myths can lead to wrong loan choices, unnecessary rejections, and wasted time. Multiple failed applications can hurt credit scores. Misleading claims may also expose borrowers to fraud or unethical practices. Accurate understanding helps borrowers apply correctly and avoid unnecessary risk.
VyapaarPay Finance focuses on education and transparent advisory practices so borrowers understand eligibility, documents, and lender expectations. The aim is to reduce confusion and avoid unrealistic expectations. Final loan approval always depends on the bank or NBFC’s policy and the applicant’s profile.
No. Loan services can help with guidance, but approval decisions are made only by lenders.
Not always. Low scores limit options, but some lenders may consider other factors depending on the loan type.
No. GST registration is one factor among several and does not guarantee approval.
Multiple credit inquiries can impact credit score, especially in a short time span.
Yes. Myths are common due to misinformation and lack of clear financial guidance.
Loan myths can lead to poor financial decisions and unnecessary rejection. Understanding factual eligibility criteria and lender policies helps borrowers make informed choices. A clear, neutral view of the loan process reduces risk and supports better outcomes.
