Articles on Credit Report | CIBIL Rating | Loans | Debt Issueshttps://www.creditmantri.com/articlesArticles about complex credit related Issues, Loans, Credit cards to give you a better understanding about credit & financial services.Articlesen-us2016 | CreditMantrihttps://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-RejectedSix Reasons Your Home Loan Could Be Rejectedhttps://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-Rejected<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d7cbce490b2e52c0db0e94e336091c8a_Six-Reasons-Your-Home-Loan-Could-Be-Rejected.jpg'/></p><p>Lenders consider many factors before granting any loan. The criteria to determine the eligibility and quantum of a loan differs from one lender to another. Improving your credit score, ensuring timely payment of&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> dues, closing all earlier loans and increasing one&rsquo;s income levels are more common. However, there are certain other indirect reasons which could be causal for the rejection of the loan. Here are few reasons for loan rejection which normally people may not be aware about:</p> <p><strong>Frequently switching jobs</strong></p> <p>Banks stress a lot on job stability and certain banks have even made it mandatory that the applicant needs to be employed with a particular company for three or more years to be eligible to get a loan. The banks may also take into consideration the stability of the company one is working for while processing a loan application. So, it is highly advisable that the applicant stick to a particular job for a minimum period of a year to get the loan sanctioned.</p> <p><strong>Residential address on the defaulter list</strong></p> <p>If the applicant bears the same address as someone who has been a defaulter for either loan repayment or credit card dues and which has been reported to CIBIL, chances of loan rejection increases. Banks often have negative PIN codes based upon historical delinquency experience, where they may not lend. This is because the residential address will match with a disproportionate number who are on the defaulter&rsquo;s list.</p> <p><strong>Profile doesn&rsquo;t fit into the bank&rsquo;s internal policy</strong></p> <p>Internal policies for some banks may dictate that some geographic area or credit profiles are negative for lending and the bank won&rsquo;t be able to sanction loans. In such case, one need to discuss it with the bank and provide other security in the form of a guarantor or in the form of insurance policies, collateral securities, fixed deposits, etc. in order to assure the banker about their repayment ability.</p> <p><strong>Banks do not fund for old building</strong></p> <p>A bank will not fund old buildings especially if the building is more than 20 year old. The criteria of the age of the building vary from one bank to another. But, the land value will always be considered by the bank. One can negotiate for a lesser loan amount by adding in some form of security and one can also increase the down payment to get the loan sanctioned.</p> <p><strong>Loan application has been rejected before</strong></p> <p>Every bank has records of the entire rejected loan applications in their database or can obtain a history of loan application enquiries from CIBIL. When the applicant applies to a bank, the rejection will show up in the credit profile check and this would probably affect the credit worthiness of the applicant. It is highly advisable that one should not keep on applying for loans without any reason.</p> <p><strong>Poor Credit Score or Credit History</strong></p> <p>The&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good credit score. All banks usually look at the credit score as one of the many checks they do before advancing a loan.<br />A good score alone does not mean a person can get the loan he wants. Bankers additionally look at the status of previous loans and the payment history on such loans. A previously settled or a written off loan is likely to impair the ability to avail more loans. Credit history, outstanding loan value, loan types, recent credit events, etc. affect ones credit score.<br /><br /></p>https://www.creditmantri.com/articles/Dealing-with-Delinquent-accountsDealing with Delinquent accountshttps://www.creditmantri.com/articles/Dealing-with-Delinquent-accounts<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d1f4daa15f07cbe94633189fc1a0b7c4_Dealing-with-Delinquent-accounts.jpg'/></p><p>Often, people find that they are turned down for a loan because they have a &lsquo;delinquent account.&rsquo; This might be the first time they have heard they have a problem. By then it is too late to prevent its appearance on their credit report and the resultant consequences of a lowered <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Having a delinquent account is like having a red mark on a report card. It warns potential lenders that the consumer might have a problem meeting his/her financial obligations and signals that it might be risky to lend to such a consumer.</p> <p><strong>What is a delinquent account?</strong><br />Any account that has not been paid past the due date is considered delinquent. Technically, even a one-day delay in repayment can cause your account to be reported as delinquent. Usually, it takes 2 late payments before an account is termed delinquent on a consumer&rsquo;s credit report.</p> <p><strong>What are the causes of delinquent accounts?</strong><br />The main reason an account is termed delinquent is because of late or skipped payments. Late repayments can be on various levels with varying consequences for the individual&rsquo;s credit score. A consumer might repeatedly make late payments on a single account for a few months; or might skip a couple ofpayments altogether. Delinquencies are reported 30,60, 90 and 120 days past the due date. Naturally, the greater the number of late payments, the worse the effect on the credit score.</p> <p>Additionally, late payments for one or many months on multiple accounts ( e.g. on the credit card, auto loan or mortgage accounts) also leads to the account being termed delinquent. It signifies an inability to fulfill current debt repayments and warns lenders about future difficulties. Repeated late payments have a severe impact on the consumer&rsquo;s credit score.</p> <p>In the case of&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> companies, however, the situation is slightly different. They usually wait for a 30 day period &ndash; without a minimum due payment being made - before terming an account delinquent. Thus, while there is some leniency on credit card repayments, it is best to pay at least the minimum due on time to avoid the danger of delinquency.</p> <p><strong>What are the short term consequences of having a delinquent account?</strong><br />A single delinquent account can lead to an immediate drop in the consumer&rsquo;s credit score. Multiple late payments across various loans or credit cards can cause a drop of over 100 points in an individual&rsquo;s score.</p> <p><strong>What are the long term consequences?</strong><br />It will be extremely difficult to get credit in the future. A delinquent account is a red flag for future potential lenders. They see such consumers as having difficulties fulfilling even current financial obligations and will have problems paying off future loans. Banks and other lenders will, therefore, stay away from lending to such consumers.</p> <p>A second consequence is that information on a delinquent account remains on the consumer&rsquo;s credit report for 7 years. Thus, even if the individual has repaid all his debts in full, the fact that he has a history of late repayments stays on his record for a long time, acting as a warning to future lenders for seven more years.</p> <p>Sometimes, this record is not erased even after seven years and it takes more time and effort to rectify this administrative error.</p> <p><strong>What should I do when I discover I have a delinquent account?</strong><br />As an immediate first step, make sure you at least make the minimum due payment on your credit card every month.<br />Focus all your efforts on clearing up your delinquent loan account/s. Credit Mantri can help with negotiating with your lenders to arrive at a mutually acceptable payment plan to clear your debts. This will help stop the continuing negative impact on your credit score caused by a problem account.</p> <p><strong>If I ignore payments, will the bank write my account off?</strong><br />Yes, but it does not mean your problem will end. If the consumer makes no attempt to rectify a delinquent account, lenders will write off the account after six months. They usually turn over the account to a private collections agency which can potentially use extremely aggressive methods to recover the payments.</p> <p><strong>What do I do if an account is wrongly recorded as delinquent?</strong><br />It is good to&nbsp;<a href="https://www.creditmantri.com/credit-report-analysis/">check your credit report</a> periodically to catch any errors. In case of a wrongly attributed account, you can file a dispute with the concerned credit reporting company. Credit Mantri can help you with this process.</p>https://www.creditmantri.com/articles/Home-loans-with-overdraft-facility-can-potentially-reduce-interest-burdenHome loans with overdraft facility can potentially reduce interest burdenhttps://www.creditmantri.com/articles/Home-loans-with-overdraft-facility-can-potentially-reduce-interest-burden<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4df41804a4175f00d9274dbae6c7cabe_Home-loans-with-overdraft-facility-can-potentially-reduce-intere.jpg'/></p><p>There are several options when it comes to choosing the home loan best suited to you. Several Indian banks are now offering innovative schemes that are worthy of consideration. One of the newer schemesoffered is home loans with an overdraft facility.</p> <p><strong>What is different about this home loan?</strong><br />This type of loan involves depositing a surplus amount in the loan account at the end of the month,after paying the monthly EMI. This surplus amount is applied towards reducing the original principal (actual loan amount taken). Once the principal is reduced, the interest payment correspondingly reduces.</p> <p><strong>Can I withdraw from this surplus amount if necessary?</strong><br />Yes, the customer has the option of liquidity in case he/she needs the money. In fact, this type of loan account works best when it is used for regular banking transactions.</p> <p><strong>What are the advantages of an overdraft facility on a home loan?</strong> <br />One, the interest burden is lower than regular&nbsp;<a href="https://www.creditmantri.com/home-loan/"><strong>home loans</strong></a> as the surplus funds are used towards reducing the principal. Future interest payments are made on a steadily decreasing principal amount.<br />Two, it is more tax-efficient because the interest savedis not taxable. If you invested those same surplus funds in a fixed deposit, for example, you would have to pay tax on the interest earned. <br />Three, the greater the surplus funds in the account, the quicker the principal and interest gets repaid, thus reducing the overall tenure of the loan.</p> <p><strong>What are the disadvantages of the overdraft facility?</strong><br />The main disadvantage is the higher interest rate on these loans. It can be upto 25 basis points higher than a normal home loan. The consumer needs to balance the higher interest rate against savings from future reductions in interest payment. <br />Two, the customer needs to keep a surplus amount that corresponds to 2-3 EMIs for this type of loan to be financially worthwhile. A lower surplus amount will not lead to any significant reduction in the principal or interest, while the interest cost of the loan remains higher than normal loans. <br />Third, this kind of scheme is viable only if the home loan account is used regularly for banking transactions. Depositing a certain amount every month into this account - even if it is not your main banking account - is also an option. This scheme is most viable if it is your regular account for transactions</p> <p><strong>How do I know if this scheme is suitable for me?</strong><br />The overdraft facility on the home loan is ideally suited to double income families or those with a relatively healthy monthly inflow. Such customers are probably best able to set aside money after paying off the EMI every month. The savings in interest costs can be quite significant depending on the surplus funds retained in the account.<br />Even in such circumstances, the consumer must determine whether it is better to make a prepayment on the loan, instead of using the overdraft facility.</p> <p><strong>Which banks offer such loans?</strong><br />Several banks offer such schemes including HSBC, StanChart, SBI and Central Bank of India. Credit Mantri can help determine whether this kind of overdraft facility is suited to your particular financial situation.</p>https://www.creditmantri.com/articles/How-To-Get-Into-the-above-800-Credit-Score-ClubHow To Get Into the above 800 Credit Score Clubhttps://www.creditmantri.com/articles/How-To-Get-Into-the-above-800-Credit-Score-Club<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/fc0ad0f2e2dda977c87ff89c87dea5d0_How-To-Get-Into-the-above-800-Credit-Score-Club.jpg'/></p><p>With a good&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> you could save a lot of money by accessing loans at a cheaper rate of interest. So what does it take to join the ranks of the credit elite and enjoy a richer life?</p> <p>In credit, as in life, it&rsquo;s good to have goals. Knowing where we want to go motivates us to work hard, be responsible, and delay short-term gratifications to achieve lasting happiness and success.</p> <p>This is especially true when it comes to our credit scores. It takes time and patience to build a good one. And if you&rsquo;ve ever applied for a credit card, an <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>, a home mortgage loan &mdash; or any type of financing &mdash; you know how important this three-digit number is.</p> <p>The higher your credit score, the more likely you are to qualify for the best interest rates and terms a lender has to offer. The lower your credit score, the more you&rsquo;ll pay in interest on everything you finance. And in some cases, if your score is too low, you may not qualify at all.</p> <p>The Perfect Credit Score</p> <p>Considering the influence credit scores have on almost every aspect of our financial lives, it&rsquo;s not surprising that so many people want to improve their credit score &ndash;this is a number between 300 and 900 &ndash; the higher the better.</p> <p>But is a perfect score really necessary? The answer is no, and striving for perfection could cause more damage than good if you&rsquo;re not careful.</p> <p>The fact is lenders aren&rsquo;t looking for perfection. They&rsquo;re looking for good credit risk, or rather, a borrower who will pay a loan back in full and on time. Generally, a credit score greater than 800 will get you the best interest rate and terms a lender has to offer. And when you&rsquo;re trying to qualify for a loan, your goal is to get the best deal.</p> <p>7 Habits of the Credit Elite<br />If your heart is set on perfection, a healthy goal is to aim for the 800+ club. Earning a credit score of 800 or higher will put you well within the ranks of the credit elite. No one else will receive a better loan than you, and no one will pay lower interest rates.</p> <p>How do you join the credit elite? It starts with developing the right credit habits and then gradually allowing them to build over time. Here are seven habits that will help pave your way to the 800+ club</p> <p>Always pay on time &mdash; no exceptions. Your payment history is the single most important factor in determining your credit score, accounting for about 35% of the total. If you&rsquo;re striving for perfection &mdash; or close to it, the last thing you want to do is miss a payment or pay late.</p> <p>Watch your&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> balances &mdash; less is more for your credit score. The proportion of your balances in relation to their credit limits on your credit cards can have a drastic impact on your credit score. For optimum results, aim to keep your credit card utilization to well under 50%.</p> <p>Apply for credit sparingly. How often you apply for new credit accounts for about 10% of your score. Too many inquiries in a short period of time can wreak havoc on your credit score. While not a large percentage, every point counts when you&rsquo;re aiming high.</p> <p>Live within your means. When you apply for credit, only apply for what you can realistically afford and never spend more than you earn. This will keep you from overextending yourself financially. Over time, these positive accounts will help you build a solid, lengthy credit history &mdash; another habit that will push you toward your goal.</p> <p>Mix it up and diversify. Credit scoring models love to see that you&rsquo;re able to manage and maintain a variety of accounts. By gradually adding various types of accounts &mdash; credit cards, auto loans, or a mortgage &mdash; you&rsquo;ll be well on your way to reaching your goal.</p> <p>Focus on the long haul. The longer you&rsquo;ve had credit, and the older your credit accounts get, the better for your credit score. Credit scores love stability and to break into the 800s, they want to see a history of accounts that have been open for ten years or more.</p> <p>Wash, rinse, repeat &mdash; and track your progress. With credit scores, consistency is key. This means repeating the steps and staying the course. Over time these habits will ensure that you reach your goal. And to make sure you stay on track, it&rsquo;s also wise to periodically check your credit score and monitor your progress.</p> <p>Reaching an elite credit status maybe closer than you think. By following these rules and keeping reasonable, attainable goals in mind, you too can reach the 800+ club and join the ranks of credit elite.</p>https://www.creditmantri.com/articles/Credit-Dos-and-Donts-when-moving-overseasCredit Dos and Don’ts when moving overseashttps://www.creditmantri.com/articles/Credit-Dos-and-Donts-when-moving-overseas<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7c7badd6652fbbbea9650217205501d2_Credit-Dos-and-Don’ts-when-moving-overseas.jpg'/></p><p>Suresh was excited. He had just been told his company was moving him to the US on a 3 year assignment. It seemed like the perfect opportunity to leave behind his financial problems in India and start with a fresh slate in America. He had taken a<strong>&nbsp;</strong><a href="https://www.creditmantri.com/personal-loan/">personal loan</a> to help with his father&rsquo;s unexpected hospitalization and surgery, and he was late on his credit card payments. Suresh thought that if he closed his bank accounts and left the country, the banks would not be able to track him, and his loans and card payments would be forgotten after some time.<br />He could not be more wrong. Three years later, Suresh returned to India and decided to <a href="https://www.creditmantri.com/credit-card/">apply for a credit card</a>. He found to his shock that his application was rejected on the basis of his delinquent credit history from three years ago. Banks rejected his auto loan application outright because of his previous record. Prospective employees or landlords could also have potentially accessed his credit report and decided that he was untrustworthy with his payments. Suresh might have saved some money by skipping on his loans or credit card payments a few years ago, but he has permanently damaged his credit in India and is effectively shut out of the Indian banking system.</p> <p>Five things to keep in mind when moving overseas</p> <p>1. <strong>Pay off all outstanding loans and credit card payments before you move overseas.</strong>The importance of this cannot be stressed enough. Defaulting on loans can have serious consequences in the future when you apply for loans. Even if you do not default outright, even one late payment will be recorded on our credit history and negatively impact your score. It is important to keep this negative scoring to the minimum in order to avoid severe problems when you return to India.</p> <p>2. <strong>Keep at least one account in India open so you can make EMI payments from this account in a timely and easy fashion</strong>. It is far more difficult and expensive to make these repayments from an overseas account. It is important to note that you must change your saving or current account in India to an NRI/NRO account, as it is not legal to have a regular savings account if you are resident overseas.</p> <p>3. <strong>While closing your accounts, make sure to do them over a period of time.</strong> Closing several accounts at once could have a negative effect on your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. When you suddenly eliminate all credit lines, you will be left with no outstanding credits and you will not have the ability to demonstrate prompt repayment behavior in order to maintain your credit score.</p> <p>4. <strong>Retain your Indian credit card and make occasional purchases on the card so that your credit is history remains active.</strong> Even just 1-2 payments a year is adequate to maintain your credit record. This way you will have a longer credit history which automatically improves your credit score. When you surrender all your credit cards, you are needlessly cutting short your record within the Indian banking system and giving up your history of good credit. You will then have to start rebuilding your credit history from scratch when you move back to India. It may be years before you have a long enough history to be eligible for a loan.</p> <p>5. <strong>Inform the credit bureaus (CIBIL, Equifax and Experian) that you are moving overseas so that they can make a note</strong>. This helps avoid identity theft in case criminals detect that you have an inactive account and could increase the chances of fraudulently applying for loans in your name with fake IDs. Similarly, request for an occasional credit report so you can check for fraudulent activity and immediately address it.</p> <p>While moving to another country can be tempting if you have outstanding loans and credit cards, or have a poor credit score, please remember that when you return to India, the unpaid debt is likely to have further negatively impacted your credit score, and it could take you much longer to become credit healthy once again.</p> <p>&nbsp;</p>https://www.creditmantri.com/articles/Warning-Signs-of-Credit-and-Debt-ProblemsWarning Signs of Credit and Debt Problemshttps://www.creditmantri.com/articles/Warning-Signs-of-Credit-and-Debt-Problems<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1db2fec81e211751f516dd27cc7a1b76_Warning-Signs-of-Credit-and-Debt-Problems.jpg'/></p><p>CreditMantri lists some warning signs of impending debt problems. You might not be late on any payments yet, but don&rsquo;t allow yourself into a false sense of control if any of these symptoms arise or are already present:</p> <p>You constantly only make minimum payments on your credit cards.</p> <p>You hardly have any savings.</p> <p>You have started to use your credit card for things you earlier used to buy with cash.</p> <p>You are using increasing amounts of your total income to pay off debts.</p> <p>You already have two or three credit cards and are still looking for another.</p> <p>You are at or near your credit card limit(s).</p> <p>You are unsure of the total amount you owe on all your debts.</p> <p>You take out cash advances on your credit card to pay other bills/expenses</p> <p>After you pay your credit card bill, you tend to increase the balance by the same amount the following month.</p> <p>You have tried making a purchase with your credit card and been declined.</p> <p>You write a cheque hoping to cover it before it clears your bank.</p> <p>You lie to your spouse or family member about your spending or hide credit statements.</p> <p>You have been denied a credit card.</p> <p>Your bank has had to return your cheque for lack of balance.</p> <p>You get calls from collectors.</p> <p>- See more at: https://www.creditmantri.com/blog/warning-signs-of-credit-debt-problems/#sthash.7Y2rR2DF.dpuf</p>https://www.creditmantri.com/articles/What-Everyone-Must-Know-About-CIBIL-and-Credit-ScoreWhat Everyone Must Know About CIBIL and Credit Scorehttps://www.creditmantri.com/articles/What-Everyone-Must-Know-About-CIBIL-and-Credit-Score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2a36bd9fe010cd93029df158b803ea89_6.jpg'/></p><p><br />Credit Information Bureau India Ltd or CIBIL is India&rsquo;s first credit information bureau. It is a repository of information which contains the credit history of commercial and individual consumer borrowers. CIBIL provides this information to its members in the form of Credit Information Reports (CIR). As on March 2012, CIBIL has an information base of 250 million consumer trades, and 8 million commercial trades, and continues to grow at a fast pace sharing credit information with its 175 member base on the principle of reciprocity.</p> <p>The idea behind setting up CIBIL is to gather all existing consumer and commercial credit information and pool it in a one point source for reference. Individuals or commercial establishments could have accounts in several banks and credit from different lending institutions. All such data can be pulled out for a quick reference check on the individual or commercial establishment, seeking loans, to be aware of the repayment track record of the loan seeker and quickly decide on loan eligibility.</p> <p>CIBIL acts as a weeding mechanism, that helps identify poor repayment track records. It helps protect future lenders from giving credit to people and establishments who are unlikely to repay what is lent. Banks provide a lower interest rate for sound credit profiles and the CIR can work to your advantage. It also helps lenders and Banks quickly process a loan, without wasting valuable time on research and background check of the loan applicant.</p> <p>It is a mistaken notion that only defaulter names are reported to CIBIL. Every member reports data on a monthly basis to CIBIL, of all its borrowers, for both defaulters and those repaying on time. The information in this database is also used to compute a credit score, which provides a good indicator to future lenders of a person&rsquo;s probability of repaying a new loan. Some of the factors that influence the credit score and thereby a person&rsquo;s ability to borrow in the future are:</p> <p>Late payments / missed payments</p> <p>Large number of credit cards or loans in proportion to declared income</p> <p>Utilization of the allocated credit limit</p> <p>High percentage of unsecured credit</p> <p>Duration of credit history</p> <p>Too many loan applications in a short time span</p> <p>Settlement of loans in the past or past defaults<br />- See more at: https://www.creditmantri.com/blog/what-everyone-must-know-about-cibil-credit-score/#sthash.ZqHPeQz7.dpuf</p>https://www.creditmantri.com/articles/What-is-a-Credit-ScoreWhat is a Credit Score?https://www.creditmantri.com/articles/What-is-a-Credit-Score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/563c6c75fa9915fb6d84c62cc3364e10_7.jpg'/></p><p>A CIBIL Score is an indicator of an individual&rsquo;s credit worthiness. It impacts the individual&rsquo;s ability to borrow and take fresh credit from lenders.</p> <p>A CIBIL Score is a score or rating given to individuals as an indicator of the individual&rsquo;s credit behavior. This is pretty similar to the marks we get for Maths, English, Science etc., from schools. However unlike school marks which tend to have a 0 to 100 range, the range for credit scores varies from bureau to bureau. The CIBIL score range is 300 (lowest) to 900 (highest).</p> <p>In India, 3 credit rating bureaus or agencies compute your score. These are CIBIL, Equifax and Experian. Each of these rating agencies have various ranges for their credit scores. The most popular credit score in India is the one issued by CIBIL (Credit Information Bureau India Limited).</p> <p>The CIBIL score range is 300 to 900 (low to high). A credit score of 750+ is considered good and is in most cases seen as loan worthy. Any score below 750 is an indicator of a possible underlying issue in the individual&rsquo;s credit worthiness.</p> <p>Credit Scores are a relatively new concept in India but have been widely used in most other markets. In the long run, it helps lenders nurture and incentivise good credit behavior from consumers. Besides weeding out bad credit from the system, it also helps individuals with an excellent credit track record get access to a wider range of offers and products and possibly.</p> <p><strong>How do lenders use the Credit Score?</strong></p> <p>An individual&rsquo;s Credit Score provides a lending institution (banks / NBFCs) an indication of the &ldquo;probability of default&rdquo; by the individual. What this means is that the Score tells a lender / credit institution (typically banks or NBFCs) how likely you are to pay back a loan based on your past pattern of credit usage and loan repayment behaviour.</p> <p>The bureaus compute your credit score based on data shared by lenders &ndash; banks, NBFCs and others with them. The CIBIL score is the most popular Credit Score used extensively by lenders to make their credit decision.</p> <p><strong>How does a good Credit Score help you?</strong></p> <p>Consumers should know where their Credit Score stands before they apply for a loan or any fresh credit so they can build their Score and better their chances for approval.</p> <p>Improving your Score helps you get loans at much better rates from lenders. A good Score also helps you get access to offers from multiple lenders &ndash; giving you better choice.</p> <p>If you don&lsquo;t have a good Credit Score yet, consider taking time to build your Credit Score before applying for any new credit accounts. There are many institutions in India which provide credit analysis and credit improvement services &ndash; CreditMantri is one of them.</p> <p>In case you would like to know more about Credit Scores and need advice on how to improve your Score, do visit the Knowledge Base.</p>https://www.creditmantri.com/articles/What-is-EMI-and-how-is-it-related-to-the-loan-amountWhat is EMI and how is it related to the loan amount?https://www.creditmantri.com/articles/What-is-EMI-and-how-is-it-related-to-the-loan-amount<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/21af9e69e7be6d5cc685c82688e2a9c6_12.jpg'/></p><p><strong>What is EMI?</strong><br />EMI stands for Equated Monthly Installment. It is the amount you have to pay to your bank/lender on a fixed date, every month, for the entire tenure of your loan period. The EMI is paid in the form of post-dated cheques for the duration of your loan and is in favour of the lender. The lender could be a bank, NBFC, or credit card company, and the loan could be for any purpose &ndash; housing, auto or personal/<a href="https://www.creditmantri.com/credit-card/">credit card</a> loan.</p> <p><strong>What does the EMI amount consist of ?</strong><br />Each EMI consists of payment towards the principal (actual amount borrowed) and the interest on that amount for the entire loan period. In the early years, a higher proportion of the EMI is formed by the interest payment. As the loan matures, the interest component decreases and the principal amount forms a higher percentage of the monthly payment.</p> <p><strong>Tip</strong>: If you are able to afford the option of prepaying part of your loan, it is better to do it in the early months/years of the tenure so that your principal decreases, thereby saving you interest on later payments.</p> <p><strong>What are the various types of EMI options and how do I choose the best option?</strong><br />There are 2 types of EMIs to consider when taking out a loan:<br />1. Fixed Rate EMI &ndash; In this option, the interest rate is fixed for the entire tenure of the loan. It is advisable to choose this option when interest rates are expected to rise in the future. This option helps you lock in a lower interest rate for the entire loan period.<br />2. Floating Rate EMI &ndash; Here the interest rate varies in accordance with prevailing interest rates in the market. This option is better if you expect interest rates to decrease during the tenure of your loan. You can then take advantage of lower rates for future payments.</p> <p><br /><strong>Will my EMI remain unchanged?</strong><br />Yes, if you take the fixed rate EMI option.<br />No, if you<br />1. - Opt for the floating rate EMI: In this case, the interest component of your monthly EMI will change according to current market rates.<br /><strong>Tip</strong>: You can have a fixed EMI even with this option by choosing to increase or decrease the loan period. If interest rates drop, the repayment period will decrease, and if interest rates increase, you can maintain a constant EMI by lengthening the tenure of the loan.<br />2. - Prepay part of your loan at any time before the tenure is over (for both fixed and floating EMI options): Naturally, repaying part of your loan ahead of time will reduce both the principal amount and the interest payment on your subsequent EMIs.<br />3. - Choose a staggered EMI payment: Some borrowers (especially young people) choose to pay a constant EMI for the first few years, followed by progressively larger EMIs in later years. Thus, if they have taken out a large loan, they can make relatively smaller fixed EMIs in the earlier years and larger payments in later years as their earnings increase.</p> <p><br /><strong>How is the EMI calculated?</strong><br />The monthly EMI payment depends on 3 factors<br />1. The loan amount ( principal)<br />2. The interest rate you have borrowed at (this could be fixed or variable)<br /> 3. The tenure (length of the loan.)<br />Lenders use a standard formula for calculating EMI. Credit Mantri can help you evaluate the EMIs for various loan options.</p> <p><strong>Do I need to know how the EMI is calculated?</strong><br />It is useful to know how much your EMI will be when comparing the loan options offered by various lenders. It is helpful to have this knowledge when deciding which loan scheme to choose.</p>https://www.creditmantri.com/articles/What-is-a-credit-score-and-what-the-factors-that-determine-itWhat is a credit score and what the factors that determine it?https://www.creditmantri.com/articles/What-is-a-credit-score-and-what-the-factors-that-determine-it<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b41dee9e591fccbd51e82fd2615a30b6_8.jpg'/></p><p>A&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> is a number that reflects your ability and willingness to make repayments. It is contained in a Credit Information Report (CIR) that is an aggregate of all the credit information about an individual in the banking system. Banks and other financial institutions use the credit score as a screening mechanism to determine whether you are eligible for a loan.</p> <p>There are 3 credit bureaus in India that issue credit scores. All credit information companies (CIC&rsquo;s) or credit bureaus use certain common inputs when calculating an individual&rsquo;s or corporate&rsquo;s credit score. Each of them has their own methodology and scoring range. Most lenders report repayment data on a monthly basis to the credit bureaus, for both defaulters and those repaying on time. The credit bureau utilizes this data in order to compute a credit score, which provides a good indicator to future lenders of a person&rsquo;s probability of repaying a new loan. Some of the factors that influence the credit score and thereby a person&rsquo;s ability to borrow in the future are:</p> <p>&nbsp; &nbsp; &nbsp; &nbsp; &bull; Late payments / missed payments<br />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&bull; Large number of credit cards or loans in proportion to declared income<br />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&bull; Utilization of the allocated credit limit<br />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&bull; High percentage of unsecured credit<br />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&bull; Duration of credit history<br />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&bull; Too many loan applications in a short time span&nbsp;<br />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&bull; Settlement of loans in the past or past defaults</p> <p><strong>Repayment History:</strong></p> <p>Prompt repayment on existing loans and credit cards tends to have the largest positive impact on the credit score. Conversely, as the delay in making repayments increases, there is an increasing negative impact on the credit score. The higher the percentage of on-time payments, the better your score. This is one of the more heavily weighted factors used when calculating your score since a consistent pattern of timely payments denote a reliable borrower. Banks are reassured that you will make payments on time. By the same token, even one or two late payments can have a significant negative impact on your credit score as it implies that you cannot be relied on to make on-time payments. Paying all EMIs, credit card and all other bills on time is a very important factor in gaining a good score.</p> <p><strong>Number of credit accounts:</strong></p> <p>Credit bureaus look at the total number of loans (vehicle, housing, student or personal loans) and credit cards to determine your credit score. A larger number of loan accounts implies that a variety of lenders have found you loan-eligible and this will increase your score. However, this factor is relatively lightly weighted compared to other factors. It is also not advisable to apply for several loans or cards at once just in order to have a higher number of credit accounts and thereby trying to increase your score. It signifies that you are in urgent need of credit and have approached multiple lenders at the same time in search of credit. If the number of loans / credit cards is disproportionately high when compared to the declared income, it is likely to have a negative impact on your credit score.</p> <p><strong>Utilization of allocated credit limit:</strong></p> <p>If you have 3 credit cards with a credit limit of Rs.1 lakh on each, and tend to almost fully utilize the credit limit at all times, the probability of a new credit card application being rejected is high, as banks may consider you to be credit hungry. Similarly, if you do not utilize the 3 credit cards and apply for a fourth card, it is likely to be rejected, since banks may feel that you already have excessive unutilized credit limits. It is therefore best to use less than 50% of the credit limits at all times in order to have the best impact on your credit score.</p> <p><strong>High percentage of unsecured credit:</strong></p> <p>It is best to have a good mix of both secured (home loan, vehicle loan) and unsecured (personal loan, credit card) credit in your portfolio. This has the most positive impact on your credit score. Having a mix of different types of loans where you can demonstrate prompt repayment behavior will have a positive impact on your score. If there is a high percentage of unsecured loans in your portfolio, this is likely to have a negative impact on your credit score.</p> <p><strong>Length of credit history:</strong></p> <p>The longer your credit history, the more reassured banks are that they have more detailed information on your credit behavior. For instance, if you have a credit card for ten years, potential lenders can see your repayment activity on that card for a significant period of time. However good your credit is on a new card, banks are wary as they do not have sufficient information on your repayment patterns. Thus it is recommended not to give up older credit cards as they are the ones who provide a fuller credit picture to your potential lenders.</p> <p><strong>Excessive loan applications:</strong></p> <p>Every time you&nbsp;<a href="https://www.creditmantri.com/first-time-borrower/">apply for a new loan</a> or credit card, the lender will obtain a copy of your credit report in order to determine whether you are loan eligible. This is called a credit enquiry. Too many credit enquiries, without a corresponding approved loan tends to have a negative impact on your credit score. If you find that one lender has rejected a fresh loan application that you made, it is highly likely that other lenders will also reject your credit application. In addition, even if the loan application is approved, too many applications within a short period of time, are likely to have an adverse impact on your score.</p> <p><strong>Number of negative markings:</strong></p> <p>A negative mark could denote one of many things &ndash; write-off, settlement, DPD, suit filed, etc. This again is a heavily weighted factor and a relatively large number of negative marks could severely restrict your eligibility for a loan. A negative mark indicates that you have not been able to adequately manage your credit in the past and will warn potential lenders</p> <h3>How CreditMantri can help you?</h3> <p>At CreditMantri, we assist our clients to procure their credit bureau report and credit score, conduct a detailed review and produce a comprehensive Credit Health Report. This report contains recommendations on how to improve and maintain one&rsquo;s credit score. Our primary intent is to improve the credit score of our client and make them &ldquo;loan worthy&rdquo; within a reasonable period of time.</p> <p>CreditMantri can also assist with filing a dispute to correct errors in your report, negotiate with your existing lenders and may even be able to speak with potential lenders to assist you to obtain new credit. If you loan applications are getting rejected, or if you are planning to apply for a housing loan within the next 12 months, this may be a good time to contact CreditMantri.</p> <p>Contact CreditMantri on&nbsp;<strong>+91 44 4224 0800 or +91 72999 10800</strong> or email us at&nbsp;<strong><a href="mailto:care@creditmantri.com">care@creditmantri.com</a></strong></p>https://www.creditmantri.com/articles/8-Things-to-remember-when-making-payment-to-collection-agency8 Things to remember when making payment   to collection agencyhttps://www.creditmantri.com/articles/8-Things-to-remember-when-making-payment-to-collection-agency<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/9e91f58833519cafd95a432b0dea07d7_8-Things-to-remember-when-making-payment---to-collection-agency.jpg'/></p><p>If you have not paid your credit card bills on time or missed your&nbsp;<a href="https://www.creditmantri.com/personal-loan/">personal loan</a> payment, it is likely that pretty soon the lender will have a collector call you. If you miss making the payment 2-3 months continuously then you may have a collector come to your home or office. Sometimes such calls or visits can be very harassing and traumatic experience. Despite RBI&rsquo;s regulations on code of conduct and ethics and Debt Recovery Agency circulars, collection calls at times changes from cordial to abusive.</p> <p>The following points provide you with the knowledge to deal with collection calls. We provide you with your rights and things you can do to ensure you are able to handle collection calls.</p> <p>Please note, it is important to continue to maintain prompt payments. Any failure to pay will severely impact your credit rating and any legal recourse.</p> <p><strong>When Collector Calls</strong></p> <p>Ensure the call does not come from a mobile number. Always note down all phone numbers from collection agencies. With caller ID&rsquo;s available you can easily do this. Further you can call back and confirm if the number indeed belongs to the card company or its agency. Note down the name, date and time of call.</p> <p><strong>Fixing an appointment</strong></p> <p>When collector calls you to fix an appointment, please ensure you provide a time and place which is convenient to you. Also ensure you have someone with you who can witness your payment.</p> <p><strong>Approved Time of calling</strong></p> <p>As per RBI rules, no bank or its agent can call you before 7 AM and after 7 PM. Hence in case someone calls you outside of this time period, you can complain to the bank or the grievance cell.</p> <p><strong>Check for ID</strong></p> <p>When the collector comes to pick up cheque or cash, first ask him to produce an ID card. All collectors are issued an ID by the bank which has a validity date and also a photograph of the collector.</p> <p><strong>Make Cheque Payments</strong></p> <p>It is recommended to make all your payments by Cheque. This ensure you have an additional evidence of payment which you get from the Bank Passbook or Statement. Cash is avoidable, though most banks provide you immediate credit for cash and wait for 5 days in case of cheque. From a long term perspective Cheque is always preferred. Also ensure you write the name of the bank and your Card or Loan account Number clearly. Never issue any blank cheques.</p> <p><strong>Bank Statement or Letter</strong></p> <p>In case you have agreed for a Settlement or Closure, additionally ask for documentation provided by the bank regarding the amount to be paid and the terms of such settlement or closure. Please read carefully the dates mentioned in the letter to confirm if these are as per your agreement.</p> <p><strong>Valid Receipt</strong></p> <p>Once you have paid the collector, ask for an original receipt. Most banks issue a receipt with hologram or other security features to establish the authenticity of such receipts. Ensure the account number, date, amount and time are captured correctly.</p> <p><strong>Filing and Record Keeping</strong></p> <p>Ensure you file all documents, correspondences, emails pertaining to an account together for future reference. Often we see banks do not post payments correctly or at times they end up reporting wrongly. Safe record keeping will help at a later date to resolve these issues.</p>https://www.creditmantri.com/articles/What-is-a-secured-card-and-how-will-it-help-improve-my-scoreWhat is a secured card and how will it help improve my scorehttps://www.creditmantri.com/articles/What-is-a-secured-card-and-how-will-it-help-improve-my-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1696d2a4ded4179a6969fa8cc481e8a0_securecard1.png'/></p><p>Unlike a regular credit card, banks issue asecured card against the security of a fixed depositplaced by you. In effect, your credit limit is a percentage of the money you have deposited.For example, if you deposit Rs.30,000/- in the bank and they give you 80% of the deposit value as a limit, then the credit limit on your card is Rs.24,000/-. You can use this like a regular credit card. In case you default on payments, the bank will take the funds from your security deposit and your&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> will suffer.</p> <p>&nbsp;The minimum deposit for a secured card is Rs.20,000/-, though this varies by bank. Most banks will pay interest on your deposit. Many charge an annual fee though some may waive other user fees.</p> <p>&nbsp;<em>How does using a secured card help your credit history?</em></p> <p>A secured card is ideal for two types of people:</p> <p>-&nbsp; If you do not have any/sufficient <a href="https://www.creditmantri.com/free-credit-score-analysis-online/">credit history</a>. Banks will be wary about lending to you if they do not have any record of your repayment behavior. However, they might offer you a secured card against your fixed deposit since they run no credit risk at all. Once you establish a good credit history with this card, you can apply for a regular credit card.</p> <p>&nbsp;-If you have a poor credit history and wish to repair it.</p> <p>The big difference between a secured card and a debit card is that your activity on the secured card is reported to the credit agencies. This means that even if you use a debit card responsibly, it does not impact your score since your usage is not reported.However, if you demonstrate excellent credit behaviour on a secured card, your activity will be recorded by the credit bureaus.</p> <p>By using less than 50% of your limit (showing you are not desperate for credit) and paying on time, your credit scorewill automatically improve.</p> <p>CreditMantri can guide you through evaluating all the offers in the market and help you decide what is best suited for your credit situation.</p> <p>&nbsp;</p>https://www.creditmantri.com/articles/planning-to-apply-for-a-home-loan-Check-your-credit-report-firstPlanning to apply for a home loan? Check your credit report first.https://www.creditmantri.com/articles/planning-to-apply-for-a-home-loan-Check-your-credit-report-first<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2901bfcfe6104d8e90b27c95cb5c85e9_Planning-to-apply-for-a-home-loan.jpg'/></p><p>Gita was fairly well settled in her job and ready to buy her first apartment and for serious long term financial commitment it involved. She spent months researching various options and finally found a place she liked. She paid the builder a 20% deposit and soon after, applied for a bank loan to cover the rest of the cost.</p> <p>To her shock, her housing loan application was turned down by all the banks because her credit score was too low. She had no idea what her credit score was and, in fact, was not even aware she had a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> since she had not taken any previous loans. She was in a very difficult situation now:<br /><br /> &bull; she had already drained her savings to pay a substantial advance to the builder while,<br /> &bull; going forward, no bank was willing to lend her money to complete the purchase because of her low score.</p> <p>Gita could have avoided this situation if she had checked her credit report as soon as she even considered investing in an apartment. Her credit report would have alerted her to the warning signals that<br /><br /> a) she had a low credit score<br /> b) she would not qualify for a housing loan <br />c) never taking a loan in the past was a big contributor to her low score.</p> <p>She could have used the same time that she spent researching the property market to simultaneously bolster her score to a level where she was loan eligible. That way, by the time she decided on the apartment and&nbsp;applied for the loan, her score would have been adequate. Simply put: <br /><br />- Time spent to decide on a property &ndash; 4 to 8 months<br /> - Time required to improve credit score &ndash; 4 to 8 months</p> <p>Your credit report will give you valuable advance information on the state of your credit health. Use this information to work on any problem areas and get the best possible loan deal for yourself.</p> <p>Creditmantri.com can get you a free credit report, help you increase your score (if required) before applying for a loan and match you with the right lender.</p>https://www.creditmantri.com/articles/ways-to-speedily-improve-your-credit-healthWays to speedily improve your credit healthhttps://www.creditmantri.com/articles/ways-to-speedily-improve-your-credit-health<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1e82f633891277b57a245e855f7e964b_speedily-improve-credit-health.jpg'/></p><p>As you probably already know, there is no quick-fix solution for increasing your credit score overnight. Just like treating a sugar problem takes months of medication, a strict diet and exercise plan, improving your score takes the same amount of discipline and consistency.</p> <p>Having said that, there are a few things that you can do right away that will result in a noticeable improvement in your score.<br /><br /> 1. For a start, get a copy of your Credit Report so you can identify the issues that are bringing down your score. (CreditMantri.com can provide you with a <a title="Free credit report" href="https://www.creditmantri.com/freecredithealthcheck">free credit score</a> and also guide you on how to navigate the problem areas in your credit health.)<br /> 2. Find out if there are any administrative/reporting errors in your report that are pulling down your score for no fault of yours. File a dispute with the credit bureau immediately.<br /> 3. Resolve to make all your payments in time and in full. This is the best way to quickly improve your score. When you have a consistent record of making timely payments, you are viewed as being financially responsible and your score will rise. Conversely, the more you delay your payments (credit card bills, EMI, insurance premiums), the more your score drops.<br /> 4. Starting from today, spend less than 30% of the credit limit on each of your credit cards. It might be difficult to cut down on purchases and change your spending pattern, but having a low utilisation rate is a good way of improving your score quickly. You need to exercise the same self-discipline as a diabetic who has to give up eating sweets.<br /> 5. Ask your lenders for a hike in your credit limit. However, make sure that your monthly spending does not increase. This way, your credit utilisation rate immediately drops, causing your credit score to improve quickly.</p>https://www.creditmantri.com/articles/how-to-check-credit-historyHow can I check my credit history?https://www.creditmantri.com/articles/how-to-check-credit-history<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/614d8b3b48bbfb985890c1815d8bff16_hw-can-i-check-my-vredit-history.jpg'/></p><p><strong>How can I check my credit history?</strong><br /><br />To check your credit history, you should obtain a copy of your Credit Report. For this, you need apply to one of the three rating agencies in India - CIBIL, Equifax or Experian. Your Credit Report contains details of all your loan-related transactions with the formal banking system. It has records of every loan/credit account you have and has detailed information regarding your entire payment history. Your credit score is calculated on the basis of your financial track record as noted in your Credit Report.</p> <p><strong>What is the process to check credit history?</strong><br /><br />You can get a good idea of your credit history by reviewing your Credit Report. These are the following steps you need to undertake to get a copy of your Report:<br /><br /> 1.Get on to the CIBIL website and apply online for a copy of your Credit Report.<br /> 2.Furnish the required documentation&ndash; one ID proof and one address proof.<br /> 3.Scan and upload these documents.<br /> 4.Make the payment online.<br /> 5.Receive your Credit Report by email within a day, if the documentation is verified and payment received.</p> <p>Alternatively, if you do not have the time to undertake the above, CreditMantri can get you a free credit report and provide you with a free credit health check. This service will help you learn what is contained in your report and let you know what your areas of your credit strength and weakness are.</p> <p><strong>What is the process to check credit history?</strong><br /><br /> Once you receive your report, you will know what your credit score is. This will give you a good idea if you are eligible for loans or not.<br /> A credit score below 750 means that you do not have a strong credit history and will find it difficult to get approved for loans. You will need to improve your score in case you intend to approach the financial system for credit in the future.<br /> If your score is above 750, then you are well-placed to be approved for loans and will receive better terms when your application is being processed. It is crucial to make sure that your credit score is above 750 before you apply for a loan or you run the risk of having your loan rejected and your score dropping further.<br /> You also need to check credit history to ensure that there is no wrong information listed on your credit report. Sometimes, due to administrative errors or even fraud, some credit details can be wrongly entered. It is useful to go through your history in detail contained in your report to make sure that you rectify any errors immediately.<br /><br /> CreditMantri can help you understand your credit situation and guide you on how to reach the optimum score to ensure loan approval.</p>https://www.creditmantri.com/articles/what-is-a-bad-credit-scoreWhat is a bad credit score?https://www.creditmantri.com/articles/what-is-a-bad-credit-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3e5f96bf50ba1ae659ad7349dfd9dd5b_bad-credit-score.png'/></p><p><strong>What is a bad credit score? </strong><br /><br />A bad credit score is generally one that is less than 650. A credit score is a three digit number in the range of 300-900 that is issued by a credit rating agency. It gives lenders a snapshot idea of your credit-worthiness. A score below 750 often disqualifies you from being granted a loan as it implies that you have bad credit &ndash; that is, you do not demonstrate financially responsible behaviour. On the other hand, a good credit score (above 750) signifies that you have a good history of fulfilling your financial obligations. A good score makes you an attractive customer to potential lenders. <br /><br /> Your credit score is calculated after taking into account every detail of your credit history. Every loan-related transaction is recorded by the financial system and sent to the credit rating agencies. (In India, the three credit rating agencies in operation are CIBIL, Equifax and Experian.) Your credit score reflects your individual payment history with regard to all your loans, both past and present, and across all lending institutions. A low score implies that you have a bad credit record, most often as a result of a poor repayment history</p> <p><strong>Reasons for a low credit score</strong><br />These are some of the common reasons for a low credit score:<br /><br /> 1.<strong>Delayed repayments:</strong> Many people do not realize that even one or two delayed credit card payments can affect your credit score and cause it to drop. The more the number of delayed payments, the greater the negative impact on your credit history and credit score.<br /> 2.<strong>Missed payments:</strong> Sometimes due to an unforeseen emergency, you may not be in a position to make your payments. For example, you might have unexpected medical expenses for a hospital stay, or you might lose your job, making it difficult for you to fulfill all your loan obligations. If you miss any payments, it will be recorded in your credit history and lead to a drop in your score.<br /> 3.<strong>Lack of credit history:</strong> If you have not borrowed for a loan or had a credit card account, you will not have much of a credit history. This too can lead to a low credit score.<br /> 4.<strong>Administrative error:</strong> Occasionally, there may be an administrative error that results in wrong information being recorded on your credit report. Sometimes, this might be the result of fraudulent activity as well. For no fault of yours, these errors could lead to a lower credit score, signaling to future lenders that you have bad credit.</p> <p>In general, it is advisable to have a credit score of 750 or above in order to be in good credit standing with banks and other lenders. Anything under 750 is viewed negatively by lenders who are reluctant to approve your loan. It is important to improve your score to at least 750 so that your loan application is not automatically rejected during the initial application process</p> <p>If you have a low score and are afraid that your loan application might be rejected, CreditMantri can help you improve your credit score so that you become loan-eligible within a period of 6-8 months.</p>https://www.creditmantri.com/articles/check-your-credit-score-before-applying-for-a-credit-cardCheck your credit score before applying for a credit cardhttps://www.creditmantri.com/articles/check-your-credit-score-before-applying-for-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4beb5488b008860c2655288b0c2105ca_ccheck-credit-score-before-appy-creditcard.jpg'/></p><p>Many people who have a credit score are under the mistaken impression that it is used only when they apply for a loan.</p> <p>There are several areas where your credit score is a big factor - including when you apply for a credit card. When you do not know your credit score and apply for a credit card, these are some possible outcomes:<br /><br /> &bull; If you have a low credit score, your application will be rejected right away. This will have a negative impact on your score.<br /> &bull; If you think you might have a bad score, you may decide to make multiple credit card applications, hoping you will qualify with at least one lender. This is a self-defeating strategy as a low credit score automatically disqualifies all your applications. Making multiple applications and receiving multiple rejections will cause your score to drop substantially. <br /> &bull; Banks may be unwilling to increase your limit if you do not have a good enough credit score.</p> <p>All these scenarios can be averted if you check your credit score before you decide to apply for a card. If you have a low score, it is worthwhile to spend some time on improving it so that you do not face rejection and a further decrease in your score.</p> <p>Creditmantri.com can help you get your credit report for free and work with you on improving your credit score, if required.</p>https://www.creditmantri.com/articles/why-you-need-to-check-your-credit-reportWhy you need to check your Credit Reporthttps://www.creditmantri.com/articles/why-you-need-to-check-your-credit-report<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6992417d52997f58040e6a2df4474989_article2.png'/></p><p>Sourav and Ankit are watching the New York Marathon on TV and decide that they want to run a marathon. Sourav immediately goes online and signs up for the Mumbai marathon taking place in two months time. While running the race, his initial excitement gives way to exhaustion, and he realizes he is physically unfit for such a demanding race. He drops out before reaching the halfway point.</p> <p>Ankit approaches the race decision differently. He visits the doctor for a complete check-up where he finds out, to his surprise, that he has low iron levels. Newly aware of this fitness issue, he decides against signing up for this year&rsquo;s race. He takes medication, trains regularly and registers for next year&rsquo;s marathon. Who do you think maximized his chance of success?</p> <p>Clearly, Ankit! It is the same logic that applies to your credit health and loan applications. If you are unaware of your credit score or credit health problems and apply for a loan, you could perform badly during the approval process. The problem areas mentioned in your report could cause lenders to reject your application.</p> <p>The good news is that, like Ankit, you can make sure that you perform well during the loan approval &lsquo;race&rsquo; by checking your <a href="https://www.creditmantri.com/resolve-cibil-score-issues">credit report periodically</a>. If you know what is in your credit report, it is like going for an interview and knowing what questions will be asked. You can prepare beforehand to ace the loan &lsquo;interview&rsquo;! To increase your chances of being approved for a loan, you should<br /> &bull; Check your report annually so that you remain updated on your score<br /> &bull; Identify issues in your credit health (insufficient credit history, missed payments, reporting errors etc.)<br /> &bull; Focus on these areas to improve your score</p> <p>Creditmantri.com helps you obtain your <a href="https://www.creditmantri.com/free-credit-score-analysis-online">Credit Report for free</a>, guides you on improving your score (if required), and puts you in touch with lenders that suit your profile.</p>https://www.creditmantri.com/articles/what-is-credit-repairWhat is credit repair?https://www.creditmantri.com/articles/what-is-credit-repair<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/959bbe63f3f248d5269c5f312b436723_credit-repair.png'/></p><p><strong>What is credit repair?</strong><br /><br /> Credit repair involves rebuilding your credit health to a level where you become eligible for loans. People typically need credit repair services to help them improve their credit score and undo the damage done to their credit health because of faulty financial behaviour in the past.<br /><br /> <strong>How do I know if I need credit repair?</strong><br /><br /> In general, if you have a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of less than 750, it is advisable to seek professional help to improve your score and prevent rejection of your loan applications in the future. Any rejection further decreases your score as it implies that lenders have turned you down because of your poor credit history.<br /><br /> <strong>What are the kinds of credit repair services available?</strong><br /><br /> There are several ways of resolving credit problems, depending on each individual&rsquo;s situation. CreditMantri, for instance, offers a free credit report and credit health check that identifies the customer&rsquo;s problem areas and makes recommendations for improving the credit score. If you do not have the time to follow up on the recommendations yourself, you can opt to have help in executing them. For example, if there are errors in your report, CreditMantri will file a dispute with the credit rating agency on your behalf, and follow it up until it is resolved.<br /><br /> Similarly, you could increase your credit score by availing of a secured credit card against a fixed deposit to ensure that you do not miss any payments on your&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> account. This is one way to ensure that your score does not drop due to delayed or missed payments.<br /><br /> <strong>How long will it take for my score to improve?</strong><br /><br /> Depending on the extent of your credit issues, it can take up to 6-8 months to reach a stage where you are loan-eligible. Those with relatively minor issues can rebuild their credit in a much shorter time frame. A score in the 600 range will naturally take less time to improve than one in the 500 range.<br /><br /> Rebuilding your credit is not an impossible task. Though there is no magic wand that will instantly fix all your credit issues, all it needs is a certain amount of commitment and perseverance to achieve your credit goal.<br /><br /> CreditMantri offers a range of tailored services that will help you improve your credit score and general credit health. The experienced team can identify your credit issues and help you turn around your credit profile in the most efficient and effective way possible.</p>https://www.creditmantri.com/articles/what-is-the-average-credit-scoreWhat is the average credit score?https://www.creditmantri.com/articles/what-is-the-average-credit-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f9a1773114375701ce4fce4905c07cfb_average-score.png'/></p><p><strong>What is the average credit score?</strong><br /><br /> There is really no number that can be established as the average credit score in India. Many people see regular changes to their score based on their changing credit behaviour. Even if there is no average score, there are good and bad scores and the goal of every consumer should be to reach and maintain a good score.<br /><br /><strong> What is a good credit score?</strong><br /><br /> A score above 750 is a good score to have. A&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score in India</a> is in the range of 300-900. These scores are issued by three credit rating agencies, or credit bureaus in India &ndash; CIBIL, Equifax and Experian. A high score implies that the customer has demonstrated consistently responsible credit behaviour over many years. Banks and other lenders tend to view such customers more favourably when reviewing their loan application. In some banks, anyone with a good score automatically qualifies for a loan without even having to go through the review process.<br /> Sometimes, you may get different scores from the different credit bureaus. This is because each agency has its own methodology for calculating a score. Lenders are familiar with the different scoring models used by these bureaus and will use the score that best suits their requirements. For example, an auto lender might have slightly different set of criteria than a housing lender, and will choose the methodology that addresses those requirements.<br /><br /><strong> What is a bad score?</strong><br /><br />In general, it is not advisable to let your score dip below 700. Of course, the lower your score, the lower the chance of qualifying for a loan. A low score is a warning signal to potential lenders that you have not demonstrated financial maturity in your credit behaviour. As a result, lenders might be reluctant to approve your loan. Even if they do offer you a loan, it might not be on attractive terms.<br /><br /> <strong>How can I achieve and maintain a good score?</strong><br /><br /> The first step is to get a copy of your credit report and find out your score. If it is not a good score, you need to go through the report and identify the main credit issues that you need to work on. (These could include negotiating with lenders, correcting reporting errors and filing a dispute, or lowering your credit utilization rate.) Set a goal (ideally a score of 750) and systematically change your credit behaviour so that you reach your target.<br /><br /> If you do not have the time to do this on your own, CreditMantri can help you obtain a <a href="https://www.creditmantri.com/free-credit-score-analysis-online">free report</a>, analyse your credit profile, suggest specific actions to improve your score, and execute these actions so that you become loan-eligible in the most efficient and effective way possible.</p>https://www.creditmantri.com/articles/what-is-a-credit-reportWhat is a credit report?https://www.creditmantri.com/articles/what-is-a-credit-report<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a81256adc318fa86df8428018acf9d5f_credit-report.png'/></p><p><strong>What is a credit report?</strong><br /><br /> A&nbsp;<a href="https://www.creditmantri.com/articles/how-to-dispute-credit-report">credit report</a> is a history of your credit behaviour and contains detailed information on all your loan and credit related transactions with banks,&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card </a>companies and other lenders. It can contain details of your credit activity from 7-10 years earlier. It is issued by one of the three credit bureaus, or credit rating agencies, in operation in India &ndash; CIBIL, Equifax and Experian.<br /><br /> Lenders use the data in the reports to evaluate your ability to make loan repayments and to decide whether to lend to you. If they approve your loan, the information in your report also helps them determine how much to lend, at what rates, and for what period.<br /><br /> <strong>What kind of information does my credit report contain?</strong><br /><br /> Your report will include the following details, among many others, that lenders pay attention to when deciding whether to approve your loan:<br /><br /> 1.&nbsp;&nbsp;<strong>Percentage of on-time payments:</strong> Every time you make or miss a payment, your lender reports it to the credit bureau, which in turn makes a note of it on your report. If your <a href="https://www.creditmantri.com/free-credit-score-analysis-online">credit report</a> shows a consistent pattern of making all your payments on time and in full, then potential lenders feel confident that you will not default on your loan payments and will be inclined to approve your loan application. However, if you have a large number of missed, delayed or partial payments, there is a good chance that your loan application will be rejected. The greater the number of incomplete payments, the lower your chances of being approved.<br /> 2.&nbsp;&nbsp;<strong>Number of credit accounts and total credit limit:</strong> If you have too many outstanding loans or credit card accounts, lenders might get the impression that you are short of funds and need to apply for credit from multiple sources. However, it is also important to note that having too few credit accounts mean lenders will not have enough information about your repayment behaviour to make a lending decision. Similarly, if you have a high credit limit, it signals that lenders view you as a safe customer.<br /> 3.&nbsp;&nbsp;<strong>Age of the credit accounts:</strong> The longer you have a credit history, the more information there is for lenders to judge your repayment pattern. If you have very young (new) accounts with few repayments to show, lenders are unwilling to make a lending decision since they have insufficient data to determine your track record in making payments.<br /> 4.&nbsp;&nbsp;<strong>Credit score:</strong> Credit bureaus use a complex mathematical formula based on the above data plus many other factors to calculate your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. In India, the score ranges from 300-900. If you have a high score (above 750) you stand a good chance of being automatically approved for a loan and will be eligible for more attractive terms.<br /><br /> CreditMantri can help you obtain a free credit report, analyse the information in your report and highlight the areas you need to work on. This will enable you to focus on what needs to be done to improve your credit health.</p>https://www.creditmantri.com/articles/what-is-credit-ratingWhat is a credit rating?https://www.creditmantri.com/articles/what-is-credit-rating<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/35b583b5a1b6a84573b3de60f80d7429_credit-rating.png'/></p><p><strong>What is a credit rating?</strong><br /><br /> A <strong><a href="https://www.creditmantri.com/credit-score-estimator">credit rating</a> </strong>- also known as a credit score - is a 3 digit number between 300-900 that gives potential lenders a snapshot of the customer's credit health. Your score reflects your ability to fulfill your financial obligations within the formal banking system. It is calculated on the basis of several factors including, most importantly, your repayment history.<br /><br /> <strong>Who issues the rating, and how is it calculated?</strong><br /><br /> A credit rating or score is issued by credit rating agencies. There are three such agencies operating in India &ndash; CIBIL, Equifax and Experian. Your credit score is arrived at based on your credit track record. It does not take into account your assets or investments or any other non credit-related financial transactions. The credit agencies have details on every credit transaction you have entered into with the formal banking system, including your monthly EMI history, every loan/credit card application you have made, and information on whether it has been approved or rejected. The agencies also receive information from lenders on any late or missed payments, and incomplete/partial payments. Your credit score is calculated based on all these factors, among many others.<br /><br /> <strong>Why is my credit rating important?</strong><br /><br /> There are several situations where your credit score plays a crucial role:<br /><br /> 1.&nbsp;&nbsp;<strong>When applying for a loan</strong> - Potential lenders ask&nbsp;<a href="https://www.creditmantri.com/what-is-credit-score-credit-rating">credit rating</a> agencies for your credit score and/or your credit report to evaluate if you are a high-risk customer. If you have a low score, they might be unwilling to lend to you as they are unsure about your ability to make full and timely repayments. If you have a good score, lenders will view you as a safe, low-risk customer and automatically approve of your loan application. In addition, you might be offered better terms (lower interest rates) or a longer repayment period.<br /> 2.&nbsp;<strong>&nbsp;When applying for a credit card</strong> &ndash; If you have a good score, you will be eligible for better interest terms, higher credit limits, certain kinds of awards or waiving of some fees.<br /> 3.&nbsp;&nbsp;<strong>When applying for a job</strong> &ndash; Potential employers can ask for your credit score to judge if you demonstrate a consistent pattern of financial responsibility. This is especially important in sensitive jobs in the financial sector or in compliance roles.<br /> 4.&nbsp;<strong>&nbsp;When planning to rent</strong> &ndash; In advanced credit economies, like the U.S., landlords can request the credit agencies for your credit score to judge if you can be trusted to meet your rental payments. This might be the case in future in India as well.<br /> <br /> <strong>What is a good credit score?</strong><br /><br /> In general, a&nbsp;<a href="https://www.creditmantri.com/community/question/Score-Above-750/131">credit score above 750</a> enables you to be loan-eligible. Many loans applications are automatically approved when the customer has a score in this range.<br /> Any score below 750 runs the risk of loan rejection. Even if you are approved with a low score, you might not be offered competitive interest rates. It is better to ensure that you have a good score before you apply for a loan.<br /><br /> <strong>How do I obtain my credit score?</strong><br /><br /> You can apply online to request your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. You will need to provide the requisite ID and address proof documentation and make the payment. After verification, you will receive your credit report which contains your credit score.</p> <p>Alternatively, CreditMantri can help you get a free credit report and score. You will be guided on how to improve your score, if required, so that your loan application is not rejected and you are able to avail of more attractive loan offers.</p>https://www.creditmantri.com/articles/how-to-get-a-free-credit-checkHow to get a free credit checkhttps://www.creditmantri.com/articles/how-to-get-a-free-credit-check<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e0713b26e5bfc6ef298a82bca1d2f4ec_i-get--free-credit-check.png'/></p><p><strong>How to get a free credit check</strong><br /><br /> Is it possible to obtain a free credit check or credit report? The answer is yes and no!<br /><br /> <strong>No</strong> - At the start, it needs to be made clear that it is not possible for anyone to get a free credit report or credit check directly from a credit rating agency in India. Anyone who wants a credit report needs to pay for a copy &ndash;usually a few hundred rupees. This applies to both individuals as well as institutions. For example, if a bank or lending agency wants to check your credit history when reviewing your loan application, they too have to pay for a copy of your report.<br /> <strong>Yes</strong> - However, it is possible to get a <a href="https://www.creditmantri.com/freecredithealthcheck">free credit check</a> online through CreditMantri. CreditMantri has tied up with Equifax to obtain a credit report for all of their customers. (Equifax is one of the three credit rating agencies that issue a credit report in India.) So, while you will not be able to get a free credit check if you apply directly to the agency as an individual, CreditMantri can obtain your report for you, for free.<br /><br /> <strong>Is a credit score different from a credit check/credit report?</strong><br /><br /> Yes. A credit score forms part of your larger credit report. Your credit score is a three digit number between 300-900 that is a snapshot of your credit-worthiness. Your score is mentioned in your credit report which contains information on all your credit transactions. Your report has details on every single loan or credit card account you have had with a variety of lenders over a period of time. It includes your payment history, number of credit accounts, your outstanding balance, delinquent accounts and your total credit limit among other details.<br /><br /> <strong>What is the process to get a free credit check online?</strong><br /><br /> First, you need to register at creditmantri.com and apply for a free credit check. You will be asked for some documentation &ndash; an ID proof and address proof. Once you complete this and the documents are verified by the agency, CreditMantri will obtain your credit score. You do not need to make any payment for the credit score.<br /><br /> Not only will you get a free credit score, but you will also receive a free analysis of your report to help you understand your credit health. Sometimes, the credit report can be in a very technical format that might not be easy to follow. CreditMantri will review the report, highlight problem areas that you need to work on to improve your credit score and guide you, if required, on how to improve your credit health and become loan-eligible.</p>https://www.creditmantri.com/articles/how-to-improve-credit-ratingHow do I improve my credit rating?https://www.creditmantri.com/articles/how-to-improve-credit-rating<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6e73e7fa0543d339d5569929db352cbf_IMPROVE-MY-CREDIT-RATING.jpg'/></p><p><strong>How do I improve my credit rating?</strong><br /><br /> It is possible to improve your&nbsp;<a href="https://www.creditmantri.com/articles/what-is-credit-rating">credit rating</a> or credit rating within a few months, depending on the state of your credit health. Even if you have a poor credit score, it is possible to turn it around either on your own or, if you do not have the time, with professional help and guidance.<br /><br /> <strong>What is the meaning of a credit rating?</strong><br /><br /> Your credit rating or&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> is a three digit number between 300-900 that is a snapshot of your credit health. This rating is issued by three credit bureaus that operate in India &ndash; CIBIL, Equifax and Experian. It is based on details of your credit behaviour over a period of years. The credit bureaus have details of every credit&ndash;related transaction you have entered into over a period of 7-10 years. The higher your credit rating (i.e., the better your credit history), the higher your chance of being approved for a loan.<br /> A credit score of 750 or above is generally considered as a good score. You can automatically qualify for a loan with many lenders with this score.<br /><br /> <strong>What steps should I take to improve my credit score?</strong><br /><br /> First, you need to get an updated copy of your credit report to find out what your most recent credit score is. You can apply to any one of the 3 credit bureaus to obtain a recent copy of your credit report. Read your report to understand the meaning of <a href="https://www.creditmantri.com/credit-score-estimator">your credit rating</a> and to identify any credit issues that you need to work on. Some of these issues could include:<br /> 1. <strong>Administrative/reporting errors:</strong> If you identify any mistaken entries that are dragging down your score for no fault of yours, you need to report it to the credit bureau immediately and file a dispute.<br /> 2. <strong>Large number of missed or delayed payments</strong>: Making all your payments in time and in full will significantly help increase your score.<br /> 3. <strong>High credit utilization rate:</strong> If you use more than 30% of your total credit limit on your credit card, it signals that you are hungry for credit. This will cause your score to drop. If this is the case, you will need to work on reducing your credit utilization.<br /> 4. <strong>Large number of credit accounts:</strong> If you have numerous loans and credit cards accounts, it implies that you have insufficient credit and need to tap multiple sources to fulfill your financial obligations. If this is an issue for you, you will need to optimise the number of credit accounts you have so that your score is not negatively impacted.<br /><br /> CreditMantri can help you obtain a free copy of your credit report and do an expert analysis so you can work in a focused and effective matter to improve your score and become loan-eligible.</p>https://www.creditmantri.com/articles/how-to-get-a-loan-with-bad-creditHow do I get a loan with bad credit?https://www.creditmantri.com/articles/how-to-get-a-loan-with-bad-credit<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0c3db2503bdbc75111a4942e94299b6e_bad-credit-score.jpg'/></p><p><strong>How do I get a loan with bad credit?</strong><br /><br />A more relevant question is, &ldquo;Is it advisable to get a loan with bad credit?&rdquo; There is a chance you can get a loan if your credit record is not good, but it is not advisable. If you are lucky enough to get a loan, you will be doing long term damage to your credit health and incurring a needlessly heavy repayment burden. Instead, if you have poor credit, you can save significant money on your repayment burden by first improving your credit before <a href="https://www.creditmantri.com/personal-loan/">applying for a loan</a>.</p> <p><strong>Is it possible to get loans with poor credit?</strong><br /><br /> Yes, it is possible. If you do not a very poor credit record, there is a chance that a lender might decide to approve your application. Each lender has their own set of requirements and evaluation criteria, so you might be approved by one lender while being turned down by many others. One lender might be willing to take the risk of lending to a customer with poor credit, but with tougher loan terms in order to safeguard their money.<br /><br /> <strong>What are the disadvantages of applying for loans with bad credit?</strong><br /><br /> 1. If your loan application is rejected by multiple lenders because of <a href="https://www.creditmantri.com/reasons-for-low-credit-score-bad-credit-history">your poor credit record</a>, each rejection will cause your credit score to drop further and damage your credit health &ndash; even if you are finally approved for a loan. If you are rejected 4 times before being approved by the 5th lender, your credit score will decrease with each rejection.<br /> 2. Even if your application is approved, you might be subject to harsh terms and conditions on your loan. You might be given a higher interest rate, shorter repayment period, or a smaller loan amount.<br /><br /> <strong>What should be my first step to obtain a loan if I have a poor credit record?</strong><br /><br /> First, you need to concentrate on improving your credit. This can take an average of just 4-8 months, depending on how serious your individual credit situation is. Once you improve your score, you are in a position to have your loan approved and prevent the chance of rejection and a consequent decrease in score. Another advantage of a good score is that you can avail of far more attractive terms and have a lighter long-term repayment burden over your loan period.<br /><br /> If you have bad credit, CreditMantri can guide you in improving your credit health so that you can become loan eligible and save a substantial amount of money in the long term with your improved credit.</p>https://www.creditmantri.com/articles/how-much-does-credit-repair-costHow much does credit repair cost?https://www.creditmantri.com/articles/how-much-does-credit-repair-cost<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d0edde10459f94a4738e2a322b39821b_credit-repair-cost.jpg'/></p><p><strong>How much does credit repair cost?</strong><br /><br /> You can repair your credit absolutely free if you do it yourself! However, many people choose to get professional help in rebuilding their credit health either because</p> <p>1) they do not have the time to do it themselves or</p> <p>2) the credit issues are too serious or complex and require expert help to resolve.</p> <p>If you choose outside help, the cost is usually a few thousand rupees depending on the seriousness of the issues involved. When choosing someone to help repair credit in India, it is important that you identify a company that does not offer an instant increase in your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Sometimes, some unscrupulous companies who claim to repair credit immediately, can indulge in fraud to instantly raise your credit score. While this might get you a loan in the short term, you will face long term, irreversible damage to your credit when the fraud is detected by the authorities.<br /><br /> <strong>How can I repair my credit on my own?</strong><br /><br /> First, you need to obtain a copy of your credit report and study it to see what your credit problems are. Below are some of the more common issues involving credit repair in India and how you could go about resolving them on your own: <br /><br /> 1. Administrative/reporting errors: If you identify any mistaken entries that are dragging down your score for no fault of yours, you need to report it to the credit bureau immediately and file a dispute. In India, the 3 credit bureaus that issue credit reports are CIBIL, Equifax and Experian.</p> <p>2. Large number of missed or delayed payments: Making all your payments in time and in full will significantly help increase your score.</p> <p>3. High credit utilization rate: If you spend more than 30% of your total credit limit on your <a href="https://www.creditmantri.com/credit-card/">credit card</a>, it signals that you are hungry for credit. This will cause your score to drop. You will need to work on reducing your monthly expenses and bringing down your credit utilization rate.</p> <p>4. Large number of credit accounts: If you have numerous loans and credit cards accounts, it implies that you have insufficient credit and need to tap multiple sources to fulfill your financial obligations. If this is an issue for you, you will need to optimise the number of credit accounts so that you have a healthier credit profile.<br /><br /> If you do not have the time to undertake these steps, or if the credit report seems too technical, it is simple to sign up for professional help. CreditMantri can help you obtain a free credit report, analyse the contents, suggest specific actionable steps on how you can rebuild your credit health, and execute those steps for you as well.</p>https://www.creditmantri.com/articles/how-to-improve-credit-scoreHow can I improve my credit scorehttps://www.creditmantri.com/articles/how-to-improve-credit-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f505a4c1a15f0ffa53fa600cd7d19333_improve-my-credit-score.jpg'/></p><p><strong>How can I improve my credit score</strong><br /><br /> It is important to remember that there is no instant quick-fix for increasing your credit score overnight or in a couple of weeks. However, it is possible to significantly improve your score in a short timeframe by following the tips listed below. It is also good to periodically <a href="https://www.creditmantri.com/free-credit-score-predictor">check your credit score</a> so that you remain updated on your credit health.<br /><br /> 1.<strong>Obtain your credit report right away:</strong> The simplest and quickest thing you can do is to ask the credit bureau for a copy of your credit report and check your credit score. Look for reporting errors that might be unnecessarily dragging down your score. (e.g. a loan you might have repaid in full but is still shown as having overdue payments.) Once you identify any errors, you should file a dispute resolution with the bureau to rectify the matter immediately. Removing wrong entries on your report will improve your credit score. <br /><br /> 2.<strong>Ask for a higher limit on your credit card:</strong> If you spend more than 30% of your total credit card limit across all your existing cards on a monthly basis, it will decrease your score. Ask for a higher limit and maintain or reduce your current monthly expenditure so that you use less than 30% of your new limit. This will increase your score right away. There is no point in getting a higher limit and then spending more than usual &ndash; this will have a reverse effect and only cause your score to drop further. <br /><br /> 3.<strong>Keep your credit card balance low:</strong> Try and maintain a low balance across your cards. A higher credit limit gives you more flexibility to make payments and keep your balances low. This will help your credit score. <br /><br /> 4.<strong>Set up payment reminders:</strong> This will help you avoid missing payment deadlines and ensure your score does not drop because of this reason. Repayment history can account for up to 30% of your credit score so it is very important to make sure all your repayments are on time and made in full. Your bank can send you a monthly email or SMS reminder or you can have the monthly balance paid automatically from your bank account. <br /><br /> It is possible to undertake all these steps in a short period of time and see a positive effect on your score. You could also use a secured card to improve your score. CreditMantri can help with all of the actions above and will guide you through the process of improving your credit score and becoming loan-eligible.</p>https://www.creditmantri.com/articles/how-to-dispute-credit-reportHow to dispute information on your credit reporthttps://www.creditmantri.com/articles/how-to-dispute-credit-report<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b4fe3514fcce15494f61388acf0dc671_dispute-credit-report.jpg'/></p><p><strong>How to dispute information on your credit report</strong><br /><br /> It is crucial to immediately rectify errors/outdated entries in your credit report. Any delay only causes the problem to become more complicated and will affect<a href="https://www.creditmantri.com/credit-score-estimator"> your credit score</a>. Below are some of the errors that might appear in a <a href="https://www.creditmantri.com/articles/what-is-a-credit-report">credit report in India</a>, and suggestions on how they can be resolved.<br /><br /> <strong>1. Unknown name/address on report</strong><br /><br /> You will need to inform the credit bureau immediately by formally filing a dispute. An unknown name or address might also be a sign of fraudulent activity. Someone might have opened a loan account using your personal information. Track your report periodically to make sure that the information is corrected.<br /><br /> <strong>2. Unknown outstanding loan/ payment</strong><br /> <br /> If you have paid your loan off in full but still see it as being current, you need to file a dispute to correct the error. Similarly, immediately inform the bureau if you discover any unknown loans which could be a sign of potential fraud. Credit Mantri can help you with filing a dispute with the concerned bureau and following up on the progress on your behalf until the issue is resolved. <br /><br /> <strong>3. Updating address details</strong><br /><br /> You can do this in two ways. One, you can write to one of the 3 credit bureaus that issue a credit report in India - CIBIL, Equifax or Experian - and inform them of your new address. They will ask you for documents for proof of address. <br /><br /> Alternatively, you can inform all your creditors (banks/ NBFCs that you have borrowed from) and ask them to update the new address information in their records. Your new address details will be included when the lenders send your monthly report to the credit bureau and will be automatically updated.<br /><br /><strong> 4. Updating email address/ phone number</strong><br /><br /> In both these cases, it is important to notify your lenders or the credit bureau of the change. Many times, the credit bureaus communicate to you primarily through email or SMS so it is important for them to have your current details. For instance, if they need your authorization to furnish your credit report to an employer or lender, they will contact you through the email address you have supplied. If you have requested a credit report, they will email it to you at the email ID they have in their records.<br /><br /> <strong>5. Wrong spelling of name on report</strong><br /><br /> In this case too, you will need to notify the credit bureau and inform them of the correct name with documentary proof.<br /><br /> CreditMantri can help you with filing disputes in case of suspected fraudulent activity or coordinating with the credit bureaus to rectify administrative errors in your report. CreditMantri will file the dispute and track the progress of your complaint until it is resolved.</p>https://www.creditmantri.com/articles/is-a-credit-score-of-850-goodIs a credit score of 850 goodhttps://www.creditmantri.com/articles/is-a-credit-score-of-850-good<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3ba47f63778e2a90ca5268eb0506c7f4_your-score-is-850.jpg'/></p><p><strong>Is a credit score of 850 good?</strong><br /> Yes. In fact, a credit score of 850 is very good! Most lenders look for a minimum&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 to approve loans or credit card applications. A score of 850 signifies a low-risk customer who is unlikely to default on payments. Banks are eager to lend to customers with such a healthy credit profile.<br /><br /><strong> Is it possible to get a credit score of 850?</strong><br /> Yes, it is possible. But first, if your score is below 750, it is important to improve it so that your loan application is not rejected. Each rejection causes your score to drop even further.<br /><br /> <strong>Advantages of a credit score of 850</strong> <br /><br />A high credit score means that you will have faster access to credit and on much better terms.<br /><br /> 1. Your loan/credit card application will be approved much more quickly. With a high score, the approval is completed in a matter of days, if not less.<br /><br /> 2. The bank/<a href="https://www.creditmantri.com/credit-card/">credit card</a> company will offer you the loan at lower rates of interest since they are confident that you will repay on time.<br /><br /> 3. A good score might also result in a longer loan period.<br /><br /> 4. A person with a high score might also be eligible for a much larger loan amount &ndash; again, since the banks are confident that it will be repaid on time and in full.<br /><br /> It is possible to get a credit score of 850. It is very important to reach a score of at least 750 before applying for a credit card/loan to avoid rejection. If your score is below 750, CreditMantri can guide you on <a href="https://www.creditmantri.com/resolve-cibil-score-issues">how to improve your score </a>so that you become eligible for loans, and avoid rejection.</p>https://www.creditmantri.com/articles/is-a-credit-score-of-800-goodIs a credit score of 800 good?https://www.creditmantri.com/articles/is-a-credit-score-of-800-good<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/82646259e13b3d23e8a9f29aa1f02f3c_credit-score-800n.png'/></p><p><strong>Is a credit score of 800 good?</strong><br /> Is 800 a good credit score? Yes. In fact, a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 800 is very good! Only a small percentage of people reach, and consistently maintain, such a high credit score.<br /><br /> <strong>What is the range of credit scores?</strong><br /> There are three credit rating agencies authorized by the RBI to issue credit scores in India &ndash; CIBIL, Equifax and Experian. They issue a score that is a three digit number ranging from 300-900. Most lenders look for a credit score of 750 or above to approve of a loan. Anything above 750 makes you an attractive, low-risk customer and banks are eager to lend to people with such a good credit profile. <br /><br /> <strong>Advantages of a credit score of 800</strong><br /><br /> A high credit score means that you will have faster access to credit and on much better terms.<br /><br /> 1. Your loan/credit card application will be approved much more quickly. With a high score, the approval is completed in a matter of days, if not less.<br /><br /> 2. The bank/credit card company will offer you the loan at lower rates of interest since they are confident that you will repay on time.<br /><br /> 3. A good score might also result in a longer loan period.<br /><br /> 4. A person with a high score might also be eligible for a much larger loan amount &ndash; again, since the banks are confident that it will be repaid on time and in full.<br /><br /> It is advisable to aim to reach the best possible credit score you can. CreditMantri can guide you on how to improve your score so that you become <a href="https://www.creditmantri.com/credit-products/">eligible for loan offers</a> that have much more attractive terms and conditions</p>https://www.creditmantri.com/articles/what-is-the-best-credit-score-to-haveWhat is the best credit score to have?https://www.creditmantri.com/articles/what-is-the-best-credit-score-to-have<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6374ad241ef4087ca0d077e38e09a82a_credit-score-750.png'/></p><p><strong>What is the best credit score to have?</strong><br /> In India, the best credit score to have is one that is 750 or above. The three credit rating agencies that operate in India &ndash; CIBIL, Equifax and Experian - issue a three digit credit score to individuals that is between 300 and 900. When you have a high score of 750 or above, banks are reassured that you have a good repayment history and are a low-risk customer. You often automatically qualify for loans with such a score. If your credit score is below 750, banks are unsure about your ability to fulfill your repayment obligations and are unwilling to lend to you. <br /><br /> <strong>What is an excellent credit score?</strong><br /> Any score above 800 is an excellent <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. It ensures several advantages beyond just loan approval. Lenders are confident that you are a low credit risk and are willing to offer you very attractive loan terms in order to have you as their customer. <br /><br /> <strong>What are the advantages of credit score above 750?</strong><br /><br /> A high credit score means that you will have faster access to credit and on much better terms.<br /><br /> 1. Your loan/credit card application will be approved much more quickly. With a high score, the approval is completed in a matter of days, if not less.<br /><br /> 2. The bank/credit card company will offer you lower rates of interest since they are confident that you will repay on time.<br /><br /> 3. A good score might also result in a longer loan period.<br /><br /> 4. A person with a high score might also be eligible for a much larger loan amount &ndash; again, since the banks are confident that it will be repaid on time and in full.<br /><br /> Whatever your credit score, it is possible to reach 750 in a matter of months. Credit management companies, like CreditMantri, can help you take steps to improve your score to 750 and above so that you <a href="https://www.creditmantri.com/credit-report-analysis">become loan-eligible</a>, and you can avail of all the advantages of a high credit score.</p>https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-700Can I get a loan with a credit score of 700?https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-700<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/113d804e2b852e7a38efb59c71ea7d4a_Can I get a loan with a credit score of 700.jpg'/></p><p><strong>Can I get a loan with a credit score of 700?</strong><br /><br /> Is a credit score of 700 good? While it is not a very bad score, it is not good enough to automatically qualify for a loan. It is advisable to improve your score to at least 750 to qualify for credit. Most lenders look for a minimum score of 750 when deciding whether to approve of a loan application.<br /><br /> Similarly, if you apply for a&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> with a score of 700, you have a lower chance of being automatically approved. Improving your score by just 50 points higher will make your loan/credit card application process much faster and easier.<br /><br /> <strong>What are the disadvantages of applying for a credit card with a credit score of 700?</strong><br /><br /> 1. Application might be rejected: This is not good as each rejection will cause your credit score to drop further.<br /><br /> 2. Higher interest rate: Lenders will offer higher interest rates for customers with less than the minimum credit score. A higher interest rate can be an unnecessary financial burden and can also increase your chance of defaulting on your payments.<br /><br /> 3. Lower credit limit: Lenders will see your score as a reflection of some faulty credit behaviour in the past and might be unwilling to offer you a high credit limit.<br /><br /> All these disadvantages above can have a negative, long-term <a href="https://www.creditmantri.com/free-credit-score-analysis-online">impact on your credit score</a>. Therefore, it is advisable to improve your credit score to 750 before applying for credit. You could contact a professional credit management company, like CreditMantri, to guide you on how to improve your score in a few months so that you can have faster and hassle-free access to credit.</p>https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-650Can I get a loan with a credit score of 650?https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-650<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/41154228a4363935068644f5bfd614de_Can I get a loan with a credit score of 650.jpg'/></p><p><strong>Can I get a loan with a credit score of 650?</strong><br /><br /> It is difficult to get a <a href="https://www.creditmantri.com/personal-loan/">loan</a> with a credit score of 650. Most banks look for a minimum score of 750 when deciding whether to approve of a loan application. Similarly, if you apply for a&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> with a 650 score, you have a much smaller chance of being approved. Even if you are approved with this score, you might be offered unattractive terms on your card.<br /><br /> <strong>What is the range of credit scores in India?</strong><br /><br /> Your credit score is a three digit number between 300-900. It is ideal to have a score of 750 or above to qualify for loans or credit cards. If your score is less than 750, it is advisable to increase your score before applying for a credit card/loan.<br /><br /> What are the disadvantages of applying for a credit card with a credit score of 650?<br /><br /> 1. Application might be rejected: Each rejection will cause your credit score to drop further.<br /><br /> 2. Higher interest rate: With a low score of 650, lenders will see you as a high-risk customer and will offer higher interest rates to safeguard their money. A higher interest rate can be an unnecessary financial burden and will also increase your chance of defaulting on payments.<br /><br /> 3. Lower credit limit: Lenders will see your low score as a reflection of faulty credit behaviour and might be unwilling to offer you a high credit limit.<br /><br /> All these disadvantages above will have a negative and long-term impact on <a href="https://www.creditmantri.com/credit-score-advice/">your credit score</a>. Therefore, it is advisable to improve your score to 750 before applying for a credit card/loan. You could contact a professional credit management company, like CreditMantri, to guide you on how to improve your score so that you can have faster and easier access to credit.</p>https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-600Can I get a loan with a credit score of 600?https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-600<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0857876b3a468391fc7a020560711f34_Can I get a loan with a credit score of 600.jpg'/></p><p><strong>Can I get a loan with a credit score of 600?</strong><br /><br /> It is not likely that you will get a loan with a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 600. Most banks look for a minimum score of 750 when deciding whether to approve of a loan application, so 600 is not a good credit score to have. If your score is less than 750, it is advisable to increase your score before applying for a credit card/loan.<br /><br /> <strong>What are the disadvantages of applying for loan with a credit score of 600?</strong><br /><br /> 1. Application might be rejected: A low credit score signifies that you have had a problem with repayment in the past and lenders will be unwilling to lend to a customer with such a credit profile. Each rejection will cause your credit score to drop further.<br /><br /> 2. Higher interest rate: With a low score of 600, lenders will see you as a high-risk customer and will offer higher interest rates to safeguard their money. A higher interest rate can be an unnecessary financial burden and will also increase your chance of defaulting on payments.<br /><br /> 3. Lower credit limit: Lenders will see your low score as a reflection of faulty credit behaviour and might be unwilling to offer you a high credit limit.<br /><br /> All these disadvantages above will have a negative and long-term impact on your credit score. Therefore, it is advisable to improve your score to 750 before applying for a credit card/loan. You could contact a professional credit management company, like CreditMantri, to guide you on how to <a href="https://www.creditmantri.com/can-i-get-a-free-cibil-score ">improve your score</a> so that you can have faster and easier access to credit.</p>https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-550Can I get a loan with a credit score of 550?https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-550<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/82fdf5045756e7772ff3bf7d849260f3_Can I get a loan with a credit score of 550.jpg'/></p><p><strong>Can I get a loan with a credit score of 550?</strong><br /><br /> It is difficult to get a loan with a credit score of 550. Most banks look for a minimum score of 750 when deciding whether to approve of a loan application. If your score is less than 750, it is very important to increase your score before <a href="https://www.creditmantri.com/credit-card/">applying for a credit card</a>/loan.<br /><br /> <strong>My credit score is 550. How can I improve it?</strong><br /><br /> Your first step should be to study your credit report and identify the reasons for your low score. This could include administrative errors, late or missed payments or a high credit utilisation rate.<br /><br /> If the credit report format is too technical, difficult to understand or you do not have the time to analyse it, you could turn to a professional credit management company, like CreditMantri, to help you increase your score.<br /><br /> <strong>What are the disadvantages of applying for loan with a credit score of 550?</strong><br /><br /> 1. Application might be rejected: Each rejection will cause your credit score to drop further.<br /><br /> 2. Higher interest rate: This can be an unnecessary financial burden and will also increase your chance of defaulting on payments.<br /><br /> 3. Lower credit limit: With a score of 550, lenders will offer a very low credit limit.<br /><br /> All these disadvantages above will have a negative and long-term impact on your credit score. Therefore, it is advisable to improve your score to 750 before applying for a credit card/loan. You could contact a professional credit management company, like CreditMantri, to guide you on <a href="https://www.creditmantri.com/improve-credit-score-immediately">how to improve your score</a> so that you can have faster and easier access to credit.</p>https://www.creditmantri.com/articles/what-is-a-good-cibil-scoreWhat is a good CIBIL scorehttps://www.creditmantri.com/articles/what-is-a-good-cibil-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f08b934285926f919e47e5865ff81135_01.png'/></p><p><strong>What is a good CIBIL score?</strong><br /><br /> A good&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> is one that is 750 or above. A credit score is a three digit number between 300-900. The better your credit history, the higher your score will be. <br /><br /> Your score is based primarily on your current and past loan and credit card repayment history, among other factors. It gives potential lenders a snapshot of your credit health and your ability to repay your debts on time. <br /><br /> Your credit score is contained in your CIBIL credit report.<br /><br /> <strong>Do any other agencies issue credit scores apart from CIBIL?</strong><br /><br />Two other credit rating agencies (or credit bureaus) are authorised by the RBI to issue <a href="https://www.creditmantri.com/">credit scores in India </a>&ndash; Equifax and Experian. However, the CIBIL credit score is probably the most widely used by potential lenders.<br /><br /> <strong>What are the advantages of a good (above750) credit score?</strong><br /><br /> &bull; Easier loan/credit card approval process: Lenders generally look for a minimum score of 750 before processing your application. A credit score of 750 or above signifies a customer who has good repayment history. There is a good chance your application will be approved with such a score.<br /><br /> &bull; Quicker approval: Once lenders see a good score, the approval process can take just days instead of weeks or months.<br /><br /> &bull; Better interest rate: A high score denotes reliable credit behaviour, and banks would like to do business with such customers. You might be offered a low rate of interest in order to gain you as a customer.<br /><br /> &bull; Longer repayment period: You might get a longer loan tenure since the lender is confident that you will repay the amount. <br /><br /> &bull; Higher loan amount/card credit limit: Since you are reliable with repayments, banks will be willing to extend a larger amount of credit.<br /><br /> <strong>How is the credit score calculated?</strong><br /><br /> CIBIL collects a large amount of data monthly from your lenders including your:<br /><br /> &bull; payment history (current and previous) on all your loans and credit cards <br /> &bull; total available credit balance <br /> &bull; number and age of your loan and <a href="https://www.creditmantri.com/credit-card/">credit card</a> accounts <br /><br /> A complex mathematical formula is used to calculate your credit score based on this and other credit-related data that the lenders send to the credit bureaus.<br /><br /> <strong>How can I obtain my credit score?</strong><br /><br /> You can apply directly to one of the three credit bureaus online and get your report after providing the required documentation and payment. Alternatively, if you do not have the time or find the report too technical, you could use the services of a reputed credit management company, like CreditMantri. They will help you access your credit report/score, analyse it and guide you on the most effective way to reach a 750 credit score.</p>https://www.creditmantri.com/articles/what-is-the-cibil-score-required-for-credit-cardWhat is the CIBIL score required for Credit cardhttps://www.creditmantri.com/articles/what-is-the-cibil-score-required-for-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/33f20b7351b3dc9b87c30689b51d12a0_03.png'/></p><p><strong>WHAT IS THE CIBIL SCORE REQUIRED TO GET A CREDIT CARD?</strong><br /><br /> A credit score is a 3 digit number between 300-900 that gives potential lenders a snapshot of a customer&rsquo;s credit history and payment record. In India, three credit bureaus are authorised by RBI to issue credit reports and credit scores &ndash; CIBIL, Equifax and Experian. Though all three scores are valid, the CIBIL score is generally the most widely used in India.<br /><br /> A credit score of 750 or above is generally considered to be a good score. A person with such a score stands a good chance of having their credit card application approved quickly. A score of 750 or above signifies that the customer has demonstrated financial discipline and good repayment history over a long period of time. Banks, NBFC and credit card companies view such customers as being relatively low-risk borrowers who have previously demonstrated responsible repayment behaviour. Lenders are therefore more willing to approve loan and credit card applications from such customers. If you have a credit score of 750 or above, you stand a high chance of having your application approved quickly and on good terms. <br /><br /> <strong>Will I get a card with a CIBIL score of less than 750?</strong><br /><br /> Yes, lenders do approve applications from those with a score of less than 750, but the approval process will take longer, the credit limit will be lower and the interest rate on the balance might be higher. Therefore, while you might be approved for a card with a credit score of less than 750, the terms and conditions of usage on the card might not be attractive. It is advisable to improve your score to 750 before applying for a card so that you can avail of better terms and save a significant amount of money on your repayment burden in the long run.<br /><br /> <strong>How do people with a low credit score get credit cards?</strong><br /><br /> Most lenders are unwilling to approve credit cards applications from customers with a low credit score &ndash; i.e. in general, a score below 750. Credit card companies do not want run the risk of delayed payments or defaults and might be inclined to reject applications from customers with a score of less than 750. However, not all those with a low score have consistently poor credit discipline. There might be several other reasons for a low credit score: You might have a family emergency that requires extra expenditure and leaves you short of funds to make full repayments. Or, if you do not have an adequate number of loans or credit cards to your name, there may not be enough credit history to judge your credit behaviour. This might also cause your credit score to be low. <br /><br /> People with a low credit score who do not qualify for a credit card can apply for a &lsquo;secured&rsquo; <a href="https://www.creditmantri.com/credit-card/">credit card</a>. A secured card works exactly the same way as a regular or unsecured credit card except that the customer has to make a fixed deposit with the bank that is issuing the card. In case the customer defaults on a payment, the bank deducts the amount to be paid from the fixed deposit. As the bank runs no risk of losing money, even people with a low credit score can qualify for a secured card. By making full and timely payments on this card, customers can rebuild their credit history and increase their score.<br /><br /> Therefore, while there is no fixed minimum&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> to apply for a card, it is recommended that you ensure that you have a score of at least 750 before you apply for a card. If you have a low score, there is a high chance that your application will be rejected, and each rejection causes your credit score to drop even further. Take steps right away to improve your score so that you avoid rejection, and to allow you fast and hassle-free access to credit in the future as well. <br /><br /></p>https://www.creditmantri.com/articles/what-is-scoreWhat is CIBIL Transunion score ?https://www.creditmantri.com/articles/what-is-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6f4ed133406c5887afaa361d564fec1f_02.png'/></p><p><strong>WHAT IS CIBIL TRANSUNION SCORE?</strong><br /><br /> A CIBIL credit score is a three digit number that gives a snapshot of a person&rsquo;s credit health to potential lenders such as banks/NBFCs or credit card companies. In India, the RBI authorises three credit rating agencies, or credit bureaus, to issue credit reports and credit scores. These bureaus are CIBIL [Credit Information Bureau (India) Limited] , Equifax and Experian. While all three credit scores are valid, the CIBIL Transunion score is the most widely used. Transunion is an American company that has partnered with CIBIL in India.<br /><br /> CIBIL collects and maintains records all your credit-related activity with banks, credit card companies and other formal lenders. The bureaus get reports on a periodic (usually monthly) basis from these lenders on all your credit transactions. This includes information on your EMI and credit card payments (including any late or missed payments), balance outstanding, any change to your total credit limit, and all other details that are relevant to building your credit profile, your current and past loans and details of all loan and credit card application you have made, and whether they were approved or rejected.<br /><br /> Based on all this data, a complex mathematical formula is used to calculate your credit score. The score is a reflection of your past and current credit behaviour and gives potential lenders a snapshot of how responsible you are in fulfilling your debt obligations. If you have a good track record of making all your payments in time and in full, your score will tend to be high. If you have a history of defaulting on payments or using excessive credit, it will have a negative impact on your credit score. <br /><br /> <strong>What credit score do I need to get a loan?</strong><br /><br /> There is no magic minimum number at which you are guaranteed a loan. Every bank/NBFC has a different set of lending criteria to judge whether to approve a loan or not. In general, lenders look for a credit score of 750 when deciding whether to go ahead with processing a loan application. However, some lenders might look at other factors as well, so it might be possible, though not easy, to get a loan with a credit score of less than 750.<br /><br /> <strong>How does CIBIL Transunion score impact individuals?</strong><br /><br /> A CIBIL credit score denotes an individual&rsquo;s credit-worthiness to potential lenders. If an individual has a low credit score, lenders see it as a warning signal. A low score signifies that the customer has not demonstrated responsible financial behaviour in the past. It is difficult to get a loan with a low score, and even if a lender approves you for a loan, it might come with stricter terms and conditions like a higher interest rate or smaller loan amount. <br /><br /> If you have a low credit score and wish to apply for a loan, a professional credit management company, like CreditMantri, can help you. Your credit report will be analysed and you will receive recommendations on specific actions you can take to improve your score and become loan-eligible.</p>https://www.creditmantri.com/articles/what-should-be-the-cibil-score-for-personal-loanWhat should be the CIBIL score for personal loanhttps://www.creditmantri.com/articles/what-should-be-the-cibil-score-for-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3912b3657e86cc065a3b38eb825a762c_04.png'/></p><p><strong>WHAT SHOULD BE THE CIBIL SCORE FOR PERSONAL LOAN?<br /><br /> How important is a CIBIL credit score in order to apply for a personal loan?</strong> Your CIBIL score is one of the most important factors in being approved for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. This is because personal loans are unsecured loans (do not require collateral) and are generally more risky for banks than home loans or auto loans - which have the home or vehicle as collateral. Lenders therefore look at your credit score and credit report to evaluate if you are a responsible borrower.<br /><br /> A credit score ranges from 300 to 900. A borrower should have a minimum score of 750 in order to be eligible for a loan. <br /><br /> <strong>What are some of the other factors influencing sanction of a personal loan?</strong><br /><br /> Before sanctioning of the personal loan a lender looks also looks at the annual income of the borrower, profile of the company, current loan commitments, among other factors. <br /><br /> <strong>What can I use my personal loan for?</strong><br /><br /> This personal loan can be used for any reason. All personal expenses a person wants to make can be made available by applying for a personal loan. This could vary from wedding expenses to hospital expenses or home renovation or even a vacation. There is no restriction on how you use the loan amount.<br /><br /> <strong>What are the interest rates?</strong><br /><br /> The interest rate for personal loans varies from lender to lender. In general, interest rates on personal loans are some of the highest among all kinds of loans since there is no collateral that can be used by the lender in case of default. Other factors that influence the interest rate are also the credit history of the borrower and the amount that is being borrowed. <br /><br /> <strong>I have a low CIBIL score. What should I do to improve it?</strong><br /><br /> &bull; Make all your EMIs and credit card payments on time, and in full.<br /><br /> &bull; Always keep your balances low. Do not spend more than 50% of your total credit card limit.<br /><br /> &bull; Review your credit history periodically by obtaining a copy of your credit card, so that you are aware of your credit situation and take steps to improve it<br /><br /> Therefore, while there is no fixed minimum&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> to apply for a card, it is recommended that you ensure that you have a score of at least 750 before you apply for a card. If you have a low score, there is a high chance that your application will be rejected, and each rejection causes your credit score to drop even further. <br /><br /> If you want to improve your credit score, you could approach a professional credit management company, like CreditMantri, that can help you obtain your credit report, analyse it and suggest specific ways in which you can improve your score so that you become loan-eligible. Using the services of a reputed company to improve your credit health will help you avoid rejection, and allow you fast and hassle-free access to credit in the future as well. <br /><br /></p>https://www.creditmantri.com/articles/what-is-the-best-CIBIL-scoreWhat is the best CIBIL Score?https://www.creditmantri.com/articles/what-is-the-best-CIBIL-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0d5370ba7415eb489f6938c49334d8b2_1What-is-the-best-CIBIL-score.png'/></p><p><strong>What is the best CIBIL score? </strong></p> <p>In India, the best&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> to have is one that is 750 or above. Lenders generally look for a minimum score of 750 when reviewing a loan application. The higher your score, the better your chance of your loan/credit card application being approved.</p> <p><strong>Apart from CIBIL, does any other company issue credit scores? </strong></p> <p>There are three <a title="Credit Rating" href="https://www.creditmantri.com/what-is-credit-score-credit-rating" target="_blank">credit rating</a> agencies (or credit bureaus) that operate in India &ndash; CIBIL, Equifax and Experian. They issue a three-digit credit score to individuals that is between 300 and 900. This score gives potential lenders a snapshot of the customer&rsquo;s credit health.</p> <p>The credit scores issued by all three rating agencies are equally valid, though the credit score issued by CIBIL is the most widely used by lenders.</p> <p><strong>What is a good credit score? </strong></p> <p>When you have a high credit score of 750 or above, banks feel assured that you have a good repayment history and are a low-risk customer. It is much easier to qualify for loans with such a score.</p> <p>If your credit score is below 750, banks are unsure about your ability to fulfill your repayment obligations and are unwilling to lend to you.</p> <p><strong>What is an excellent credit score?</strong></p> <p>Any score above 800 is an excellent credit score and ensures quick and easy access to credit. Not only is approval easier, but lenders and are willing to offer you very attractive loan terms.</p> <p><strong>What are the advantages of credit score above 750? </strong></p> <p>A high credit score means that you will have faster access to credit and on much better terms.</p> <p>1.Your loan/credit card application will be approved much more quickly. With a high score, the approval is completed in a matter of days, if not less.</p> <p>2.The bank/<a title="Apply Credit Card Online" href="https://www.creditmantri.com/credit-card/" target="_blank">credit card</a> company will offer you lower rates of interest since they are confident that you will repay on time.</p> <p>3.A good score might also result in a longer loan period.</p> <p>4.A person with a high score might also be eligible for a much larger loan amount &ndash; again, since the banks are confident that it will be repaid on time and in full.</p> <p>Whatever your credit score, it is possible to reach 750 in a matter of months. Professional credit management companies, like CreditMantri, can help you take steps to improve your score to 750 and above so that you become loan-eligible, and can avail of all the advantages of a high credit score.</p>https://www.creditmantri.com/articles/what-is-the-minimum-CIBIL-score-to-get-a-personal-loanWhat is the minimum CIBIL score to get a Personal Loan?https://www.creditmantri.com/articles/what-is-the-minimum-CIBIL-score-to-get-a-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/acaef5eb8dd96123570452ccf02ed328_2What-is-the-minimum-CIBIL-score-to-get-a-personal-loan.png'/></p><p><strong>What is the minimum CIBIL score to get a personal loan? </strong></p> <p>It is generally advisable to have a credit/CIBIL score of 750 or above to qualify for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. Your credit score is a three-digit number between 300 and 900 that gives potential lenders a quick idea of your credit health.&nbsp; The higher your score, the better are your chances of being approved.</p> <p>As a first step, lenders typically look for a minimum credit/CIBIL score of 750 before deciding whether to go ahead with processing your application.</p> <p><strong>What is the role of my credit score in the loan process?</strong></p> <p>CIBIL collects and maintains records all your credit-related activity with banks, <a href="https://www.creditmantri.com/credit-card/">credit card</a> companies and other formal lenders. It gets reports on a monthly basis from these lenders on all your transactions. This includes information on your EMI and credit card payments (including any late or missed payments), balance outstanding, any change to your total credit limit, and all other details relevant to your credit profile.</p> <p>Based on this data, a complex mathematical formula is used to calculate your credit score. The score is a reflection of your credit behaviour and gives potential lenders a snapshot of your credit-worthiness.&nbsp; If you have a good track record of making all your payments in time and in full, your score will tend to be high. If you have a history of defaulting on payments or using excessive credit, it will have a negative impact on your credit score.</p> <p><strong>I have a credit score below 750. Will I get a loan?</strong></p> <p>If your score is between:</p> <p>300-599 &ndash; You will not qualify for a loan. Such a low score is a warning signal to lenders that you do not have a history of good credit behaviour. Most lenders will reject your application right away. It is necessary to take immediate steps to rebuild your <a href="https://www.creditmantri.com/free-credit-score-analysis-online">credit health</a> and improve your score.</p> <p>600-749 &ndash; Though it is not a high score, you might have a chance of being approved by some lenders. They might be willing to look at other factors that will impact your repayment ability in the future like the stability of your employment, your monthly salary, the extent of your other liabilities. If they think you have the ability to fulfill your repayment burden despite your middling score, your application has a chance of being approved.</p> <p>750 and above &ndash; You have a very good chance of obtaining a loan with such a score. There are several other advantages to a high score: the approval process will be much faster; the loan amount might be larger; you might be able to negotiate a lower interest rate. The whole loan approval process is much simpler.</p> <p>If you want to apply for a loan and think your credit score might not be good enough, you can approach a professional credit management agency, like CreditMantri.&nbsp; They can guide you on how to improve your score in the most efficient and effective way so that your loan application is approved and you have faster and hassle-free access to credit.</p>https://www.creditmantri.com/articles/how-is-the-CIBIL-score-calculatedHow is the CIBIL Score calculated?https://www.creditmantri.com/articles/how-is-the-CIBIL-score-calculated<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/40145dc8765f9c88f46458d2b699bc61_4CIBIL-SCORE-FOR-HOME-LOAN.PNG'/></p><p><strong>What is a CIBIL score?</strong></p> <p>A CIBIL score is a 3 digit number between 300 and 900 that is a snapshot of your credit-worthiness. There are 3 established credit rating agencies in India that issue credit scores and <a href="https://www.creditmantri.com/credit-report-analysis">credit reports</a> - CIBIL, Equifax and Experian. The credit scores of all three bureaus are equally valid, though the CIBIL score is perhaps the best-known.</p> <p><strong>How is your score calculated?</strong></p> <p>Your score is calculated based on all your credit-related activity within the financial system. Member banks and other financial institutions of the credit bureaus submit credit information on their customers on a periodic (usually monthly) basis. This includes details of all payments including any late or missed payments, loans and <a href="https://www.creditmantri.com/credit-card/">credit card</a> applications approved, credit limit and credit utilisation, and status of credit accounts (including Settled or Written Off accounts) among other information. All this data is then subject to complex statistical analysis and your 3 digit credit score is calculated on the basis of your credit records.</p> <p>Each credit bureau uses its own mathematical formulae with different weightages given to the various component factors. In general however, <em>about</em> <em>one third of your credit score</em> is made up of your repayment history. Your track record on repaying your loan obligations is the most important factor in your credit score.</p> <p>Other factors that play a role in your credit score include your credit utilisation ratio (how much you spend on a monthly basis as a proportion to your total credit limit), the age and type of your credit accounts (the older the account, the better for your score as lenders have a longer period from which to judge your repayment behaviour), and number of enquiries from lenders (which reflects the applications you have made for loans and credit cards). There are a variety of factors that go into calculating your credit score and it is important to focus on these areas when trying to <a href="https://www.creditmantri.com/credit-score-advice">improve your score</a>.</p> <p><strong>Importance of your credit score in the loan-approval process</strong></p> <p>A credit score of 750 and above is a good score to have as it indicates that you have a good track record of fulfilling your loan obligations. A low credit score signifies that you do not have a good history of making repayments and have a higher probability of default.</p> <p>Potential lenders first look at a customer&rsquo;s credit score to evaluate whether to process the application further. Data shows that an overwhelming majority of all loans that are sanctioned are made to customers with a credit score of 750 or above. &nbsp;Other advantages of a high credit score include:</p> <p>&bull; Lower interest rate</p> <p>&bull; Bigger loan amount</p> <p>&bull; Longer tenure</p> <p>&bull; Quicker approval process/simpler documentation</p> <p>&bull; Higher card limit</p> <p>It is good to learn the factors used to calculate a credit score so you can improve it, if required, and avail the best loan offers on the market.&nbsp;</p>https://www.creditmantri.com/articles/cibil-score-for-home-loanCIBIL Score for Home Loanhttps://www.creditmantri.com/articles/cibil-score-for-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3647d13e815b2e64d72714e5b0c2e0ba_3cibil-score-calculated.png'/></p><p><strong>What is a good CIBIL score?</strong></p> <p>A CIBIL score ranges from 300-900. A good CIBIL Score to qualify for a <a href="https://www.creditmantri.com/home-loan/">home loan</a> is 700 and above. The closer you are towards 900 the better chance you have of being approved for a loan. Moreover, a higher credit score means that you can avail of more attractive offers including lower interest rates, larger loan amounts, simpler documentation, and longer repayment periods.&nbsp; You can get up to 80% of the total cost of the property.</p> <p><strong>Why is a CIBIL score important when applying for a HOME LOAN?</strong></p> <p>If you want to apply for a loan and avoid the prospect of rejection, then you need to know the importance of a CIBIL score in the loan-approval process. &nbsp;</p> <p>The first thing a lender checks when you are applying for a loan is your CREDIT Score. If you have a <a href="https://www.creditmantri.com/reasons-for-low-credit-score-bad-credit-history">low credit score</a>, there is a good chance the lender will reject your loan application? However, if you have a good CREDIT score (above 700), then the lender looks into the application further to check the credit worthiness of the borrower before making a final lending decision. Your credit score gives lenders a quick impression of your probability of default based on your past repayment behaviour.</p> <p><strong>If you have a low CIBIL Score how can you improve it?</strong></p> <p>&bull; Never make any late or missed payments.</p> <p>&bull; Keep a balance between secured and unsecured loans.</p> <p>&bull; Keep an eye on your Credit Report and check your credit score on a regular basis.</p> <p>&bull; Do not apply for too many loans at the same time. &bull; Do not use more than 50% of your credit limit.</p> <p><strong>How do lenders make use of my Credit Score?</strong></p> <p>Earlier, lenders needed to make a partly-subjective internal assessment and do background checks in order to sanction a loan. But now with the help of a Credit Score and a Credit Report, it has become very easy for the lender to access accurate, data-based credit information on the applicant.</p> <p>&bull; CIBIL has a database of the credit related activity of customers. This is used to calculate their individual credit score.</p> <p>&bull; If you have a low score, (less than 700) lenders might see you as a high risk customer with history of defaulting on payments and might be unwilling to approve your loan application.</p> <p>&bull; If you have a high score, lenders see you as a low-risk customer with low probability of default and will be willing to lend to you with attractive terms.</p> <p>&bull; While there is no fixed minimum&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> to apply for a card, it is recommended that you ensure that you have a score of at least 700 before you apply for a home loan.</p> <p>If you are planning to apply for a loan and want to improve your score, a professional credit management company like CreditMantri can help guide you on how to build your credit profile and become loan-eligible.&nbsp; Improving your credit score and becoming loan-eligible will allow you fast and hassle-free access to credit in the future as well.</p>https://www.creditmantri.com/articles/Cibil-score-for-personal-loanCibil Score for Personal Loanhttps://www.creditmantri.com/articles/Cibil-score-for-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c7fe247f68f94562098a482e659d8896_5CIBIL-SCORE-FOR-PERSONAL-LOAN.PNG'/></p><p><strong>What is a personal loan?</strong></p> <p>A personal loan is a loan taken by an individual to fund personal expenses like a wedding, make renovations to the home or even for a vacation. Unlike a home loan or <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>, there is no restriction on how the borrowed amount is finally used &ndash; the borrower has full freedom to use the money for any purpose they want.</p> <p>There are three attractive features of such a loan:</p> <p>&bull; Complete flexibility of end-use</p> <p>&bull; Lack of collateral. It is an &lsquo;unsecured loan&rsquo; and you are not required to provide any security in the form of cash, shares or any other assets.</p> <p><strong>CIBIL Score for <a href="https://www.creditmantri.com/personal-loan/">Personal Loan</a>:</strong></p> <p>Personal loans are unsecured loans. They are based on the borrower&rsquo;s ability to pay the money back. Thus, unlike a home loan or auto loan where the loan is secured against the property or vehicle, the bank bears the entire risk in the case of a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>.</p> <p>A personal loan is granted for personal use as detailed above. Naturally, the higher your score, the better are your chance of being approved, as the lender is loaning you the amount purely on the basis of your high credit score and credit report. &nbsp;</p> <p><strong>What do you think is the minimum score for banks to provide a Personal Loan?</strong></p> <p>A CIBIL score ranges from 300-900. There is no fixed minimum score in order to get a loan. Typically, lenders look for a score of 750 or above in order to further process your loan application. It is possible to get a loan with a score less than 750, but you might face harsher loan conditions such as a higher interest rate, smaller loan amount, shorter repayment period and more documentation</p> <p><strong>Things you should know before you apply for a Personal Loan:</strong></p> <p>&bull; Ensure that you have a decent credit score of at least 750 before you apply for a loan to maximise your chances of success. If you apply with a poor score, there is a high chance that you may be rejected. Each rejection adversely impacts your credit score.</p> <p>&bull; Do not apply for multiple loans or credit cards at the same time. Lenders view it as being &lsquo;hungry&rsquo; for credit and may reject your loan as they may be afraid that you will be unable to fulfill your debt obligations.</p> <p>&bull; Always remember that if you have a lower credit score you will pay a higher interest rate and having a higher credit score will get you a lower interest rate.</p> <p>Therefore, while there is no fixed minimum&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> to apply for a loan, it is recommended that you ensure that you have a credit score of at least 750 before you make an application.</p> <p>A professional credit management company, like CreditMantri,&nbsp; can help you improve your score and rebuild your credit profile so that you become loan-eligible in the most optimal and efficient way. Take steps right away to improve your score so that you avoid rejection, and to allow you fast and hassle-free access to credit in the future as well.</p>https://www.creditmantri.com/articles/how-to-check-CIBIL-score-for-freeHow to check CIBIL score for freehttps://www.creditmantri.com/articles/how-to-check-CIBIL-score-for-free<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/9fd8d144828e53de49c040556cf596b6_6get-cibil-score-for-free-onsite-article.png'/></p><p><strong>Is it possible to get a free credit check or a credit report?</strong></p> <p>It is not possible for anyone, either lenders or borrowers, to get a <a href="https://www.creditmantri.com/can-i-get-a-free-cibil-score">CIBIL score or credit report for free</a>. However, if you wish to know your credit score for free, CreditMantri can obtain your Equifax credit score <em>at no cost to you.</em> You can learn your credit score and get a Credit Health Check that analyses your credit situation &ndash; without any expenditure on your part.</p> <p>There are 3 established credit rating agencies, or credit bureaus, in India &ndash; CIBIL, Equifax and Experian. The credit scores and reports issued by all 3 agencies are equally valid but, perhaps, CIBIL is the most well-known agency. Banks and other lenders use the credit scores of all 3 bureaus.</p> <p>If you wish to obtain a copy of your credit report, you can apply online on the website of any of the three bureaus. You will need to make a payment and provide ID proof. Sometimes, the format and language of the credit report might be too technical and may require some help with understanding and interpreting. If you wish to get your credit report together with an analysis to help you understand your credit situation, you could use CreditMantri&rsquo;s credit services.</p> <p><strong>How is a CIBIL score different from a credit report?</strong></p> <p>The CIBIL score is a single number that forms a part of your credit report. It is a 3 digit number that ranges from 300-900 and gives potential lenders a quick idea of your credit-worthiness.</p> <p>A credit report is a multi-page document that is a record of all your credit-related activity over a period of years. It has details of your payment behaviour across all your loans and credit cards and gives lenders a detailed picture of your past and current credit behaviour.</p> <p><strong>What are the factors that affect my CIBIL score?</strong></p> <ul> <li><strong>Delay in payments:</strong> Any delayed, partial or skipped payments will cause a negative effect on your score.</li> <li><strong>Exceeding credit limit: </strong>Using more than 50% of your credit limit canbring down your credit score.</li> <li><strong>Balance between secured and unsecured loans: </strong>Secured loans (home, gold auto loans) are loans that are provided against collateral such as a house, gold or vehicle. Unsecured loans are loans that are provided without any security, like a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. It is important to have a greater proportion of secured loans to prevent a negative impact on your score.</li> </ul> <p><strong>Applying for multiple loans and credit cards within short time frame: </strong>If you have too many loans or <a href="https://www.creditmantri.com/credit-card/">credit card</a> applications without corresponding approvals, it will lead to a decrease in your credit score. Each rejection causes a drop in your score.</p>https://www.creditmantri.com/articles/good-CIBIL-score-for-car-loanGood CIBIL score for car loanhttps://www.creditmantri.com/articles/good-CIBIL-score-for-car-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ce70711d43775179235be1c93b96617a_7GOOD-CIBIL-SCORE-FOR-CAR-LOAN.PNG'/></p><p><strong><span style="text-decoration: underline;">GOOD&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL SCORE</a> FOR CAR LOAN</span></strong></p> <p>You know it is time to buy a new vehicle, but you have one thing holding you back, your <a href="https://www.creditmantri.com/credit-score-advice/">CREDIT SCORE</a>. However, you are not sure for what credit score is required to buy a car. There is no fixed minimum score for getting a loan. In general, it is advisable to have a score of 750 or above to stand a good chance of being approved. The CIBIL Score ranges from 300 to 900 and the higher your score, the better your ability to get a loan.</p> <p><strong>Can I get a loan without a CIBIL Score?</strong></p> <p>Yes, you can get a loan without a CIBIL Score but it is a longer and more difficult loan-approval process. Moreover, you might be offered unattractive terms and conditions on your loan such as a higher interest rate or shorter repayment period. However, with a good CIBIL Score, you can get a lower interest rate, longer repayment period, larger loan amount and simpler documentation.</p> <p>If you have a poor credit score, it is still possible to avail of a car loan as the banks hold the car as security collateral until you repay the full loan amount with interest. &nbsp;</p> <p><strong>How can I avoid a bad CIBIL Score?</strong></p> <p>A bad CIBIL Score arises for the following reasons:</p> <ul> <li><strong>Late or missed payments</strong>: If you make any delay in payments towards either credit cards or loans, it causes a negative effect on your CIBIL Score.</li> <li><strong>Exceeding credit limit</strong>: Using up the whole credit limit that is provided to you is a sign that you are not disciplined about spending. Make sure that you do not use more than 50% of your total credit limit. This will have a positive impact on your score.</li> <li><strong>Rejected loans</strong>: If your loan has been rejected, do not apply for another loan immediately, because there is a high chance that the second loan will be rejected as well. Each loan rejection causes a drop in your credit score. Improve your credit score first until you are loan-eligible, and then apply for the loan again.</li> </ul> <p>While there is no fixed minimum CIBIL score to apply for an auto loan, it is recommended that you ensure that you have a score of at least 750 before you apply to avoid potential rejection.</p> <p>If you want to improve your credit score and become loan-eligible, you could approach a professional credit management company, like CreditMantri, to help guide you on the most efficient way to achieve your credit goal. Take steps right away to improve your score so that you qualify for the best loan offers, and have life-long fast and hassle-free access to credit in the future as well.</p>https://www.creditmantri.com/articles/good-CIBIL-score-for-loansGood CIBIL score for loanshttps://www.creditmantri.com/articles/good-CIBIL-score-for-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/98601cca93d1475befce949a4661d00a_8-GOOD-CIBIL-SCORE-FOR-LOANS.PNG'/></p><p><strong>GOOD CIBIL SCORE FOR LOANS</strong></p> <p><strong>What is a CIBIL Score?</strong></p> <p>Your CIBIL Score plays an important role in getting loans and credit cards sanctioned, because it gives lenders an accurate idea of your credit-worthiness.&nbsp; The CIBIL score ranges from 300 to 900. If a person has a credit score 750 or above, it reflects a good history of repayment behaviour and lenders are reassured that the individual is at high probability of fulfilling all their debt obligations. They are more willing to approve of a loan to individuals with such a score.</p> <p><strong>WHAT IS THE CREDIT SCORE REQUIRED FOR MY LOAN TO GET SANCTIONED? </strong></p> <p><strong>GOOD CIBIL SCORE:</strong></p> <p>There is no set standard on what constitutes a good or bad credit score. A&nbsp; CIBIL credit score is based on past and present credit behaviour and gives lenders a snapshot idea of a customer&rsquo;s credit health and loan repayment record. A credit score above 750 is highly desirable as it denotes a consistent track record of timely payments and demonstrates financial maturity over a long period of time. Lenders feel comfortable lending money to customers with such a credit score.</p> <p>Banks and other financial institution not only look at the credit score and credit report of a person but also take in to consideration the person&rsquo;s age, employment, annual income and other factors that influence their payment ability. However, your <a href="https://www.creditmantri.com/who-issues-credit-score-or-credit-rating">credit score and credit report</a> are two very important factors in the loan-approval process.</p> <p><strong>GOOD CIBIL SCORE FOR LOANS:</strong></p> <p>A good CIBIL Score means any score of 750 and above. A good score not only ensures a much better chance of loan approval, it also has several other advantages. For instance, a good score means that you might be offered a lower rate of interest, a longer repayment period, a larger loan amount, quicker documentation and loan-approval process. This is because lenders think that you are at low risk of defaulting on your payments and will offer you attractive terms and conditions on your loan that might not be available to individuals with a low credit score. Thus is always advisable to have a <a href="https://www.creditmantri.com/what-is-a-good-credit-score">good credit score</a> when applying for a loan. &nbsp;&nbsp;</p> <p>These are some of the reasons for a low credit score:</p> <p><strong>Past payment history: </strong>Even a single late or missed payment can negatively affect your credit score, so it is important to make all repayments on time and in full in order to maintain a good score.</p> <p><strong>High utilization of credit limit:</strong> If you use more than 50% of your credit limit on a regular basis, it serves as a warning signal that you might not be able to manage your finances and spending. This has an adverse impact on your credit score. To ensure a good score, make sure that you do limit your monthly spending to less than 50% of your total credit limit. This will have a positive impact on your credit score.</p> <p><strong>Too many credit accounts recently opened: </strong>If an individual applies for multiple loans and credit cards in a short period of time without corresponding approvals, it signifies that they are &lsquo;hungry&rsquo; for credit and may not be able to fulfil their loan obligations. This has a negative impact on their credit score. &nbsp;</p> <p>Therefore, while there is no fixed minimum CIBIL score to apply for a loan, it is recommended that you ensure that you have a score of at least 750 before you apply. If you have a low score, there is a high chance that your application will be rejected, and each rejection causes your credit score to drop even further.</p> <p>If you need help with <a href="https://www.creditmantri.com/credit-score-advice">improving your credit score</a> or choosing a suitable loan, a professional credit management company like CreditMantri can guide you on the most optimal and efficient way to achieve your credit goal. Take steps right away to improve your score so that you avoid loan-rejection, and enjoy fast and hassle-free access to credit in the future as well.</p>https://www.creditmantri.com/articles/how-much-of-a-CIBIL-score-is-required-for-a-credit-cardHow much of a CIBIL score is required for a credit cardhttps://www.creditmantri.com/articles/how-much-of-a-CIBIL-score-is-required-for-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/07670cc3a549b9755f1208ae431d599b_9-how-much-cibil-score-required-for-credit-card.png'/></p><p><strong>HOW MUCH OF A CIBIL SCORE IS REQUIRED FOR A CREDIT CARD</strong></p> <p>There is no fixed minimum credit score to be eligible for a credit card. Each bank/credit card company has its own criteria for approving an application for a card. In general, however, if you have a credit score of 750 or above, you stand a good chance of being approved for a card.</p> <p>It is possible to be approved for a card with a score of less than 750, but you may be subject to less favourable terms and conditions like, for example, a higher interest rate or added fees. The lower your score, the greater your chance of being rejected. If <a href="https://www.creditmantri.com/articles/can-i-get-a-loan-with-a-credit-score-of-650">you have a score of less than 650</a>, it will be very difficult to be approved for a card.</p> <p>Another disadvantage of applying for a credit card with a low score is that each time your application is rejected, it causes your score to drop. Applying for credit cards when you have a low score means that you face the possibility of repeated rejections and a continuous drop in your score.</p> <p>Therefore, it is a good idea to check your credit score <em>before</em> you <a href="https://www.creditmantri.com/credit-card/">apply for a new credit card</a> so that you have time to improve your score and ensure that your application is approved.</p> <p><strong>Why do banks check your credit score before issuing a credit card?</strong></p> <p>When you apply for a credit card, lenders want to know if you will make your monthly payments on time. They will access your credit report and credit score to check if you have a good track record of making your payments on time. If you have a good score, they are satisfied that you are a low risk customer with a low probability of defaulting on your obligations and will be inclined to approve of your application.</p> <p>Conversely, if you have a low score, it signifies that you might not have demonstrated responsible repayment behaviour &ndash; lenders might be unwilling to lend to customers with a poor credit score, as they want to safeguard their money against potential default.</p> <p><strong>How to maintain a good credit score</strong></p> <p><strong>Do not exceed 50% of your credit limit: </strong>Not only should you never exceed your credit limit, you should ensure that you do not exceed 50% of the limit. Consistently spending more than 50% signifies that you have a problem with spending discipline and might not have enough money left over from your income to fulfil your repayment obligations.</p> <p><strong>Make timely payments: </strong>On time and full payments are one of the best ways to maintain a <a href="https://www.creditmantri.com/what-is-a-good-credit-score">good credit score</a> and history. Try and pay off your monthly card bill in full and on time - this one action itself will have a substantial positive impact on your credit score. &nbsp;</p> <p><strong>Do not apply for multiple cards within a short period of time: </strong>&nbsp;If you apply for too many credit cards in a short period of time, lenders may also consider you to be &lsquo;hungry&rsquo; for credit. If you have too many applications without corresponding approvals, your credit score will be affected.</p>https://www.creditmantri.com/articles/how-to-improve-CIBIL-score-immediatelyHow to improve CIBIL score immediately?https://www.creditmantri.com/articles/how-to-improve-CIBIL-score-immediately<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4d4af1bb95e6a1b83199691804a717a4_10-How-to-improve-CIBIL-score-immediately.png'/></p><p><strong>HOW TO IMPROVE CIBIL SCORE IMMEDIATELY?</strong></p> <p>A poor CIBIL score can increase your financial problems and make it difficult to access credit, whether as a loan or credit card. &nbsp;The good news is that it is possible to improve your score &ndash; you need to stop worrying about the problem, and begin to take concrete steps right away to improve your score. &nbsp;</p> <p>Here are a few tips that will have a positive impact on your score:</p> <p><strong>Obtain your credit report and check for errors: </strong>While you might think you have a good credit history, there might be certain reporting errors that are unnecessarily dragging your score down. For example, if you have paid off your loan in full and closed the account, it might still be shown as current due to an administrative error. By correcting these errors, you can put an immediate stop to a negative effect on your score.</p> <p>Similarly, it is also useful to check for any suspicious activity (e.g. a loan that you have not taken) which could be fraud. Filing a dispute with the bureau and making sure it is resolved can also have an immediate positive impact on your score.</p> <p><strong>Do not delay or miss any payments: </strong>Your repayment behaviour is a very important factor in calculating your credit score. Your track record of loan and <a href="https://www.creditmantri.com/credit-card/">credit card</a> payments can make up almost one third of your score. Even a single late payment can adversely affect your CIBIL score. Many people pay their bills late or skip a payment completely. If you start paying all your bills on time and in full, you will see an immediate effect on your credit score. &nbsp;</p> <p>You should aim to make your payments must be made at least 5 working days before the due date. If you are planning to make the payment by cheque, you must be sure that you make the payment 10 days before the due date.</p> <p><strong>Limit your utilization of credit limit:</strong> One of the easiest way to <a href="https://www.creditmantri.com/credit-score-advice">improve your credit score</a> is to avoid utilising your credit card to its full limit. Limit your monthly credit card bill to not more than 50% of your limit. &nbsp;E.g. If you have a credit limit of Rs. 1,00,000 a month, make sure you do not exceed monthly expenses of Rs. 50,000. Using more than 50% of your card limit signifies that you might have issues with spending discipline and that you might not be able to keep aside enough to repay your debt obligations. This causes your score to drop.</p> <p><strong>Avoid multiple loan/ credit card applications in a short span of time:</strong> if you have too many enquiries in a short span of time, it is not looked at very positively. Imagine that you have made a credit card enquiry, a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> enquiry and a home loan enquiry within months - what does it look like to a lender? It shows that you are credit hungry and looking for multiple sources of credit. One way you can prevent a drop in your score is to avoid making several new applications for credit within a short time frame.</p> <p>On average, it takes 4-12 months to repair your credit score, depending on your individual situation. All you need is some patience, commitment and self-discipline and you will achieve your credit goal.</p>https://www.creditmantri.com/articles/how-to-improve-CIBIL-scoreHow to improve CIBIL score?https://www.creditmantri.com/articles/how-to-improve-CIBIL-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2d41aead6c39a0c217ce11ed2b68170c_11-HOW-TO-IMPROVE-CIBIL-SCORE.PNG'/></p><p><strong>How to improve CIBIL score?</strong></p> <p>There are several ways in which you can improve your credit score. Depending on how good or bad your score is, it can take between 4-12 months to improve your score in order to become loan eligible. Here are some of the things you can do to improve your score:</p> <ul> <li><strong>Obtain your credit report immediately: </strong>When you read your report, you may find errors that are unnecessarily dragging down your score. For example, even after you have fully paid your loan with interest, it might be shown as outstanding due to a reporting or administrative error. If there are any errors in your <a href="https://www.creditmantri.com/articles/what-is-a-credit-report">credit report</a>, you can file a dispute to correct it. This will result in an immediate increase in your score.<strong> <br /></strong></li> </ul> <p>Similarly, there may be instances of fraud that are bringing down your score for no fault of yours. For instance, you might notice a loan in your name that you have not taken. It is important to report any instance of suspicious activity and get it rectified at once. This will also have an immediate effect on your score. </p> <ul> <li><strong>Make sure you pay your bills on time: </strong>This is the single most important thing you can do to <a href="https://www.creditmantri.com/credit-score-advice">improve your score</a>. If you make all your loan and credit card repayments <em>on time and in full</em>, it will have a significant positive impact on your score. Even a single missed or late payment affects your score adversely. Your payment record forms up to one third of your credit score, so if you make every payment on time, you will quickly improve your score. So start making your payments in time right away and see the resulting improvement in your score. </li> </ul> <ul> <li><strong>Ensure you limit your spending to 50% of your card limit: </strong>Make sure you don&rsquo;t exceed more than 50% of your credit card limit at all times. For instance if your limit is Rs 1 lakh a month, limit your monthly spending to Rs. 50,000 or less. This will have a positive impact on your credit score. When you consistently spend more than 50% of your limit, it signifies a lack of spending discipline, and will have a negative impact on your score.</li> </ul> <ul> <li><strong>Do not apply for multiple loans or credit cards at the same time. </strong>When you apply to multiple lenders for loans or <a href="https://www.creditmantri.com/credit-card/">credit cards</a> within a short period of time, it signifies that you are &lsquo;hungry&rsquo; for credit and need to apply to various sources simultaneously. Lenders become nervous about your ability to repay and might reject your application. Each rejection further decreases your score.<strong>&nbsp; <br /></strong></li> </ul> <p>You can do all these things to improve your credit score on your own. If you do not have the time or sufficient knowledge to do it on your own, CreditMantri can help guide you on how to increase your score in the quickest and most efficient way.</p>https://www.creditmantri.com/articles/how-to-read-CIBIL-reportHow to read CIBIL report?https://www.creditmantri.com/articles/how-to-read-CIBIL-report<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/246cfadaec3dba641e9e2d79d1fbd080_12-how-to-read-cibil-report.png'/></p><p><strong>How to read CIBIL report? </strong></p> <p>Your CIBIL report contains information regarding all your credit related activity over several years as reported by your lenders. It is important to obtain and interpret your credit report so that you can identify any areas of weakness that are dragging down your credit score and affecting your ability to get loans or credit cards.</p> <p>Sometimes, the information and format of the report might seem very technical to a layman. If you do not have either the time or sufficient knowledge of credit matters, CreditMantri can help you obtain and analyse your credit report for free with a Credit Health Check.</p> <p>So here is a quick overview of what you can expect to see in your credit report:</p> <p>First there is a section containing identification data like date of birth, current and previous address, telephone number, email ID, PAN number, driver&rsquo;s license number, passport number, employment details, annual income, etc. Go over these details and ensure that they are all correctly listed, so that when you apply for a loan, there is no mismatch in the ID details. &nbsp;It is a good idea to <a href="https://www.creditmantri.com/articles/why-you-need-to-check-your-credit-report">check your credit report</a> at least once a year so that if there are any reporting mistakes, it is possible to file a dispute and have it rectified immediately. &nbsp;&nbsp;</p> <p>Next you will find details of every single loan (both past and current) that you have been granted. Your credit report will list the names of all the banks/financial institutions that have given you credit, with details on the type of loan (<a href="https://www.creditmantri.com/personal-loan/">personal loan</a>, credit card, auto loan, etc.), the date of disbursement, total loan amount, the current outstanding, interest rate, the tenure of the loan, monthly EMI amount, current status of the loan, 36 month history on your repayment behaviour, etc.</p> <p>Your credit report lists every single late or missed payment over the past 3 years. Late payments, if any, are recorded as DPD or Days Past Due. Any overdue repayments are listed, and the status field will signify if there is any negative status &ndash; eg. Is the loan in a WRITE-OFF status, previously SETTLED, whether a legal suit has been filed, or whether the loan is considered CURRENT, which means all repayments are being made in a timely manner? It is important to read this section carefully since it has a significant impact on your credit score. Any wrong information (for example, a fully paid up loan still shown as current) should be corrected at once so it does not affect your score. &nbsp;</p> <p>Finally, your credit report will list the number of times that you have ever applied for a loan or <a href="https://www.creditmantri.com/credit-card/">credit card</a> &ndash; this is called a <strong>credit enquiry</strong>.&nbsp; Too many credit enquiries without a corresponding approved loan could have a negative impact on your credit score because it means that you are &lsquo;hungry&rsquo; for credit. This could decrease your credit score.</p> <p>Keep yourself updated on your credit score and credit health by obtaining your credit report periodically. CreditMantri can obtain your report for you, help you understand it, and guide you on how to improve your score, if required, and work with you to ensure that you are approved for a loan.</p>https://www.creditmantri.com/articles/how-to-remove-name-from-CIBILHow to remove name from CIBIL?https://www.creditmantri.com/articles/how-to-remove-name-from-CIBIL<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6d6864a880bf6c86b94ce6ce6af24bbc_13-how-to-remove-name-from-cibil.png'/></p><p><strong>How to remove name from CIBIL? </strong></p> <p><strong>Can I remove my name from CIBIL?</strong></p> <p>First, it is important to note that there is no &lsquo;<a href="https://www.creditmantri.com/cibil-defaulter-list">Defaulters List&rsquo;</a> that is maintained or circulated by CIBIL or any of the other credit bureaus or banks. If you have been rejected for a loan or credit card, it is probably because you have a low credit score which is caused by your poor record of repayments. Banks and other financial institutions do not want to give credit to customers who have a history of missed or late repayments.</p> <p>The only way you can ensure that you are not rejected for a loan/card is by improving your credit score to 750 or above to show that you are a responsible borrower who pays off debt obligations on time. Below are some tips on how you can improve your score and demonstrate that you are a financially responsible borrower. It can take 4-12 months to improve your score, depending on your individual credit situation, but the reward of having a good score is a lifetime of quick and easy access to credit.</p> <p><strong>How can I improve my credit score so that my application is not rejected? </strong></p> <ul> <li><strong>Obtain your credit report immediately: </strong>When you read your report, you may find errors that are unnecessarily dragging down your score. For example, even after you have fully paid your loan with interest, it might be shown as outstanding due to a reporting or administrative error. If there are any errors in your credit report, you can file a dispute to correct it. This will result in an immediate <a href="https://www.creditmantri.com/credit-score-advice">increase in your score</a>.</li> </ul> <p>Similarly, there may be instances of fraud that are bringing down your score for no fault of yours. For instance, you might notice a loan in your name that you have not taken. It is important to report any instance of suspicious activity and get it rectified at once. This will also have an immediate effect on your score.</p> <ul> <li><strong>Pay off all your dues if possible: </strong>Having outstanding dues or a &ldquo;Written off&rdquo; or &ldquo;Settled&rdquo; status on your credit report is a warning signal to lenders that you do not fulfil your debt obligations. Most lenders will reject your application if they see this on your credit report. Talk to your existing lenders (banks, credit card companies or other financial institutions) and pay off all your outstanding dues so that your loan accounts are converted to &ldquo;Closed&rdquo; status.</li> </ul> <p>You can negotiate with your lenders on the amount you need to pay, based on your income and affordability. It can take up to 3 months for the status to be changed on your credit report so it is important to check your report to ensure that the new status is reflected accurately. </p> <ul> <li><strong>Make sure you pay your bills on time: </strong>This is the single most important thing you can do to improve your score. If you make all your loan and <a href="https://www.creditmantri.com/credit-card/">credit card</a> repayments <em>on time and in full</em>, it will have a significant positive impact on your score. Even a single missed or late payment affects your score adversely. Your payment record forms up to one third of your credit score, so if you make every payment on time, you will quickly improve your score. So start making your payments in time right away and see the resulting improvement in your score. </li> </ul> <ul> <li><strong>Ensure you limit your spending to 50% of your card limit: </strong>Make sure you don&rsquo;t exceed more than 50% of your credit card limit at all times. For instance if your limit is Rs 1 lakh a month, limit your monthly spending to Rs. 50,000 or less. This will have a positive impact on your credit score. When you consistently spend more than 50% of your limit, it signifies a lack of spending discipline, and will have a negative impact on your score.<strong> <br /></strong></li> </ul> <ul> <li><strong>Do not apply for multiple loans or credit cards at the same time. </strong>When you apply to multiple lenders for loans or credit cards within a short period of time, it signifies that you are &lsquo;hungry&rsquo; for credit and need to apply to various sources simultaneously. Lenders become nervous about your ability to repay and might reject your application. Each rejection further decreases your score.</li> </ul>https://www.creditmantri.com/articles/increase-CIBIL-scoreIncrease CIBIL scorehttps://www.creditmantri.com/articles/increase-CIBIL-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f7835458e81fa42afc8eb75de2d29151_14-INCREASE-CIBIL-SCORE.PNG'/></p><p><strong>Increase CIBIL score</strong></p> <p><strong>Why should I increase my score?</strong></p> <p>Your CIBIL score, or any other credit score, is the first impression lenders have of your credit behaviour. If it is low, it serves as a warning signal of your credit behaviour and there is a high chance that your loan or credit card application will not be approved. It is a good idea to make sure that you create and maintain a good credit score so that you are free from the tension of being rejected when you urgently need a loan.</p> <p><strong>How can I improve my score?</strong></p> <p>It is advisable to have a credit score of 750 or above to avoid the possibility of <a href="https://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-Rejected">loan rejection</a>. Here are some tips on how to increase your score.</p> <ul> <li><strong>MAKE PAYMENTS ON TIME</strong>: Your payment record is the most important factor in calculating your credit score and can form up to one-third of your score. It is very important to make sure that you make all payments <em>on time and in full</em>. Even a single missed or delayed payment can affect your score.</li> </ul> <ul> <li><strong>DO NOT EXCEED 50% OF YOUR CREDIT LIMIT: </strong>For example, if your credit limit is Rs. 1 lakh, limit your monthly spending to less than Rs. 50,000. If you consistently exceed that limit, it reflects lack of spending discipline and will negatively affect your score. Keeping within this limit will help increase your score.</li> </ul> <ul> <li><strong>CHECK YOUR CREDIT SCORE ON A REGULAR BASIS</strong>: You might think that you have a good credit score, but there might be other factors, like administrative errors or fraud, that might be dragging down your score. For instance, you might have paid your loan in full but it might still be shown as outstanding due to a reporting mistake. Check your report and immediately notify the bureau of any mistakes or suspicious activity so that it is rectified right away. Eliminating these errors will help <a href="https://www.creditmantri.com/credit-score-advice">improve your score</a>.</li> </ul> <ul> <li><strong>MAINTAIN AN OPTIMAL MIX OF LOANS</strong>: Maintain a balance between secured (home/auto/gold) loans and unsecured (personal) loans. Having a higher proportion of secured loans has a positive effect on your credit score.</li> </ul> <ul> <li><strong>AVOID APPLYING FOR MULTIPLE LOANS IN A SHORT TIME PERIOD</strong>: If your loan has been rejected once, be patient - don&rsquo;t apply immediately to multiple other banks. Each time your loan or credit card application is rejected, it affects your score negatively, so the more times your loan is rejected, the worse your score becomes. When lenders receive an application they access your credit report through an &lsquo;enquiry&rsquo;. Too many enquiries without corresponding loan approvals leads to a drop in your score. It is advisable to first improve your score and your credit-worthiness before applying again for a loan.</li> </ul> <p>Financial concerns are a major stress point for many people. A <a href="https://www.creditmantri.com/reasons-for-low-credit-score-bad-credit-history">poor credit score</a> only increases financial problems as it severely limits your access to loans. Worrying doesn&rsquo;t help you to increase CIBIL score. Start taking steps to improve your score and rebuild your credit health. It is possible to undertake all these steps above and see a positive effect on your credit score. All it requires is some commitment, financial discipline and patience and you will enjoy tension-free access to credit in the future.</p>https://www.creditmantri.com/articles/meaning-of-CIBIL-scoreMeaning of CIBIL scorehttps://www.creditmantri.com/articles/meaning-of-CIBIL-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/bf80c89aced2084823c24787200ec4f9_15-MEANING-OF-CIBIL-SCORE.PNG'/></p><p><strong>Meaning of CIBIL score</strong></p> <p><strong>What does a CIBIL Score mean?</strong></p> <p>Credit Information Bureau (India) Limited, known as CIBIL, is a&nbsp;<a href="https://www.creditmantri.com/articles/what-is-credit-rating">credit rating</a> agency that maintains credit-related records of both individuals and corporates. Member banks and other financial institutions provide data to CIBIL on a periodic (usually monthly) basis on all the credit related activity of their customers including any late or missed payments, loans approved, credit limit, written off or settled accounts and so on.</p> <p>&nbsp;CIBIL uses complex statistical analysis on this information and converts it into a 3 digit number, called a Credit Score. This CIBIL Score ranges from 300-900 and reflects your credit behaviour. It gives potential lenders a snapshot of your credit-worthiness.</p> <p>If you have a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 and above, then you are considered to be a credit worthy customer and you stand a good chance of being approved for a loan or credit card. If you have a credit score of less than 750, you might still qualify for a loan, but you might not be able to enjoy all the advantages that a customer gets with a score of 750 and above.</p> <p><strong>What are the factors that affect CIBIL Score?</strong></p> <ul> <li><strong>Delay in payments</strong>: If you have made any delay in payments, or skipped any payments in the past, this will create a negative <a href="https://www.creditmantri.com/articles/what-is-a-good-cibil-score">effect on your CIBIL score</a>. Every single late or incomplete or missed payment is reported by your lender to CIBIL. Each delayed payment contributes to a decrease in your credit score.</li> </ul> <ul> <li><strong>Multiple loan or credit card applications: </strong>If you apply for multiple loans or credit cards within a short timeframe, it gives the impression that you are &lsquo;hungry&rsquo; for credit and need to obtain credit from multiple sources. A large number of applications without corresponding approvals will lead to a decline in your credit score.</li> </ul> <ul> <li><strong>Exceeding your credit limit: </strong>Your credit card company provides you with a credit limit based on your income. If you over utilise your credit limit by using more than 50% of your limit, it will affect your score negatively. For example, if your credit limit is Rs. 1 lakh and you consistently spend Rs 80,000 on your monthly bill, it will have a negative impact on your score.</li> </ul> <p><strong>How can I maintain a good CIBIL score?</strong></p> <p>Before you apply for a loan, you need to check a few aspects which banks check, when you apply for a loan.</p> <ul> <li><strong>Obtain your credit report: </strong>Check your latest credit score and credit history and take steps to improve your score immediately, if required.</li> </ul> <ul> <li><strong>Pay all your debt obligations in full and on time:</strong> This is the most important thing you can do to maintain a good score. Even if the amounts are small, the positive impact on your credit score is substantial.</li> </ul> <ul> <li><strong>Use your credit limit wisely:</strong> When banks provide you with a particular credit limit, make sure that you don&rsquo;t exceed 50% of the credit limit provided to you. This might cause a negative effect on your CIBIL score.</li> </ul> <ul> <li><strong>Keep checking your credit score periodically:</strong> Even if you think you have a good CIBIL score, some other factors might bring down your score. Also, being updated on your report can help you identify and administrative errors or fraud that might unnecessarily be dragging down your score.</li> </ul> <ul> <li><strong>Do not make multiple loan or card applications in a short timeframe:</strong> Research the various offers and only apply for the one that you think you stand the best chance of being approved for. Each loan or card rejection can lead to a further decrease in your credit score.</li> </ul> <p>While there is no fixed minimum CIBIL score to apply for a loan or <a href="https://www.creditmantri.com/credit-card/">credit card</a>, it is recommended that you ensure that you have a score of at least 750 before you apply. If you a low score, there is a high chance that your application will be rejected, and each rejection causes your credit score to drop even further.</p> <p>If you need help with improving your score or choosing the right credit offering best suited to you, a professional credit management company like CreditMantri can help you increase your score and become loan-eligible. It is important to take steps right away to improve your score so that you avoid the <a href="https://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-Rejected">possibility of loan-rejection</a>, and enjoy life-long, fast and hassle-free access to credit in the future as well.</p>https://www.creditmantri.com/articles/6-tips-for-getting-your-personal-loan-approved6 Tips for Getting Your Personal Loan Approvedhttps://www.creditmantri.com/articles/6-tips-for-getting-your-personal-loan-approved<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b864c2033976ab626446d72b52d7223c_01.png'/></p><p>When should you go in for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>? Sometimes, you might have a large or unexpected one-time expense that you might be able to fund on your income like a child&rsquo;s wedding, or house renovation or even a vacation. At these times, it is advisable to apply for a personal loan to overcome this temporary shortfall in funds.</p> <p>You can improve your chances of having your personal loan approved by following these tips:</p> <p><strong>1. Check your credit score before you apply for a personal loan:</strong> If you apply for a loan without knowing your credit score, you run the risk of being rejected for a low score. The first thing you should if you are planning to apply for a loan is to obtain your credit report so you do not get a nasty surprise when you apply for the loan. You might think you have a good score because you are paying all your bills on time, but there might be other factors that could be dragging down your score like a high credit utilisation ratio, being the guarantor for a loan that has been defaulted on, or even fraud or reporting mistakes on your credit report. Obtain a copy of your credit report so that you are up to date on your credit situation, and rectify any errors to avoid the possibility of being rejected.</p> <p><strong>2. Ensure you have a credit score of 750 or above:</strong> If you have a score in this range, you stand the best chance of having your personal loan approved. Your credit score is especially important for a personal loan as there is no collateral that lenders can use to safeguard their money in case of default. Lenders typically look for a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 to judge if you are loan eligible. If your score is less than 750, identify the weak areas in your credit profile and work towards improving your score. If you are rejected because of a poor score, each rejection will cause your credit score to drop even further, making it more and more difficult to rebuild your credit health.</p> <p><strong>3. Do not make multiple loan applications:</strong> It is tempting to apply to several banks/lenders at the same time in order to maximise your chances of being approved by at least one lender. This is not a good idea! When you do this, potential lenders get the feeling that you are &lsquo;hungry&rsquo; for credit and need to apply to several sources to fund your expenses. Moreover, too many loan applications without corresponding approvals can lead to a drop in your credit score. Make sure you only apply to the place where you have the best chance of being approved.</p> <p><strong>4. You should not have availed of a personal loan in the past 6 months:</strong> If lenders see that you have availed of a similar loan recently, they might be unsure about your ability to take on the burden of a new debt obligation and make additional repayments. There should be a gap of at least 6 months between your loan applications. If it is for a non-urgent reason like a vacation or house renovations, you are better off waiting for some time before you apply again.</p> <p><strong>5. Have a mix of secured and unsecured loans:</strong> A secured loan is one where the customer provides collateral to the lender &ndash; for example, for home loans it is the property being bought, for&nbsp;<a href="https://www.creditmantri.com/auto-loan/">auto loans</a> it is the vehicle, in the case of gold loans it is the gold that is pledged. However, in a personal loan the lender has no collateral with which to secure his money. Your credit score improves when there is a mix of both secured and unsecured loans that are being repaid on time, and potential lenders are reassured.</p> <p><strong>6. Ensure not more than 30% of income goes towards EMIs:</strong> Lenders want to judge if you have enough income left over from your existing loan obligations to take on a new loan. Make sure that the EMIs from all your other loans do not exceed 30% of your income. This does not include your home loan EMI. So for example, if your income is Rs. 60,000 a month, the total outflow of all your non-home loan EMIs should not exceed Rs. 20,000 a month.</p> <p>Also, make sure that you have been in the same job or company for at least six months before you apply. Banks want to see stable employment and a steady source of income so that you are able to make all your loan repayments on time. In the case of a personal loan, your income is very important as the banks do not have any collateral in case you default on your payments. If you have been changing jobs frequently, there is a good chance that your application will be rejected.</p>https://www.creditmantri.com/articles/6-tips-to-get-approved-for-a-home-mortgage-or-loan6 Tips to Get Approved for a home mortgage/loanhttps://www.creditmantri.com/articles/6-tips-to-get-approved-for-a-home-mortgage-or-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/be5829adc5a8b91f1b999e11a9b5933d_02.png'/></p><p><a href="https://www.creditmantri.com/home-loan/">Applying for a home loan</a>&nbsp;can be one of the most significant financial decisions you will make in your life. Repaying a home loan can be a twenty or thirty year commitment, so it is important to choose the product that you think is most suitable for you over the long term. Once you decide on the best offer, it is important to try and ensure that you get approved for the loan of your choice since it has long term financial implications.</p> <p>Here are some tips to help you maximise your chances of being approved for a home mortgage/ loan of your choice. Lenders look at several factors when determining whether to approve of your housing loan application. Keep the following suggestions in mind when you plan to apply for a housing loan:</p> <p><strong>1. Apply only with a good credit score:</strong> Typically, you need a minimum credit score of 750 for lenders to proceed with processing your application. A credit score of 750 or above reassures lenders that you are a responsible borrower and have a good track record of making repayments. Do not risk rejection by applying for a loan with a poor score. If you have a low score, it is essential to spend time improving it before applying for the loan.</p> <p><strong>2. Check your credit report well in advance to identify any weak areas and work on them:</strong> Once lenders know you have a good <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, they look at your credit report. They check your history to see if you have a good record of making payments over a long period. They also check for any written-off accounts in the past to see if you have defaulted on any prior debt obligations. All these indicators of poor credit behaviour are red flags for lenders, even if your current credit score is adequate.</p> <p><strong>3. Pay off any loans if you have too many current loans:</strong> If you have too many loan obligations, lenders might think that you will not be able to take on an additional loan repayment on your current income and might turn down your application. They will look at your existing loan repayment burden to see if you can take on additional debt payments on your present and predicted future salary. It is a good idea to pay off any loans you can in full before you apply, to increase your chance of being approved.</p> <p><strong>4. Have stable employment status and salary:</strong> Lenders want to be assured that you will have a steady monthly income to pay off your EMIs over the repayment period of a home loan that can stretch over decades. They will look at your employment record to see if there is a high probability of steady employment and income during the long repayment period. You should have been in the same job or same company for at least a year at the time of applying. Frequent job changes will be viewed negatively by lenders.<br /> Also choose a property that is not too expensive and that fits in with your income. If the loan amount you are asking for is greater than what you can afford, lenders may be unwilling to take on the risk of default and will turn down your application.</p> <p><strong>5. Ensure that your existing EMIs (including for home loan) do not exceed 70% of income:</strong> Make sure that the total monthly repayment outflow, across all your loans, does not exceed 70% of your income. Lenders want to make sure that you have enough income left over for your regular expenses and that you will not need to default on your repayments in order to fund your living expenses.</p> <p><strong>6. Have a clean title deed and complete documentation for the property:</strong> While this requirement is not related to your individual credit situation, banks want to make ensure that there is no problem with the collateral (the home) in case you default on your loan. They will first make sure that all the legal documents relating to the property are in order. In case the documents are not satisfactory, you run the risk of being rejected.</p> <p>If you keep these tips in mind, your home loan application has a good chance of being approved.</p>https://www.creditmantri.com/articles/how-to-apply-for-a-credit-cardHow to apply for a Credit Cardhttps://www.creditmantri.com/articles/how-to-apply-for-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0459260fa0f9d8dc9e75df63e5cc4a6a_03.png'/></p><p>Are you planning to apply for your first credit card? Go right ahead and discover the ease and security of using plastic as a means of payment! However, you will do yourself a big favour if you check one thing before sending in your application - your credit score. If you do not have a good enough score, then your application will be rejected, which will cause your score to drop even further. This will make access to loans or cards more difficult in the future. Apply only if you have a good score.</p> <p><strong>How do I apply for a credit card?</strong><br /> The first thing to do is to research all the credit cards offered by the various banks. Decide which one suits your needs the best. Once you have decided on which card you want, you can apply in two ways:<br /> <em>Online:</em> Most banks allow you to apply for a&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card online</a> on their website. You need to fill in personal details like name, date of birth, and employment details like your employer&rsquo;s name, monthly net income etc. and upload certain documents. Some websites will offer the cards that you might be eligible for.<br /> <em>In person:</em> You can visit the bank, fill in the application and submit it along with the requisite documents. In general, it can take up to 15 days for your application to be processed and approved/rejected.</p> <p><strong>How can I check my credit score to see if I am eligible for a card?</strong><br /> You can buy a copy of your credit report (which contains your score) from one of the three main credit bureaus in India &ndash; Equifax, CIBIL and Experian. You will need to make a payment to obtain your report. Alternatively, you can learn your credit score for free if you register for Credit Mantri&rsquo;s&nbsp;<a href="https://www.creditmantri.com/free-credit-score-analysis-online/">free Credit Health Check</a> service. You will not only learn your score, you will also get a brief scan highlighting the issues in your credit report.</p> <p><strong>What is the minimum credit score to get approved for a credit card?</strong><br /> You should have a score of 750 or above to qualify for a credit card. You might be approved even if you have a lower score, but you will be offered stricter conditions like a higher interest rate or low credit limit.</p> <p><strong>I am applying for my first credit card. What should I do?</strong><br /> <em>Be aware of the length of your credit history:</em> If this is the first time you are applying for a card, and if you have not taken any loans before, you will have an insuffiecient credit history and therefore, a low credit score. You might not be approved because your credit report does not have a long enough history of your repayment behaviour.<br /> <em>Do not apply to multiple banks for cards:</em> This might increase your chance of being rejected by multiple lenders and will cause your score to drop. Submitting too many applications at the same time signifies that you are &lsquo;desperate&rsquo; for credit and need to get it from many sources. You might be rejected for this reason and each rejection by a bank will lead to a further drop in your score.<br /> <em>Apply for a secured card to build your credit score:</em> If you are new to credit cards and loans, then apply for a secured card which is issued against a fixed deposit. You can demonstrate responsible repayment behaviour on that card and build up your credit score so that you become eligible for a regular credit card.</p>https://www.creditmantri.com/articles/how-to-calculate-emiHow to calculate EMIhttps://www.creditmantri.com/articles/how-to-calculate-emi<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/14c030350632aca7a78cf28de458e38d_04.png'/></p><p><strong>What is an EMI?</strong><br /><br /> We have all heard of the term EMI (Equated Monthly Instalment) in relation to loans. In simple terms, an EMI is how much you need to pay to your lender every month in order to fully pay off your loan. It is a fixed amount which has to be paid by the borrower to a lender at a specific date every month towards paying off the loan in full. Each EMI consists of part payment towards both the principal and interest amount.</p> <p><strong>How is the EMI calculated?</strong><br /><br /> The EMI is calculated on the basis of a mathematical formula which factors in <br /><br /> &bull; Loan amount<br /><br /> &bull; Interest rate<br /><br /> &bull; Loan period<br /><br /> Let&rsquo;s say you take a loan of Rs 5 lakhs, at 10% for a 5 year period. Based on these 3 factors, the bank will calculate how much you have to pay every month for the next 5 years to fully pay off the loan with interest. This monthly amount is your EMI.<br /><br /> You can&nbsp;<a href="https://www.creditmantri.com/personal-loan-emi-calculator/">calculate your EMI</a> using the formula with a simple calculator. Several banks and lenders offer an EMI calculator on their websites which enable you to see what your EMI payment will be over the repayment period &ndash; or basically, how much your loan will cost you every month.<br /><br /> During the initial stages of your loan tenure, most of your EMI goes towards repaying the interest component. During the later stages, the EMI goes predominantly towards repayment of the principal. So if your loan tenure is 10 years, at the midway point of 5 years you would have paid off most of the interest component. The EMIs over the remaining 5 years would mostly be towards paying off the principal amount.<br /><br /> If you have a high loan amount and interest rate, your EMI will go up. However, if you have a long repayment period, it will cause your EMI to go down.</p> <p><strong>Can the EMI amount change?</strong><br /><br /> Your EMI depends on the kind of plan you have taken. Banks offer two main types of interest plans on loans - Fixed Rate or Floating Rate plans.<br /><br /> <em>Fixed rate:</em> If you opt for a fixed rate plan, your interest rate remains the same throughout the tenure of your loan. Therefore, your EMI amount remains the same every month for the whole the repayment period. This can help with your personal budgeting as you know exactly what your monthly outflow will be over the tenure of the loan.<br /><br /> <em>Floating rate:</em> When you opt for a floating rate plan, the interest rate charged on your loan changes with prevailing market rates. Your EMI will be periodically adjusted in accordance with current interest rates. While this may be of benefit if interest rates fall during the tenure of your loan, it also makes your monthly outflow difficult to predict since it changes with fluctuation in market rates. <br /><br /> If you initially opt for a floating rate plan and decide later that you want to change to a fixed rate plan, many banks will allow you to do so on payment of a conversion fee.</p>https://www.creditmantri.com/articles/how-to-calculate-interest-on-your-loanHow to calculate interest on your loanhttps://www.creditmantri.com/articles/how-to-calculate-interest-on-your-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/449a68c7cbfe48f5a6f4ba29e7cbe055_05.png'/></p><p><strong>Why should I calculate interest on my loan?</strong></p> <p>The sheer number of variety of&nbsp;<a href="https://www.creditmantri.com/credit-products/">loan offers</a> on the market today can be confusing and bewildering. Do you know how much exactly you will need to pay as interest on the loan - i.e. how much the loan will cost you in interest charges? How do you decide which loan best suits your needs and affordability?</p> <p>Understanding how to calculate interest on loans will help you identify the most suitable loan for you. It will let you learn how much your loan will actually cost you so that you can make an informed decision among all the offers available. &nbsp;</p> <p><strong>Tools available to calculate interest on the loan</strong></p> <p>There is a standard mathematical formula used to calculate your monthly EMI (Equated Monthly Instalment) or the amount you have to pay every month to repay your loan. Your EMI includes both the interest on the loan plus repayment of the principal amount. There are three ways in which you can find out what the interest on the loan will be</p> <ul> <li><strong>Online sites:</strong> There are many websites that will calculate your interest cost for you if you provide the following information: 1. the amount you want to borrow 2.the interest rate charged and 3.the loan period.</li> <li><strong>Bank websites:</strong> Many of the bank websites offer an EMI calculator which allows you to see what your monthly outflow on repaying the loan will be, including how much money you are paying each month towards interest costs and towards repaying the principal.&nbsp;</li> <li><strong>On your own:</strong> If you have a calculator, you can apply the formula and arrive at the cost on your own.</li> </ul> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="data:image/png;base64,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" alt="" /></p> <p>In this formula, the Principal is the total amount borrowed from the lender (which does not include interest),&nbsp; &nbsp;represents the interest rate and <em>n</em> represents the number of payments over the loan period.</p> <p>When you opt for a loan with a long repayment period, the interest rate will be relatively higher. If you opt for a loan with a shorter tenure, then you will be paying a lower interest amount.</p> <p>During the initial years of repayment, most of your EMI goes towards paying off the interest charges. In the later stages of your tenure, much of the interest is already paid and most of your EMI goes towards repaying the principal. &nbsp;</p> <p><strong>What is a Loan Amortisation Schedule?</strong></p> <p>If you are taking a home or auto loan, it is very useful to know the timetable of your repayment and the break-up of your monthly payments. This is found in your Loan Amortisation Schedule. It is a simple and clear table that details your repayment obligations (interest + principal) over the entire period of your loan. It includes:</p> <ul> <li>Your outstanding balance before payment of each EMI</li> <li>Your total EMI payment every month broken up into</li> -Your monthly contribution towards principal repayment - Your monthly contribution towards interest payment</ul> <ul> <li>Your outstanding balance after payment of each EMI</li> </ul> <p>Your Amortisation Schedule will give you an accurate view on what your interest cost will be over the entire tenure of your loan and your total monthly outflow will be towards repaying the loan. This will help immensely in planning your monthly budget.</p> <p><span style="border-radius: 2px; text-indent: 20px; width: auto; padding: 0px 4px 0px 0px; text-align: center; font: bold 11px/20px 'Helvetica Neue',Helvetica,sans-serif; color: #ffffff; background: #bd081c url('data:image/svg+xml;base64,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') no-repeat scroll 3px 50% / 14px 14px; position: absolute; opacity: 1; z-index: 8675309; display: none; cursor: pointer;">Save</span></p>https://www.creditmantri.com/articles/what-is-a-credit-cardWhat is a credit card?https://www.creditmantri.com/articles/what-is-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d1b86d0e4e97e1e547ad36d0168063f5_What is credit card.png'/></p><p><strong>What is a credit card?</strong></p> <p>Credit cards are a widespread and extremely popular method of payment in developed economies. &nbsp;In more developing economies, like India, an increasing number of people are choosing to use a credit card because of the convenience, safety and ease of use. Once you start using your plastic card, you might never want to go back to paper cash! You can use a credit card to buy anything from jewelry to vegetables.</p> <p>But what is a credit card? &nbsp;In very simple terms:</p> <ul type="i"> <li>i. It allows you to borrow money on a monthly basis to make purchases. When you buy something using your credit card, you are using your credit card issuer&rsquo;s money until you pay off the amount when you get your credit card bill at the end of a month</li> <li>ii. It enables you to make cash withdrawals from an ATM in case of an emergency &ndash;for example, if you are in a foreign country and need cash; or do not have your ATM card with you; or do not have time to go to the bank to withdraw cash from your account, you can use a credit card to make a cash withdrawal from an ATM machine.&nbsp; You will be charged a fee for using your credit card to make cash withdrawals from an ATM, so it is advisable to do so only when required.</li> </ul> <p><strong>How do credit cards work? </strong></p> <p>A credit card <em>does not</em> mean that you have more money. It only means that it gives you more time to pay for your purchases.&nbsp; Every time you buy something on your credit card, you are actually borrowing that money from the credit card issuer until you pay it back at the end of a month. Using a credit card means that you change the way you pay for your purchases.</p> <p><strong>How do I choose the best card?</strong></p> <p>The only way to choose the best card is to research the features and benefits of the various cards on offer to judge if it <a href="https://www.creditmantri.com/articles/why-you-need-to-check-your-credit-report">suits your credit needs</a>. Each person has different requirements for their card. You will need to check the interest rate charged on the balance, whether the credit limit suits your spending pattern, whether using the card offers any rewards or benefits ( like air miles or shopping discounts), the security features in case of fraud or theft, and the various fees charged including annual fees, late fees etc. Compare the features of various cards to see which is most suitable for you.</p> <p><strong>What are some tips for a new credit card user?</strong></p> <p>If you are new to credit cards, then it is important to ensure that you maintain a healthy credit history and use your card wisely to avoid any damage to your credit profile. Here are some tips for ensure that you remain credit-healthy:</p> <ol type="1"> <li>1. Always pay your bills in full and on time. Every single late, missed or incomplete payment is reported by your credit card provider to the credit bureaus. This will adversely affect your credit score. Making all your monthly payments is the single most vital thing you can do to maintain your&nbsp;<a href="https://www.creditmantri.com/free-credit-score-analysis-online/">credit health</a> and have access to loans and other credit cards in the future.</li> <li>2. Do not spend more than 50% of the credit limit on your card. The less you spend, the better it is for your credit score.&nbsp; Do not buy things that you cannot afford, even though you have easy access to credit.</li> <li>3. Keep your credit card details and your issuer&rsquo;s phone number with you in a safe place so you can immediately report any theft or misuse of your card.</li> <li>4. Retain your credit card sales slips so that you can check it against your monthly credit card statement. Any discrepancies or mistakes should be reported immediately, as they can be reversed.</li> </ol> <p>&nbsp;Read all the terms and conditions carefully when you first get your credit card so that you are aware of all the interest charges, fees and other terms of agreement on the card.</p>https://www.creditmantri.com/articles/what-is-a-gold-loan-tips-and-adviceWhat is a Gold Loan – Tips and Advicehttps://www.creditmantri.com/articles/what-is-a-gold-loan-tips-and-advice<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/56addd138c28af7138e759e22904f592_What is a Gold Loan -Tips and Advice.png'/></p><p><strong>What is a Gold Loan &ndash; Tips and Advice</strong></p> <p>When a customer pledges gold (including jewelry, ornaments and bank-issued coins) as collateral for taking a loan, it is known as a gold loan. The bank/lender uses the gold as security against potential payment default by the customer. The loan amount sanctioned is a certain percentage of the value of the gold that has been pledged.</p> <p><a href="https://www.creditmantri.com/gold-loan/">Gold loans</a>&nbsp;are short-term loans and the repayment period can range from one month to a few years. If you are in need of money for immediate expenses and expect to be able to pay it back in the short term, then this type of loan might be a good option.</p> <p><strong>What are the advantages of a gold loan?</strong></p> <p><em>Lower interest rate on gold loans:</em> In general, interest rates on these loans are lower than on personal loans since this is a relatively low-risk loan for lenders as they hold your gold as collateral. The interest rate also varies depending on how much you want to borrow in relation to the total value of the gold you have pledged. The interest rates are lower when the loan amount is not more than 50-60% of the total value of the gold pledged. However, if the amount borrowed is high as compared to the value of the gold, the interest rate will be correspondingly higher.&nbsp; For example, if you pledge Rs. 1,00,000 worth of jewelry and borrow an amount of Rs.50,000 you will get a better (lower) interest rate on gold loan than if you pledge the same value of gold but want to borrow Rs.70,000.</p> <p><em>Quick process:</em> In India, gold loans are some of the quickest loans to be sanctioned as the banks have your gold as security in case of default, removing the need for checks on&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit scores</a> or reports. The loan can be approved, over the counter, in a matter of minutes or just a few hours. Many lenders can have your gold valued quickly and sanction the loan immediately, after verification of the purity and value of the gold.</p> <p><em>No income proof required</em>: In many cases, you are not even required to submit a salary certificate since your gold is held as security by the lender. So, even if you are currently unemployed or do not <a href="https://www.creditmantri.com/what-is-a-good-credit-score">have a good credit score</a>, you will still be eligible for this kind of loan. However, it is possible that some lenders might ask for a salary certificate for loans above a certain amount.</p> <p><strong>Things to keep in mind before deciding on a gold loan</strong></p> <p><em>Emotional issue:</em> Gold as an asset has emotional value in India since it is largely in the form of family jewelry.&nbsp; Providing gold as a collateral means that you run the risk of losing your family jewelry in case you are unable to repay the loan. This can cause undue mental and emotional pressure not just on the borrower but the entire family. So think carefully if you will be able to pay back the loan in full before you apply. It is good to have a proven track record of making loan repayments so that you are confident about your ability to recover your gold.</p> <p><em>Quality of lender:</em> There are several NBFCs in the country who offer attractive terms for these loans. However, some of them could be poorly run and could possibly shut down without notice leaving you at a loss.&nbsp; It is very important to study the various lenders and choose one that has a good reputation. In addition to these NBFCs, several nationalized and private banks offer gold loans.</p> <p><em>Quality of gold:</em> Usually, only gold of 18K value and above is accepted by lenders. You also need to be above 21 years of age to apply for this type of loan.</p> <p>If you think you a gold loan is a good option for you but are unsure who to approach, CreditMantri can put you in touch with reputable lenders who suit your individual requirements</p>https://www.creditmantri.com/articles/What-is-a-debit-cardWhat is a debit card?https://www.creditmantri.com/articles/What-is-a-debit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/fb30f5ea50163914d82b04f1b9c9c685_What is a debit card.png'/></p><p><strong>What is a debit card?</strong></p> <p>A debit card deducts money from your bank account when you use it to make purchases. It is a widely accepted method of payment worldwide. The biggest advantage of using this type of card is that you never fall into debt &ndash; if you do not have sufficient money in your bank account to pay for your purchase, your transaction simply will not go through. With this card, you will be unable to make purchases unless you have the money to pay for them.&nbsp;</p> <p><strong>What are the advantages of a debit card?</strong></p> <p>A <a href="https://www.creditmantri.com/articles/Debit-Cards">debit card</a> allows you to enjoy many of the advantage of a credit card, without the fear of falling into debt due to excessive spending.</p> <ol> <li>1. You no longer need to carry around cash or cheques.</li> <li>2. You can avail of online banking facilities like credit card holders.</li> <li>3. Debit cards are accepted at millions of shops and retail establishment outlets worldwide.</li> <li>4. No possibility of getting into debt.</li> <li>5. No constant worry about interest rates, payment due dates, credit limits, paying monthly bills, unlike credit cards.</li> </ol> <p><strong>What is the difference between a credit card and a debit card?</strong></p> <p>The big difference between credit and debit cards is whose money you are using when you make your purchases. When you use a <a href="https://www.creditmantri.com/credit-card/">credit card</a>, all your purchases are made on your credit card provider&rsquo;s money. You are simply &lsquo;borrowing&rsquo; the money until you pay it in full at the end of the billing cycle.&nbsp; If you make late or incomplete payments, the credit card issuer charges you interest on the money you owe.</p> <p>When you make purchases on a debit card, you are using your own money. Your purchase amount is taken directly from your bank account. The advantage of a debit card is that you avoid debt because you can spend only what is available in your account. There is no possibility of spending on credit and making a payment later.</p> <p>Another difference is based on how much you can spend on your debit card daily. &nbsp;Also, since you are spending only whatever money you have in your account, you might not be able to make big purchases using credit, unlike a credit card. <br /> <br /> <strong>What is a debit card&rsquo;s safety features?</strong></p> <p>Debit cards share many of the conveniences and safety features of credit cards. In case of loss of your card or fraudulent activity, you can inform your bank immediately and you will not be held liable for the fraudulent transactions after notification. Many debit cards come with a chip for added security and PIN numbers for ATM use and online banking.</p>https://www.creditmantri.com/articles/know-your-CIBIL-scoreKnow your CIBIL scorehttps://www.creditmantri.com/articles/know-your-CIBIL-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/856fa77a0bf22673743873d9ff16c5e7_know your cibil score.png'/></p><p><strong>KNOW YOUR CIBIL SCORE</strong></p> <p><strong>What is a CIBIL score?</strong></p> <p>A CIBIL score is a three digit number between 300 and 900 that gives potential lenders a quick idea of your loan-eligibility. There are three established credit rating agencies, or credit bureaus, that issue credit scores and reports in India &ndash; CIBIL, Equifax and Experian. The scores and reports of all three bureaus are equally valid, though CIBIL is perhaps the most well-known.</p> <p>How is your credit score calculated? Each month, member banks and financial institutions report all details of your credit-related activity to the bureaus. This includes data on every loan or credit card repayment you have made in this period (including any late or skipped payments); any new loan applications; your interest rate; your credit limit on your card; the status on all your loan accounts including any that are &lsquo;Written-Off&rsquo; or &lsquo;Settled&rsquo; or &lsquo;Closed&rsquo;.</p> <p>All this data is then subject to complex statistical analysis to calculate your credit score. If you have a good history of making all your payments on time, you can expect to have a good score. Naturally, the higher your score, the better your chance of being approved for a loan or credit card.</p> <p><a href="https://www.creditmantri.com/what-is-a-good-credit-score">What is a good credit score</a> to have? In general, lenders look for a score of 750 or above to approve a loan. A good score signifies that the borrower has been responsible in making his or her repayments on time and is, therefore, a relatively low-risk customer for the bank.&nbsp; It is possible to secure a loan with a credit score of less than 750, but the process will take much longer and you might have to pay a higher interest rate that will make the loan very expensive.</p> <p><strong>Why should I know my CIBIL score?</strong></p> <p>When you apply for a loan or credit card, the first thing the bank/financial institution does is to check your credit score to evaluate if you are a high or low risk customer. Your credit score gives them an instant idea of your track record of repayment on your loans. Many times, potential lenders look at your credit score to decide whether to further evaluate your application. If you have a poor score, they may reject your application at the very first stage.&nbsp; So your score is very important as it is the first (and sometimes last) impression lenders have of your loan-eligibility.</p> <p><strong>What are the benefits that I will receive with a good CIBIL score?</strong></p> <p>A good credit score of 750 or above will enable you to avail of:</p> <ul> <li>1. Low interest rate</li> <li>2. Higher loan amount</li> <li>3. Longer tenure</li> <li>4. Quicker approval process</li> <li>5. Higher credit limit on your card</li> </ul> <p><strong>How do I find my CIBIL score?</strong></p> <p>You can get your credit score by applying directly on the official CIBIL website. Alternatively, CreditMantri can obtain your Equifax credit score <em>for free,</em> if you register for the free Credit Health Check on our website. In addition, you will also get a quick scan on the issues in your credit report &ndash; again, at no cost to you.&nbsp;</p> <p>If you have a low <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, you can avail of a range of our expert services to improve your score in the most efficient way possible. If you already have a good credit score, CreditMantri can help you compare the various offers on the market and find the products best suited to your needs and affordability. You can also learn how you can lower your EMI costs.</p>https://www.creditmantri.com/articles/how-to-pay-your-Credit-card-bill-onlineHow to pay your Credit card bill onlinehttps://www.creditmantri.com/articles/how-to-pay-your-Credit-card-bill-online<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/661e4fae2a4fb50fb3ee637e440126d2_HOW TO PAY YOUR CREDIT CARD BILL ONLINE.PNG'/></p><p><strong>HOW TO PAY YOUR CREDIT CARD BILL ONLINE</strong></p> <p>Imagine not having to worry about forgotten due dates on your credit card bill, no last minute-tension about rushing to the bank to deposit your credit card payment, no wasting time in queues on a working day. Online banking allows that world to come true! Paying your card bill online is quick, safe and hassle-free and can be done at your convenience, anytime.</p> <p>First, you need to register for your bank&rsquo;s net banking facility, if you have not already done so. This is a quick and very simple process. Go to your bank&rsquo;s home page and click on Net Banking. You will be guided on how to register for online (Net) banking facilities. You will get a net banking user ID and password that allows you to pay your credit card bill online, transfer money electronically and avail of many other convenient, time-saving services.</p> <p>Once you are registered for net banking, here are some of the ways you can pay your credit card bill online:</p> <p>&bull; If your credit card and savings account are with the same bank:</p> <p>- You need to go to your bank&rsquo;s net banking page and link your&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> account to your bank account. You can also set up a standing instruction so that your credit card bill is automatically paid every month and your account is debited. You can choose if you want only the Minimum Amount Due paid or the Total Amount Due. You do not need to ever worry about missed due dates when you choose this option.</p> <p>- Mobile banking: You can also register for mobile banking so that you can make your card payments from your mobile phone.</p> <p>&bull; If you do not have a bank account with your credit card issuer:</p> <p>- <strong>NEFT </strong>&ndash; You can use the National Electronic Funds Transfer (NEFT) system to transfer money from your bank account to your credit card account in another bank. You need to register your credit card issuer (Payee), your credit card number, the IFSC number of your credit card issuer and address. It is a very simple, quick, one-time process. Once all these details are registered, you can make your payment.</p> <p>Time taken and charges: The actual time taken to credit the account depends on the time taken by your bank to process the payment, so it is better not to wait till the last day to make the payment. Many banks offer this transfer free of cost, but you need to check with your bank about any charges.</p> <p>-<strong>ECS </strong>&ndash; You can use Electronic Clearing System (ECS) to authorise your credit card issuer to transfer funds from your savings account to your credit card account. You need to give your credit card issuer a mandate to do this. The authorisation is a simple process and details on how to do it will be on your credit card issuer&rsquo;s website.</p> <p>Switching to paying your credit card bills online will save you time, effort and the tension of missed due dates. Setting up a standing instruction to ensure automatic debit of your account will ensure that you do not make late payments.</p> <p>Registering for net banking and making payments online is a quick and simple process that comes with long-lasting and significant benefits.&nbsp;</p>https://www.creditmantri.com/articles/Interest-rate-for-car-loanInterest rate for car loanhttps://www.creditmantri.com/articles/Interest-rate-for-car-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4a7693ebed5d6a061c0baf49c32a3ed2_interest rate for car loan.png'/></p><p>Often, one of the first loans that people take is an <a href="https://www.creditmantri.com/auto-loan/">auto or car loan</a>. There are a variety of auto loans on offer on the market today that suit all needs and levels of affordability.</p> <p>Car loans can be taken to purchase both new and used cars. The interest rate on loans for new cars is lower than the interest rate charged for buying a used car. The general range for interest rates on car loans is between 12-15% though this might be higher or lower, depending on the individual bank and broader market conditions.</p> <p>The interest rate on car loans is usually a fixed interest rate &ndash; meaning you pay one rate for the entire tenure of the loan. Many banks give loans for up to 100% of the invoice value of the new car, and a little less for used cars. However, when calculating how much interest you will be paying, you also need to keep in mind that you will have other expenses like registration charges, insurance and processing fees on the loan among others.</p> <p>It is simple to calculate the interest you need to pay for your car loan and what your EMI will be. Most banks and lenders have online tools that help you calculate how much your car loan will cost you. You need to input your loan amount, loan period and interest rate and you will learn your interest costs immediately.</p> <p>Many people think that when they buy a car on loan, it belongs to them from the start. This is not the case! &nbsp;The lender holds the vehicle in hypothecation as security till the entire loan, including interest, is repaid. Thus, the lender technically owns the car until you repay the whole amount due. If you fail to make your loan payments, the lender can repossess the car and dispose of it to recover their money.</p> <p>Very often, the interest rate that the bank charges you on the loan is determined by your credit score. The higher your credit score is, the lower the interest rate you will be offered. If you have a good credit score (750 or above), it signifies that you are a responsible borrower who repays on time, and therefore a low-risk customer. Banks are willing to offer you attractive rates of interest as they are reassured that there is a low chance that you will default on the loan.</p> <p>If you are planning to apply for a car loan and wish to avail of a lower interest rate, make sure you obtain your credit report and check your credit score. If your score is below 750, then it is a good idea to improve your score before applying for a car loan. It is possible to get a loan with a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of less than 750, but you will be offered poor terms and conditions including a higher interest rate, smaller loan amount and shorter repayment period.</p> <p>If you need to improve your credit score when applying for a loan, you could approach a professional credit management agency like CreditMantri who will guide you on how to increase your credit score in the most efficient way and help you find the best car loan that suits your needs and affordability.</p>https://www.creditmantri.com/articles/what-is-a-car-loanWhat is a car loanhttps://www.creditmantri.com/articles/what-is-a-car-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/bedb6f9320bc831a4b708159dd8d20f5_What is a car loan.png'/></p><p>A loan you take from a bank for the specific purpose of buying a car is a car loan. The loan could be used to buy a brand new car or a used car. A car loan is a secured loan in that the lender holds the car as security until the loan is fully repaid. This is known as hypothecation to the bank or finance company. Once you pay off the full loan amount, including interest, the complete ownership of the car will be legally transferred to you.&nbsp; However, in case of default on the loan, the car can be repossessed by the lender.</p> <p>You need to be a minimum of 21 years of age to <a href="https://www.creditmantri.com/auto-loan/">apply for a car loan</a>.</p> <p><strong>What is the amount and period of a car loan?</strong></p> <p>In general, lenders can give up to 90% of the invoice value of the vehicle. Some lenders offer even 100% financing on certain brands and models of cars. The invoice value does not include the additional costs incurred when you buy a vehicle such as taxes or insurance. The invoice value refers only to the price of the vehicle.</p> <p>The tenure &ndash; or loan period - on a car loan varies from 1-7 years. Again, lenders will decide the loan period based on your monthly income and ability to repay. Car loans have a shorter repayment period than home loans since the loan amount is relatively smaller.&nbsp;</p> <p><strong>What are the interest rates on a car loan?</strong></p> <p>&nbsp;Unlike <a href="https://www.creditmantri.com/home-loan/">home loans</a>, car loans have fixed interest rates for the entire tenure of the loan. Your lender will fix a rate based on, among other factors, the type of vehicle or the loan amount. For instance, the interest rate on a loan for purchasing a luxury car will be lower than a compact car since the down payment made on a luxury car is far larger.</p> <p><strong>What are the factors lenders look at when sanctioning a car loan?</strong></p> <p><strong>&nbsp;</strong>Lenders are primarily interested in your income and credit history. They will look at your</p> <p><strong>1.Salary and employment status:</strong> Lenders need to know that you will have a steady monthly income in order to make your repayments. Also, your existing repayment obligations should not exceed 50-60% of your monthly income.</p> <p><strong>2.Credit score:</strong> Lenders get a good idea of your repayment record with your credit score. In general, if you have a score of 750 or above you stand a good chance of being approved for a car loan. It is possible to get a loan with a lower score, but you will be subject to stricter repayment conditions and a higher interest rate.</p> <p><strong>3.Credit Report:</strong> Lenders will access your credit report to see if you have a good track record of making your loan repayments on time, and to also check your current loan obligations to judge if you can afford an additional loan repayment.</p> <p>If you are planning to buy a car with a car loan, the first thing you should do is to obtain your credit report and check your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Make sure that you have a good credit score before you apply for a loan to avoid rejection.</p>https://www.creditmantri.com/articles/how-to-calculate-the-EMI-for-a-car-loanHow to calculate the EMI for a Car loanhttps://www.creditmantri.com/articles/how-to-calculate-the-EMI-for-a-car-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/641308f440b8eb4c93b7bcbcdc1df698_CALCULATE EMI FOR CAR LOAN.PNG'/></p><p>A car loan is often the first substantial loan that individuals borrow from a bank or other financial institution. As the name suggests, a car loan is sanctioned for the purpose of buying a car &ndash; either new or used. The loan period is for a relatively shorter duration than a home loan, and naturally, the loan amount also tends to be smaller.</p> <p>If you are planning to&nbsp;<a href="https://www.creditmantri.com/auto-loan/">apply for a car loan</a> and want to check if it fits into your personal budget, it is simple to check what your EMI will be. Many lender websites offer an online EMI calculator &ndash; all you have to do is to input the amount of the loan, the interest rate and the tenure (loan period). You will know your EMI instantly.&nbsp;&nbsp;</p> <p><strong>What are the terms used in a typical EMI calculator tool? </strong></p> <p><em>Principal </em>&ndash; This refers to the loan amount.</p> <p><em>Interest rate</em> &ndash; Unlike home loans, auto loans have fixed interest rates. This means that you will pay a single interest rate for the entire period of your loan, regardless of market conditions and whether interest rates increase or decrease in the broader economy. Your EMI or Equated Monthly Instalment will be the same every month for the duration of repayment.</p> <p>Your lender will fix a rate based on, among other factors, the type of vehicle or the loan amount. For instance, the interest rate on a loan for purchasing a luxury car will be lower than a compact car since the down payment made on a luxury car is far larger.&nbsp; A larger loan amount will attract a relatively higher rate of interest. Similarly, the interest rate on loans for buying a used car is higher than for a new car.</p> <p><em>Tenure </em>&ndash; This refers to the loan period. For a car loan, it could generally range from 1-7 years.</p> <p><strong>What is an EMI? </strong></p> <p>EMI stands for Equated Monthly Instalment. It is the amount you need to pay on a monthly basis, usually on a fixed date, to repay your entire loan. It consists of principal plus interest due, spread over the entire tenure of your loan. If your loan period is 20 years, then you will be paying an EMI every month for 20 years.</p> <p>&nbsp;If your monthly EMI burden across all your loans is too high, it can leave you with insufficient funds every month for your other expenses. You can reduce your EMI outflow by lengthening the tenure of the loan.&nbsp; However, also keep in mind that if you extend the tenure of your loan, you will be paying out more in interest charges since your repayment obligation is over a longer period.</p> <p><strong>How can I avail of a better interest rate on my car loan? </strong></p> <p>The best way to be eligible for better interest rates is to have a good credit score. If you are planning to apply for a car loan, obtain a copy of your credit report and <a href="https://www.creditmantri.com/credit-score-advice/">check your credit score</a>. You stand a good chance of being offered attractive terms on your loan, including a lower interest rate and bigger loan amount, if you have a credit score of 750 or above.</p> <p>If your credit score is less than 750, it is a good idea to wait to improve your score before applying for a loan. That way you can decrease the chance of rejection and avail of a better interest rate and repayment conditions.&nbsp;</p>https://www.creditmantri.com/articles/what-is-a-fixed-depositWhat is a fixed deposithttps://www.creditmantri.com/articles/what-is-a-fixed-deposit<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2e661111864e82b94670f85121b687bb_what-is-a-fixed-deposit.png'/></p><p>A fixed deposit or term deposit is one of the safest and most popular forms of investment in India. It has been traditionally seen as a safe and reliable way of investing money, with none of the volatility and risks associated with other investments like the stock market. It is simple to open a fixed deposit and requires minimal documentation.</p> <p>A fixed deposit (FD) is a financial instrument that offers a higher rate of interest when compared to interest earned in a regular savings account. If you have some extra money and wish to invest it in a low-risk opportunity, a fixed deposit is a good option.</p> <p>Here are some of the main features of a fixed deposit:</p> <p><strong>Period:</strong> A fixed deposit &ndash; as the name suggests &ndash; is for a fixed term, generally ranging from 15 days to 10 years. On maturity of your deposit, you are paid your original deposit amount plus the interest earned.</p> <p><strong>Amount:</strong> The amount to be invested can be deposited only once. If you want to invest any additional amounts, you will need a new FD account.</p> <p><strong>Maturity:</strong> On maturity, the amount is credited to the customer&rsquo;s specified bank account.</p> <p><strong>Withdrawals:</strong> Sometimes, if you have an urgent need for the money, or if you spot a better investment opportunity, you might want to break your FD and withdraw the entire sum before the maturity date.&nbsp; If you withdraw your FD before the maturity date, you will need to pay a penalty.</p> <p>In other cases, you might only want to make a partial withdrawal &ndash; i.e. remove only a small amount of your total deposit. In such cases too, you will be charged a penalty and paid interest only on the remaining amount.</p> <p><strong>Renewals:</strong> On maturity, an FD can be renewed for a different tenure, or it can be auto-renewed in the absence of specific instructions.</p> <p><strong>Interest rate:</strong> The rate of interest varies from bank to bank according to the amount deposited, period of deposit and other such factors. The main purpose of this type of deposits is to enable individuals to earn extra interest for the surplus money they have.</p> <p>In India, senior citizens enjoy a higher interest rate on their Fixed Deposits.</p> <p><strong>Tax:</strong> You can invest your money in tax-saving fixed deposit schemes. However, keep in mind that you will need to keep your FD for a minimum number of years if you choose to invest in such a scheme.</p> <p><strong>Advantages of fixed deposit:</strong></p> <p>a. Fixed deposits encourage individuals to save money over a longer period of time.</p> <p>b. They enable the depositor to earn higher interest on their surplus money.</p> <p>c. Allows them to plan their funds allocations as they are assured of a fixed amount of funds over a fixed period.</p>https://www.creditmantri.com/articles/how-to-check-CIBIL-defaulter-listHow to check CIBIL defaulter listhttps://www.creditmantri.com/articles/how-to-check-CIBIL-defaulter-list<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/8d914b41f98fcb048283ce9666d17d89_HOW TO CHECK CIBIL DEFAULTER LIST.PNG'/></p><p><strong>How do I check if my name is on the CIBIL defaulter list?</strong></p> <p>It is important to know that there is no such thing as a <a href="https://www.creditmantri.com/cibil-defaulter-list">CIBIL defaulter </a>list. There used to be a defaulter list earlier, but it no longer exists. Neither CIBIL nor any of the other credit rating agencies issues a defaulter list.&nbsp; &nbsp;If your loan application is rejected by a bank, then the reason is probably due to a low credit score caused by a poor repayment record.</p> <p>When you apply for a loan, banks obtain a copy of your credit report from one of 3 credit bureaus (CIBIL, Equifax or Experian) to evaluate your application. If you have a poor credit score and a history of failing to make repayments, banks are unwilling to take the risk of lending to you. They will turn down your application after seeing your unsatisfactory payment record on your credit report.&nbsp;</p> <p><strong>How can I remove my name from the CIBIL defaulter list?</strong></p> <p>As mentioned before, there is no single list issued by CIBIL on defaulting borrowers. The only way you can avoid loan rejection is by improving your credit score and rebuilding your credit profile.</p> <p>There are two things you can start doing immediately which will help you improve your credit profile and make banks more willing to lend to you.</p> <p>a. The most important thing you can do to improve your score is to fulfil all your loan/credit card obligations <em>on time and in full.</em> Do not skip or delay even a single payment. Making timely repayments on all your loans and credit card obligations will have an immediate positive impact on your credit profile.</p> <p>b. You should try and pay off all your overdue payments and eliminate any accounts that are in a &lsquo;Written-Off&rsquo; or &lsquo;Settled&rsquo; status. Both these labels signify that you have not been regular with your payments. Any outstanding on your loan or credit card is a big drag on your credit score. Though it might initially seem difficult to find the money to pay them all off, it is a good idea to negotiate with each of your lenders to try and arrive at an amount &ndash; based on your income and affordability - to pay off all your dues.</p> <p>The longer you wait, the more interest continues to pile up and you will end up having to pay a much larger amount to clear your dues. Simultaneously, even as you postpone payment, your credit score continuously decreases. In fact, there is no advantage in putting off repayments on your loan/credit card outstanding &ndash; only disadvantages. Paying it off will be a huge step in improving your score and loan-eligibility. Having a &lsquo;Closed&rsquo; status on all your past loans will improve your score and help rebuild your credit health.</p> <p><strong>What are the ways I can wrongly appear as a defaulter?</strong></p> <p>You might wrongly appear as a defaulter because of administrative errors on your credit report such as wrong name/spelling of name, date of birth, gender, PAN number, or address details. A mismatch between your actual information and wrongly reported details on your report could lead to being noted as a default.</p> <p>You could also be a victim of fraud or identity theft, where someone has used your ID details to secure a loan and defaulted on them.</p> <p><strong>How can I correct these errors?</strong></p> <p>The first thing you should do is to obtain a copy of your credit report to check for any administrative or reporting errors. (For instance, you might have paid up your loan in full but it is still shown as outstanding.) File a dispute with the credit bureau to get the errors rectified immediately. You can do this online as well. The credit bureau will coordinate with the concerned bank to get your updated details. It takes a minimum of 30-45 days for the change to appear on your report. Make sure that you follow up until you see the changes reflected in your report.</p>https://www.creditmantri.com/articles/how-to-check-status-of-credit-card-applicationHow to check status of credit card applicationhttps://www.creditmantri.com/articles/how-to-check-status-of-credit-card-application<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f1f8183d41293cf0f67daf1f8ad28b55_HOW TO CHECK CREDIT CARD STATUS.PNG'/></p><p>A credit card is one of the most convenient ways to pay for your purchases. You do not have to carry around large and heavy amounts of cash or your cheque book - which is both inconvenient and unsafe.&nbsp; Credit cards also have security features to protect you against theft or fraud. Above all, credit cards allow you use your bank&rsquo;s money to make your purchases until you pay your bill at the end of a monthly billing cycle. You are using someone else&rsquo;s money for free for a month to make your purchases! For all these reasons, it&rsquo;s no surprise that more and more people want to switch to credit cards.</p> <p><strong>How can I check the status of my credit card application?</strong></p> <p>If you are anxious about your credit card status, it is easy to track it online on the bank&rsquo;s website.</p> <p>- After you have submitted your application, you will be sent a Reference Number.</p> <p>- Once you get that number, you can log in to the bank&rsquo;s website and select the option that allows you to Track your Application.</p> <p>- You need to enter your application reference number and other identifying personal details (like your mobile number or date of birth). Once your identity is verified, your credit card status will be displayed.</p> <p>- The online process for checking your application status is more or less the same with all bank websites</p> <p><strong>What if my credit card gets rejected?</strong></p> <p>If your credit card application is rejected, the first thing you should do is to find out the reason for the rejection. Usually it is because of a poor credit score (less than 750). It could also be due to insufficient credit history. This is a likely reason if it is the first time you are applying for a <a href="https://www.creditmantri.com/credit-card/">credit card</a>, not taken any loans, or only recently taken a loan. Your credit score plays a big role in whether your credit card application is approved or rejected.</p> <p><strong>How can I improve my chances of being approved?</strong></p> <p>It is good to periodically check your credit report and remain updated on your credit score. You can see if there are any specific areas that you need to pay attention to so that you can&nbsp;<a href="https://www.creditmantri.com/articles/how-to-avoid-personal-loan-rejection">improve your score and avoid rejection</a> in the future. If you do not have a long enough credit history, you can apply for a secured card which is issued against a fixed deposit. This will help you build your score and become eligible for a regular credit card. Each time you are rejected, it causes your credit score to drop, making it even more difficult to access a loan or credit card in the future.</p> <p>CreditMantri can help you find the most suitable credit card for your needs and guide you, if required, on how to become credit-worthy.</p>https://www.creditmantri.com/articles/how-to-improve-CIBIL-score-after-credit-card-settlementHow to improve cibil score after credit card settlementhttps://www.creditmantri.com/articles/how-to-improve-CIBIL-score-after-credit-card-settlement<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/024006c291464b0b67050839c8250465_HOW TO IMPROVE CIBIL SCORE AFTER CREDIT CARD SETTLEMENT1.png'/></p><p>One common worry that runs through your mind after you have made a credit card settlement is, &ldquo;Do I have any way to repair my&nbsp;<a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a> after the settlement process?&rdquo; Yes, there is! It is never too late or too difficult to turn around your credit situation. However, you need to remember that there is no instant, overnight quick fix to improve your credit score. Just like any diet or health/exercise plan, you need commitment, discipline and patience to achieve your goal.</p> <p>Below are some tips on how you can do this.</p> <p><strong>1. Convert &lsquo;Settled&rsquo; to &lsquo;Closed&rsquo; status:</strong> If you have settled with the credit card company, it would be advisable to pay off your bill in full and change your status from &lsquo;Settled&rsquo; to &lsquo;Closed.&rsquo; A &lsquo;Settled&rsquo; status still has a negative effect on your credit score as it shows you have not paid off your dues in full. Talk to your credit card company and agree on a mutually acceptable amount &ndash; based on your income and affordability &ndash; that will allow you to convert it to a &lsquo;Closed&rsquo; account. This will have a significant positive impact on your credit score.</p> <p><strong>2. Make regular payments:</strong> Your repayment record is a very important factor in calculating your&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and makes up almost one-third of it. One of the most effective ways you can rebuild your score is to make all your loan/credit card payments in time and in full, starting right away. This will have an immediate and significant impact on your score. You might have to restrict your spending in order to be able to make full payments, but the positive impact on your score will be well worth it.</p> <p><strong>3. Pay off your any outstanding:</strong> Any outstanding on your loan or credit card is a big drag on your credit score. Though it might initially seem difficult to find the money to pay them all off, it is a good idea to negotiate with each of your lenders to try and arrive at an amount to pay off all your dues. The longer you wait, the more interest continues to pile up and you will end up having to pay a much larger amount to clear your dues. Simultaneously, even as you postpone payment, your credit score continuously decreases. In fact, there is no advantage in putting off &nbsp;repayments on your loan/credit card outstanding &ndash; only disadvantages. Paying it off will be a huge step in improving your score and loan-eligibility.</p> <p><strong>4. Do not exceed 50% of your credit limit: </strong>Another factor that contributes to your credit score is the amount of money that you have available on your credit accounts. Make sure that you do not use more than 50% of the credit limit offered to you. For example, if you have a credit limit of Rs. 50,000 on your card, do not spend more than Rs. 25,000 a month on the card. Anything more reflects a lack of spending discipline and that you are &lsquo;hungry&rsquo; for credit. This has a negative impact on your score. To improve your score, make sure that you limit yourself to 50% of your limit.</p> <p><strong>5. Continue to use credit: </strong>Many people get burned by their credit and stop using their credit cards in an effort to improve their credit profile. This is not a good idea. Bear in mind that you have to <em>use your credit</em> in order to rebuild your credit score. Your credit score will improve only if you demonstrate responsible credit behaviour. Lack of any credit activity will only lead to a decrease in your score! So another way to improve your credit score is to use a small amount of the credit limit offered to you, and pay off your balance in full every single month.</p> <p>It would be good if you set a target credit score of 750 which is generally the minimum score banks view as being credit-worthy.&nbsp; It can take between 4-12 months to reach this number based on your individual credit situation, and the reward is a future of quick and easy access to credit.&nbsp;</p>https://www.creditmantri.com/articles/how-to-get-a-credit-cardHow to get a credit cardhttps://www.creditmantri.com/articles/how-to-get-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2ed81f3575a197f2f74b3bf79475421e_HOW TO GET CREDIT CARD.PNG'/></p><p><strong>Are you applying for a credit card for the first time?</strong></p> <p><strong>Or applying for an additional card?</strong></p> <p><strong>Or applying with a poor credit score?</strong></p> <p>The choice of cards and offers from various banks and credit card companies can seem very confusing. You are faced with a bewildering range of types of cards (fuel cards, airline cards, lifestyle cards etc.), various annual fees and processing fees, varying interest rates, varying credit limits. It can be very difficult to choose the best option among all these choices and to figure out which card you are eligible for. However, once you get the right card, you will realize how safe and convenient it is to use.</p> <p>You can get a card in 2 ways:</p> <p>1. You can apply directly to the bank online or in person at the branch and complete a basic application form. You will need to provide a few personal details (like name, date of birth), contact details (address, Email ID etc.) and employment details (type of employment, monthly income). Once you submit the application online, a representative of the bank will contact you by sms or email for further processing your application. The bank/card company will check your credit score and other details and decide whether to approve your application.</p> <p>2. Alternatively, you can save yourself the tension of choosing the right card and avoid the possibility of rejection if you go through a credit management company like CreditMantri. We will do all the research for you and match you &ndash; for free - with the credit card best suited to based on your needs and affordability. CreditMantri can remove the confusion from this decision-making process and guide you on the best option. We ensure that you make the right choice and that you avoid the possibility of rejection.</p> <p><strong>Applying for a card for the first time? </strong></p> <p>If you have never had a <a href="https://www.creditmantri.com/credit-card/">credit card</a>, you will have a short or non-existent history of repaying your bills. This is a problem since banks are unwilling to approve your application because they are unsure of your ability and willingness to repay your bills. There is a high chance that you will be rejected.</p> <p>If you are applying for the first time, it is a good idea to apply for a secured credit card - which is provided to you against a fixed deposit. A secured credit card especially helps those with little or no credit history to build their credit profile so that they become eligible for regular credit cards and loans in the future. A secured credit card is also advisable for those with a low credit score who are unable to get a regular credit card.</p> <p><strong>Things to keep in mind when applying for a card:</strong></p> <p>1.Make sure you only apply for a card that you are eligible for. If you apply for a credit card that you are not eligible for, you will be rejected and your credit score will decrease further. Therefore, it is important to research all the offers available and only apply where you think you have the best chance of being approved.</p> <p>2. Do not apply for multiple cards at the same time or within a short period of time. Sometimes, due to lack of awareness, people apply for several cards at once in the hope of increasing their chances of being approved. This is not a good idea at all!&nbsp; If you apply for several cards at the same time, it signifies that you are &lsquo;hungry&rsquo; for credit and it will cause a drop in your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. This in turn, will make it difficult to qualify for loans in the future.</p> <p>In short, do your research thoroughly so that you do not apply for the wrong card and get rejected. You might unknowingly and unnecessarily cause your score to drop. If in doubt, CreditMantri can find the best card for you for free- and help guide you through the application process to ensure that you get the most suitable credit card.</p>https://www.creditmantri.com/articles/how-to-get-an-SBI-credit-cardHow to get an SBI credit cardhttps://www.creditmantri.com/articles/how-to-get-an-SBI-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/791e840b388acd2333bd81b38b61b917_HOW TO GET SBI CREDIT CARD.PNG'/></p><p>SBI offers a variety of credit cards to suit the various needs and levels of affordability of its customers. It offers lifestyle cards, rewards cards, shopping cards, travel cards as well as a range of premium cards, which means there is more than enough selection of cards for potential customers to choose from.</p> <p><em>Am I eligible for an SBI credit card? </em></p> <p>It is your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, credit history and current income that largely determine whether you are eligible for a credit card. &nbsp;If you have a credit score of 750 or above, you have a good chance of qualifying for a <a href="https://www.creditmantri.com/credit-card/">credit card</a>. It is possible to be approved for a credit card even with a score of less than 750, but you might be offered less attractive terms and conditions like a higher interest rate or lower credit limit.</p> <p>If you are planning to apply for a SBI credit card, the first thing you should do is to check your credit score. If it is less than 750, take time to improve your score before applying. This way you avoid the chance of rejection that will cause your credit score to drop further. Having a good credit score means that you can get approved for the card you want and avail of good repayment terms.</p> <p><em>How do I choose which credit card is best for me?</em></p> <p>The best way to choose a card is to research all the options and see which card you are eligible for and suits your requirements. For instance, your monthly income is often one of the eligibility criteria, so if your income is not sufficient, do not consider the card as you might be rejected. Also, if you do not use air travel much, then a card that offers free airline miles is of no use to you.</p> <p>The SBI website can help you decide which card you are eligible for and suits your needs. Using the tool can help you narrow down which credit card best matches your requirements and that you could apply for.</p> <p>You could also apply online on the SBI website with just your name, phone number and city of residence and a bank representative can contact you about your application.</p> <p><em>How do I apply for an SBI credit card?</em></p> <p>Once you have decided on which card you want, it is easy to apply. You could log on to the SBI website and submit the application online. You will receive an application reference number once you have successfully uploaded the application. You can use this number to check the status of your application online.</p> <p>Alternatively, you could walk into an SBI branch and submit the application form with the requisite documentation in person.</p>https://www.creditmantri.com/articles/how-to-get-a-personal-loanHow to get a Personal Loanhttps://www.creditmantri.com/articles/how-to-get-a-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/eed3faf90b4d0dc16c3d741bb9827547_How to get a personal loan.png'/></p><p>A Personal Loan is sanctioned by banks or other lenders to individuals for personal use. Unlike a home loan or auto loan or student loan, there is no restriction on how you spend a personal loan. Typically, a personal loan is used for a large temporary expense like a child&rsquo;s wedding celebration, or medical emergency or even a vacation.</p> <p>A personal loan is also different from auto/home/gold loans in that there is no collateral involved. The lenders do not hold any security deposit in case you default on your loan. However, defaulting can have severe long term consequences &ndash; your credit score will drop, the default will be noted on your credit report, and you will find it difficult to obtain loans in the future.</p> <p>If you do not have any assets to pledge as collateral for a loan and you need money in the short term, then a personal loan might be a good option.&nbsp; In order to safeguard their money, lenders will instead study your credit and repayment history to judge if you are a low-risk customer and decide whether to approve your application.</p> <p><strong>What are the eligibility criteria to get a personal loan?</strong></p> <p>The primary criteria to get a personal loan approved are a</p> <p>1. A stable and sufficient monthly income</p> <p>The minimum salary requirement differs from lender to lender. It is best to check each lender&rsquo;s criteria directly on their website to see if you meet their requirements for a personal loan.&nbsp;</p> <p>Similarly, the loan amount depends on your income. Lenders want to make sure that your income is adequate to make repayments on your loan as they do not have any collateral in case you are unable to make your payments.</p> <p>2. A good credit score of 750 or above.</p> <p>As there is no collateral, your credit score is a very important factor when lenders decide whether to approve the loan. Make sure that you stand a good chance of qualifying before you apply for the loan. Being rejected means that your credit score will drop and that you will find it difficult to be approved for another loan.</p> <p>In case you are rejected, it is important to make sure that you improve your credit score to 750 and iron out any weaknesses in your credit report before you apply again. If you apply to another lender with the same score, you run the risk of being rejected again, which will further damage your credit score. Improving your score before applying again will maximise your chances of successfully getting a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>.</p> <p><strong>What are the advantages and disadvantages of a personal loan?</strong></p> <p>The advantages of personal loans are that they are relatively quick (because they do not require as much documentation as a home or &nbsp;<a href="https://www.creditmantri.com/auto-loan/">auto loan</a>); there is no restriction on how you can spend the money; and they do not require any collateral. So if you do not have any assets like a home, or shares or gold to offer as security, and are in need of money urgently, this is perhaps the most convenient option.</p> <p>The main disadvantage of a personal loan is the higher interest rate, when compared to other loans. Since the lenders do not have any security against payment default, they charge high interest rates to cover their lending risk. Personal loans can work out to be one of the most expensive loans to take in terms of interest payments.</p> <p><strong>How do I apply for a personal loan?</strong></p> <p>You can either approach a bank directly with all the documents or you can apply for a personal loan online and the bank/lender&rsquo;s representatives will contact you.&nbsp;</p>https://www.creditmantri.com/articles/how-to-get-a-personal-loan-from-sbiHow to get a Personal loan from SBIhttps://www.creditmantri.com/articles/how-to-get-a-personal-loan-from-sbi<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3935503be35fa81e0854a227f2f5d81a_HOW TO GET A PERSONAL LOAN FROM SBI.PNG'/></p><p>Are you dreaming of going on a vacation, planning your child&rsquo;s wedding, thinking of renovating your home, buying a new gadget or wondering where to get the &nbsp;money to cover &nbsp;emergency medical expenses? When you need money for short term expenses and plan to repay it quickly, a personal loan is the answer. State Bank of India (SBI) has several kinds of personal loans to suit your individual situation.</p> <p>SBI provides 4 types of personal loans to customers:</p> <p><strong>Xpress Credit Personal Loan:</strong></p> <p>1. Eligibility: These loans are given to employees of the central and state government, Central PSUs, quasi &ndash;government organisations, and certain state PSU, educational institutions and select corporates who maintain salary accounts with SBI.</p> <p>2. Income: You should have a net monthly income of at least Rs 7500. Your EMI/NMI ration should not exceed 50 &ndash; i.e. the total amount of your EMI payments should not exceed 50% of your net monthly income (NMI).</p> <p>3. Amount: The minimum amount is Rs 24,000 and the maximum is 24 times your NMI, capped at Rs 15 lakhs.</p> <p>4. Tenure &ndash; 6-60 months.</p> <p><strong>SBI Saral Personal Loan:</strong></p> <p>1. Eligibility: Salaried individuals, self-employed professionals.</p> <p>2. Income: The personal loan amount depends on your income and repayment capacity.</p> <p>3. Amount: Minimum loan amount is Rs.24,000 ( in metro and urban areas). The maximum amount is 12 times the net monthly salary of the customer, up to a maximum of Rs 10 lakhs.</p> <p><strong>Loan to Pensioners:</strong></p> <p>1. Eligibility: Retired central and state government employees who are drawing a pension and are not more than 76 years of age can avail a personal loan from SBI. Spouses who are authorized to draw the pension on the death of the employee are eligible for a Family Pensioner Loan.</p> <p>2. Amount: The minimum is Rs.25,000 and the maximum amount is capped at 18 months pension, subject to certain age restrictions.</p> <p>3. Period: The repayment period is 24-60 months depending on the age of borrower.</p> <p><strong>Festival Loans:</strong></p> <p>This&nbsp;<a href="https://www.creditmantri.com/personal-loan/">personal loan</a> is specifically given to cover all the extra expenses that accompany the festival season!</p> <p>Eligibility: Employees of central or state government /PSUs/public or private limited companies with a minimum of 2 years of service; self-employed individuals with minimum 3 years of experience; and people with a&nbsp; regular source of income from verifiable channels.</p> <p>Income: Minimum net monthly income of Rs.3000. Your spouse's income can be included when calculating the loan amount if he/she guarantees the loan or the loan is taken jointly.</p> <p>Amount: The loan amount is determined by your income and repayment capacity and can range from Rs 5000 &ndash;Rs.50,000 - depending on your net monthly income.</p>https://www.creditmantri.com/articles/how-to-calculate-personal-loan-interestHow to calculate Personal loan interesthttps://www.creditmantri.com/articles/how-to-calculate-personal-loan-interest<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4fdddc14eb5c3ac6cca581355f4331be_HOW TO CALCULATE PERSONAL LOAN INTEREST.PNG'/></p><p>It is simple to calculate the interest on a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. Many of the lender websites have an online tool that allows you to calculate your EMI on your personal loan instantly. All you have to do is to input the loan amount, tenure and interest rate charged. You will learn how much your EMI will be and how much you will need to pay as interest on your loan.</p> <p>In general, interest rates on personal loans typically range from 15%-24% but can be lower or higher. Each lender will offer varying interest rates for the loan products depending on their prescribed rates and the customer&rsquo;s individual credit situation. It is best to check each lender&rsquo;s website to check what the current interest rates are as these can change from time to time.</p> <p><em>What is an EMI </em>- An EMI, or Equated Monthly Instalment, is the amount that is payable every month to the bank or any other financial institution until you repay the loan (including interest) fully. An EMI is paid on a fixed date every month for the entire tenure of the loan. Each EMI consists of the interest on the loan as well as a part of the principal amount that has to be repaid. The interest amount is higher than the principal component during the initial payments and in the later stages of repayment, the interest component decreases and the principal increases. The EMI amount (consisting of interest plus principal repayment), however, remains the same every month.</p> <p><em>Advantages of a Personal Loan:</em> The primary benefit of a personal loan is that there are no restrictions on how you spend the loan amount. It could be on any personal expense like a wedding celebration or a vacation or home renovation or even medical expenses. If you need money for a personal expense and plan to repay it quickly, then this kind of loan is a good option.</p> <p>Another advantage of a personal loan is that it is an unsecured loan which means you do not need to offer any collateral to the lender &ndash; unlike home, auto or gold loans. It is sanctioned based on your credit score and credit history.</p> <p><em>Disadvantages:</em> However, the downside is that personal loans are also the most expensive loans to get precisely because they do not require any collateral. Since the lenders do not have any safeguard against default, they charge a higher interest rate on personal loans to cover their risk.</p> <p>In effect, the loan amount sanctioned and interest rate you are charged is based on your income, repayment capacity (existing loan obligations) and <a href="https://www.creditmantri.com/articles/how-to-check-credit-history">credit history</a>.</p> <p>Don&rsquo;t forget that there might be other expenses like the loan processing fee (a percentage of the loan amount), a fee for the credit report, stamp duty and photocopy charges.</p>https://www.creditmantri.com/articles/what-are-the-documents-required-for-a-home-loanWhat are the documents required for a Home loanhttps://www.creditmantri.com/articles/what-are-the-documents-required-for-a-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4080de54aaec6d3ab33bbc5f3033d820_DOCUMENTS REQUIRED FOR A HOME LOAN.PNG'/></p><p>It is much easier to apply for a home loan now than it was some years ago. It is possible to apply for a home loan online, without visiting the bank branch or spending time talking to a representative. You can sit in the comfort of your home, at a time convenient to you and fill out the application online and upload the required documents.</p> <p>It is important to note that each bank/financial institution will have its own set of documents required. It is best to check the concerned lender&rsquo;s requirements as there might be differences between banks on the kinds of documents to be submitted at the time of application. However, it is safe to say that all lenders (banks and other financial institutions) require proof of identity, address and income of the applicant.</p> <p>If you are an existing customer, you might enjoy reduced documentation.</p> <p>There will also be differences in documents required in terms of income proof depending on whether you are a salaried employee, a self-employed professional, or a self-employed non-professional. &nbsp;&nbsp;</p> <p>In general, below are the documents that most lenders ask from applicants who apply for a <a href="https://www.creditmantri.com/home-loan/">home loan</a>:</p> <p><strong>Duly signed application form with photograph/s</strong></p> <p><strong>Identity Proof for all applicants. Valid documents include:</strong></p> <p>a. Driver&rsquo;s License</p> <p>b. Passport</p> <p>c. PAN card</p> <p>d. Voter ID</p> <p><strong>Address proof for all applicants. Valid documents include:</strong></p> <p>a. Voter ID</p> <p>b. Passport</p> <p>c. Recent telephone, electricity, gas bills.</p> <p>d. Property tax receipt</p> <p><strong>Income proof. Lenders might require all of the documents below:</strong></p> <p>a. Bank Statement of the past 6 months</p> <p>b. Salary slips of the past 3 months</p> <p>c. Form 16/ Income Tax returns<strong> <br /></strong></p> <p>In addition, self-employed professionals and non-professionals might need to provide additional qualifications including education certificate, IT returns of the past 3 years, and CA-certified balance sheet of their business for the past 3 years. You may also need to pay a processing fee when applying.</p> <p>Once the loan is sanctioned, you might need to provide further legal documents including a Power of Attorney for collecting the original property documents. You might also have to submit additional documentation regarding the property to be purchased.</p> <p>There is certain other documentation to keep in mind for later. While it is not a credit issue at the time of application, it is good to have a clean title deed and ensure all other legal approvals when choosing a property. This makes the loan process smoother.</p>https://www.creditmantri.com/articles/how-to-apply-for-a-home-loanHow to apply for a Home loanhttps://www.creditmantri.com/articles/how-to-apply-for-a-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/aa8e3fb384be0367a6682fa8556f29c6_HOW TO APPLY FOR A HOME LOAN.PNG'/></p><p>A home loan is a loan advanced to a person to assist in buying an apartment or other residential property. You can also apply for a Home Improvement Loan to carry out renovations to your home, or you can apply for a Home Extention Loan if you want to construct additions to your home. You can avail of a Land Purchase Loan if you simply wish to purchase land for purposes of constructing a home or as an investment.</p> <p><strong>How can I apply for a home loan?</strong></p> <p>There are several ways to&nbsp;<a href="https://www.creditmantri.com/home-loan/">apply for a home loan</a> once you have decided which loan to apply for.</p> <p>1. You can do it online by logging on to the bank/housing finance company&rsquo;s website and following the instructions on how to apply. Some lenders may offer a discount on the processing fee if you apply online.</p> <p>2. You can call the lender&rsquo;s call centre/branch and ask to speak to a housing loan representative, who will guide you through the details of the application process.</p> <p>3. Alternatively, you can walk into the lender&rsquo;s branch and submit the application in person with the requisite documentation.</p> <p>&nbsp;If you are very busy and pressed for time, some banks may offer a service whereby they send a representative to your door (often for a fee) with details of the loan application.</p> <p><strong>Will I qualify for a home loan? What do lenders look for?</strong></p> <p>Lenders look at several factors when determining whether to approve of your housing loan application. They include the following indicators:</p> <p><strong>1. Your credit score:</strong> Typically, you need a minimum credit score of 750 for lenders to proceed with processing your application. A credit score of 750 or above reassures lenders that you are a responsible borrower and have a good track record of making repayments.</p> <p><strong>2. Your credit report:</strong> Once they know you have a good <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, lenders look at your credit report. They check your payment history over the years to see if you have a record of making payments on time and in full over a long period. They also check for any written-off accounts in the past to see if you have defaulted on any prior debt obligations. All these indicators of poor credit behaviour are red flags for lenders, even if your current credit score is adequate.</p> <p>They will also look at your existing loan obligations to see if you can take on additional debt payments on your present and predicted future salary.</p> <p><strong>3. Employment status and salary:</strong> Lenders want to be assured that you will have a steady monthly income to pay off your EMIs over the loan period. The tenure of a home loan can stretch for decades and lenders want to know if you have a high probability of steady employment and income during that period.&nbsp; Make sure that you choose a property that you can afford on your current income.</p> <p><strong>4. Clean title deed and complete documentation of the property:</strong> While this requirement is not related to your individual credit situation, banks want to make ensure that there is no problem with the collateral (the home) in case you default on your loan. They will first make sure that all the legal documents relating to the property are in order.</p>https://www.creditmantri.com/articles/how-to-calculate-home-loan-interestHow to calculate Home loan interesthttps://www.creditmantri.com/articles/how-to-calculate-home-loan-interest<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4db9fa2338ec52337ba434f6311a07a0_HOW TO CALCULATE HOME LOAN INTEREST.PNG'/></p><p>A home loan is offered to individuals who wish to buy an apartment or other residential property. A home loan is a secured loan meaning that the bank/finance company extends credit to the borrower with the home (or property) as collateral to safeguard against default. Once the borrower pays back the loan amount in full, including interest, the ownership of the property is fully transferred to the borrower&rsquo;s name.</p> <p>The cost of borrowing money from a lender is known as interest.&nbsp; The repayment amount that is due over the entire loan period includes the original loan amount (known as principal) and the interest</p> <p><strong>What is an EMI?</strong></p> <p>In simple terms, an EMI (Equated Monthly Instalment) is the amount a borrower has to pay the lender every month to pay off the loan. EMI payments are made to a lender every month generally on a fixed date, till the outstanding amount is completely paid off. For home loans, the repayment period is generally long given the size of the loan amount and can stretch up to 30 years. &nbsp;</p> <p><strong>How is the EMI calculated?</strong></p> <p>&nbsp;The&nbsp;<a href="https://www.creditmantri.com/home-loan-emi-calculator/">EMI is calculated</a> using a standard mathematical formula. This formula takes into account the loan amount, the tenure (loan period) and the interest rate charged. You can calculate the interest you need to pay using a simple calculator at home. Alternatively, several banks and housing finance companies offer an EMI calculator tool on their website which is simple to use. All you have to do is to input the numbers for the loan amount, period and interest rate and you will find out your monthly EMI payment. A Loan Amortisation table will further break down your monthly EMI into the principal and interest components and will give you an idea of exactly how much interest you are paying over the entire period of the loan. (See below for a sample Loan Amortisation Schedule.)</p> <p>&nbsp;<strong>What is the interest rate for a home loan?</strong></p> <p>Each bank has its own interest rate which can vary based on the customer&rsquo;s credit profile. There are two main kinds of interest rates that apply to <a href="https://www.creditmantri.com/home-loan/">home loans</a>:</p> <p><em>Fixed rate:</em> If you opt for a fixed rate loan, then a fixed rate of interest is charged throughout the loan tenure. This means you will pay a constant EMI amount for your entire loan tenure. With this kind of interest rate, you have a fixed monthly outflow which helps with personal budgeting. &nbsp;During the initial stages of repayment, your EMI will contain a larger interest component, while during the later years you will be repaying the principal.</p> <p><em>Floating rate:</em>Floating interest rates vary with current market lending rates. Generally, you would choose a floating interest rate if you feel that interest rates are going to go down in the future and do not want to be tied to the high current interest rate.&nbsp; The EMI amount you pay can change periodically according to the fluctuations in the interest rates in the market. However, keep in mind that many lenders will allow you to change from a floating to a fixed interest rate, on the payment of a fee.</p> <p><strong>How can I choose the best offer?</strong></p> <p>The best thing to do is to research the multitude of home loan products on the market and study what each has to offer. However, many people simply do not have the time to go through the complexities of finding out about home loans and the benefits and drawbacks of each of the offers on the market. In that case, you could approach a professional credit management company, like CreditMantri, to guide you through the process of finding out how much your home loan will cost and help you identify the most suitable loan available in the market depending on your needs and level of affordability.</p> <p><strong>Sample Amortisation Schedule</strong></p> <p>&nbsp;An amortisation table is useful for learning what your monthly EMI or annual outflow will be and what percentage of that outflow consists of interest repayment and principal repayment. You get a good idea of your repayment outflow over the entire loan tenure.</p> <p align="center"><strong>&nbsp;</strong></p> <p style="text-align: left;" align="center"><strong>AMORTISATION TABLE</strong></p> <p>Below is a sample table for a loan taken on the following terms:</p> <p>Principal &ndash; Rs. 50,00,000</p> <p>Tenure &ndash; 20 years</p> <p>Interest Rate &ndash; 9.5%</p> <p><em>This table doesn&rsquo;t seem right. You have only subtracted the principal for the ending balance, not interest plus principal. In year 1, after paying 4 lakhs as interest, the ending balance is still only 49 lakhs. Please redo the table correctly.</em></p> <p><em>Also, you have written Month in Column 1, instead of year. I would have corrected it on my own, but since I am sending the article back to you, wanted to point it out. Please be careful about such things. We cannot afford to have any errors in our content.&nbsp;</em></p> <p><em>Also, if it is an offsite article, like this one, make sure you add a mention of CreditMantri towards the end.</em></p> <p>&nbsp;</p> <table style="width: 487px; background-color: #fafafa;" border="1" cellspacing="0" cellpadding="0" align="left"> <tbody> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center"><em><strong>Month</strong></em></p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="center"><strong>Starting Balance</strong></p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="center"><strong>Interest paid</strong></p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="center"><strong>Principal paid</strong></p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="center"><strong>Ending Balance</strong></p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">1</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">50,00,000</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,71,232</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">88,047</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">49,11,953</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">2</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">49,11,953</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,62,493</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">96,785</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">48,15,168</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">3</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">48,15,168</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,52,888</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,06,391</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">47,08,777</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">4</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">47,08,777</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,42,329</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,16,950</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">45,91,826</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">5</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">45,91,826</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,30,722</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,28,557</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">44,63,269</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">6</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">44,63,269</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,17,963</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,41,316</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">43,21,953</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">7</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">43,21,953</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,03,937</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,55,341</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">41,66,612</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">8</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">41,66,612</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,88,520</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,70,759</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">39,95,853</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">9</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">39,95,853</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,71,573</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,87,706</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">38,08,147</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">10</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">38,08,147</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,52,943</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,06,335</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">36,01,811</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">11</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">36,01,811</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,32,465</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,26,814</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">33,74,997</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">12</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">33,74,997</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,09,954</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,49,325</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">31,25,673</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">13</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">31,25,673</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,85,209</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,74,069</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">28,51,604</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">14</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">28,51,604</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,58,009</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,01,270</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">25,50,333</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">15</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">25,50,333</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">2,28,108</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,31,170</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">22,19,163</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">16</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">22,19,163</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,95,240</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">3,64,038</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">18,55,125</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">17</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">18,55,125</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,59,111</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,00,168</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">14,54,957</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">18</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">14,54,957</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">1,19,395</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,39,884</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">10,15,073</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">19</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">10,15,073</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">75,737</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">4,83,541</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">5,31,531</p> </td> </tr> <tr align="center" valign="middle"> <td valign="bottom" nowrap="nowrap" width="64"> <p align="center">20</p> </td> <td valign="bottom" nowrap="nowrap" width="117"> <p align="right">5,31,531</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">27,747</p> </td> <td valign="bottom" nowrap="nowrap" width="99"> <p align="right">5,31,531</p> </td> <td valign="bottom" nowrap="nowrap" width="108"> <p align="right">0</p> </td> </tr> </tbody> </table>https://www.creditmantri.com/articles/how-to-get-a-Home-loan-from-SBIHow to get a Home loan from SBIhttps://www.creditmantri.com/articles/how-to-get-a-Home-loan-from-SBI<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/8c14a00520fa7697c81e7744179c7e7a_HOW TO GET A HOME LOAN FROM SBI.PNG'/></p><p>SBI is the largest bank in India and offers a variety of home loans to suit the needs of different individuals. It is possible to submit the loan application online and upload the necessary documents or you can visit a branch and apply in person.</p> <p><em>Loan approval and credit score:</em> In general, you stand the best chance of securing a home loan if you have a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 or above. Before you apply for a loan, obtain your credit report to check your latest credit score and to see if you have any credit issues that might impact your loan application. If you have a low score, wait to improve your score before applying.</p> <p>Here are some of the features of the SBI home loan offers:</p> <p><em>Age:</em> You need to be between 18-70 years (by which age the loan needs to be repaid) to be eligible for a home loan.&nbsp; &nbsp;</p> <p><em>Amount:</em> The loan amount will be dependent on your income, repayment capacity, age, assets and liabilities, and value of property to be purchased, among other factors.&nbsp;</p> <p><em>Loan period:</em> Also depends on your repayment capacity, credit profile etc. The repayment period can go up to a maximum of 30 years, depending on your age when the loan was sanctioned.</p> <p><em>Interest rate:</em> It is best to check what the current rate on the various&nbsp;<a href="https://www.creditmantri.com/home-loan/">home loan</a> products is. For instance, women applying for the Her Ghar loan can avail of a concessional interest rate on their home loan.</p> <p><em><strong>Documents required:</strong> </em></p> <p><em>Documents for a salaried individual could include:</em></p> <p><em>Application form with photographs</em></p> <p><em>ID proof and address proof.</em></p> <p><em>Original salary certificate from employer.</em></p> <p><em>Form 16/IT return of past 2 years</em></p> <p><em>Bank statement for the last 6 months</em></p> <p><em>(Processing fee)</em></p> <p><strong>Documents for a self-employed individual could include:</strong></p> <p><em>Application form with photographs.</em></p> <p><em>ID proof and address proof.</em></p> <p><em>Educational qualification certificate</em></p> <p><em>CA-certified&nbsp; balance sheet for past 2 years</em></p> <p><em>Bank statement of the past 6 months</em></p> <p><em>(Processing fee)</em></p> <p>In addition to regular home loans, SBI also offers a variety of products catering specifically to different needs of individuals: Some of these are:</p> <p><em>SBI Maxgain</em> - offers the home loan as an overdraft and allows you to use the home loan account like a savings or current account.</p> <p><em>SBI Yuva Home Loan </em>- targeted at younger people (between age 21-45), employed by the government or select private sector companies. It offers a loan amount that is 20% more than a regular home loan account.</p> <p><em>SBI Pal</em> - a pre-approved home loan that is approved in-principle before finalization of the property. It enables customers to have the confidence of knowing their loan amount when deciding on a property or negotiating with the builder/seller.</p> <p><em>Her Ghar</em> - a scheme for women borrowers. Women enjoy a concessional rate of interest on this home loan.</p> <p>There are also&nbsp;<a href="https://www.creditmantri.com/credit-products/">loans offered</a> for construction of a house, for buying property in hilly/tribal areas, and in rural or semi-rural areas.</p>https://www.creditmantri.com/articles/3-reminders-on-taking-a-personal-loan3 reminders on taking a Personal loanhttps://www.creditmantri.com/articles/3-reminders-on-taking-a-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a43db5c5b0872bc7d34974e8c9968aab_3-REMINDERS-ON-TAKING-A-PERSONAL-LOAN.PNG'/></p><p>Are you in need of some quick money for a short term expense? Or do you lack a ready asset (home, car, gold) that you can provide as security for a loan? Then maybe a personal loan is a good option for you. A personal loan is advantageous in that you can spend the money in any way you like. The lender does not place any restrictions on how you spend the money. Plus, there is relatively less documentation when applying for the loan since you are not providing any collateral.</p> <p>The main disadvantage of taking a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>, however, is the higher interest rates. Since there is no collateral involved, lenders cover the risk of default by charging a higher interest rate. &nbsp;A personal loan can be the most expensive loan to take in terms of interest payments.</p> <p>Here are 3 things to keep in mind when planning to take a personal loan: &nbsp;</p> <p><strong>1. Check your credit score: </strong>The first thing you should do if you plan to apply for a loan is to obtain a copy of your credit report and check your credit score. Since there is no collateral to safeguard against default, lenders rely heavily on your credit score and credit report when deciding whether to approve your application. It is good to have a score of 750 or above to stand a good chance of being approved. If you are rejected due to a low score, your credit score will drop even further with every rejection.</p> <p><strong>2. Evaluate the interest rate and your repayment capacity: </strong>Personal loans have higher interest rates than a home or <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>. You should also decide whether you can afford the loan and whether you will be able to make all your repayments on time.&nbsp; Any missed or delayed payments can have an adverse effect on your credit score and make it difficult to obtain loans in the future.</p> <p><strong>3. Judge if the tenure is right for you: </strong>Typically, personal loans are for a relatively short period. Check if you will be able to repay your loan in full by the due date. Remember that if you opt for a longer repayment period, you will have to pay a higher interest rate. Choosing a shorter tenure can save a lot of money on interest payments, but you need to be confident that you can repay the amount within this shorter time period.</p>https://www.creditmantri.com/articles/5-ways-to-raise-your-credit-score5 ways to raise your Credit scorehttps://www.creditmantri.com/articles/5-ways-to-raise-your-credit-score<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1ac0c43476d2a3aded31ea1129a445b4_5-WAYS-TO-RAISE-YOUR-CREDIT-SCORE.PNG'/></p><p>Your credit score plays a very important role in the loan-approval process. In general, it is advisable to have a&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 or above to have a good chance of having your loan application approved and being eligible for the most attractive offers which could include a low interest rate and larger loan amount.</p> <p>Here are five ways in which you can raise your credit score quickly:</p> <p>1. Make full and timely payments on bills from TODAY! Your repayment history forms up to 30% of your credit score. Therefore, it is very important to make sure that you have a spotless repayment record starting now, even if you have had defaults in the past. Making full payments on time will have an immediate positive impact on your credit score.</p> <p>2. Obtain a copy of your credit report to identify and resolve errors. Sometimes due to administrative errors, a loan that you have paid off in full might still be shown as outstanding. These errors can unnecessarily drag down your score. Filing a dispute and correcting these errors can have an immediate positive impact on your score.</p> <p>3. Spend less than 50% of your credit limit: For instance, if your credit limit is Rs. 1 lakh, then make sure that you do not spend more than Rs. 50,000 on your monthly expenses. Spending more than that signifies that you might not have spending discipline and will result in a drop in your score. Consistently keeping within 50% of your credit limit will result in an immediate increase in your score.</p> <p>4. Do not make multiple applications for loans or&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit cards</a> within a short period of time. Many people think they are maximising their chances of being approved for a loan by applying to several lenders, or by applying for multiple products (house loan, auto loan or personal loan) with one or two lenders. Each time you apply for new credit, potential lenders make an enquiry. Too many enquiries within a short time frame can cause a drop in your credit score as it signifies that you are &lsquo;hungry&rsquo; for credit.</p> <p>5. Do not apply for credit (whether loan or credit card) if you have a poor credit score. Every loan rejection leads to a negative impact on your score. Make sure that you apply for a loan only once you have a good credit score and are credit-worthy. This way you avoid loan-rejection and the consequent drop in score.</p> <p>Sometimes, your score might be adversely impacted due to a wrong address or mistaken identity. For example, moving into an address that was occupied by a defaulter can unfortunately cause your score to be impacted. Similarly, check your report for any wrong entries that could also be a sign of identity fraud. Resolving these issues will help improve your score.</p>https://www.creditmantri.com/articles/10-trusty-tips-for-taking-a-personal-loan10 Trusty tips for taking a Personal loanhttps://www.creditmantri.com/articles/10-trusty-tips-for-taking-a-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/afe9248ba78cbdb526c37436bb7b8c7c_10-TRUSTY-TIPS-FOR-TAKING-A-PERSONAL-LOAN-IN-2016.png'/></p><p>A personal loan is a good option if you are in immediate need of money and want to repay it within a short time. There are two main advantages of a personal loan:</p> <p><em><strong>i. You need not provide any collateral: </strong>Personal loans do not require any security or collateral so they are a good idea if you do not own any asset (like a home) to pledge as collateral.</em></p> <p><em><strong>ii. No restrictions on how to use the money: </strong>There are no questions asked regarding the end use of money. The lenders are not interested in what you spend the money on but more about your ability to make repayments on time.</em></p> <p><strong>TIPS TO FOLLOW WHEN APPLYING FOR A PERSONAL LOAN:</strong></p> <p>1. Research the various offers available in the market, even if the number of offers seems confusing. Make sure that the personal loan product that you choose is best suited to your needs and requirements.</p> <p>2. Check the interest rates offered.&nbsp;<a href="https://www.creditmantri.com/personal-loan/">Personal loans</a> are the most expensive loans to take in terms of interest payments. Since there is no collateral involved, lenders try to cover the risk of customer default by charging higher interest rates.</p> <p>3. Check if you are eligible for the loan in terms of income and employment status. If you apply for a loan that you will not be able to sustain on your income, your application will be rejected.</p> <p>4. Check your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Since there is no collateral, lenders look at your credit score to see if you are a responsible borrower. Make sure that you have a score of 750 or above when you apply for a personal loan to avoid the chance of rejection.</p> <p>5. Check your credit report for accuracy. It is important that all the details in your credit report including personal and credit details are correct as lenders rely heavily on these documents when deciding on your loan application. If there are any discrepancies, it is important that you get them corrected immediately.</p> <p>6. Examine the possibility of prepayment of the loan. &nbsp;If you feel that you will be able to repay the loan early and save on the high interest payments, then it is better to search for a lender who offers you early repayment facility on good terms.</p> <p>7. Do not apply to multiple lenders for the same loan. If you apply for too many loans at the same time or in the same year, lenders think that you are short of credit and will not be able to be able repay the loan. Multiple loan applications without corresponding approvals can lead to a drop in your credit score which will make it even more difficult to be approved for loans in the future.</p> <p>8. If you have been rejected for a loan recently, wait at least six months before you apply again. Use this time to make all your repayments and try and rebuild your credit health. If you have been recently rejected for a loan, it is unlikely that your application will be approved by other lenders. Each further rejection will only cause your score to drop further.</p> <p>9. Even if you are able to get a personal loan with a relatively lower score, be warned that it will be accompanied by much stricter term and conditions including a higher interest rate or smaller loan amount. It is best to improve your score so that you are eligible for the most attractive offers and save money on interest payments in the long run.</p> <p>10. Use your personal loan productively if you can since it is an expensive loan. While you cannot do much about medical emergencies or wedding expenses, in general it is a good idea to utilise at least part of the money towards improving your finances.</p>https://www.creditmantri.com/articles/how-to-avoid-personal-loan-rejectionHow to avoid personal loan rejectionhttps://www.creditmantri.com/articles/how-to-avoid-personal-loan-rejection<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/37d3f865ecdb931efd7b98c961bcdcf6_HOW-TO-AVOID-PERSONAL-LOAN-REJECTION.PNG'/></p><p><a href="https://www.creditmantri.com/personal-loan/">Personal loans</a> are one way to resolve the problem of immediate requirement of cash. It is a convenient loan to apply for since you do not need to provide any collateral and you are free to use the money in any way you like (unlike a home or auto loan.) However, this flexibility comes a few restrictions. For example, since there is no collateral or security involved in a personal loan, banks have a certain set of criteria when reviewing your personal loan application. Being aware of these factors can help you avoid rejection.</p> <p>Below are some of the factors to keep in mind to avoid rejection of your personal loan application.</p> <p><strong>1.Your credit score:</strong>It is advisable to have a <a href="https://www.creditmantri.com/credit-score-advice/">credit score </a>of 750 and above to have a good chance of your application being approved. If you are planning to apply for a personal loan, obtain a copy of your latest credit report and check your score. Since a personal loan does not require any security, banks are anxious to safeguard their money against customer default. They rely on your credit score and credit report to check if you have a good record of repayment. If you have a low score, there is a chance that your application will be rejected outright.&nbsp; Make sure that you improve your score to at least 750, if required, before you apply for a personal loan.</p> <p><strong>2. Insufficient income:</strong> Again, due to lack of any collateral, lenders look at your monthly income to see if you will be able to repay your loan. If the repayments on your loan amount cannot be sustained on your income, then there is a good chance your application will be turned down. Make sure you apply for an amount that is commensurate with your repayment capability.</p> <p><strong>3. Incorrect details on your credit report or loan application:</strong> Make sure that all the personal details on your&nbsp;<a href="https://www.creditmantri.com/articles/what-is-a-credit-report">credit report</a> and your application are accurate. If there are any inconsistencies, your application will be rejected. If there are any mistakes regarding your name, address, PAN number or any other details on your credit report, you will need to get them corrected immediately. Similarly, there may be reporting errors regarding the status of previous loan accounts. It is important to ensure that all your details are accurate to avoid rejection.&nbsp;</p> <p><strong>4. Existing loan portfolio:</strong> If you have a number of current loans and the lender thinks you will not be able to take on another EMI on your existing income, they will reject your application. It is better to apply once you have paid off a few loans so that your EMI burden as a percentage of your monthly income is reduced.&nbsp;</p> <p><strong>5. Too many applications in a short time frame:</strong> If you apply for loans from multiple sources within a short period of time, it signifies that you are short of credit and need to apply to several sources to make up the shortfall. Lenders are worried that you will not be able to repay your loan and will be inclined to reject your application.</p> <p><strong>6. Minimum income and employment requirements:</strong> Since repayment is entirely dependent on your income, lenders have certain minimum income and employment requirements which play an important role in the loan-approval process. Make sure that you meet all the requirements before you apply for a personal loan.</p>https://www.creditmantri.com/articles/how-to-buy-a-car-with-a-low-incomeHow to buy a car with a low incomehttps://www.creditmantri.com/articles/how-to-buy-a-car-with-a-low-income<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3b29ea9c448ba2c8aff63c0e95053588_HOW-TO-BUY-A-CAR-WITH-A-LOW-INCOME.PNG'/></p><p>Often several potential car owners are discouraged from the idea of buying car because of worries that they might not be approved for a loan with a relatively low income. It is not impossible to get a loan to buy a car with a low income but some lenders might be willing to give you a loan if you prepare your loan application with some care.</p> <p>Here are some things to keep in mind if you want to buy a car while having a low income:</p> <p>1. First, it is common sense to judge if you really need a car and if you can afford it on your income. Remember, it is not just the price of the car, you will also need to factor in other substantial costs like insurance, registration and ongoing fuel and maintenance expenses. Look at your current income and expenditure and evaluate if you can sustain timely payment of EMIs plus all these other costs.</p> <p><strong>2. Get a copy of your credit report:</strong> When you are looking for an auto loan, having a good&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> is very important. Even if you have a relatively low income, lenders will check your past repayment history to see if you are a responsible borrower. If you have a high enough credit score, they might be persuaded to approve your loan.</p> <p>3. Do the research on good quality second hand cars &ndash; if you take the time, you can find some good deals on used cars.</p> <p><strong>4. Be disciplined about saving:</strong> You could save money for a period of time in order to afford a car. However, you need to be patient and commit to spending discipline.</p> <p><strong>5. Debt-Income ratio:</strong> Make sure that you have a balance between your income and expenditure. Your expenditure, including current EMIs, should not exceed 50% of your income. If your monthly outflow is more than 50%, lenders are worried that you will not be able to fulfil your loan repayments.</p> <p><strong>6. You might need a co-signer:</strong> When you have a low income and you do not have any collateral to provide to the bank, you could ask another individual to act as a guarantor for the loan. The guarantor or co-signee is legally obliged to pay off the loan in case you default on your payments. &nbsp;</p> <p><strong>7. Large down payment:</strong> If you have a low income, you might need to pay a higher amount as down payment on the car as the lenders are concerned that you might not be able to make all your repayments. This is known as low LTV &ndash; Loan to Value ratio. Start saving in advance so that you will be able to afford the down payment. It could be an advantage to have a high down payment as your interest payment on the reduced principal will be smaller and you will have a lower EMI for the duration of the loan.</p>https://www.creditmantri.com/articles/smart-tips-for-saving-on-your-auto-loanSmart tips for saving on your auto loanhttps://www.creditmantri.com/articles/smart-tips-for-saving-on-your-auto-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b0360b9678c3dfea00d4e55166f45fc7_SMART-TIPS-FOR-SAVING-ON-YOUR-AUTO-LOAN.PNG'/></p><p>Are you buying a car for the first time? For many people, an auto loan is the first significant loan obligation that they undertake. It can be confusing at first to decide how to go about choosing the most suitable loan, but here are some tips to keep in mind to help you during the decision making process.</p> <p><strong>Tips for saving on an auto loan:</strong></p> <p>1. Do your research and choose a car that is not a strain on your income. Remember that you will be paying EMIs on the car every month for a number of years and your income should be able to sustain the loan repayments over a long period. Do not give in to an impulse purchase that is beyond your budget!</p> <p>2. When you apply for an auto loan, you need to make a minimum down payment on many brands/models of cars. A higher percentage as the down payment is beneficial in the long run because, it helps reduce the interest payment and consequent EMI burden. By making a larger down payment, you are saving a lot of money in interest repayments over the duration of the loan.</p> <p>3. Keep in mind that there will be significant expenses in addition to the cost of the vehicle. This could include registration expenses, insurance costs among other factors. Include these expenses when you are budgeting for your car loan.</p> <p>4. Once you take possession in the car, there will be other long term running expenses like fuel charges, maintenance, insurance renewals in addition to your EMIs. Keep in mind all these expenses when doing the research on which car to buy. &nbsp;</p> <p>5. Check your credit score: If you have a credit score of 750 or above you stand a good chance of getting the best terms and conditions on your auto loan which will help you save money including a lower interest rate. Getting a lower interest rate can save you a significant amount of money over the years. If you have a low score, it is worthwhile to spend some time to improve your score before applying for the loan so that you are eligible for the most competitive offers.</p> <p>6. And finally, while it is important not to make an impulse decision, it is equally important to make sure that you do not spend too much time on deciding on the vehicle either. If you have a good credit score, make sure that you do not do anything to adversely affect it while you are deciding on your auto loan. Apply only where you think you are eligible and have the best chance of being approved.</p> <p>Enjoy your wheels!</p>https://www.creditmantri.com/articles/what-is-an-auto-loanWhat is an auto loanhttps://www.creditmantri.com/articles/what-is-an-auto-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/12987179a7158ef88be5e8e9a86a1e32_WHAT-IS-AUTO-LOAN.PNG'/></p><p>An auto loan is usually one of the first big loans individuals apply for from banks and other financial institutions. These loans are taken in order to fund the purchase a new or used car vehicle. The terms and conditions on an auto loan depend on various factors including your income, your credit score and history, your existing loan obligations and ability to repay.</p> <p><em><strong>What are the various kinds of auto loans?</strong> </em></p> <p>An auto loan can be taken for new car, used car and two-wheelers. A loan taken for buying a commercial vehicle like a truck or bus is generally referred to as a commercial vehicle loan.</p> <p><em><strong>What is the amount and tenure?</strong> </em></p> <p>An auto loan can be availed for up to 90% of the invoice value of the car. This amount can go up to 100% in some instances based on the make and brand of the car being bought. The invoice value refers to the showroom price and does not include the registration, insurance and other related costs.</p> <p>The tenure on an auto loan varies from 1-7 years. Auto loans have a shorter repayment period than home loans since the loan amount is relatively smaller.&nbsp;</p> <p>The interest rates are fixed for the period of the loan so you will have the same monthly outflow (or EMI) for the entire tenure of the loan. This helps with planning your personal budget and making all your payments.&nbsp;</p> <p>An auto loan is a secured loan as it is offered to an individual with the purchased car used as collateral/security in case there is default on repayments. The vehicle is &lsquo;hypothecated&rsquo; to the lender until the loan is paid off.</p> <p>Once you pay off the loan in full, the bank transfers ownership of the vehicle to you. If you fail to repay your loan in full at the end of the loan period, the bank/lender can dispose of the vehicle to recover their dues.</p> <p><em><strong>Tips to keep in mind before you apply for an auto loan</strong> </em></p> <p>Calculate your monthly income and expenses to make sure that you can pay your EMIs on time.</p> <p>Obtain a copy of your credit report and check your credit score. If you have a score of 750 or above, you stand a good chance of being approved for an auto loan. If it is lower, improve your score before applying so that you avoid the chance of rejection and are also eligible for better terms and conditions including a lower interest rate, longer tenure or larger loan amount.</p> <p>Find out if you have anything on your credit profile that needs to be fixed. Any negative information or errors can keep you from getting the loan approved.</p>https://www.creditmantri.com/articles/what-is-interest-rateWhat is Interest Ratehttps://www.creditmantri.com/articles/what-is-interest-rate<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/bdfee6882212cb8e47826a369a673233_WHAT-IS-INTEREST-RATE.PNG'/></p><p>In simple terms, interest is what lenders (banks or other financial institutions) charge you for using their money. The interest rate charged is a percentage of the money that you have borrowed.</p> <p>So, for example, if you have borrowed Rs. 500, and the interest rate is 10%, then the interest you pay for using the bank&rsquo;s money is 10% of Rs. 500, which is Rs. 50.</p> <p>Principal (Loan amount): Rs. 500</p> <p>Interest Rate: 10%</p> <p>Interest to be paid:&nbsp; 10% of Rs. 500 = Rs. 50.</p> <p><strong><em>Why do interest rates differ?</em></strong></p> <p>Interest rates differ by type of loan; by credit profile of customer; and by bank.</p> <p><strong>Loan:</strong> Each loan has a different risk associated with it.&nbsp; For instance, when a bank gives you an auto loan, they hold the vehicle as security until you have paid off the loan in full. If you fail to repay your loan, they can dispose of the vehicle to recover their money.</p> <p>However, when a bank gives you a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>, they do not have any security in case you default on the repayment. They carry the entire risk and have no collateral or asset of yours that they can sell to recover their money. That is why the interest rate on a personal loan is higher than an auto or home loan &ndash; lenders are trying to safeguard their risk in case of default by charging a higher rate of interest.</p> <p><strong>Customer:</strong> Similarly, each individual customer carries a different risk for the bank. If you have always repaid your loans in full and on time, your credit history will reflect a high <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Banks will recognize you as being a low-risk customer who has a low probability of defaulting on repayments. You might then be offered a lower interest rate as the bank is reasonably confident that you will pay back their loan in full.</p> <p>Conversely, if you have a low credit score, it signifies that you have a poor record of making repayments. The bank perceives you as being at high risk for repeat defaults and will charge you a higher interest rate to safeguard the money they have lent you.</p> <p><strong>Bank:</strong> Each bank/financial institution determines what interest rates it will charge based broadly on market conditions. Interest rates among banks and other financial institutions are generally in the same range as they need to remain competitive with each other. When banks lend money to an individual or a company, they expect a profit from the money they have lent since they could have invested the same money instead of lending it. This profit from lending is interest.</p> <p>If the bank sets the interest rate too high, then customers will choose to go to other lenders. If it is too low, then the bank ends up losing money. Thus interest rates remain broadly the same among banks, with individual customers being offered different interest rates depending on their credit profile, among other factors.</p> <p><strong><em>What are the main kinds of interest rates?</em></strong></p> <p>There are two main kinds of interest rates: Simple Interest and Compound Interest.</p> <p>Simple interest is calculated only on the actual loan amount (principal). Compound interest is calculated on the principal amount AND the interest accrued on the loan until date.</p> <p>To take the same example as above where loan amount is Rs 500:</p> <p><em>Under Simple Interest:</em></p> <p>Interest is 10% of Rs. 500 =Rs. 50.</p> <p>Every year you pay <strong>the same amount</strong>, Rs. 50, as interest.</p> <p><em>Under Compound Interest</em></p> <p>You pay <strong>more in interest with each year.</strong></p> <p>Interest in Year 1 &ndash; Rs 50 (same as simple interest)</p> <p>Interest in Year 2 &ndash; 10% of Rs 550 (principal of Rs. 500 + interest of year 1) =Rs. 55</p> <p>Interest in Year 3 &ndash; 10% of Rs 605 (principal of Rs. 500 plus Interest of Year 1 and Year 2)&nbsp; = Rs. 60.50</p> <p>As the loan tenure increases, the difference between simple and compound interest widens. It is best to pay simple interest as a&nbsp;<a href="https://www.creditmantri.com/first-time-borrower/">borrower</a> and to earn compound interest as an investor/lender.</p>https://www.creditmantri.com/articles/what-is-the-interest-rate-for-home-loanWhat is the interest rate for Home loanhttps://www.creditmantri.com/articles/what-is-the-interest-rate-for-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6d0fced672ca14d6180424f8627cc374_WHAT-IS-THE-INTEREST-RATE-FOR-HOME-LOAN.PNG'/></p><p>Buying a home is probably one of the most important personal financial decisions you will make during your lifetime. What kind of loan to take is an equally significant decision as it has an impact on your life for decades, given the long repayment period of most home loans.</p> <p>One of the main factors when deciding on a home loan is the interest you will pay over the entire tenure of the loan. The interest you pay the lender is basically how much it will cost you to take the loan.</p> <p>Interest rates change with government policy and according to each individual lender&rsquo;s policies. It is best to check for the latest and most accurate interest rates on the lender&rsquo;s website. In general, however, interest rates on home loans range from 10-13% in the market, but of course, this number can change depending on your individual credit situation and other many other factors.&nbsp; Also some loans offer special interest rates - for instance the Her Ghar loan offered by SBI offers lower interest rates for women applicants.</p> <p>You can calculate the cost of your loan by using an EMI calculator that is freely found on the web or alternatively, on the lender&rsquo;s website. It is a mathematical formula. You need to only input your intended loan amount, tenure and interest rate to see how much you will be paying in terms of interest over the entire course of your loan period.&nbsp;&nbsp;&nbsp;</p> <p><strong>What are the different kinds of interest rates on a home loan?</strong></p> <p>There are two basic types of interest rates and you need to study all the interest rate options carefully before deciding which one to choose:</p> <p>Fixed rate: You pay one fixed interest rate for the entire tenure of your loan and you have a fixed EMI for the entire duration of the loan. The amount you pay every month is the same.</p> <p>Floating rate: The interest rate you pay varies during your loan tenure, depending on external market conditions.&nbsp; You would choose this option if you are confident that interest rates will go down during your loan period.</p> <p>There is also the option of a partially fixed and partially floating rate. You need to learn about all the options or consult a professional to see which option suits your needs the best.&nbsp;</p> <p>If, at a later date, you feel that you want to change from a floating interest rate to a fixed interest rate on your loan, most banks allow you to do so, on the payment of a fee.</p> <p><strong>What is EMI?</strong></p> <p>EMI stands for Equated Monthly Instalment. It is the amount you need to pay on a monthly basis to repay your entire loan. It consists of principal (the loan amount) plus interest due, spread over the entire tenure of your loan. If your loan period is 20 years, then you will be paying an EMI every month for 20 years (20x12=96 months).</p> <p>If your EMI burden is too high, you can reduce it by lengthening the tenure of the loan.&nbsp; However, if you extend the tenure of your loan, you will be paying out more in interest amount since your repayment obligation is over a longer period.</p> <p><strong>A few tips when you apply for a home loan:</strong></p> <p>1. Obtain a copy of your credit report and check your credit score well in advance of applying for a home loan. If your score is high, you stand a good chance of being offered an attractive interest rate. If your score is low, yor application might be turned down, or you might be given a higher interest rate. It is a good idea to improve your score to 750 so that you can avail of the lowest interest rates on your loan.</p> <p>2. Before you apply for a <a href="https://www.creditmantri.com/home-loan/">home loan</a>, you should do a little homework to check whether you are capable of repaying back the loan amount you borrow. This depends on various factors such as your monthly expenses, your current salary and net monthly income, your credit score and other loan obligations.</p> <p>3. Do not choose a property that is too expensive for your current income level. Your <a href="https://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-Rejected/">loan application might be rejected</a>.</p> <p>4. Research the various home loan products and compare the costs and benefits before making a decision. Your home loan has a significant impact on your financial life so do not rush into any decision.</p>https://www.creditmantri.com/articles/how-can-i-get-a-credit-cardHow Can I Get a Credit Card?https://www.creditmantri.com/articles/how-can-i-get-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/46d4ed144096fac76f64a90a6092b319_How-Can-I-Get-a-Credit-Card.png'/></p><p>More and more people are discovering how convenient and easy it is to use a credit card to make purchases. Are you planning to apply for a credit card in the near future? Here are a few things to keep in mind:</p> <p><strong>Will I qualify for a credit card?</strong></p> <p>The main factors that credit card issuers look at are your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, your credit report and your monthly income.</p> <p><em>Credit score</em>: If you have a credit score of 750 or above you have a good chance of being approved for a credit card. If you have a lower score, you might still qualify for a card but you might be offered stricter terms and conditions including a higher interest rate on your outstanding and lower credit limit. It is a good idea, therefore, to make sure that you improve your score to 750 <em>before</em> you apply for a card in order to avoid rejection or unfavourable terms.</p> <p><em>Credit Report:</em> Lenders look at your credit report to see your repayment history and to see if you have made your payments on time in the past. Obtain a copy of your credit report to see if there are any weak areas in your credit history that you need to work on to increase your chances of being approved for a credit card.</p> <p><em>Monthly income:</em> Lenders look at your monthly income to judge if you will be able to make your payments in a timely manner. Check the income eligibility on the various credit cards so that you only apply to the ones that you are eligible for.&nbsp; If you apply for a card that requires a higher income than your present income, there is a good chance that your application will be rejected.</p> <p><strong>How do I choose a credit card?</strong></p> <p>There are so many credit cards on offer today that deciding which one is right for you can be very confusing. Take your time to research the various credit cards available in the market, keeping in mind the following:</p> <p>1.The interest rate charged on the outstanding</p> <p>2.The rewards plan offered and whether it is appropriate for your lifestyle</p> <p>3.Annual charges and other fees</p> <p><strong>Applying for a credit card for the first time? </strong></p> <p>If you have not applied for loans and have never had a <a href="https://www.creditmantri.com/credit-card/">credit card</a> before, your credit score and credit history will be insufficient for lenders to make a decision on whether to approve your loan or card application. People who have little or no credit history are rejected for this very reason. If you are a first time applicant, check your credit score and improve it to 750 , if required. Also take steps to make your credit history more substantial by, for example, using a secured credit card.&nbsp; Do not apply if you have a low score or thin file because you will be rejected, causing your credit rating to drop even further.&nbsp;</p>https://www.creditmantri.com/articles/how-do-i-get-a-personal-loan-from-hdfc-bankHow do I get a personal loan from HDFC bank?https://www.creditmantri.com/articles/how-do-i-get-a-personal-loan-from-hdfc-bank<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1cd4efcecd61376c6039afb68893d1ce_How-do-I-get-a-personal-loan-from-HDFC-bank.png'/></p><p>If you are planning to apply for a personal loan from HDFC, it is advisable to first check if you are eligible before applying. It is possible to do this online on the HDFC website and get an idea of what your loan offer will be.</p> <p><strong>Check Eligibility:</strong></p> <p>In order to qualify for an HDFC personal loan, you need to be</p> <p>1.within a certain age range</p> <p>2.demonstrate employment stability in terms of minimum number of years employed and number of years with current employer</p> <p>3. have a minimum income ( which varies depending on your city of residence).</p> <p>You can check online if you qualify for a loan with an &lsquo;in-principle&rsquo; approval. You can use the Personal Loan Eligibility Calculator tool on the website to see if you are eligible. Alternatively, you can also visit a branch to check your eligibility and your In-Principle offer, before you decide to submit your application.</p> <p><strong>Document submission</strong></p> <p>You will need to submit the following documents, among others, at the time of application, so it is a good idea to have them ready and updated before you apply.</p> <p>1.ID proof ( documents could include copy of passport/voter ID card/driving license).</p> <p>2.Residence proof (documents could include copy of ration card/telephone or electricity bill/rental agreement/passport).</p> <p>3.Bank statements of the past 3 months or passbook updated for the last 6 months.</p> <p>4.Latest salary slip with the latest Form 16.</p> <p>You can apply online and upload the necessary documentation or you can visit any HDFC branch and submit your application with the requisite documents. Once you submit your application, you can track the status online.</p> <p><strong>Tips to keep in mind when applying for a personal loan</strong></p> <p>1.Obtain a copy of your credit report before you apply for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. Lenders place importance on your credit score and history when approving of a loan, so it is advisable to have a credit score of 750 or above to stand a good chance of being approved. 2.If you have a poor score, improve it before you apply so that you avoid the possibility of rejection and further damage to your credit health. If your application is rejected, you will find it even more difficult to have access to credit (loans and <a href="https://www.creditmantri.com/credit-card/">credit cards</a>) in the future.</p> <p>Check the interest rate and ensure that you will be able to repay the loan in full and on time. Since there is no collateral, the interest charged on personal loans is relatively high so that lenders can cover their risk. Use the EMI calculator to make sure that you will be able to repay the loan on time.</p>https://www.creditmantri.com/articles/how-do-i-get-a-personal-loan-from-icici-bankHow do I get a personal loan from ICICI Bank?https://www.creditmantri.com/articles/how-do-i-get-a-personal-loan-from-icici-bank<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b4e6c9ab8c26c632b4493b603f6ff5ad_How-do-I-get-a-personal-loan-from-ICICI-bank.png'/></p><p><strong>How do I get a personal loan from ICICI Bank?</strong></p> <p>The first thing you should do if you are planning to apply for a personal loan from ICICI is to check if you are eligible. It is simple to check online if you are eligible for an ICICI personal loan. ICICI offers loans for a tenure of 12-60 months and the maximum amount varies depending on whether you are a salaried employee or a self-employed professional.&nbsp;</p> <p><strong>Check your eligibility for an ICICI personal loan</strong></p> <p>Existing customers: If you are an existing customer, you can check if you have a pre-qualified offer simply by entering your credit card, debit card or your loan account number on the website. Further, you can also use their EMI calculator tool to see if the offer suits your requirements. Once you do the eligibility check and calculate your EMI, you can go ahead and finalise your application. You can scan and upload the requisite documents, complete your application and submit it online.</p> <p>If you are a new customer, then you can use the eligibility check tool online to see if you qualify in terms of age (there is a minimum and maximum), income and employment, and years in the job/profession. If you are self-employed, then you will need to enter details of your turnover, profit after tax and business stability to check if you are eligible for the personal loan.</p> <p>If you do not have the time, or if you would like to talk with a representative before applying, you could call the Customer Care number. Or you could visit the Help Desk at any ICICI branch for more details on <a href="https://www.creditmantri.com/icici-bank-personal-loan/">applying for a personal loan</a>.</p> <p><strong>Documents to be submitted for an ICICI personal loan</strong></p> <p>Salaried employees will need to submit ID and residence proof, bank statements, salary slips and photographs among other documents.</p> <p>Self-employed professionals also need to submit ID and residence proof, income proof, and bank statements.</p> <p>Once you submit your application, you can track the status online using your application number. You will know if your application has been approved within a few days of submission of documents.</p> <p><strong>Tips to keep in mind when applying for a personal loan</strong></p> <p>1.Obtain a copy of your credit report and check your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Lenders place emphasis on your credit score when approving a personal loan. It is advisable to have a score of 750 or above to avoid loan rejection.</p> <p>2.If you have a poor score or poor credit history, take time to improve your score and any weak areas in your credit profile before you apply for the loan. You not only improve your chances of being approved, you also ensure easier access to credit in the future.</p> <p>3.Check the interest rate and determine if you will be able to make all your loan &nbsp;repayments. Personal loans have some of the highest interest rates so it is important that you have a plan for repaying the loan in time to avoid damaging your credit health.</p>https://www.creditmantri.com/articles/how-do-i-apply-for-a-personal-loan-from-sbiHow do I apply for a personal loan from SBI?https://www.creditmantri.com/articles/how-do-i-apply-for-a-personal-loan-from-sbi<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/60bbdb71192ecdc6a0afe9f2cd49c669_How-to-apply-for-a-personal-loan-from-SBI.PNG'/></p><p>Are you dreaming of going on a vacation, planning your child&rsquo;s wedding, thinking of renovating your home, buying a new gadget or wondering where to get the money to pay for emergency medical expenses? When you need money for short term expenses and plan to repay it quickly, applying for a personal loan is the answer. State Bank of India (SBI) has several kinds of personal loans to suit your individual situation.</p> <p><strong>How do I apply?</strong></p> <p>You can apply for a personal loan at SBI in two ways;</p> <p>1.Online: You can apply online on the SBI website. You need to fill in a few personal details like income, type of employment, date of birth and contact details. Based on this information, the bank will check your eligibility and offer you a loan quote. You can then submit the completed application with the requisite documentation. You can also ask to be contacted by a representative of the bank for further details on loan offers and &nbsp;application.</p> <p>2.In person: You can visit the nearest SBI branch, collect details of the loans on offer, ask to speak with a representative and submit your application with the required documentation manually.</p> <p>SBI provides 4 types of personal loans to customers:</p> <p><strong>Xpress Credit Personal Loan:</strong></p> <p><strong>1.Eligibility:</strong> These loans are given to employees of the central and state government, Central PSUs, quasi &ndash;government organisations, and certain state PSUs, educational institutions</p> <p><strong>2.Income:</strong> There is a minimum monthly income criterion. In addition, your EMI/NMI ration should not exceed 50 &ndash; i.e. the total amount of your EMI payments should not exceed 50% of your net monthly income (NMI).</p> <p><strong>3.Loan Amount:</strong> The maximum is 24 times your NMI, capped at Rs 15 lakhs.</p> <p>There are different offers under this type of personal loan including loan against rent receivables and loan against mortgage of property.</p> <p><strong>SBI Saral Personal Loan:</strong></p> <p><strong>1.Eligibility:</strong> Salaried individuals, self-employed professionals.</p> <p><strong>2.Income:</strong> The <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>amount depends on your income and repayment capacity.</p> <p><strong>3.Amount:</strong> The maximum amount is 12 times the net monthly salary of the customer, up to a maximum of Rs 10 lakhs.</p> <p><strong>Loan to Pensioners:</strong></p> <p><strong>1.Eligibility:</strong> Retired central and state government employees who are drawing a pension and are not more than 76 years of age can avail a personal loan from SBI. Spouses who are authorized to draw the pension on the death of the employee are eligible for a Family Pensioner Loan.</p> <p><strong>2.Amount:</strong> The maximum amount is capped at 18 months pension, subject to certain age restrictions.</p> <p><strong>Festival Loans:</strong></p> <p>This personal loan is specifically given to cover all the extra expenses that accompany the festival season!</p> <p><strong>1.Eligibility:</strong> Employees of central or state government /PSUs/public or private limited companies with a minimum of 2 years of service; self-employed individuals with minimum 3 years of experience; and people with a&nbsp; regular source of income from verifiable channels.</p> <p><strong>2.Income:</strong> A certain minimum net monthly income is a requirement. Your spouse's income can be included when calculating the loan amount if he/she guarantees the loan or the loan is taken jointly.</p> <p><strong>3.Amount:</strong> The loan amount is determined by your income and repayment capacity and can range from Rs 5000 &ndash;Rs.50,000 - depending on your net monthly income.</p> <p>It is best to check the minimum and maximum loan amounts, tenure and interest rates with a bank representative so that you get the most accurate picture of the loan offer.</p>https://www.creditmantri.com/articles/how-to-calculate-the-interest-on-a-personal-loanHow to calculate the interest on a personal loan?https://www.creditmantri.com/articles/how-to-calculate-the-interest-on-a-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/9a4cf3066f419a030b30af5c254c6de4_How-to-calculate-the-interest-on-a-personal-loan.png'/></p><p>It is simple to calculate the interest on a&nbsp;<a href="https://www.creditmantri.com/personal-loan/">personal loan</a> - or any loan for that matter! All you need is a calculator. Alternatively, there are a variety of online tools that will help you calculate how much you will pay as interest over the duration of your loan.</p> <p><strong>Online tools: </strong></p> <p>Many of the lender websites have an online tool that allows you to instantly calculate your EMI (Equated Monthly Instalment) or just the interest on your personal loan. All you have to do is to input</p> <p>1. the loan amount</p> <p>2. tenure and</p> <p>3. interest rate charged.</p> <p>You will immediately know how much your EMI will be and how much you will need to pay as interest over the entire loan period.</p> <p>You can also use this tool to calculate the interest you will pay for different loan amounts, or for different loan periods or interest rate. Knowing the various options will help you plan your borrowing to suit your requirements.</p> <p><strong>Interest rates on personal loans</strong></p> <p>In general, interest rates on personal loans typically range from 15%-24% but can be lower or higher depending on the lender and the customer&rsquo;s individual credit situation. It is best to check with each lender to learn the interest rates they charge, as these can change from time to time.</p> <p><strong>What is an EMI?</strong></p> <p>&nbsp;An EMI, or <a href="https://www.creditmantri.com/reduce-emi-costs/">Equated Monthly Instalment</a>, is the amount that is payable every month to the bank or any other financial institution until you repay the loan (including interest) fully. An EMI is paid on a fixed date every month for the entire tenure of the loan. Each EMI consists of the interest on the loan as well as a part of the principal amount that has to be repaid. The EMI amount (consisting of interest plus principal repayment), however, remains the same every month.</p> <p><strong>Advantages of a Personal Loan</strong><em>:</em></p> <p>The primary benefit of a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> is that there are no restrictions on how you spend the loan amount. It could be on any personal expense like a wedding celebration or a vacation or home renovation or even medical expenses. If you need money for a personal expense and plan to repay it quickly, then this kind of loan is a good option.</p> <p>Another advantage of a personal loan is that it is an unsecured loan which means you do not need to offer any collateral to the lender &ndash; unlike home, auto or gold loans. A personal loan &nbsp;is sanctioned based on your income, <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and credit history.</p> <p><em>Disadvantages:</em> However, the downside is that personal loans are also the most expensive loans to get precisely because they do not require any collateral. Since the lenders do not have any safeguard against default, they charge a higher interest rate on personal loans to cover their risk.</p> <p>In effect, the loan amount sanctioned and interest rate you are charged is based on your income, repayment capacity (existing loan obligations) and credit history.</p> <p>Don&rsquo;t forget that there might be other expenses like the loan processing fee (a percentage of the loan amount), a fee for the credit report, stamp duty and photocopy charges. Keep these in mind when calculating the cost of taking a loan.</p>https://www.creditmantri.com/articles/how-much-can-i-get-as-a-personal-loan-amountHow much can I get as a personal loan amount?https://www.creditmantri.com/articles/how-much-can-i-get-as-a-personal-loan-amount<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2f35ff362f9545ee59d644fe5131dc69_How-much-can-I-get-as-a-personal-loan-amount.png'/></p><p>A personal loan is an &lsquo;unsecured loan&rsquo; &ndash; which means that you do not need to provide your lender any asset (like a house or car) as security when you borrow the money. A personal loan is a risky loan for lenders because they do not have any collateral to safeguard their money in case the customer defaults. Since it is a relatively high risk loan ( compared to housing, gold or auto loans)&nbsp; lenders are careful about what kind of customer they will approve the loan for, the interest rate they will charge, the loan amount and the tenure &ndash; all so that they can minimise their risk.</p> <p><strong>What is the typical amount sanctioned for a personal loan?</strong></p> <p>The most important factors that determine your loan amount are your credit score and your income. There is no typical loan amount on a personal loan. A <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> can range from a few thousands to tens of lakhs and each lender will have their own minimum and maximum amounts.</p> <p><strong>Tips to keep in mind when deciding what loan amount to apply for:</strong></p> <p>1.If you have a good credit score (750 or above) you have a good chance of being approved for a larger loan amount. A good <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> signifies that you have made repayments on past and current loans on time. Lenders will view you as a low-risk customer and be willing to lend a larger amount than if you had a lower score.</p> <p>2.It is advisable not to apply for an amount that is very high and will be difficult to repay on your existing income. There is a good chance that your application will be rejected if the lenders think that you will not be able to sustain your EMI payments for the entire duration of the loan on your present income. &nbsp;So when applying for a personal loan, make sure that the amount that you apply for is not a large percentage of your annual income.</p> <p>3.Your employment is also an important factor in the loan-approval process and the decision on &nbsp;the loan amount. Since personal loan customers do not provide any collateral, lenders need to make sure that you will have a steady monthly income over the loan period. That is why they pay particular attention to your employment status. They will look at whether you have stable employment and have been in the same job for a certain amount of time. Someone who has a history of frequently changing jobs might not be readily approved for a personal loan as it signifies that he/she might not have a stable or predictable salary over the loan period and might not be able to make regular payments. It is probably a good idea to be in a job for at least a year before you apply for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>.</p> <p>4.Your EMI payment record is also of importance. Lenders will look at your credit report to check if you have consistently demonstrated financial discipline and a pattern of timely EMI payments on your other loan obligations. If they see that you have regularly made payments and fulfilled your debt obligations, they will be inclined to view your loan application more favourably and might approve of a larger amount.</p> <p>Of course, the final loan amount that is approved depends on the lending criteria used by the lender and how they evaluate your ability and willingness to repay the loan.</p>https://www.creditmantri.com/articles/how-to-apply-for-an-hdfc-credit-cardHow to apply for an HDFC credit cardhttps://www.creditmantri.com/articles/how-to-apply-for-an-hdfc-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ab2b0949b836a20e7e27360d675f79fc_How-to-apply-for-an-hdfc-card.png'/></p><p>HDFC Bank is one of the largest private sector banks in India and also one of the leading issuers of credit cards in the country. HDFC Bank offers a range of credit cards to suit the varying needs of individuals. These include entertainment cards, travel cards, cash back cards, <a href="https://www.creditmantri.com/lifestyle-credit-cards/">lifestyle cards</a>, rewards cards, business cards and co-branded cards. There is a card for everyone, depending of course on your individual eligibility based on your monthly income, expenditure pattern, credit score and other factors.</p> <p><strong>How do I apply for an HDFC credit card?</strong></p> <p>As a first step, you should browse through the various card offers on the HDFC website and learn about the various features and benefits &ndash; including rewards plans, fees, interest rates etc. &ndash; of the credit cards. Sometimes, it is difficult to make a decision on your own and it might be a good idea to discuss the various card options with a bank representative who can give you a clearer picture. All you need to do is to enter you name, mobile number, city of residence and income. An authorised representative will contact you with information on the credit cards suitable for you.</p> <p>If, however, you have made up your mind on which card you want to apply for, you can apply online and get e-approval in a matter of minutes. You need to enter a few personal details so that the bank can run an eligibility check to see if you qualify for the credit card. You can then submit the application online and check if you qualify for approval.&nbsp;</p> <p><strong>Documents required for applying for HDFC card</strong></p> <p>When applying online for a <a href="https://www.creditmantri.com/credit-card/">credit card</a>, you will need to scan and upload certain documents including address and ID proof, and PAN card details along with your completed application.</p> <p>You can track the status of your application online using the reference number that you receive when you submit the application.</p> <p><strong>Am I eligible for an HDFC credit card?</strong></p> <p>Each bank has its own eligibility criteria for approving a credit card application. In general, however, if you have a credit score of 750 or above and a good repayment history in your credit report, you have a good chance of being approved for a credit card. You need to also be eligible in terms of the monthly income requirements for the card.</p> <p>It is a good idea to obtain a copy of your credit report and check to see if you have an adequate credit score for applying for a new credit card. If not, take steps to improve your score before applying in order to avoid rejection and causing further damage to your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>.</p>https://www.creditmantri.com/articles/how-to-apply-for-an-sbi-credit-cardHow to apply for an SBI credit cardhttps://www.creditmantri.com/articles/how-to-apply-for-an-sbi-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/fe0c592779f818378d0f638cb4986f28_How-to-apply-for-an-SBI-credit-card.png'/></p><p>Selecting the right credit card depends on your income, your monthly expenditure pattern and how you plan to use your card. When choosing a credit card, you need to check 4 things:</p> <p>1.What is the interest rate on the card?</p> <p>2.What are the fees and other terms and conditions of use?</p> <p>3.Are the benefits (like cash back or rewards plan) appropriate for your priorities?</p> <p>4.Are you eligible in terms of income?</p> <p>SBI offers a wide range of credit cards that cater to various levels of needs and financial situations. Below are some of the types of credit cards that SBI offers:</p> <p>1.<a href="https://www.creditmantri.com/lifestyle-credit-cards/">Lifestyle credit cards</a></p> <p>2.Rewards cards</p> <p>3.<a href="https://www.creditmantri.com/shopping-cashback-credit-cards/">Shopping cards</a></p> <p>4.Travel cards</p> <p>5.Banking partnership cards</p> <p><strong>How to choose and apply for an SBI credit card</strong></p> <p>When you go online onto the SBI website, click on the &ldquo;Personal&rsquo; tab and then click on the &lsquo;Credit Cards&rsquo; option. You can opt to give your name, mobile number and city and authorize a representative of the bank to contact you with details about SBI credit cards.</p> <p>Alternatively, the Simplifier tool on the SBI website helps you choose the card that is best suited to your needs, based on your income and your monthly expenditure pattern. The online tool is very easy to use, helps you narrow down which card/s suit your requirements and suggests possible SBI credit cards based on your answers. You can learn about each of the cards in detail on the website before making a decision on which one to apply for.</p> <p>You can apply for a credit card in two ways:</p> <p>1.In person: You can walk into an SBI branch and submit the application form and documentation required.</p> <p>2.Online: You can apply for a credit card on the SBI website. You need to enter your personal details and provide documentation for ID and income proof among others.</p> <p>Once you submit your application, you will receive a number that you can use to track your application. Use this number as a reference number anytime you want to learn about the status of your credit card application.</p> <p><strong>Tips to keep in mind when you apply for an SBI credit card</strong></p> <p>If you are planning to apply for a SBI credit card, the first thing you should do is to check your credit score. It is a good idea to obtain a copy of your credit report to check your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> before applying for a card.</p> <p>If your score is less than 750, take time to improve your score before applying. This way you avoid the chance of rejection that will cause your credit score to drop even further. Having a good credit score means that you can get approved for the card you want and can avail of good repayment terms.</p> <p><em>How do I choose which credit card is best for me? </em>The best way to choose a card is to research all the options and see which card you are eligible for and suits your requirements. For instance, your monthly income is often one of the eligibility criteria, so if your income is not sufficient, do not consider the card as you might be rejected. Or, if you do not use air travel much, then a card that offers free airline miles is of no use to you and you are better off choosing another card with more appropriate benefits. &nbsp;</p> <p>Apply for the <a href="https://www.creditmantri.com/credit-card/">credit card</a> for which you have the best chance of being approved in terms of income eligibility etc. If your application is rejected due to insufficient income or poor credit score, it will be more difficult to be approved for a credit card or loan in the future.</p> <p>&nbsp;</p>https://www.creditmantri.com/articles/how-can-i-get-a-car-loanHow can I get a Car Loanhttps://www.creditmantri.com/articles/how-can-i-get-a-car-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f5bc7903f9c88b48592f309ceafe4d59_How-to-get-a-Car-Loan.png'/></p><p>A loan you take from a bank for the specific purpose of buying a car is a car loan or <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>. A car loan could be used to buy a brand new car or a used car. A car loan is a secured loan because the lender holds the car as security until the loan is fully repaid. This is known as hypothecation to the bank or finance company. Once the borrower pays off the full loan amount, including interest, the complete ownership of the car is legally transferred from the lender to the customer. However, if the customer defaults on the loan, the lender can repossess the car to recover their dues.</p> <p>You need to be a minimum of 21 years of age to apply for a car loan.</p> <p><strong>What factors do lenders look at when you apply for a car loan?</strong></p> <p><strong>&nbsp;</strong>Lenders are primarily interested in your income and credit history. They will look at your</p> <p>1.Salary and employment status: Lenders need to know that you will have a steady monthly income in order to make your repayments. The repayments on your&nbsp;<a href="https://www.creditmantri.com/auto-loan/">auto loan</a> can carry on for a few years so lenders want to be assured that you will have a stable source of income. Ensure that you have had stable employment for at least a year before you apply for a car loan.</p> <p>2.Your existing EMI burden: Your monthly EMI outflow should not exceed a certain percentage of your net monthly income. Lenders want to be assured that you have enough income to take on repayments on this new loan.</p> <p>3.Credit score: Lenders get a good idea of your repayment record with your credit score. In general, if you have a score of 750 or above you stand a good chance of being approved for a car loan. It is possible to get a loan with a lower score, but you will be subject to stricter repayment conditions like, for example, a higher interest rate.</p> <p>4.Credit Report: Lenders will access your credit report to see if you have a good track record of making your loan repayments on time, and to also check your current loan obligations, to judge if you can afford an additional loan repayment.</p> <p>There are a multitude of banks and other financial institutions that offer car loans. Research the various offers online and check which one suits your requirements in terms of interest rates, loan period and loan amount.</p> <p>If you are planning to apply for a car loan, the first thing you should do is to obtain your credit report and check your credit score. Make sure that you have a good credit score <em>before</em> you apply for a loan to avoid rejection. This will give you enough time to improve your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, if necessary, and avoid damage to your credit history.</p>https://www.creditmantri.com/articles/how-to-get-a-loan-for-a-used-carHow to Get a Loan for a Used Carhttps://www.creditmantri.com/articles/how-to-get-a-loan-for-a-used-car<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4636d5bc80e82144c2b4a784d280abf8_How-to-Get-a-Used-Car-Loan.png'/></p><p>When you apply for a car loan, it could be used to purchase a new or used car. In general, we usually hear of car loans being used for the purchase of a new car. However, banks and other financial institutions also give loans for the purchase of used cars (or second-hand cars, as they are sometimes referred to) but the criteria and terms for such loans can be a little different.</p> <p><strong>What should I keep in mind when I apply for a used car loan?</strong></p> <p><em>Interest rates</em>: When you apply for a loan to buy a used car, the interest rates generally tend to be higher. This is because the car you are buying has already depreciated in value and its value as collateral continues to drop over the tenure of the loan. Banks, therefore, try to recover their money faster by charging a higher interest rate on the loan amount.</p> <p><em>Tenure: </em>Similarly, when you apply for a used car loan, the tenure might be shorter than for a regular <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>. This is because the bank wants to be repaid quickly as the condition of the vehicle deteriorates and it ends up being a worthless asset if the loan period stretches too long.</p> <p><em>Type of car: </em>Typically, lenders give used car loans for luxury or high-end cars that remain in good condition after use. This is in comparison with cheaper cars that might be virtually worthless after a few years. In case the customer defaults, the lenders would prefer a good used car which they can dispose of to recover their dues. They may not be able to recover their money with a cheaper, poorly-maintained vehicle.</p> <p><em>Loan to Value (LTV) ratio: </em>The LTV ratio is the amount you&nbsp;<a href="https://www.creditmantri.com/first-time-borrower/">borrow</a> as a proportion of the value of the purchase. For example, if the cost of the car is Rs 1 lakh, and you take a loan for Rs 60,000, then the LTV is 60%.&nbsp; Generally, lenders will offer a lower LTV for used car loans in order to reduce their risk in case of customer default.</p> <p><strong>When to apply for a used car loan</strong></p> <p>You stand a better chance of being approved if you apply for a small loan amount (low LTV) and plan to buy a good quality, luxury car brand. Keep in mind that, in general, it is difficult to be get a loan approved for a regular, mass market, used car which will quickly depreciate in value and be of little use to the lender as collateral.</p>https://www.creditmantri.com/articles/how-to-pay-an-sbi-credit-bill-onlineHow to pay an SBI credit bill onlinehttps://www.creditmantri.com/articles/how-to-pay-an-sbi-credit-bill-online<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/225dda87ad3b1c65d162252926385049_How-to-pay-an-SBI-credit-card-bill-online.png'/></p><p>Want to pay your SBI credit card bill online from the convenience of your home? Imagine not having to worry about finding time to drop off a cheque at the bank. Or mailing a cheque and wondering if it would be credited in time. Paying online is a safe, quick and convenient alternative way of paying your bills that saves you time and effort.</p> <p>To pay your bills online, you need to sign up for the net banking facility with your bank and receive a User ID and password. With this, you can not only pay bills but also conduct other transactions online. &nbsp;Most banks offer net banking, so check that you can avail of the facility at your bank.</p> <p><strong>How to pay your SBI credit card bill online through NEFT:</strong></p> <p>If you have net banking facilities, log onto your bank website and add SBI as a beneficiary. Enter the <a href="https://www.creditmantri.com/ifsc-code/">IFSC code</a> (details on the SBI site). You will need to enter your 16 digit credit card number and fill in the details for the sections on Bank Name and Bank Address. The SBI website has clear step-by-step instructions on what to input in these fields and how you can pay your bill online.</p> <p>Your payment will be credited to your account in 1 working day. Using NEFT is a quick and safe way of paying your bills. Each bank has different processing charges and fees for using NEFT so it is best to check with your individual bank.</p> <p>If you already have a savings account at SBI, then the procedure to be followed for paying your bill is different.&nbsp; Check the details on the SBI website and follow the instructions mentioned there.</p> <p>If you have an SBI Visa card, you can opt to use the &lsquo;Visa <a href="https://www.creditmantri.com/credit-card/">Credit Card</a> Pay&rsquo; facility on the bank&rsquo;s website. It can take up t 3 days for your payment to be credited to your account.</p> <p><strong>How to ensure automatic payment of your credit card bill </strong></p> <p>You can also arrange for your SBI credit card bill to be paid automatically every month from your savings account.&nbsp; This will save you the tension of remembering the due date on your bill and ensuring timely payments. You need to download and fill in the Auto-Debit form from the SBI website and get it verified by the bank. Then you need to mail the completed form..&nbsp;</p> <p>You can choose to have the Minimum Due amount paid every month or for the full amount to be paid. Your account will be automatically debited every month for the chosen amount. You can avail of this facility if you have a savings account at SBI or SBI associated banks which include:&nbsp; State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.</p>https://www.creditmantri.com/articles/how-to-get-a-home-loan-from-icici-bankHOW TO GET A HOME LOAN FROM ICICI BANKhttps://www.creditmantri.com/articles/how-to-get-a-home-loan-from-icici-bank<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2c1c54ebfef4bd94638fcd4f797f3ed1_HOW-TO-GET-A-HOME-LOAN-FROM-ICICI-BANK.PNG'/></p><p>A home loan is a loan that is offered to individuals who wish to purchase a house or want to construct a new house. Your eligibility for a&nbsp;<a href="https://www.creditmantri.com/home-loan/">home loan</a> depends on various factors including your income, employment status, tenure of the loan, loan amount etc. Since a home loan is a secured loan, the lender holds the title deed of the property until the borrower repays the loan in full along with the interest due. In general, lenders can offer home loans for up to 80%-85% of the cost of the property. Typically, the tenure on a home loan is between 5-30 years.&nbsp;&nbsp; The interest rates for home loan can be fixed or floating (fixed or subject to prevailing market conditions), party fixed or partly floating based on the needs of the borrower.</p> <p><strong>HOME LOAN FROM ICICI BANK:</strong></p> <p>A home loan is one of the most substantial financial decisions you can take in your personal life and is a financial commitment that can stretch for decades. It is important to research the loans available in the market and choose which one is best suited to you in terms of interest rates, tenure and other terms.</p> <p>ICICI bank provides pre-approved home loans even before the customer finalises the property they are going to buy. This pre-approval helps customers get a firm idea of their budget for buying the property and helps in the decision making process. This preliminary e-approval will be subject to terms and conditions. &nbsp;Existing ICICI customers might already have an approved loan offer. Obtaining online pre-approval will allow you to avail of a discount on processing fees on the loan.</p> <p><strong>Will I qualify for an </strong><a href="https://www.creditmantri.com/icici-bank-home-loan/"><strong>ICICI home loan</strong></a><strong>? </strong></p> <p>These are some of the factors you should keep in mind when applying for a home loan:</p> <p><em>Credit health:</em> One of the most important factors when you apply for a home loan is your credit health and it is within your control to improve it. If you have poor credit, there is a good chance that your loan application will be rejected. Obtain a copy of your credit report <em>well before</em> you plan to apply for a loan. This way, if there are any problems in your credit report you will have enough time to resolve these issues by the time you apply for your loan.</p> <p>It is advisable to have a credit score of 750 or above in order to have a good chance to be approved for the loan. It is possible to get a loan with a lower score as well, but you might be offered unfavourable terms including a higher interest rate or lower loan amount.</p> <p><em>Employment status:</em> Since the home loan has a long tenure, lenders want to be assured that you will enjoy a steady income over the loan period to be able to make your repayments. If you have too many frequent job changes, lenders are nervous about your employment stability and may reject your application. Make sure you have a stable employment record when you apply for a <a href="https://www.creditmantri.com/home-loan/">home loan</a>.</p> <p><strong>How do I apply for an ICICI home loan?</strong></p> <p>You can apply online on the ICICI bank website with the required personal details and get online pre-approval. Following this eligibility check, you can submit the application online and upload the required documents. You could also request a call back from an authorised representative of the bank if you would like to learn more about the home loans before applying. Alternatively, you could visit the nearest ICICI bank branch and meet with a customer representative.</p>https://www.creditmantri.com/articles/how-to-get-a-home-loan-from-axis-bankHOW TO GET A HOME LOAN FROM AXIS BANKhttps://www.creditmantri.com/articles/how-to-get-a-home-loan-from-axis-bank<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4b5f6227047a669eae06e7db618fd05b_HOW-TO-GET-A-HOME-LOAN-From-AXIS-BANK.PNG'/></p><p>A home loan can be one of the most significant loans that an individual can take in terms of the long standing financial commitment that can stretch to decades. Both the loan amount and the tenure on a home loan can be considerable and it is important to think carefully before you make a decision on your home loan.</p> <p><strong>Eligibility for an Axis Bank home loan </strong></p> <p>There are age criteria for salaried employees, professionals and self-employed individuals. The minimum age for <a href="https://www.creditmantri.com/home-loan/">applying for a home loan</a> is 24 years for all three categories with different maximum ages at time of loan maturity.</p> <p>You can fill in the <strong>Home Loan Eligibility Calculator</strong> with a few basic personal details to check if you qualify for an Axis Bank home loan. Or if you are pressed for time, you can ask for a bank representative to contact you with details of the home loan products.</p> <p>You can also determine what your monthly outflow will be by using the EMI Calculator tool online. All you have to do is enter the loan amount, tenure and interest rate to know how much the loan will cost you. Based on this information, you can make a decision on applying for the loan.</p> <p><strong>What are the documents required for an Axis Bank home loan?</strong></p> <p>There are slightly different documents required for salaried employees and self-employed individuals. You will need to furnish ID proof, residence proof, bank statements, salary slips and, in the case of self-employed customers, certified IT returns. Check the documents required with the bank so that your documentation is in order.</p> <p><strong>How do I apply?</strong></p> <p>1.You can complete the application online</p> <p>2.you can visit a branch and submit the application with the requisite documents</p> <p>3.You can call the Call Centre on a toll free number</p> <p>Once you have completed and submitted the application, you can track the status &nbsp;online. You should know the decision on your loan application within a month of submitting your application.</p> <p><strong>Will I qualify?</strong></p> <p>Each bank has its own lending criteria based on a variety of factors. In general, lenders look at include your age, income, assets and liabilities and employment stability. However, it is useful to keep these tips in mind when you apply for a home loan:</p> <p>1.Obtain a copy of your credit report before you apply for the loan. This way if you have a low <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> or any weak areas in your credit report, you will have enough time to rectify it when you make your application.</p> <p>2.It is advisable to have a credit score of 750 or above to stand a good chance of being approved for a home loan. You might be able to obtain a loan with a lower score, but you might be offered harsher repayment terms including a higher interest rate, lower loan amount or shorter repayment period.</p> <p>3.Do not choose an expensive property that you might find difficult to afford. Ensure that you will be able to afford timely repayments over the entire tenure of the loan. If lenders feel you may not be able to take on an additional loan obligation, they will reject your application.</p>https://www.creditmantri.com/articles/how-to-reduce-emi-on-home-loanHOW TO REDUCE EMI ON HOME LOANhttps://www.creditmantri.com/articles/how-to-reduce-emi-on-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/5b3f6ff728c686d4df49aca29df0c0a5_HOW-TO-REDUCE-EMI-ON-HOME-LOAN.PNG'/></p><p>EMIs are probably one of the most substantial outflows from our monthly income and it is always a good idea to try and decrease the burden! But first, what exactly is an EMI? EMI stands for Equated Monthly Installment. It is a fixed amount you have to pay to your bank/lender on a fixed date, every month, for the entire tenure of your loan period, until you have fully repaid the loan with the interest due. The loan could be for any purpose &ndash; housing, auto, gold or <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>.</p> <p><strong>What does the EMI amount consist of?</strong></p> <p>Each EMI consists of payment towards the principal (actual amount borrowed) and the interest on that amount for the entire loan period. In the early years, a higher proportion of the EMI is formed by the interest payment on the principal. As the loan matures, the interest component decreases and the principal amount forms a higher percentage of the monthly payment.</p> <p><strong>Here are some ways in which you can reduce your EMI payments:</strong></p> <p>1.Higher down payment: When your loan is sanctioned, choose to make a large down payment so that the principal amount is reduced. Your interest payment is calculated on the principal, so the smaller the principal, the lower the interest payment and smaller EMI. It might seem difficult to come up with a large down payment, but it will be worth it in the long run and result in significant savings in EMI payments. This is especially the case with long-tenure loans like a housing loan which involves EMI payments over decades. &nbsp;</p> <p>2.Opt for a longer tenure: If you have a long loan period, your EMI reduces proportionately as your principal and interest is divided over a greater number of months. However, while the actual monthly outflow will be smaller, you will be paying out EMIs for a longer period and paying interest for a longer period. So while your monthly burden might be smaller, you might end up paying more over the entire duration of the loan.</p> <p>3.Making an <strong>early</strong> prepayment: One way to significantly <a href="https://www.creditmantri.com/reduce-emi-costs/">reduce your EMI</a> for the majority of your tenure is to make an early pre-payment. If you are able to afford the option of prepaying part of your loan, it is better to do it in the early months/years of the tenure so that your principal decreases, thereby saving you interest on later payments.</p> <p>4.Negotiate with the bank: If you are in good standing with your lender and have been disciplined about making your repayments on time, then you could ask your lender for a reduction in the interest rate. If you have demonstrated good repayment behaviour, your lender might be willing to lower the interest rate, thereby reducing your EMI burden.</p> <p>5.Transfer you loan to another lender: If you find a lender who offers better terms and conditions on your loan, it might be a good option to change your lender.&nbsp; However, it is important to calculate the costs involved in prepaying your loan with your existing lender and to ensure that the costs are not greater than the savings you will gain with your new lender.</p>https://www.creditmantri.com/articles/what-are-the-interest-rates-on-fixed-depositsWhat are the interest rates on Fixed Deposits?https://www.creditmantri.com/articles/what-are-the-interest-rates-on-fixed-deposits<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/99d401e01a5494d4987b169adc75f792_Fixed-deposit-interest-rates.png'/></p><p>The main purpose of a fixed deposit (FD) is to enable individuals to earn a higher interest rate on their surplus funds as compared to keeping their money in a savings account. A fixed deposit is one of the safest ways you can invest your money. The interest you earn may be relatively low compared to other forms of investment, but it is a risk-free option. A fixed deposit is a good option if you are looking for a regular, fixed return on available money.</p> <p><strong>How do I calculate the interest on a fixed deposit?</strong></p> <p>The interest rate on an FD is fixed until the maturity date. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. In general, the interest rates on a fixed deposit range from 6-9% per annum, depending on the issuer. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different bank so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the tenure of the deposit, the amount you deposit and the interest rate offered. The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate.</p> <p>If you are not in need of the periodic interest payments and want to gain higher returns, you can reinvest the interest and enjoy the benefits of compounding. In this case, the interest you earn, in turn, earns further interest so your money is always at work.</p> <p><strong>Minimum amount and period</strong></p> <p>The minimum amount to be deposited differs depending on the issuer&rsquo;s policies. The minimum and maximum tenure for a fixed deposit also varies. In general, fixed deposits can be made for a period between 7 days to 10 years. However, some of the tax-saving deposit schemes that are offered lock you in for a longer minimum period.</p> <p><strong>Advantages of having an FD account</strong></p> <p>a.It encourages savings for a longer period of time.</p> <p>b.It utilises money that would otherwise be lying idle in your savings account.</p> <p>c.It is a risk-free option for earning a higher rate of interest compared to a savings account.</p> <p>d.You are assured of a regular, fixed amount of interest income periodically, or can choose to reinvest the interest income if you are not in immediate need of the money.</p> <p>e.You can avail of additional benefits depending on the individual scheme such as tax saving advantages.</p>https://www.creditmantri.com/articles/how-do-i-calculate-the-bank-interest-rateHow do I calculate the bank interest rate?https://www.creditmantri.com/articles/how-do-i-calculate-the-bank-interest-rate<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1702801fa5b15c3ffbfe90035b5c05f0_How-to-calculate-bank-interest-rates.png'/></p><p>First, it is important to know that it is not possible to calculate the bank interest <strong><em>rate</em></strong> on your own. The rate is fixed by the bank based on its internal policies. However, you can calculate the <strong><em>amount of interest</em></strong> that you will receive when you keep your money in a savings account or when you invest it in a fixed deposit. It is simple to do this. All you need to know is the existing interest rate that your bank or financial institution offers and use online or manual calculators to calculate how much money you will earn as interest.</p> <p><strong>Interest on savings accounts </strong></p> <p>Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to greater competition, and while some banks offer 5-7% per annum, many banks in India offer an interest rate of 4% on savings accounts.</p> <p>If, for instance, if you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p>In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>Bank interest rate on fixed deposits</strong></p> <p>The main purpose of having a fixed deposit (FD) is to enable individuals to earn a higher rate of interest on their surplus funds than they would earn in a savings account. A fixed deposit is one of the safest ways you can invest your money. The interest you earn may be relatively low compared to other forms of investment, but it is a risk-free option. A fixed deposit is a good option if you are looking for a regular, fixed return on available money.</p> <p>You can calculate the amount of interest you will earn on an FD by using online interest calculators that are available on most bank websites. All you have to do is input the deposit amount, the number of days, and the interest rate. You will learn how much you will receive as interest on the maturity date. This will help you plan your personal budget.</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest rate offered vary based on the tenure of the deposit, the amount you deposit and the interest rate offered by the bank depending on their internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate on FDs.</p> <p>Similarly, each bank has its terms regarding minimum amounts and the minimum period the money is to be deposited. Alternatively, if you are not in need of the periodic interest payments and want to gain higher returns, you can reinvest the interest and enjoy the benefits of compounding. This way you earn interest not just on your original deposit amount, but also on the interest you have received on it.&nbsp;</p>https://www.creditmantri.com/articles/what-is-a-recurring-deposit-and-what-is-the-interest-rate-on-these-depositsWhat is a recurring deposit and what is the interest rate on these deposits?https://www.creditmantri.com/articles/what-is-a-recurring-deposit-and-what-is-the-interest-rate-on-these-deposits<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ef95fa0edfe9f1db744bf09a4809de16_Recurring-deposit-interest-rates.png'/></p><p>A Recurring Deposit (RD) is a form of a term deposit which allows you to deposit a fixed amount on a regular basis and enjoy the same higher interest rate as a fixed deposit. The difference is that a recurring deposit allows you to make periodic investments in the deposit, whereas in a Fixed Deposit (FD), the customer deposits the entire amount at the time of opening the FD account. An RD is a way to encourage saving among individuals who may not be able to spare a lump sum to open an FD, but prefer to invest smaller amounts on an ongoing periodic basis.</p> <p>You can deposit the money in an RD with a standing order with your bank so that your savings account is automatically debited for the pre-determined amount and credited to your recurring deposit on a monthly basis. You are credited with the entire amount (principal plus interest) on maturity of the deposit.&nbsp;</p> <p><strong>Features of a Recurring Deposit:</strong></p> <p><strong>Interest rates </strong></p> <p>The interest rates on recurring deposits can vary according to each bank. However, once you open an RD, the rate remains the same for the entire period of the deposit. Check the interest rate offered by your bank to see if it is competitive compared to other banks. In general, the recurring deposit interest rates are the same as the FD rates and can range from 6%-9% depending on the individual bank.</p> <p>While the interest rate is the same for the period of the recurring deposit, compounding is done on a quarterly basis.</p> <p>Senior citizens can enjoy a higher interest rate on RDs.</p> <p>Most banks have an online calculator which helps you calculate the amount you will earn as interest on your RD.</p> <p><strong>Period and amount</strong></p> <p>Period: The minimum period for an RD is generally 6 months though some banks can have a minimum period of 2 years. The maximum period for a recurring deposit is 10 years.</p> <p>Amount: The minimum amount to be deposited on the periodic basis also depends on the bank.</p> <p><strong>Withdrawal</strong></p> <p>Some banks may allow you to make a premature withdrawal subject to specific terms and conditions and after paying a penalty fee. Banks do not, in general, allow partial withdrawal, but offer it in the form of an overdraft or loan facility, with the balance in the RD being held as collateral.</p> <p><strong>Loan against deposit</strong></p> <p>Banks can offer up to 80-90% of the amount in your RD as a loan, using your deposit as collateral.</p> <p><strong>Eligibility</strong></p> <p>In addition to resident Indians, some banks also allow minors to have an RD account under the supervision of a guardian.</p> <p><strong>Tax</strong></p> <p>As of 2015, interest accrued on an RD is subject to TDS (Tax Deducted at Source).</p>https://www.creditmantri.com/articles/what-are-axis-bank-interest-ratesWhat are Axis Bank interest rates?https://www.creditmantri.com/articles/what-are-axis-bank-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/37253ef7b0baddd9a512f47688d8c07e_Axis-Bank-interest-rates.png'/></p><p>Axis Bank offers an interest rate of 4% per annum on their savings bank accounts. This rate is subject to change at any time.</p> <p><strong>Axis Bank Interest rate on savings account</strong></p> <p>Most banks, including Axis Bank, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account? If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>Axis Bank fixed deposit rates</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>&nbsp;It is simple to calculate the money you will earn as interest in an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on</p> <p>a.the tenure of the deposit</p> <p>b.the amount you deposit</p> <p>c.the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/what-are-axis-bank-fixed-deposit-ratesWhat are Axis Bank Fixed Deposit Rates?https://www.creditmantri.com/articles/what-are-axis-bank-fixed-deposit-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/93fbd785be1170c94c1227fccaffc62c_Axis-Bank-Fixed-Deposit-Rates.png'/></p><p>Axis Bank offers Fixed Deposit (FD) schemes that enable you to invest your money and enjoy a better rate of interest than keeping the same amount in a savings bank account.</p> <p><strong>Axis Bank fixed deposits</strong></p> <p>Here are some of the main features of a fixed deposit that generally apply to all banks and other FD issuers, including Axis Bank.</p> <p>A fixed deposit or term deposit is one of the safest and most popular forms of investment in India. It has been traditionally seen as a safe and reliable way of investing money, with none of the volatility and risks associated with other investments like the stock market. It is simple to open a fixed deposit and requires minimal documentation.</p> <p>A fixed deposit (FD) is a financial instrument that offers a higher rate of interest when compared to interest earned in a regular savings account. If you have some extra money and wish to invest it in a low-risk opportunity, a fixed deposit is a good option.</p> <p><strong>Interest rate:</strong> The rate of interest varies from bank to bank based on the amount deposited, period of deposit and other factors. The main purpose of this type of deposit is to enable individuals to earn extra interest for the surplus money they have.</p> <p>In India, senior citizens enjoy a higher interest rate on their Fixed Deposits.</p> <p><strong>Period:</strong> A fixed deposit &ndash; as the name suggests &ndash; is for a fixed term, and could range from 7 days to 10 years. On maturity of your deposit, you are paid your original deposit amount plus the interest earned.</p> <p><strong>Amount:</strong> The amount to be invested can be deposited only once. If you want to invest any additional amounts, you will need a new FD account.</p> <p><strong>Maturity:</strong> On maturity, the amount is credited to the customer&rsquo;s specified bank account.</p> <p><strong>Withdrawals:</strong> Sometimes, if you have an urgent need for the money, or if you spot a better investment opportunity, you might want to break your FD and withdraw the entire sum before the maturity date.&nbsp; If you withdraw your FD before the maturity date, you will need to pay a penalty.</p> <p>In other cases, you might only want to make a partial withdrawal &ndash; i.e. remove only a small amount of your total deposit. In such cases too, you will be charged a penalty and paid interest only on the remaining amount.</p> <p><strong>Renewals:</strong> On maturity, an FD can be renewed for a different tenure, or it can be auto-renewed in the absence of specific instructions.</p> <p><strong>Tax:</strong> You can invest your money in tax-saving fixed deposit schemes. However, keep in mind that you will need to keep your FD for a minimum number of years if you choose to invest in such a scheme.</p> <p><strong>Advantages of fixed deposit: </strong></p> <p>a.Fixed deposits encourage individuals to save money over a longer period of time.</p> <p>b.They enable the depositor to earn higher interest on their surplus money.</p> <p>c.Allows them to plan their funds allocations as they are assured of a fixed amount of funds over a fixed period.</p>https://www.creditmantri.com/articles/what-are-canara-bank-interest-ratesWhat are Canara Bank interest rates?https://www.creditmantri.com/articles/what-are-canara-bank-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b28e4b18d47b859ecb80e722922671b3_Canara-Bank-interest-rates.png'/></p><p>Canara Bank offers an interest rate of 4% per annum on their savings bank accounts. This rate is subject to change at any time.</p> <p><strong>Canara Bank Interest rate on savings account</strong></p> <p>Most banks, including Canara Bank, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account? If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>How do I calculate the interest on a Canara Bank fixed deposit?</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure and the issuer.</p> <p>It is simple to calculate the money you will earn as interest in an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on</p> <p>1.the tenure of the deposit</p> <p>2.the amount you deposit</p> <p>3.the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/hdfc-bank-interest-ratesHDFC Bank Interest Rates?https://www.creditmantri.com/articles/hdfc-bank-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/381fb132b4038c37b40cd39eebfbd4da_HDFC-Bank-Interest-Rates.png'/></p><p>HDFC Bank offers an interest rate of 4% per annum for domestic, NRE and NRO accounts.&nbsp; The rate is subject to change at any time.</p> <p>The savings bank interest is</p> <p>a.calculated on the basis of the daily balance maintained in the account</p> <p>b.paid at half-yearly intervals&nbsp; on 30<sup>th</sup> September and 31<sup>st</sup>March each year.&nbsp;</p> <p>&nbsp;<strong>HDFC Bank Interest rate on savings account</strong></p> <p>Most banks, including HDFC Bank, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account? If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>HDFC Bank interest on fixed deposits</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>It is simple to calculate the interest you will earn on an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the</p> <p>a.the tenure of the deposit</p> <p>b.the amount you deposit</p> <p>c.the interest rate offered.</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/what-are-icici-bank-interest-ratesWhat are ICICI Bank interest rates?https://www.creditmantri.com/articles/what-are-icici-bank-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/acbd59040dc3d726ef645e1288c3b22b_ICICI-bank-interest-rates.png'/></p><p>ICICI Bank offers a standard interest rate of 4% per annum on both kinds of domestic savings accounts it offers:</p> <p>1.Basic Savings Bank Account</p> <p>2.Savings Account with cheque book facilities.</p> <p>This rate has been in effect since May 3 2011 and is subject to change at any time.</p> <p>ICICI Bank offers the same interest rate of 4% for senior citizens as well. Unlike fixed deposit interest rates, there is no increased rate for customers above the age of 60.</p> <p><strong>Minimum balance required </strong></p> <p>There is, however, a difference with regard to the minimum balance required to be maintained in the account, depending on the location of the account.</p> <p>a.Customers with the Basic Savings account do not need to maintain a minimum balance.</p> <p>b.Customers with a cheque book facility need to maintain the following minimum balance: Metro and urban areas &ndash; Rs. 10,000; Semi urban &ndash; Rs. 5000; and Rural &ndash; Rs. 2000.</p> <p>c.Non-resident NRO and NRE accounts also enjoy the same 4% interest rate. However, a higher minimum balance is required on these savings accounts.&nbsp;</p> <p><strong>ICICI Bank interest rate on savings account</strong></p> <p>Most banks, including ICICI, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account? If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>ICICI bank interest rate on fixed deposits</strong></p> <p>ICICI bank offers varying interest rates for FD Schemes based on&nbsp;</p> <p>i.Availability of &nbsp;premature withdrawal facility</p> <p>ii.Amount&nbsp; of deposit ( Below Rs. 1 crore or above)</p> <p>iii.Tenure of deposit</p> <p>iv.Senior citizen eligibility</p> <p><strong>How do I calculate the interest on a fixed deposit?</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure and issuer.</p> <p>It is simple to calculate the money you will earn as interest in an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on</p> <p>a.the tenure of the deposit</p> <p>b.&nbsp;the amount you deposit</p> <p>c.&nbsp;the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/state-bank-of-india-interest-ratesState Bank of India interest rates?https://www.creditmantri.com/articles/state-bank-of-india-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c7e34698fb9b7374f8ba2f74c450add0_State-Bank-of-India-interest-rates.png'/></p><p>State Bank of India (SBI) offers a uniform interest rate of 4% per annum on their savings bank accounts. This rate has been effect since 3 May 2011 and is subject to change at any time.</p> <p><strong>Kinds of savings accounts offered by State Bank of India</strong></p> <p>1.Savings Plus Account</p> <p>2.Yuva Savings Account</p> <p>3.Basic Savings Account</p> <p>4.Small Savings Account</p> <p>5.Savings Account for minors</p> <p>All these SBI savings accounts earn 4% interest rate.</p> <p>Minimum balance &ndash; Only Savings Plus Account requires a minimum balance of Rs. 25,000. The other accounts do not require any minimum balance.</p> <p><strong>SBI Interest rate on savings account</strong></p> <p>Most banks, including State Bank of India, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account? If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year at six-monthly intervals.</p> <p><strong>SBI interest rate on fixed deposits</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure of the deposit and the issuer. Fixed deposits are offered by banks and non-banking financial institutions as well as corporates.</p> <p>It is simple to calculate the money you will earn as interest in an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>The interest you earn will vary based on</p> <p>a.the tenure of the deposit</p> <p>b.the amount you deposit</p> <p>c.the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/what-are-sbi-fixed-deposit-interest-ratesWhat are SBI fixed deposit interest rates?https://www.creditmantri.com/articles/what-are-sbi-fixed-deposit-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/9300b41b8b7ad8051ebdf429748ad347_SBI-fixed-deposit-interest-rates.png'/></p><p>SBI fixed deposit accounts help you earn more money as interest for your surplus funds when compared to simply leaving it in a savings account.</p> <p><strong>SBI fixed deposits</strong></p> <p>Here are some of the main features of a fixed deposit that applies to all banks in India in general, including SBI.</p> <p>A fixed deposit or term deposit is one of the safest and most popular forms of investment in India. It has been traditionally seen as a safe and reliable way of investing money, with none of the volatility and risks associated with other investments like the stock market. It is simple to open a fixed deposit and requires minimal documentation.</p> <p>A fixed deposit (FD) is a financial instrument that offers a higher interest rate when compared to interest earned in a regular savings account. If you have some extra money and wish to invest it in a low-risk opportunity, a fixed deposit is a good option.</p> <p><strong>Interest rate:</strong> The interest rate varies from bank to bank depending on</p> <p>1.the amount deposited</p> <p>2.period of deposit</p> <p>3.senior citizen eligibility</p> <p>In India, senior citizens enjoy a higher interest rate on their Fixed Deposits.</p> <p><strong>Period:</strong> A fixed deposit &ndash; as the name suggests &ndash; is for a fixed term, and could range from 7 days to 10 years. On maturity of your deposit, you are paid your original deposit amount plus the interest earned.</p> <p><strong>Amount:</strong> The amount to be invested can be deposited only once. If you want to invest any additional amounts, you will need a new FD account.</p> <p><strong>Maturity:</strong> On maturity, the amount is credited to the customer&rsquo;s specified bank account ( if it issued by another financial institution or a corporate).</p> <p><strong>Withdrawals:</strong> Sometimes, if you have an urgent need for the money, or if you spot a better investment opportunity, you might want to break your FD and withdraw the entire sum before the maturity date.&nbsp; If you withdraw your FD before the maturity date, you will need to pay a penalty.</p> <p>In other cases, you might only want to make a partial withdrawal &ndash; i.e. remove only a small amount of your total deposit. In such cases too, you will be charged a penalty and paid interest only on the remaining amount.</p> <p><strong>Renewals:</strong> On maturity, an FD can be renewed for a different tenure, or it can be auto-renewed in the absence of specific instructions.</p> <p><strong>Tax:</strong> You can invest your money in tax-saving fixed deposit schemes. However, keep in mind that you will need to keep your FD for a minimum number of years if you choose to invest in such a scheme.</p> <p><strong>Advantages of fixed deposit: </strong></p> <p>1.Fixed deposits encourage individuals to save money over a longer period of time.</p> <p>2.They enable the depositor to earn higher interest on their surplus money.</p> <p>3.Allows them to plan their funds allocations as they are assured of a fixed amount of funds over a fixed period.</p>https://www.creditmantri.com/articles/how-to-calculate-insurance-premiumHow to Calculate Insurance Premium?https://www.creditmantri.com/articles/how-to-calculate-insurance-premium<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1db5b07becca31e25e404c71282140f0_How-to-Calculate-Insurance-Premiums.png'/></p><p>The amount of money that a person pays for his/her insurance policy is called the insurance premium. It is basically the amount charged by the insurance company to provide coverage. The insurance premium can be paid on a monthly, quarterly or yearly basis, depending on the insurance plan.</p> <p>There are a multitude of insurance plans in the market and the premium charged on each of these plans can vary depending on a carefully calculated combination of factors.</p> <p><strong>How are insurance premiums calculated?</strong></p> <p>To a large extent, the premium you pay is based on complex mathematical and statistical analysis. Insurance companies have an underwriting department that compile large amounts of data that could include information on age, income, health, area of residence. This data is then scrutinised to evaluate the probability of an individual filing for a claim. The higher the probability of a claim, the higher is the cost of the premium.</p> <p>Let us take an example. A 22 year old driver of a sports car is likely to pay a higher premium on his or her auto insurance than a 50 year old driver of a family car &ndash; simply because statistics show that young owners of fast cars are more likely to be involved in an accident than a middle aged parent driving a slower car.</p> <p>Similarly, if you are 22 years old with no history of any serious disease, you will pay a smaller amount as health insurance premium, than a 50 year old with a history of cardiac problems. Here too, statistics show that a 50 year old with a problem medical history has a far higher probability of falling ill and filing an insurance claim than a healthy 22 year old.</p> <p><strong>Mortality and sickness tables</strong></p> <p>Insurance companies study large amounts of data and compile &ldquo;mortality and sickness&rsquo; tables. These tables are based on gender, age and income related information (among other factors) regarding the probability of disease and death. Insurers use these tables to develop models that predict at what age an individual from a particular category could face major illness or die. Based on this data, they predict which customers have a high probability of filing an insurance claim. The premiums are then calculated based on these models.</p> <p>So for example, a smoker is likely to pay a higher premium than a non-smoker simply because there is a high probability that the former will face serious illness that will require filing for insurance coverage.</p> <p><strong>Example of factors influencing home insurance premiums </strong></p> <p>Let us take the example of home insurance. The premium you pay will be based on various factors that could include:</p> <p>1.Crime rate in your neighbourhood</p> <p>2.Proximity to a police station or a fire station</p> <p>3.Value of your personal property</p> <p>4.Your prior insurance history</p> <p>Calculating premiums is a complex statistical endeavour. In essence, the cost of your premium reflects the probability of your filing a claim. &nbsp;</p>https://www.creditmantri.com/articles/what-is-insurance-and-what-are-the-various-types-of-insuranceWhat is insurance and what are the various types of insurance?https://www.creditmantri.com/articles/what-is-insurance-and-what-are-the-various-types-of-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a60a4e11055b9ae617ae5c3cda46a387_What-is-insurance-&-various-types-of-insurance.png'/></p><p>Insurance is quite simply protection against the risk of potential significant financial loss in the future. Insurance is a way of buying financial peace of mind against the uncertainties and risks in life such as untimely death, loss of property, serious health issues requiring heavy expenditure and accidents among others.</p> <p><strong>Life insurance:</strong> Let&rsquo;s take the example of one of the more popular types of insurance - life insurance. What does this mean to the individual in terms of loss and risk? If you are the main breadwinner and worried about your family&rsquo;s ability to support themselves financially in case you die unexpectedly, you can take out a life insurance policy and name a family member as a beneficiary. In case of untimely death, a pre-fixed lump sum (the amount that you have been insured for) will be paid out to your beneficiary. You can choose this payment to be paid one time or on a recurring basis. Your dependents &ndash; spouse and children &ndash; can use this money for living, education or marriage expenses in case of your untimely death and loss of your earnings.</p> <p>The premium can be paid on a regular basis - monthly, half yearly or annually. In certain cases, if the insured survives the tenure of the policy, he/she is eligible to receive a lump sum of money known as the Maturity Amount.</p> <p><strong>Health insurance:</strong> With medical bills rising steeply every day, you might be worried that in case of a medical emergency or serious medical condition, you will not be able to afford the expensive treatment. When you take out a health insurance policy, you can breathe easier knowing that your medical bills will be taken care of. Of course, the amount that you will receive depends on the particular policy you have bought, but in general, having insurance gives you some protection against potential financial loss in the future.</p> <p>Health insurance is becoming increasingly popular in India because of the rapid increase in medical costs and hospital stays. Treatment for a major illness like cancer or heart disease can run into several lakhs of rupees depending on the city you live in and swallow a large part of your savings. Health insurance helps you plan and budget for such unexpected expenditures in the future.&nbsp;</p> <p><strong>Auto insurance: </strong>It is mandatory to have auto insurance in India and you will need to buy an insurance policy at the time you purchase your vehicle. Your insurance policy ensures that you are covered in case of damage or loss of your vehicle due to an accident, theft or natural calamity.</p> <p><strong>What are some of the more popular forms of insurance in India? </strong>Life insurance is one of the most popular forms of insurance in the country.&nbsp; Motor Vehicle insurance is mandatory and you will need to buy it at the time you purchase your vehicle. Health insurance is gaining popularity. You can also buy home insurance to protect yourself in case of loss of property due to theft, fire or other disasters.</p>https://www.creditmantri.com/articles/what-is-term-insuranceWhat is term insurance?https://www.creditmantri.com/articles/what-is-term-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c06a58681e8ded2495231d3fd67e7036_What-is-term-insurance.png'/></p><p>Term insurance is a form of insurance that is for a fixed period &ndash; or specified &lsquo;term&rsquo;. This term is typically between 10-30 years. If the insured dies during this period when the policy is active, a death benefit is paid out to the nominated beneficiary of the policy. Term insurance provides a fixed amount of coverage for a specific period of time.</p> <p>&nbsp;Let&rsquo;s take as an example Mr. X (the insured), who takes out a 20 year policy for Rs 50 lakhs with an insurance company (the insurer). He pays his premiums regularly on a monthly or half yearly or annual basis. If he dies before the 20 years, when the policy is still active, his nominee will receive Rs. 50 lakhs. If he survives the term of 20 years, he will not get any pay out. This is different from other forms of life insurance which pay out a maturity benefit even if you survive the period of the policy.</p> <p>Term insurance is temporary &ndash; i.e. only for the duration of the policy &ndash; and is therefore less expensive than permanent life insurance. However, after the expiry of the &lsquo;term&rsquo; the policy can become very expensive.</p> <p><strong>Why is the premium for term insurance low?</strong></p> <p>The premium for term <a href="https://www.creditmantri.com/articles/Insurance">insurance</a> is the lowest among all forms of life insurance as there is no investment involved and all the money paid out in premiums is used to provide protection against risk. There is no maturity benefit once the term expires.</p> <p><strong>Aspects of term insurance:</strong></p> <p>1.Eligibility: The minimum age of entering into term insurance policies is 18 years and the maximum age limit is 65 years.</p> <p>2.Missing a premium payment: Some companies offer a grace period for missed half yearly or annual premium payments and a shorter grace period for missed monthly payments. If you have missed a premium payment, check immediately with your insurer or insurance agent on the applicable rules.</p> <p>3.Criteria to consider when choosing term insurance: First, determine the amount of coverage you require and the time period; check the reputation of the insurance company; check their claims settlement ratio; learn the terms and conditions of your term insurance policy &ndash; a low premium may come with several unfavourable conditions that might not suit your requirements; identify which companies offer discounted rates on premiums &ndash; for example, non-smokers might be eligible for a discount.</p> <p>4.Nature of pay out: Some companies may offer the choice of a recurring or one-time pay out. You can choose which one will suit your family&rsquo;s needs best.</p> <p>5.Online purchase: Many leading insurance companies offer the option of buying a plan entirely online. Subject to their conditions, you will be able to buy a plan online without undergoing a medical test.</p> <p>6.Opting for riders: Many insurance companies offer riders (additional options) that enhance the value of the term insurance plan. For instance, if you opt for critical illness cover, you are assured of lump sum in case you are diagnosed with a critical illness during the tenure of the plan. Similarly, there could be riders for loss of income cover or disability cover. You need to evaluate the risks and requirements in terms of yourself and your family and choose a plan accordingly.</p>https://www.creditmantri.com/articles/what-is-life-insuranceWhat is life insurance?https://www.creditmantri.com/articles/what-is-life-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/78bb2d04853edeadea3bd64d6723b662_What-is-life-insurance.png'/></p><p>Life insurance is a form of financial protection in the case of the death of the insured individual. For example, Mr. Prasad, the only earner in the family, is worried that his family members will not be able to manage expenses if he passes away unexpectedly. He will then buy term life insurance for a specific amount (cover that will be paid to his nominee) for a specific period. If he dies during the period of the policy, his nominated beneficiary will be paid the cover amount. If he survives the term of the policy, he will not receive any money. In some other forms of life insurance, even if he survives the period of the policy, he may be eligible to receive a Maturity Amount.</p> <p><strong>Reasons for buying life insurance</strong></p> <p>1.The most important reason for buying life insurance would be provide peace of mind and financial security in case of sudden or untimely death. If you are the main or only wage earner in the family, then it is vital to take out a life insurance policy so that your dependent family members &ndash; spouse and children - are not left financially vulnerable in case of your death and the subsequent loss of income.</p> <p>2.If your spouse is also a wage earner, then you could buy a joint-life policy &ndash; it works out cheaper and can be used for tax-saving purposes.</p> <p>3.Life insurance can also be a form of forced long-term saving. It can be used to fund either your post-retirement plans or to support children&rsquo;s requirements.</p> <p>4.You can be eligible for tax benefits on premiums paid on life or health insurance policies.</p> <p><strong>Age at which to buy life insurance</strong></p> <p>In general, the younger you buy life insurance, the cheaper it is. Even if you are single and without children, it is a good idea to invest in a life insurance policy so that you enjoy the benefits of lower premiums and can avail of a lump sum later in life.</p> <p>If you have a dependent family, then it is a good idea to buy a life insurance policy right away. The older you get, the more expensive the premiums become and there is no advantage in postponing the decision. You should insure yourself for as long as you will be the main income earner in the family.</p> <p><strong>How to reduce the cost of a life insurance policy</strong></p> <p>1.Buy at a young age &ndash; since the risk of death is generally lower when you are young, the policy is cheaper.</p> <p>2.By insurance for a long period.</p> <p>3.Opt for a large assured sum and pay an annual premium, which will enable you to avail of discounts</p> <p><strong>What type of insurance policy should you choose?</strong></p> <p>There are a vast number of policies in the market today and it can be confusing to decide which one is the most suitable for you. It is best to learn about the various options either by researching online or by talking to an insurance agent or advisor. The policy you choose depends on several factors including your insurance objective, your age, income, health, expenditure and the number of dependent family members.</p> <p>Insurance can buy you financial protection as well as peace of mind. If you do not have life insurance as yet it would be a good idea to start researching the policies available on the market and identify which one might be best suited to your needs at this stage in your life.</p>https://www.creditmantri.com/articles/how-to-claim-car-insuranceHow to claim Car Insurance?https://www.creditmantri.com/articles/how-to-claim-car-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d87f070ac931b01213f473d73cb9ed71_How-to-claim-car-insurance.png'/></p><p>It is mandatory to have auto insurance in India. You can purchase your auto insurance at the time of buying the vehicle. Along with the joy of owning your vehicle, is the ever present danger of loss due to accident, theft or natural calamity.</p> <p><strong>Tips to keep in mind when claiming car insurance</strong></p> <p><strong>Claims arising from an accident</strong></p> <p>1.The first thing you should do when involved in an accident is to inform the police and your insurance representative or insurance company so that the accident site can be surveyed.</p> <p>2.When you contact your insurance company ensure that you have the following details handy: a.Your name and policy number b.Start date and end date of your insurance policy</p> <p>3.Do not move your car until you have got permission from the police and your insurance company.</p> <p>4.If another car is involved and you are the victim, ensure that you get the insurance details of the other party.</p> <p>5.Make sure that you get a copy of the police report, if possible.</p> <p>6.Ask your insurance company or agent for a list of all the forms and documents required for filing a claim.</p> <p>7.Keep copies of all the expenses you have incurred as a result of the accident including car repair bills. You might need these later as part of documentation for Proof of Loss.</p> <p>When you do actually file a claim, make sure that you do it correctly and accurately and enclose all the required documentation. Any mistake in your claim can lead to problems and long delays with your insurance pay out.</p> <p>Keep a copy of the all the paperwork and documentation submitted with your claim.</p> <p><strong>Claims arising in case of theft</strong></p> <p>In case of theft of your car, you should also intimate your insurance company or agent immediately. File a police complaint right away. The procedure for claiming insurance for car theft might differ slightly from an accident claim. For instance in a theft claim, you may have to surrender your vehicle keys to the insurance company. &nbsp;</p> <p><strong>Choosing whether to file a claim</strong></p> <p>If the damage is minimal and the repair costs are not large, then it might be a good idea to pay for it out of your pocket. If you do not file a claim for the year, then you will be eligible for the &lsquo;No Claim&rsquo; discount on your premium the following year, which means your premium will be lower. You need to compare the cost of repair with the amount you will receive as a &lsquo;No Claim&rsquo; discount. You can then calculate if filing a car insurance claim makes financial sense. If the repair costs are large, then, unquestionably, you need to file a claim to cover the cost of damages.</p>https://www.creditmantri.com/articles/how-to-renew-two-wheeler-insuranceHow to renew two wheeler insurance?https://www.creditmantri.com/articles/how-to-renew-two-wheeler-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1427e80a5c9f947979f20b18470d2391_HOW-TO-RENEW-TWO-WHEELER-INSURANCE.PNG'/></p><p>For many people, a two wheeler &ndash; whether a motorbike, scooter or moped &ndash; is their first ever vehicle purchase &ndash; and a purchase that is much cherished! Owning a two-wheeler gives you independence and mobility, but it also comes with the not so happy prospect of damage or loss due to accidents, theft or natural calamities. It is now mandatory for all vehicle owners to buy motor vehicle insurance to cover such losses.</p> <p>If you already have two wheeler insurance and want to renew it online, the process is easy. You can do it on the <a href="https://www.creditmantri.com/articles/Insurance">insurance</a> company&rsquo;s website.</p> <p>When you are entering your data online, make sure all details like your name, date of birth, vehicle license plate number, number and date of expiry of policy etc. are all accurate.</p> <p><strong>Tips for renewing your two wheeler insurance</strong></p> <p>When renewing your policy online, ensure that you have with you:</p> <p>1.Your old policy for easy reference for policy number, date of expiry and other details</p> <p>2.Your two wheeler details ( registration number or engine number)</p> <p>3.Debit card or internet banking details</p> <p>If your policy is still active and you wish to change your insurer, you can compare the various offers online before making a final decision. If you are unhappy with your current policy, it is easy to shop around online for the best offers available on the market.</p> <p>Keep in mind that a cheap premium does not necessarily translate into the best policy. The exact terms might not suit your requirements, so it is a good idea to read the conditions carefully or talk to an insurance advisor or agent if you need clarifications.</p> <p>If your insurance has already expired it is possible to go online to renew your policy. You may not require further inspection of your vehicle or additional documentation.</p> <p>Your renewed policy may be sent to you by email in digital form. Download the pdf and save it on your computer or take a printout and keep it securely.</p> <p><strong>What is covered by a two-wheeler insurance policy? </strong></p> <p>&nbsp;In general, comprehensive two-wheeler insurance provides coverage for:</p> <p>1.Loss or damage of your two wheeler against any natural calamities like, fire explosion, lightening, earthquake, flood, typhoon, hurricane, cyclone, hailstorm, landslide and rockslide.</p> <p>2.Loss or damage against theft, burglary, accident</p> <p>3.Additional options (for example, coverage for pillion riders or coverage for accessories)</p> <p>4.Protection against third party claims</p>https://www.creditmantri.com/articles/what-is-a-secured-credit-cardWhat is a secured credit card?https://www.creditmantri.com/articles/what-is-a-secured-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f042824a7ec30a639d018030d7217b2c_What-is-a-secured-card.png'/></p><p>Unlike a regular credit card, you need a cash deposit with the bank to be issued a secured credit card. This deposit is used by the bank as security in case you default on your&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> payments. This kind of card also helps you create credit history or rebuild your credit profile if you have a poor credit score.</p> <p><strong>When should you opt for a secured credit card?</strong></p> <p>There are three categories of people who benefit from this card:</p> <p>1.<em>If you have poor credit history and low credit score:</em> If you want to rebuild your credit health or plan to apply for a loan, using a secured card is a good way to improve your credit score. Every payment you make on time and in full will be reported by the bank to the credit bureaus, and your credit score will improve quickly.</p> <p>2.<em>If you have little or no credit history:</em>&nbsp; In order to become loan eligible, it is very important to have a sufficiently long credit history. If you have never taken a loan or have limited credit card exposure, you do not have enough of a credit history for banks to evaluate your credit worthiness. This lack of credit history might lead to rejection when you apply for a loan. A secured credit card is a relatively quick way to build your credit history and improve your credit score so that you are able to avail of loans in the future.</p> <p>3.<em>If your application for a regular &lsquo;unsecured&rsquo; credit card has been rejected:</em>Banks will not reject an application for a secured card since they have your deposit as a safeguard. If you have been rejected for a regular card because of poor or insufficient credit history, a secured card allows you access to credit and improve your credit score at the same time. Responsible usage of this card will allow you to upgrade to a regular credit card over time.</p> <p><strong>How does it work?</strong></p> <p>A secured credit card works exactly like a regular credit card. You need to pay your monthly credit card bill on time and in full.&nbsp; The only difference is that in case you do not make your payment, the bank will use your security deposit to recover their dues.</p> <p><strong>How does it help my credit score?</strong></p> <p>The bank reports every monthly payment you make to the credit bureaus. Each repayment will have an immediate positive impact on your credit score. &nbsp;So it is very important to make sure you make every payment on this card on time, and in full, so that it has the maximum positive impact on your score.</p> <p><strong>How is it different from a debit card?</strong></p> <p>In a debit card, your bank account is debited when you make a purchase.&nbsp; With a <a href="https://www.creditmantri.com/articles/what-is-a-secured-credit-card">secured card</a>, your account is not automatically debited. You need to make monthly payments when you receive your bill. If you default on a payment, only then will your bank use your security deposit to pay your credit card bill.</p> <p><strong>What is the credit limit?</strong></p> <p>Banks usually extend between 80-90% of your security deposit as your credit limit. For example, if you have deposited Rs. 1,00,000, your credit limit on that card will be between Rs.80,000 and Rs.90,000.</p>https://www.creditmantri.com/articles/what-is-the-interest-rate-for-personal-loansWhat is the interest rate for personal loans?https://www.creditmantri.com/articles/what-is-the-interest-rate-for-personal-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e26706748beb818a696cc1fd60d8f971_What-is-the-interest-rate-for-personal-loans.png'/></p><p><strong>What factors affect the interest rate on personal loans?</strong></p> <p>It is important to note that personal loans are the most expensive loans in the formal consumer banking system. &nbsp;Interest rates on personal loans in India generally range from 14-25% though, of course, it could be higher or lower depending on each individual bank or lender&rsquo;s internal policies and lending criteria.</p> <p>The reason personal loans incur the highest interest rates are because they are &lsquo;unsecured&rsquo; loans.&nbsp; An unsecured loan is one where you do not need to provide any collateral to the bank/lender.&nbsp; In the case of a secured loan &ndash; like a home or auto loan &ndash; the property and vehicle to be purchased are held as collateral by the lender until the entire loan amount is repaid. In case of default, they can use the collateral to recover their dues.</p> <p>However, in a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>, the lenders are taking the risk of lending to you without any security and have no safeguards against default. This is why they tend to cover their risk by charging a higher interest rate when compared to secured loans.</p> <p><strong>Factors influencing the interest rate on personal loans:</strong></p> <p>1.Loan amount compared to your annual income: If your loan amount is a small percentage of your annual income, then your interest rate will tend to be lower as lenders think you will have enough income to fulfill your loan obligation. They will perceive you as being at relatively low risk of defaulting and may be willing to offer a lower rate of interest.</p> <p>2.Conversely, if your loan amount is a high percentage of your annual income, lenders might not be confident about your ability to have enough income to make all your repayments and might insist on a higher interest rate on the loan.</p> <p>3.Credit report and credit score: Since this is an unsecured loan, lenders want to track your past credit behaviour in order to evaluate your ability and willingness to pay.&nbsp;&nbsp; In general, the higher your credit score, the better the interest rate you will get. If you have a <a href="https://www.creditmantri.com/credit-score-advice/">good credit score</a>, lenders are confident that you have a good track record of fulfilling your debt obligations, and you might be able to negotiate a lower interest rate with them.&nbsp;</p> <p>Given the high interest rates on personal loans are, it is important to check the rate on the loan you are applying for. Make sure that you have a plan to make all your repayments on time so that you avoid harming your <a href="https://www.creditmantri.com/free-credit-score-analysis-online">credit health</a>.</p>https://www.creditmantri.com/articles/icici-prudential-life-insurance-companyICICI Prudential Life Insurance Companyhttps://www.creditmantri.com/articles/icici-prudential-life-insurance-company<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6c4f016ca40eea973699ea1c38570fb5_ICICI-Prudential-life-insurance.png'/></p><p>ICICI Prudential Life Insurance is a joint venture between ICICI Bank and Prudential PLC, a leading British financial services company. It was the first private sector life insurance company to begin operations in India in 2000 after approval by the Insurance Regulatory Development Authority of India, and it remains one of the leading life insurance companies in the country. &nbsp;</p> <p>ICICI Prudential has a range of plans to suit the differing needs of customers:</p> <p><strong>Term Plans</strong> &ndash; These are also called Pure Protection plans where the aim of the policy is to offer coverage in case of death. This is the simplest and cheapest form of life insurance.</p> <p><strong>Wealth Plans</strong> &ndash; Together with life insurance, you can opt for a plan that is an investment tool and helps grow your money even while you enjoy insurance coverage.</p> <p><strong>Retirement Plans</strong> &ndash; These plans help you to cover your loss of income once you retire. It is never too early to plan for retirement, and the sooner you start planning and saving for it, the larger your corpus will be at the time of retirement.</p> <p><strong>How do I choose the right insurance plan?</strong></p> <p>First, determine what your financial goal is at this stage of your life. Keep in mind your income, age, number of years left for retirement, health, expenditure and number of dependents.</p> <p>Research the various plans online to see which fits your requirements in terms of the assured sums, affordability of the premium and coverage of risks. In general, your insurance cover should be ten times your annual income.</p> <p>You can also use online tools to calculate how much your premium will be so that you can make a more informed final decision.</p> <p>&nbsp;If you need some help with the options, you could ask for an ICICI Prudential advisor to contact you to guide you on the various offerings.</p> <p><strong>Can I buy life insurance online?</strong></p> <p>Yes, ICICI Prudential Life allows you to buy a policy online. You can fill in the application form and make the payment entirely online if you have decided on a plan.</p> <p><strong>Benefits of life insurance: </strong></p> <p>A good insurance policy will offer the following benefits:</p> <p><strong><em>Life cover: </em></strong></p> <p>Life insurance ensures that in the event of untimely death, the family will stay financially protected. The insurance cover can be used by the family for education, housing or other expenses if you are no longer around as the chief family breadwinner.</p> <p><strong><em>Long term savings</em></strong><em>:</em></p> <p>&nbsp;Life insurance helps you to save and build your wealth for the future, especially for the retirement years, when you no longer have a regular income. Life insurance can be a tool for &nbsp;both savings as well as protection against risk.</p> <p><strong>Tax advantage</strong>:</p> <p>&nbsp;Buying life insurance also allows certain tax benefits.&nbsp;</p>https://www.creditmantri.com/articles/features-and-benefits-of-personal-loansFeatures and Benefits of Personal Loans?https://www.creditmantri.com/articles/features-and-benefits-of-personal-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c31281fc9064058c78350ea7d44de457_Features-and-Benefits-of-Personal-Loans.png'/></p><p><strong>Features and Benefits of Personal Loans</strong></p> <p>A personal loan is a loan taken by an individual to fund any personal expense like, for example, a wedding, to make renovations to the home or even for a vacation. Unlike many other kinds of loan, there is no restriction on how the borrowed amount is finally used &ndash; the borrower has full freedom to use the money for any purpose they want.</p> <p>There are two attractive features of a personal loan:</p> <p>i.Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; This in contrast to a <a href="https://www.creditmantri.com/home-loan/">home loan</a> or <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>where the loan amount can only be used to buy a property or a vehicle respectively.&nbsp; A personal loan allows you the freedom to use the money in any way you want.</p> <p>ii.Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the cash required as collateral.</p> <p><strong>What is the typical amount and loan period of a personal loan?</strong></p> <p>There is no typical loan amount and the loans can range from a few thousands to lakhs.&nbsp; While applying for a personal loan, the amount that you apply for must be commensurate with your ability to make repayments.&nbsp; Of course, the final loan amount that is approved depends on the lending criteria used by the bank/NBFC and how they evaluate your ability to repay the loan.</p> <p>Personal loans are relatively short-term loans and the tenure can range from 1-5 years.</p> <p><strong>What are the factors that influence approval for a personal loan? </strong></p> <p>a.It is generally advisable to have a <a href="https://www.creditmantri.com/what-is-a-good-credit-score">credit score of 750</a> or above to qualify for a personal loan. The higher your score, the better are your chances of being approved.</p> <p>b.Your employment is also an important factor in the loan-approval process. Since personal loan customers do not provide any collateral, lenders need to make sure that you will have a steady job over the loan period. It is probably a good idea to be with the same employer for at least a year before you apply for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>.</p> <p>c.Your annual income: Again, since there is no collateral, the banks want to be assured that you have a sufficient income (from salary and other sources) that will allow you to make your monthly repayments. The higher your income, the better your chances of being approved for a personal loan. d.Your EMI payment record: Lenders will look at your credit report to check if you have consistently demonstrated financial discipline and a pattern of timely EMI payments. If they see that you have regularly made payments and fulfilled your debt obligations, they will be inclined to view your loan application more favourably.</p> <p><strong>What are the advantages and disadvantages of a personal loan?</strong></p> <p>The main advantages of a personal loan include the following:</p> <p>i.Relatively quick (because they do not require as much documentation as a home or auto loan).</p> <p>ii.No restriction on how you can spend the money</p> <p>iii.Do not require any collateral. So if you do not have any assets like a home, or shares or gold to offer as security, and are in need of money urgently, this is perhaps the most convenient option.</p> <p>The main disadvantage of a personal loan is the higher interest rate, when compared to other loans. Since the lenders do not have any security against payment default, they charge high interest rates to cover their lending risk. Personal loans can work out to be one of the most expensive loans to take in terms of interest payments.</p>https://www.creditmantri.com/articles/icici-fixed-deposit-interest-ratesICICI fixed deposit interest rates?https://www.creditmantri.com/articles/icici-fixed-deposit-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e4aa7d6442a820c2674721595c441e9d_ICICI-fixed-deposit-rates.png'/></p><p>ICICI fixed deposit accounts help you earn more money in interest on your surplus funds when compared to simply leaving money in a savings account. To learn the latest interest rates offered by ICICI on <a href="https://www.creditmantri.com/articles/what-is-a-fixed-deposit/">fixed deposits</a>.</p> <p><strong>ICICI fixed deposits</strong></p> <p>Here are some of the main features of a fixed deposit that applies to all banks in India in general, including ICICI.</p> <p>A fixed deposit or term deposit is one of the safest and most popular forms of investment in India. It has been traditionally seen as a safe and reliable way of investing money, with none of the volatility and risks associated with other investments like the stock market. It is simple to open a fixed deposit and requires minimal documentation. Fixed deposits are offered by banks, other financial institutions and corporates.</p> <p>A fixed deposit (FD) is a financial instrument that offers a higher interest rate when compared to interest earned in a regular savings account. If you have some extra money and wish to invest it in a low-risk opportunity, a fixed deposit is a good option.</p> <p><strong>Interest rate on fixed deposits:</strong> The interest rate varies from bank to bank depending on</p> <p>a.the amount deposited</p> <p>b.period of deposit</p> <p>c.senior citizen eligibility</p> <p>In India, senior citizens enjoy a higher interest rate on their Fixed Deposits.</p> <p><strong>Period:</strong> A fixed deposit &ndash; as the name suggests &ndash; is for a fixed term, and could range from 7 days to 10 years. On maturity of your deposit, you are paid your original deposit amount plus the interest earned.</p> <p><strong>Amount:</strong> The amount to be invested can be deposited only once. If you want to invest any additional amounts, you will need a new FD account.</p> <p><strong>Maturity:</strong> On maturity, the amount is credited to the customer&rsquo;s specified bank account (if the fixed deposit is issued by another financial institution or a corporate).</p> <p><strong>Withdrawals:</strong> Sometimes, if you have an urgent need for the money, or if you spot a better investment opportunity, you might want to break your FD and withdraw the entire sum before the maturity date.&nbsp; If you withdraw your FD before the maturity date, you will need to pay a penalty.</p> <p>In other cases, you might only want to make a partial withdrawal &ndash; i.e. remove only a small amount of your total deposit. In such cases too, you will be charged a penalty and paid interest only on the remaining amount.</p> <p><strong>Renewals:</strong> On maturity, an FD can be renewed for a different tenure, or it can be auto-renewed in the absence of specific instructions.</p> <p><strong>Tax:</strong> You can invest your money in tax-saving fixed deposit schemes. However, keep in mind that you will need to keep your FD for a minimum number of years if you choose to invest in such a scheme.</p>https://www.creditmantri.com/articles/smart-tips-for-saving-on-your-auto-loanSmart Tips for Saving on your Auto Loanhttps://www.creditmantri.com/articles/smart-tips-for-saving-on-your-auto-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4f4217be4a8161aa452ecb8e3f47211e_Smart-Tips-for-Saving-on-your-Auto-Loan.png'/></p><p>An auto loan can be the first significant loan many people take from the formal banking system. While it is a wonderful feeling to own your own vehicle, the cost of purchasing the vehicle should not leave you unhappy! Here are some tips on what you can do to get a good deal on your <a href="https://www.creditmantri.com/auto-loan/">auto loan</a>.</p> <p><strong>Remain updated on your credit score: </strong>When you are planning to buy a vehicle &ndash; whether two wheeler or car &ndash; the first and best thing you can do is to find out your credit score before you apply for a loan. If your&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> is high, you stand a good chance of being approved for the loan and you can avail of favourable terms and conditions. If you are aware that you have a low score, then wait to improve it before applying for the loan.&nbsp; Many people are simply unaware of their credit score and so are unable to use it as a negotiating tool. If you have a good score, then the lender might agree to a lower interest rate. Even a half or one percent reduction in the interest rate on your auto loan can save you thousands of rupees in repayments over the entire loan period.</p> <p><strong>Focus on the total cost of the loan, not the monthly payment: </strong>When weighing the various loan offers, a low monthly EMI might seem like the best choice. This is not so. You might be paying a higher interest rate over a longer period which makes the monthly payment lower but means you pay out more in interest payments over the long run. When you are deciding on an auto loan (or any loan for that matter) check what the total cost of the loan will be &ndash; i.e. principal plus total interest over the tenure. Choose the loan that has the lowest total price.</p> <p><strong>Make a higher down payment: </strong>If you have a high initial down payment, your repayment burden will be lower and you will end up saving a significant amount in interest payments over the years. If possible, save systematically to put aside money for the down payment.</p> <p><strong>Pay for add-ons and accessories from your pocket: </strong>Buying accessories only increases the price of your vehicle and drives up dealer margins &ndash; it will not help you save any money! If you plan to buy any accessories, do so separately from your pocket rather than adding it to the price of the car. If it is part of the car price, you will be paying interest on your purchases for years to come.</p> <p><strong>Do the research: </strong>And finally, shop around for the best rates before you buy a car and apply for a loan. Be prepared with up to date information on your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and market <a href="https://www.creditmantri.com/articles/icici-fixed-deposit-interest-rates">interest rates</a>. This will enable you to negotiate better loan terms with your lender and save money.</p>https://www.creditmantri.com/articles/what-is-a-fixed-deposit-and-a-recurring-depositWhat is a fixed deposit and a recurring deposit?https://www.creditmantri.com/articles/what-is-a-fixed-deposit-and-a-recurring-deposit<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f4a4c4e79c67f6b681dd52f0cf6a2f0b_What-is-a-fixed-deposit-and-a-recurring-deposit.png'/></p><p>A&nbsp;<a href="https://www.creditmantri.com/articles/what-is-a-fixed-deposit/">fixed deposit</a> or term deposit is one of the safest and most popular forms of investment in India. It has been traditionally seen as a reliable way of investing money, with none of the volatility and risks associated with other investments like the stock market. It is simple to open a fixed deposit and requires minimal documentation.</p> <p>A fixed deposit (FD) is a financial instrument that offers a higher interest rate when compared to interest earned in a regular savings account. If you have some extra money and wish to invest it in a low-risk opportunity, a fixed deposit is a good option. Fixed deposits are offered by banks, financial institutions and corporates.</p> <p><strong>Basic features of a fixed deposit</strong></p> <p><strong>Interest rate:</strong> The interest rate varies from bank to bank depending on</p> <p>i.the amount deposited.</p> <p>ii.period of deposit.</p> <p>iii.senior citizen eligibility.</p> <p>In India, senior citizens enjoy a higher interest rate on their Fixed Deposits.</p> <p><strong>Period:</strong> A fixed deposit &ndash; as the name suggests &ndash; is for a fixed term, and could range from 7 days to 10 years. On maturity of your deposit, you are paid your original deposit amount plus the interest earned.</p> <p><strong>Amount:</strong> The amount to be invested can be deposited only once. If you want to invest any additional amounts, you will need a new FD account.</p> <p><strong>Maturity:</strong> On maturity, the amount is credited to the customer&rsquo;s specified bank account (if it issued by another financial institution or a corporate).</p> <p><strong>Withdrawals:</strong> Sometimes, if you have an urgent need for the money, or if you spot a better investment opportunity, you might want to break your FD and withdraw the entire sum before the maturity date.&nbsp; If you withdraw your FD before the maturity date, you will need to pay a penalty.</p> <p>In other cases, you might only want to make a partial withdrawal &ndash; i.e. remove only a small amount of your total deposit. In such cases too, you will be charged a penalty and paid interest only on the remaining amount.</p> <p><strong>Renewals:</strong> On maturity, an FD can be renewed for a different tenure, or it can be auto-renewed in the absence of specific instructions.</p> <p><strong>Tax:</strong> You can invest your money in tax-saving fixed deposit schemes. However, keep in mind that you will need to keep your FD for a minimum number of years if you choose to invest in such a scheme.</p> <p><strong>What is a Recurring Deposit? </strong></p> <p>A Recurring Deposit (RD) is a form of a term deposit which allows you to deposit a fixed amount on a regular basis and enjoy the same higher interest rate as a fixed deposit. The difference between an RD and an FD is that a recurring deposit allows you to make periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire amount at the time of opening the FD account. An RD is a way to encourage saving among individuals who may not be able to spare a lump sum to open an FD, but prefer to invest smaller amounts on an ongoing periodic basis.</p> <p>You can deposit the money in an RD with a standing order with your bank so that your savings account is automatically debited for the pre-determined amount and credited to your recurring deposit on a monthly basis. You are credited with the entire amount (principal plus interest) on maturity of the deposit.&nbsp;</p> <p><strong>Features of a Recurring Deposit:</strong></p> <p><strong>Interest rates </strong></p> <p>The interest rates on recurring deposits can vary according to each bank. However, once you open an RD, the rate remains the same for the entire period of the deposit. In general, the recurring deposit interest rates are the same as the FD rates and can range from 6%-9% depending on the individual bank.</p> <p>While the interest rate is the same for the period of the recurring deposit, compounding is done on a quarterly basis.</p> <p>Senior citizens can enjoy a higher interest rate on RDs.</p> <p><strong>Period and amount</strong></p> <p>Period: The minimum period for an RD is generally 6 months though some banks can have a minimum period of 2 years. The maximum period for a recurring deposit is 10 years.</p> <p>Amount: The minimum amount to be deposited on the periodic basis also depends on the bank.</p> <p><strong>Withdrawal</strong></p> <p>Some banks may allow you to make a premature withdrawal subject to specific terms and conditions and after paying a penalty fee. Banks do not, in general, allow partial withdrawal, but offer it in the form of an overdraft or loan facility, with the balance in the RD being held as collateral.</p> <p><strong>Eligibility</strong></p> <p>In addition to resident Indians, some banks also allow minors to have an RD account under the supervision of a guardian.</p>https://www.creditmantri.com/articles/what-is-health-insuranceWhat is health insurance?https://www.creditmantri.com/articles/what-is-health-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c49902dcf78059760029ee3532e299ec_What-is-health-insurance.png'/></p><p>With the cost of medical care skyrocketing, dealing with the expenses of a major illness or surgery can come as a shock and leave a deep hole in your wallet. Buying health insurance is a good way of planning for unexpected medical expenditure which can run into many lakhs of rupees depending on which city you live in and the kind of medical care you need.</p> <p>Simply put, by paying a small amount to the insurance company periodically over a number of years, you are assured of at least a part of your medical expenses being covered. How much the insurance company pays out towards your expenses depends on the type of policy you have.</p> <p><strong>Should I get health insurance? </strong></p> <p>In one word, yes. As you grow older and the probability of your falling ill becomes greater, the cost of buying a health insurance policy will increase and you will find it increasingly expensive to get a policy at the time you need it the most. In addition, the health insurance cover from your employer will cease when you retire. Finally, with the cost of medical care constantly escalating, you will find it prohibitively expensive a few years from now to fund treatment for any major illness from out of your own pocket.</p> <p>Many people (especially younger people) tend to avoid buying health insurance because it is seen as a waste of money for all the years that one is healthy and in no need of insurance coverage.&nbsp; However, remember that it is cheapest to buy&nbsp;<a href="https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company">health insurance</a> when you are young and relatively healthy. And if you are married or have children, it makes sense to buy a policy that covers the entire family. Though it is good to hope so, there is no guarantee that you will not have a medical issue requiring hospitalization all through your</p> <p><strong>How do I choose the right health insurance?</strong></p> <p>There are a wide variety of options to choose from in the market today. You need to think about how much coverage you need for yourself or your family. In matters of health, it is better to be cautious and plan for at least one major illness per year per family member and calculate how much coverage you need. You need to also keep in mind the cost of the premiums, the terms and conditions of the policy, the sum assured, the discounts offered, the record on claims settlements and the reputation of the insurer.</p> <p>Insurance is an important aspect of your financial and mental well-being. While the number of policies available in the market might seem confusing, take the time to find out what option suits your needs the best so that you avoid any nasty financial surprises in the future.</p>https://www.creditmantri.com/articles/what-is-InsuranceWhat is Insurance?https://www.creditmantri.com/articles/what-is-Insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/84fe5babcd1a70055021309b77e59448_What-is-Insurance.png'/></p><p>Insurance is quite simply protection against the risk of potential significant financial loss in the future. Insurance is a way of buying financial peace of mind against the uncertainties and risks in life such as untimely death, loss of property, serious health issues requiring heavy expenditure and accidents among others.</p> <p><strong>Life insurance:</strong> Let&rsquo;s take the example of one of the more popular types of <a href="https://www.creditmantri.com/articles/Insurance">insurance</a> in India - life insurance. What does this mean to the individual in terms of loss and risk? If you are the main breadwinner and worried about your family&rsquo;s ability to support themselves in case you die unexpectedly, you can take out a life insurance policy and name a family member as a beneficiary. In case of untimely death, a pre-fixed lump sum (the amount that you have been insured for) will be paid out to your beneficiary.</p> <p><strong>Health insurance:</strong> This is the case with&nbsp;<a href="https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company">health insurance</a> as well. With medical bills rising steeply every day, you might be worried that in case of a medical emergency or serious medical condition, you will not be able to afford the expenses. When you take out a health insurance policy that reimburses a certain amount of medical-related expenses, you can breathe easier knowing that your medical bills will be taken care of. Of course, the amount that you will receive depends on the particular policy you have bought, but in general, having insurance gives you some protection against potential financial loss in the future.</p> <p><strong>What are some of the more popular forms of insurance in India? </strong>Life insurance is one of the most popular forms of insurance in the country. &nbsp;Motor Vehicle insurance is mandatory and you will need to buy it at the time you purchase your vehicle. Health insurance is gaining popularity. You can also buy home insurance to protect you in case of loss of property due to theft, fire or other disasters.</p> <p><strong>Insurance companies in India:</strong> Life Insurance Corporation of India (LIC) is the biggest life insurance company in India. There are four other government insurance companies in addition to several private sector companies. You should choose your insurance policy based on not only the cost of premiums, the coverage given but also the reputation of the company and their record of settling claims.</p> <p><strong>Common insurance terms:</strong></p> <p>Insurer: The party that provides the insurance cover, usually the insurance companies.</p> <p>Insured/Policy holder: The party/parties covered by the insurance. Also known as the policy holder/s.</p> <p>Policy: A written contract that is the legal basis of the insurance agreement</p> <p>Premium: The money that the policy holder has to pay periodically &ndash; it is calculated based on the expectation of the loss.</p>https://www.creditmantri.com/articles/15-ways-to-improve-your-finances15 Ways to Improve your Financeshttps://www.creditmantri.com/articles/15-ways-to-improve-your-finances<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/499d957d4844021d03d78520d844b4ce_15-Ways-to-Improve-Your-Finance.png'/></p><p>You do not have to wait for January 1st to make resolutions to improve your finances! Any time of the year is a good time to start taking concrete steps to organize your personal finances. &nbsp;The state of our finances is one of the biggest contributors to stress, and you can start to remove some of that constant anxiety by following the practical tips below.</p> <p><strong>Simple ways to improve your finances </strong></p> <p>1. Write down your financial problems and goals. Writing them down gives you clarity and finality, rather than constantly thinking and worrying about your finances without having a clear idea of what the issues are.</p> <p>2. Speak to others. You can talk to close family members like a spouse or sibling so that you do not carry the burden alone. You could also join online financial forums and communities &ndash; however make sure to evaluate the quality of the website and the quality of the advice! If you feel you need professional advice on how to improve your finances, then you could also contact a financial planner, though invariably that would involve a fee.</p> <p>3. Review your expenses of the past 3 months. Get an accurate idea of your spending pattern so you can plan better.</p> <p>4. Use technology. In order to save, you should know what you spend on. Use mobile apps or online tools to track your spending, inflows and outflows. This can be a great help in your efforts to improve your finances.</p> <p>5.Be specific about your goals. Do not write &ldquo;Save for college education&rdquo;, instead it should be &ldquo;Save Rs. 25,000 by end of this year for college.&rdquo;</p> <p>6. Prioritise your financial goals. If you have loans or credit card debts, paying them off should be your first priority since the interest payments can pile up rapidly.</p> <p>7. Have small goals. You may not be able to save Rs. 2000 a month on food bills, but you could find 5 ways to cut down expenses by Rs. 200. Achieving an actual saving of Rs. 1000 a month will give you greater satisfaction than worrying about how to cut down Rs. 2000 and being unable to achieve it.</p> <p>8. Prioritise your expenses. Once you know how much and what you spend on, you can plan better. You may not be able to cut your movie bills, but you could reduce your cell phone bills.</p> <p>9.Monetize your skills. Look for any way you can earn money &ndash; you could become an online tutor, or sell products online. Any extra money is useful.</p> <p>10. Ask for a raise. If you have not had a raise for some time, make a case for an increase in salary.</p> <p>11. Buy life insurance and/or a retirement plan. It is a necessary expense that will give you financial and mental peace and can be a useful tool for forced saving.</p> <p>12. Become financially literate. There are many reliable websites which will give you a good understanding of personal finances, which will be a valuable life-long asset.</p> <p>13. Obtain a copy of your credit report. Take steps to improve your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, if required. It will help you have easy access to credit when you need it in the future.</p> <p>14.Resist the urge to splurge. There are certain times when our spending discipline goes out through the window &ndash; especially during festivals and family birthdays! Keep a check on your spending pattern during these times.</p> <p>15. Making mistakes is fine! Do not get discouraged if you make mistakes or it takes long to see an improvement. Every little bit counts and in the end, discipline and patience will enable you to achieve your financial goals &ndash; one step at a time.</p>https://www.creditmantri.com/articles/5-common-small-loan-mistakes-to-avoid5 Common Small Loan Mistakes to Avoidhttps://www.creditmantri.com/articles/5-common-small-loan-mistakes-to-avoid<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2f8b96c8a209df454d21df47907179a4_5-Common-Small-Loan-Mistakes-to-Avoid.png'/></p><p>Even small mistakes on a small loan can have big consequences! Do not assume that because a loan is small in size it does not require much time or effort to complete.&nbsp; Here are some common mistakes to avoid when you apply for a small loan.</p> <p>1. Not researching enough</p> <p>Often because it is a relatively small loan, customers do not pay attention to every detail of the terms and conditions of the loan. &nbsp;This can lead to unwanted complications and unnecessarily high costs in the long run. Make sure that you calculate the cost of the loan &ndash; whether large or small &ndash; before you apply, so that you are not faced with any unpleasant surprises later.</p> <p>2. Being in a hurry to complete the process</p> <p>Because it is a small loan, customers are eager to finish the process quickly and rush through the research and comparison stage.&nbsp; This has negative consequences in terms of the cost of the loan. Simply finishing the process quickly does not mean that you will get good terms &ndash; in fact, low EMIs do not necessarily mean that it is a cheap loan. Similarly, the top websites in an online search do not always mean they have the best products. Even though you may be in a hurry to close out the process, you will be saving money in the long run by spending some time to find the loan most suited for your needs.</p> <p>3. Presuming a small bank or NBFC would be better for a small loan</p> <p>This is not always the case and is another mistake to avoid. Big banks too can offer competitive rates on small loans and can have a quicker and more efficient loan approval process. Shop around for good rates and terms and do not hold on to any pre-conceived notions about the size of the lender.</p> <p>4. Being careless about making payments on time</p> <p>This is an all-too-common occurrence. It doesn&rsquo;t matter if your loan amount is Rs. 5000 or Rs 5 lakhs or Rs 5 crores. Every single late or missed payment is reported by your lender to the credit bureau. This will adversely affect your <a href="https://www.creditmantri.com/free-credit-score-analysis-online">credit health</a> and your ability to secure bigger loans in the future. Make sure that you make every single payment on time and in full, whatever the amount.</p> <p>5. Not being thorough with documentation</p> <p>Sometimes, because it is a small amount, customers are far less diligent about the documentation. This is another significant mistake to avoid. Many times loan applications can be rejected because of faulty or incomplete documents. Each rejection will decrease your credit score and your ability to access larger amounts of credit in the future.</p>https://www.creditmantri.com/articles/bank-of-india-interest-ratesBank of India Interest Rateshttps://www.creditmantri.com/articles/bank-of-india-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/9f4aec61fff248658c9d77bb31a25efb_bank-of-india-interest-rates.png'/></p><p>Bank of India currently offers an interest rate of 4% per annum for savings bank accounts.&nbsp; The rate is subject to change at any time.</p> <p><strong>Bank of India Interest rate on savings account</strong></p> <p>Most banks, including Bank of India, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account?</p> <p>If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>Bank of India interest rate on fixed deposits</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>It is simple to calculate the interest you will earn on an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the</p> <p>a. the tenure of the deposit</p> <p>b. the amount you deposit</p> <p>c. the interest rate offered.</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/7-secrets-about-having-a-good-relationship-with-your-bank7 Secrets about having a good relationship with your bankhttps://www.creditmantri.com/articles/7-secrets-about-having-a-good-relationship-with-your-bank<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f94f1b0b9743d9cb4bb8cf60b93f14b9_7-Secrets-to-Having-a-Great-Relationship-With-Your-Bank.png'/></p><p>You might think of a bank as an impersonal institution that enables you to conduct your finances. Think again. Having a good relationship with your bank is a two-way street with both bank and customer enjoying the benefits.</p> <p>Developing a good relationship with a bank can help you in ways you might not have thought of before. Here, then, are 7 secrets about your relationship with your bank that might be useful to keep in mind.</p> <p><strong>Why should you have a good relationship with your bank?</strong></p> <p>1. A good relationship from the customer&rsquo;s point of view could mean lower interest rates on loans (i.e. better than those advertised for the public); tailored products for a specific need like, for example, a student loan. In addition, certain fees, like an overdraft fee, could be waived. Bank officials have some amount of discretion and flexibility in the terms they offer their customers and having a good relationship will help you enjoy the maximum advantage of this flexibility.</p> <p>2. A good relationship from your bank&rsquo;s point of view is one where they cross sell financial products to you so that you maintain financial involvement across multiple products with them. This helps them increase their revenues while at the same time creating loyal customers. Apart from savings accounts, this relationship could span insurance, investments, fixed deposits, safety deposits, credit cards and loans.</p> <p>3. If you are a small business owner, having a strong relationship with your bank can be invaluable. Your bank can provide financial advice, open up new opportunities and offer products suited to your business requirements, introduce you to new contacts or even give you a testimonial.&nbsp;</p> <p><strong>How do you begin to develop a relationship with your bank?</strong></p> <p>1. Choose a bank that is in a convenient location, ideally close to your home or office so that it is easy to visit. Make it a point to go to the branch on a periodic basis even if you transact your business online.</p> <p>2. Visit the branch often and meet an officer (or officers) to discuss your financial needs. In these days of easy online banking, many customers remain unknown to bank staff. It is difficult to get good terms if you are anonymous online user. Officials will be willing to go the extra mile if they are familiar with you and your financial situation.</p> <p>3. Make sure that the bank offers good terms as well as good service. There is no use choosing to develop a relationship with a bank if they are expensive or are not service-oriented. Remember that you are in the relationship in the long run so it has to be with a bank that you are comfortable with. The individual officers might change, but your involvement with the institution will remain for a long time.</p> <p>4. Do not limit yourself to only big banks or only small banks because of any pre-conceived notions of the kind of customers they serve or service they offer. Both kinds of banks can offer you good service and good terms.</p> <p>Of course, enjoying the advantages of a good relationship also means that you have to be a good customer. Demonstrating financially responsible behavior can lead to a mutually rewarding relationship.</p>https://www.creditmantri.com/articles/3-tips-for-qualifying-for-a-business-loan3 Tips for Qualifying for a Business Loanhttps://www.creditmantri.com/articles/3-tips-for-qualifying-for-a-business-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2a4bcef1a9774d5a67d3cc70a238d2be_3-Tips-For-Qualifying-For-a-Business-Loan.png'/></p><p>Most information available on loans is overwhelmingly about housing or auto or personal loans. If you are a business owner looking for a business loan, here are some tips on how to qualify for one.</p> <p><strong>Tips for a successful business loan application</strong></p> <p>Here is how you can maximise your chances of success when you apply for a business loan.</p> <p>a. Have a sound business plan: Banks will lend you money if they think that you have a clear idea on how the money will be used. Before you <a href="https://www.creditmantri.com/personal-loan/">apply for the loan</a>, create a detailed business plan including cash flow projections. This will help lenders get good idea of how their money will be deployed and the expected results.</p> <p>b.Check your eligibility: Most banks have a set of eligibility criteria with regard to business loans which could include the minimum turnover, number of years in business and minimum annual income. It is important to make sure that you qualify for each of these <em>before</em>you apply for the loan to avoid the possibility of being rejected. Some banks allow you to check your eligibility online in a couple of minutes.</p> <p>c.Have all the required documentation ready: Many <a href="https://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-Rejected">loan applications are rejected</a> because the documentation is incomplete. If necessary, speak with a lending officer to get an accurate idea of the kind of documentation required for a business loan. This will include ID and PAN card details, latest bank statements, latest ITR returns along with a CA certified balance sheet among other requirements.</p> <p><strong>Other tips to keep in mind when applying for a business loan</strong></p> <p>Estimate the size of the required loan accurately: Make sure that you have a good business plan that justifies the size of the loan you are applying for. If you ask for too little you might run out of working capital, if you ask for too much, lenders might question your credibility.</p> <p>Choose a bank you have previously worked: While this is not essential, it helps smoothen the loan process if you have had prior dealings with the bank and they are familiar with your company. However, in the end, you need to apply to the bank where you think you are getting the most favourable terms.</p> <p>Identify an asset that you can offer as collateral: It always helps if you can offer some substantial asset as security to the bank. This will make the loan process easier.</p>https://www.creditmantri.com/articles/4-common-loan-mistakes-to-avoid4 Common Loan Mistakes to Avoidhttps://www.creditmantri.com/articles/4-common-loan-mistakes-to-avoid<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f5359a09e75bc588ad56f6efba67b5a3_4 Common Loan Mistakes.png'/></p><p>Planning to apply for a loan? Or if you have unsuccessfully applied for one, are you wondering why your application was rejected? Applying for a loan seems a straightforward thing to do but many people unknowingly reduce their chance of securing a loan by making some very avoidable &lsquo;loan mistakes&rsquo;. &nbsp;What are some of the things that trip up your application? And more importantly, how can you avoid them when you next apply for a loan? &nbsp;</p> <p><strong>Some common &lsquo;loan mistakes&rsquo; to avoid:</strong></p> <p><strong><em>Not checking your credit score </em></strong></p> <p>One of the main reasons banks turn down a loan application is because of an insufficient credit score. Many customers are simply unaware of their credit score when they apply for a loan and find out to their dismay that that is the reason for the rejection. Lenders typically look for a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of at least 750 or above when reviewing a loan application, so it is advisable to make sure that you have an adequate score <em>before</em> you apply.</p> <p>You can obtain your credit score from one of the three main credit rating bureaus in India &ndash; CIBIL, Equifax and Experian. At the same time, you can obtain a copy of your credit report as well and check for any areas of weakness. Work to improve those problem areas (like, for example, any Written-Off accounts or an insufficient credit history) so that you have a good credit history when applying for the loan.</p> <p><strong><em>Making multiple loan applications at the same time or within a short time frame </em></strong></p> <p>This is another very avoidable loan mistake. If you are looking for a loan and not sure if you will be approved, it might seem logical to apply to multiple lenders to maximise your chance of being approved by at least one of them. Did you know, this will actually harm your chances of being approved by any of them? Every time you apply for a loan, it is recorded in your <a href="https://www.creditmantri.com/credit-report-services/">credit report</a>. When a potential lender sees that you have made multiple applications to various banks, they become nervous that you are &lsquo;desperate&rsquo; for credit and need to apply to several sources of credit to fulfill your needs. To avoid this problem, make sure that you research the loan offers available, and only make one application where you think you have the best chance of being approved.</p> <p><strong>Applying soon after being rejected</strong></p> <p>It is natural to immediately re-apply to another lender after your application has been turned down. Again, this will damage your chance of securing a loan as another lender too will be concerned about your repeated applications and urgent need for credit. If you are rejected once, take time to increase your score and improve your credit profile before applying again to demonstrate that you are not &lsquo;hungry&rsquo; for immediate credit.</p> <p><strong>Incomplete documentation</strong></p> <p>This is another common &lsquo;loan mistake&rsquo;.&nbsp; Often, applications are turned down simply because the documents are not filled in accurately, there is a mismatch in the information provided, or the requisite documentation is not submitted. This is an easily avoidable mistake and all it requires is a little planning.</p> <p>Next time you plan to apply for a loan, keep these four factors in mind to help increase your chances of being approved.</p>https://www.creditmantri.com/articles/benefits-of-a-loan-against-propertyBenefits of a Loan against Propertyhttps://www.creditmantri.com/articles/benefits-of-a-loan-against-property<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4d941ca194349582edaba4eed6291f9d_Benefits-Of-Loan-Against-Property.png'/></p><p>When you offer a property you own (whether residential or commercial) as collateral to take a loan, it is known as a Loan against Property. It is a popular type of loan to take as it is cheaper than a personal loan and offers a larger loan amount over a longer repayment period. It is similar to a Personal loan in that you can use the loan amount for any purpose &ndash; like debt consolidation, business expansion, education expenses, family or medical emergency.&nbsp;</p> <p><strong>Benefits of a Loan against Property compared to a Personal Loan</strong></p> <p>1. Lower Interest Rate: <a href="https://www.creditmantri.com/personal-loan/">Personal Loans</a>are among the most expensive consumer loans to take as they are unsecured by any collateral.&nbsp; A loan against property is a secured loan and the rates are much lower. Generally, interest rates on a loan against property can range from 12-16% while interest rates on personal loans can range from 15-22%. Of course, each lender has its own rates depending on your credit profile and other internal policy regulations.</p> <p>2. you can get a loan for up to 60 % of the market value of the property which can translate into a sizeable amount of funds. This is far larger than the amount you would get for a personal loan - and it comes at a cheaper cost.</p> <p>3. Longer repayment period: Since it is a secured loan, lenders have a lower lending risk and are willing to grant a longer repayment schedule. The tenure for a loan against property can stretch up to 15 years while a personal loan has a tenure of only 1-5 years.</p> <p>4. Lower EMIs: Because of the longer loan period, the monthly EMI is also smaller, meaning it is a lighter repayment burden over the entire tenure of the loan when compared to a similar sized personal loan.</p> <p><strong>Other benefits of taking a Loan against Property</strong></p> <p>a. Simpler documentation process &ndash; Since most the paperwork is done at the time of buying the property, the documentation required for a loan against property is simple. All it requires is a clean title deed with no encumbrances.</p> <p>b. Leverages an existing asset &ndash; Like a <a href="https://www.creditmantri.com/gold-loan/">gold loan</a>, a loan against property allows you to leverage an asset that you already own. The property could be residential (house, apartment or plot of land), commercial or industrial.</p> <p>c. End-use flexibility &ndash; A Loan against Property gives you the freedom to spend the loan amount for any purpose you wish, much like a personal loan or a gold loan. Because of the larger loan size and the longer tenure, a <a href="https://www.creditmantri.com/loan-against-property/">loan against property</a> is ideal for a substantial long-term expense.</p>https://www.creditmantri.com/articles/common-small-business-loan-mistakes-to-avoidCommon Small Business Loan Mistakes to Avoidhttps://www.creditmantri.com/articles/common-small-business-loan-mistakes-to-avoid<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/fcade47326fdc2dd0f701213d3592780_Common-Small-Business-Loan-Mistakes-to-Avoid.png'/></p><p>You are the owner of a small enterprise and you know how to run your business. But do you know what it takes to successfully apply for a small business loan? Much of the available information on loans focuses on home, auto and personal loans or other small loans. Here are some tips on how you can maximise your chances of getting a business loan application approved.</p> <p><strong>Tips for securing a small business loan</strong></p> <p><em>Ensure you have good personal credit:</em></p> <p>Although you are taking out a small business loan, you are the owner of the business and your personal credit is a reflection of how you will run your business.&nbsp; Lenders will look at your credit score and credit report and would like to see demonstrated financial discipline and a good track record of making repayments. If you are starting a business, it is very important that you have a good personal credit record. If not, it is worthwhile to take some time to improve your score before you apply for the business loan.&nbsp;</p> <p><em>Ensure your business has a good credit record:</em></p> <p>Needless to say, the credit report of your business will be evaluated for the small loan. If your firm has been in operation for some time, it will have an independent credit record listing all loan obligations and repayments. It is essential to have a good credit profile in order to secure a small business loan.</p> <p><em>Research small and big banks and non-banking financial institutions:</em></p> <p>Do not limit yourself to either small lenders or large banks. Do the research and determine which lender is offering the best terms that suit your requirements. Do not cut off any alternative because of any pre-conceived notions of which kind of lender will give you a business loan.</p> <p><em>Identify collateral</em>:</p> <p>It helps your application if you can offer an asset as collateral against your small business loan. This could be in the form of office equipment or machinery or any property (like office space) that is owned by the business. While it is not essential to offer security for a small business loan, it is a positive factor when your lender evaluates your loan application. You could offer a personal asset as collateral, but lenders would prefer an asset owned by the business.&nbsp;</p> <p><em>Keep updated accounts and provide a good business plan:</em></p> <p>Make sure that your accounts are in order and that you do not have messy account keeping. Lenders will not want to give you money if you cannot keep an accurate track of it. It is also very important to have a good business plan with cash flow projections and estimates on profitability and return on investment. Banks like to see that their money is being put to good use and will deliver them returns. If you are unsure about writing a business plan, you could ask a financial advisor to help. As your business grows, it is necessary to have someone with a financial background to manage this side of the business.</p>https://www.creditmantri.com/articles/financial-goals-for-2016Financial goals for 2016https://www.creditmantri.com/articles/financial-goals-for-2016<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/01ae7aab3f3a90fb04489a80a5d57634_Financial-Goals-for-2016.png'/></p><p>The beginning of the year always seems a good time to start good new habits afresh. We usually focus our new intentions on our physical and mental health &ndash; but what about our financial health? You don&rsquo;t have to wait for the next January 1<sup>st</sup> to make a resolution to pay attention to your financial health and create financial goals for yourself. It is never too late to take stock of your personal finances, take steps to improve your financial health, and remove the stress and strain brought on by unplanned or neglected money matters.</p> <p>Creating financial goals and then, more importantly, successfully achieving these goals not just improves your present situation, it also lays the foundation for a lifetime of healthy financial habits.</p> <p>Many people think that the main financial goal of an individual should be to put aside money to invest for the future. While investing wisely is important, very often people neglect their credit health, which can have serious long term implications. Below are some credit related goals to follow through on during the year. All it requires is a little commitment, spending discipline and patience which will lead to a concrete improvement in your financial (as well as mental) wellbeing.</p> <p><strong>To Do list for financial goal of being credit healthy</strong></p> <p>1. <strong>Remain updated on your credit score and credit report: </strong>Many people are unaware of their credit score until they apply for a loan or&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> and are rejected due to a low score. To avoid any nasty surprises when you apply for credit, it is necessary to be aware of your current credit health. It is simple to request for your credit score and credit report from the credit bureaus. It is advisable to have a score of 750 or above in order to be able to secure loans and credit cards on the best possible terms and to avoid any unexpected rejection due to your score.</p> <p>2. <strong>Improve your credit score, if required. </strong>If you have a low credit score, aim to improve it to at least 750. It can take between 2 months to a year to increase your score, depending on your individual credit situation.</p> <p>3. <strong>Pay all your credit card bills and EMIs on time and in full. </strong>This is perhaps the most important step you can take to achieve your goal of a healthy credit score. Your payment record forms nearly one third of your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. Even a single missed or late payment can affect your score so it is important to be disciplined about making all your payments in a timely manner. You might need to cut down spending in other areas in order to achieve this goal, but making all your payments on time will have a substantial positive impact on your ability to get loans and cards in the future.</p> <p>Working towards a healthy credit profile will pay off not just in the short run, but also provide you with easy access to credit in the future as well. It is always a good time to start working on your credit health, and the best time is NOW!</p>https://www.creditmantri.com/articles/how-to-apply-for-a-pan-cardHow to apply for a PAN cardhttps://www.creditmantri.com/articles/how-to-apply-for-a-pan-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7915e73634b38cfa895c91602c02d474_How-can-I-apply-for-PAN-card.png'/></p><p>It is simple to apply for a PAN card and you can choose to do so online or by physically submitting it at a PAN centre.</p> <p><strong>What is a PAN card? </strong></p> <p>PAN stands for Permanent Account Number (PAN) and is a ten digit alphanumeric (containing both letters and numbers) that is issued by the Income Tax Department. It is laminated on a plastic card which is why it is commonly referred to as a PAN card. PAN enables the IT department to link all the transactions of the assessee including tax payments, TDS/TCS credits, returns of income, and correspondence.</p> <p><strong>Why do I need to apply for a PAN card?</strong></p> <p>There are several benefits to having a PAN card. They include the following:</p> <p>1. It is compulsory for all transactions with the income tax department to have the PAN card details.</p> <p>2. It is necessary for opening bank accounts</p> <p>3. Required for applying for credit (loans etc.)</p> <p>4. Required for making high value purchases, and conducting transactions in immovable properties among others</p> <p>5. Required when applying for a home loan</p> <p>6. Required for medical insurance</p> <p>7. It is useful as a government recognized form of photo ID</p> <p><strong>How do I apply for a PAN card?</strong></p> <p>You can apply for a PAN card by submitting the relevant form with the requisite documentation (including ID and address proof, proof of date of birth, and 2 photos) and fees at the PAN application centre of UTIITSL or NSDL. &nbsp;</p> <p class="tx">You can also make an online application by submitting Form 49A either through the portal of NSDL ( https://tin.tin.nsdl.com/pan/index.html) or portal of UTITSL ( http://www.myutiitsl.com/PANONLINE/).</p> <p class="tx">The charges for applying for PAN online have been increased with effect from June 2015 to Rs. 107 (including service tax) for an Indian address and Rs. 989 (including service tax) for an overseas address. The application fee can be paid through credit/debit card, demand draft or net-banking. Once the application and payment is accepted, you need to send the supporting documents through courier/post to NSDL/UTITSL. Only after the receipt of the documents, will your PAN application be processed by NSDL/UTITSL.</p> <p class="tx"><strong>Changes or corrections to PAN card</strong></p> <p class="tx">You can apply online for changes or corrections to data on your PAN card and can also request reprint of an existing PAN card. The procedure is the same as applying for a new PAN.</p> <p class="tx">Minors can also apply for a PAN card. However, there is no photo on a minor&rsquo;s PAN as their physical appearance can change.</p> <p>Only 1 PAN is allotted per person. It is illegal to hold more than 1 PAN number and you can be fined for holding more than one.</p>https://www.creditmantri.com/articles/how-do-i-get-a-high-limit-on-my-credit-cardHow do I get a high limit on my credit card?https://www.creditmantri.com/articles/how-do-i-get-a-high-limit-on-my-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/501d59a372d87a64883b3005790c4871_how-to-get-a-high-limit-credit-card.png'/></p><p>There are two ways you can get a high credit limit on your credit card:</p> <p>a. The best way is to work towards a good&nbsp;<a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> which typically leads to a high credit limit.</p> <p>b. Alternatively, if you have a good track record, you can ask your bank for a higher credit limit on your card. If it has been sometime since your limit was increased, the bank might agree to a hike.</p> <p>The main advantage of a high credit limit is that you have more flexibility in the amount you can spend on your credit card. However, a second advantage of a high limit is that it signifies that you are a responsible borrower and that credit card issuers find you sufficiently creditworthy to qualify for this limit. A high credit limit has a positive impact on your credit score and makes it easier to secure loans and credit cards on favourable terms in the future as well.</p> <p><strong>Ways to improve your score so you qualify for a higher limit on your credit card</strong></p> <p>It is advisable to have a credit score of 750 or above in order to secure the most favourable terms on your <a href="https://www.creditmantri.com/credit-card/">credit card</a>. If you wish to have a high credit limit, start taking steps now to reach a score of 750. Here are some simple ways to achieve that credit goal:&nbsp;</p> <p>1. <strong>MAKE ALL CREDIT CARD AND LOAN PAYMENTS ON TIME</strong>: Your payment record is the most important factor in calculating your credit score and can form up to one-third of your score. It is very important to make sure that you make all payments <em>on time and in full</em>. Even a single missed or delayed payment can affect your score.</p> <p>2. <strong>DO NOT EXCEED 50% OF YOUR CREDIT LIMIT: </strong>Consistently spending a large proportion of your credit limit is not a good idea as it signifies that you are in constant need of credit. For example, if your credit limit is Rs. 1 lakh, restrict your monthly spending to less than 50% of your limit i.e. Rs. 50,000. If you consistently exceed that amount, it reflects a lack of spending discipline and will negatively affect your score. The amount you spend as a proportion of your total credit limit is known as your credit utilization ratio. The lower your ratio, the better your chances of being given a higher credit limit.</p> <p>3. <strong>AVOID APPLYING FOR MULTIPLE LOANS OR CREDIT CARDS IN A SHORT TIME PERIOD</strong>: If your loan or card application has been rejected once, do not make multiple applications to other banks to try and maximise your chances of success. Each time your application is rejected, it affects your score negatively. Wait to improve your score before you apply again.</p> <p>Following these tips will help you build a healthy credit profile which will allow lenders to issue you a high credit limit on your card.</p>https://www.creditmantri.com/articles/how-to-cancel-an-sbi-credit-cardHow to cancel an SBI credit cardhttps://www.creditmantri.com/articles/how-to-cancel-an-sbi-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/82b191f1653a314c01c927c44e997a51_how-to-cancel-sbi-credit-card.png'/></p><p>If you own an SBI credit card and wish to cancel it, the simplest way to do it is by calling the bank&rsquo;s customer service number and asking for the card to be cancelled.</p> <p>You can look up the customer service number at the back of your SBI credit card. You will need to give the requisite identification details including your credit card number and your date of birth in order to request cancellation. Alternatively, you could contact the customer service desk by sms or email and ask for help with the cancellation. The various contact details are listed on the bank&rsquo;s website.</p> <p><strong>Things to keep in mind before you cancel your SBI credit card</strong></p> <p>1. Before you cancel your credit card, whether from SBI or any other bank, first make sure that you have paid for all the transactions on your credit card. You need to have a zero balance before you can request for your card to be cancelled.</p> <p>2. Do not make any more purchases on this card. Once you have asked for the card to be cancelled, you should be careful not to use it under any circumstances.</p> <p>3. Check your last&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> statement to make sure that all your transactions were genuine.</p> <p>4. You might receive a reference number regarding your cancellation. Keep this number handy in case there is any issue with the cancellation.</p> <p><strong>What to do once your credit card is cancelled</strong></p> <p>i. You may receive confirmation regarding your card cancellation. Once you receive this formal notification, destroy your credit card by cutting it up. This will also prevent your card from being used fraudulently by identity thieves who might gain access to it.</p> <p><strong>What not to do</strong></p> <p>a.Do not report your card as lost or stolen as a way of cancelling your card. This may lead to SBI reporting it to the authorities as theft.</p> <p>b. Do not ever default on your payments as a way of dispensing with your credit card. Even a single late or missed credit card payment will be reported by the bank to the credit bureau. This will have a negative effect on your credit rating even if you are up to date with your payments on your other credit cards. Missing payments on your card will adversely affect your ability to access loans and other credit cards in the future.</p>https://www.creditmantri.com/articles/what-are-andhra-bank-interest-ratesWhat are Andhra Bank Interest Rates?https://www.creditmantri.com/articles/what-are-andhra-bank-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/65c3a11e656021842f619776853e13df_Andhra Bank interest rates.png'/></p><p>Andhra Bank currently offers an interest rate of 4% per annum for savings bank accounts.&nbsp; The rate is subject to change at any time.</p> <p><strong>Andhra Bank Interest rate on savings account</strong></p> <p>Most banks, including Andhra Bank, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account?</p> <p>If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em>In addition, now the <a href="https://www.creditmantri.com/articles/how-to-calculate-home-loan-interest">interest is calculated </a>on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>Andhra Bank interest rate on fixed deposits</strong></p> <p>In general, the interest rates on a <a href="https://www.creditmantri.com/articles/what-are-the-interest-rates-on-fixed-deposits">fixed deposit range </a>from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>It is simple to calculate the interest you will earn on an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the</p> <p>a.the tenure of the deposit</p> <p>b.the amount you deposit</p> <p>c.the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/how-to-check-your-hdfc-credit-card-balanceHow to check your HDFC credit card balancehttps://www.creditmantri.com/articles/how-to-check-your-hdfc-credit-card-balance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/39b62a5ad70555175fd92efca665b122_how-to-check-hdfc-credit-card-balance.png'/></p><p>HDFC is one of the leading banks in India and one of the largest credit card issuers in the country. It offers an array of credit card options to suit your requirements that include airline cards, cards designed for women, co-branded cards, entertainment and lifestyle cards among several others.</p> <p><strong>Checking your HDFC credit card balance online</strong></p> <p>If you already own an HDFC credit card and want to check your credit card balance, you can do so online as well, without having to wait for your monthly statement. However, for this, you will need to register for HDFC&rsquo;s Credit Card Net Banking. In addition to checking your balance, you can view all your account information, pay your credit card bills as well as keep track of all your transactions.</p> <p><strong>How do you register for HDFC&rsquo;s Credit Card Net Banking?</strong></p> <p>You can log onto the HDFC website and register free of cost. Once you get a User ID and password, you can check your credit card balance online at your convenience, 24x7. You do not need to wait for your monthly bill and statement to arrive in the mail. It is useful to have net banking and check your balance online so that you are constantly updated on your spending for the month. If required, you can make adjustments to your credit card spending based on your balance.</p> <p><strong>Checking your HDFC credit card application status online</strong></p> <p>It is simple to apply for an&nbsp;<a href="https://www.creditmantri.com/hdfc-bank-credit-cards/">HDFC credit card</a> online. If you have applied for an HDFC credit card, whether online or manually, you might want to check on the status of your application as it can take up to a few weeks for the application to be processed. During this time, you can easily check the progress of your application by tracking the status online. It is simple to do so. Simply log on to the HDFC website, click on the credit card tab and go to the link Track Your Credit Card Application status.</p> <p>You will need to enter the reference number that you were given when you submitted your application. In addition, you will need to input either your mobile number or your date of birth. Once this verification process is completed, you will be able to see the progress of your <a href="https://www.creditmantri.com/credit-card/">credit card</a> application.</p> <p>Tracking your application status or being updated on your balance is as simple as just a click of the mouse &ndash; it offers great savings in time and energy and allows you to manage your finances more efficiently.</p>https://www.creditmantri.com/articles/how-to-check-income-tax-statusHow to check income tax statushttps://www.creditmantri.com/articles/how-to-check-income-tax-status<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/87d453d5ab06c0abe5d00871b3bc7edd_how-to-check-income-tax-return-status.png'/></p><p><strong>What is income tax status? </strong></p> <p>The amount you have to pay in income tax is determined by your tax return status which, in turn, is determined by your residential status. It is important to check your income tax status when filing your income tax return. There are 2 broad categories of residential status based on which tax is levied:</p> <p>1. Resident</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Ordinary resident</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- Not-ordinary resident</p> <p>2. Non-Resident</p> <p><strong>How to check your tax return status</strong></p> <p>Your residential status is determined by how many days you have been resident in India during the financial year and for a pre-determined number of preceding years. If you have spent time outside the country during the financial year in question or for years before that, it is important to clarify your tax status. You can either go online to check your status on the income tax department&rsquo;s website or you can consult a tax professional. Some of the provisions on residential status can be quite detailed so it is important to make sure that you clarify that you have rightly identified your status.</p> <p>&nbsp;There is no correlation between citizenship and residential status. For example, an Indian citizen may not be resident in India, while a citizen of a foreign country might be a resident of India. Ordinary Residents have the maximum tax liability, followed by Not-Ordinary Residents, and the least tax liability is enjoyed by Non-Residents. Again, make sure that you check your income tax status at the income tax department&rsquo;s website or consult a tax professional.</p> <p><strong>What is an income tax return?&nbsp; </strong></p> <p>Your income tax return (known as return of income) is a prescribed form that is completed by you and communicates to the government the details of your income for the financial year and the taxes paid on the income. There are different forms for stating the return of income depending on the status and nature of the income.</p> <p>It is very important to stress that there should be no falsification or deliberate withholding of information on your income tax return.</p> <p><strong>Help with preparing IT returns</strong></p> <p>Calculating your tax payment can be a challenging task, especially since it is important to avoid any errors while filling your form.&nbsp; Using an online Income Tax Calculator tool will make the task quicker and easier. The tool will guide you on how to compute your income and the tax due. More and more people are turning to <a href="https://www.creditmantri.com/income-tax-calculator/">Income Tax Calculators </a>for the ease and simplicity of calculating their tax payment.</p> <p>Alternatively, you could contact the PRO of your local tax office for help or approach Tax Return Preparers (TRPs). You could consult with tax professionals who can offer expert help.&nbsp;</p>https://www.creditmantri.com/articles/how-to-check-ppf-account-balanceHow to check PPF account balancehttps://www.creditmantri.com/articles/how-to-check-ppf-account-balance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/65a528fd96302e88a79ba2a4e5e4d877_How-to-Check-PPF-Account-Balance.png'/></p><p>The Public Provident Fund (PPF) Scheme is one of the safest and most popular savings schemes in India. It is backed by the Government of India, offers an attractive rate of interest, and both the principal invested as well as the interest earned over 15 years is completely tax free.&nbsp;</p> <p>You can check your PPF account balance in two ways:</p> <p><strong>Online checking of PPF account balance</strong></p> <p>If you have opened your PPF account at a bank and you have net banking facilities, then it is very simple to check your PPF balance online. You simply need to log onto your bank website and access your account. You can view each deposit you have made, along with the interest earned and the current balance. Some banks may allow you to link your PPF account to a savings account in another bank. However, typically, you need to have a savings bank account in the same bank as your PPF account.</p> <p>In addition to checking your PPF balance, you can also transfer funds into your account. In some cases, you can give standing instructions for transfers to be made. This will also ensure that you do not forget to make the minimum deposit every year.</p> <p>If you do not use net banking facilities as yet, it might be a good idea to register for it right away. You will need to get a username and password in order to start. Using net banking facilities allows you to check your balance, view your statement, transfer funds, pay bills, apply for loans and conduct several other banking transactions entirely online and at your convenience. The great advantage is the convenience - you do not have to carve out time from your working hours or from your leisure hours to visit your branch to conduct routine banking business. You can say goodbye to tedious paperwork and standing in lines to get your work done.</p> <p><strong>Offline checking of PPF balance at Post Office</strong></p> <p>If you have opened your PPF account at a Post Office, it might not be possible to view your balance online for all branches. You will need to visit the post office branch where you have your PPF account and check your balance with the passbook that is issued to you at the time of account opening.</p> <p><strong>Withdrawals</strong></p> <p>Remember, you cannot close your account before the 15 year maturity period. You can, however, make a partial withdrawal starting from the 7<sup>th</sup> year and you can avail of the loan facility from the 3<sup>rd</sup> year.</p>https://www.creditmantri.com/articles/how-to-track-hdfc-credit-card-statusHow to Track HDFC credit card statushttps://www.creditmantri.com/articles/how-to-track-hdfc-credit-card-status<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e1884c47662a7f297336d411f19ac228_how-to-track-hdfc-credit-card.png'/></p><p>HDFC is one of the leading banks in India and one of the largest credit card issuers in the country. It offers an array of credit card options to suit your requirements that include airline cards, cards designed for women, co-branded cards, entertainment and lifestyle cards among several others.</p> <p><strong>&nbsp;Checking your HDFC credit card application status online</strong></p> <p>It is simple to apply for an HDFC credit card online. If you have applied for an HDFC credit card, whether online or manually, you might want to check on the status of your application as it can take up to a few weeks for the application to be processed. During this time, you can easily check what stage your application is at by tracking the status of your application online. It is simple to do so. Simply log on to the HDFC website, click on the credit card tab and go to the link Track Your <a href="https://www.creditmantri.com/credit-card/">Credit Card</a> Application status.</p> <p>You will need to enter the reference number that you were given when you submitted your application. In addition, you will need to input either your mobile number or your date of birth. Once this verification process is completed, you will be able to see the progress of your credit card application.</p> <p><strong>Checking your HDFC credit card balance online</strong></p> <p>If you already own an HDFC credit card and want to check your credit card balance, you can do so online as well, without having to wait for your monthly statement. However, for this, you will need to register for&nbsp;<a href="https://www.creditmantri.com/hdfc-bank-credit-cards/">HDFC&rsquo;s Credit Card</a> NetBanking. In addition to checking your balance, you can view all your account information, pay your card bills as well as keep track of all your transactions.</p> <p><strong>How do you register for HDFC&rsquo;s Credit Card NetBanking?</strong></p> <p>You can log onto the HDFC website and register free of cost. Once you get a User ID and password, you can check your credit card balance online at your convenience, 24x7. You do not need to wait for your monthly bill and statement to arrive in the mail. It is useful to have net banking and check your balance online so that you are constantly updated on your spending for the month. If required, you can make adjustments to your credit card spending based on your balance.</p> <p>Tracking your application status or being updated on your balance is as simple as just a click of the mouse &ndash; it&nbsp; offers great savings in time and energy and allows you to manage your finances more efficiently.</p>https://www.creditmantri.com/articles/importance-of-a-cibil-credit-score-in-getting-loans-in-indiaImportance of a CIBIL credit score in getting loans in Indiahttps://www.creditmantri.com/articles/importance-of-a-cibil-credit-score-in-getting-loans-in-india<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/de408765952748d6f5ef3c9b21300365_Importance-of-CIBIL-Credit-Score-in-Indian-Loans.png'/></p><p><strong>What is a CIBIL credit score? </strong></p> <p>Credit Information Bureau (India) Limited, commonly known as CIBIL, is India&rsquo;s first Credit Information Company or Credit Bureau.&nbsp; It maintains records of all credit-related activity of individuals and companies including all transactions on loans and credit cards. This extensive data enables lenders to make informed decisions on evaluating applications for loans in India.</p> <p>The credit activity recorded could include details of every single loan or <a href="https://www.creditmantri.com/credit-card/">credit card </a>&nbsp;repayment made (or missed or delayed); every loan or credit card application and corresponding approval or rejection; number and age of the credit accounts; total credit limit; credit balance and credit utilization ratio, among other detailed data. The records are submitted to CIBIL by registered member banks and other financial institutions on a periodic (usually monthly) basis. Based on this data, CIBIL issues a Credit Information Report or CIR (commonly referred to as a credit report) and a credit score.</p> <p>&nbsp;A <a href="https://www.creditmantri.com/cibil-score/">CIBIL credit score</a> is a three-digit number between 300 and 900. It is based primarily on your current and past loan/credit card repayment history, among other factors. It gives potential lenders a snapshot of your credit health and your willingness and ability to repay your debts on time.</p> <p>Your credit score is contained in your credit report which is a comprehensive document detailing your current and past credit activity. &nbsp;The better your credit history, the higher your score will be.</p> <p><strong>Why is a CIBIL credit score important to secure loans in India? </strong></p> <p>In simple terms, your credit score gives banks/credit card companies a quick idea of how reliable you are in fulfilling your debt obligations. Based on your credit score, many lenders decide whether to approve your loan/credit card application.</p> <p>Lenders generally look for a minimum score of 750 when reviewing your application because it signifies a low-risk customer who has demonstrated a good track record of repaying loans on time. You stand a good chance of being approved for a loan/credit card with a score of 750 or above.</p> <p>Similarly, if you have a low <a href="https://www.creditmantri.com/credit-score-advice/">credit score </a>, banks are reluctant to lend to you as your score reflects faulty credit behaviour in the past. If you have a poor score, lenders will be unwilling to take a chance on potential defaults or irresponsible payment behaviour in the future and might decide to reject your application.</p> <p><strong>How is the credit score calculated?</strong></p> <p>Lenders report every credit-related transaction to CIBIL on a monthly basis. This includes your</p> <p>a. payment history (current and previous) on all your loans and credit cards</p> <p>b. total available credit balance</p> <p>c. number and age of your loan and credit card accounts</p> <p>A complex mathematical formula is used to calculate your credit score based on this and other related data.</p> <p>The biggest factor that makes up your credit score is your repayment history.&nbsp; Even one or two missed or delayed payments can negatively impact your credit score.</p> <p>Your credit score is calculated taking into account all these factors and is an extensive analysis of your credit worthiness. Lenders rely on your credit score to give them an accurate idea of your credit behaviour. A good credit score reflects financial maturity and is an important factor in the evaluation of your loan or credit card application.</p>https://www.creditmantri.com/articles/questions-about-unsecured-loansQuestions about Unsecured Loanshttps://www.creditmantri.com/articles/questions-about-unsecured-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ec207166f5d5fb4578532c401def3e02_Questions about unsecured loans.png'/></p><p><strong>What is an unsecured loan? </strong></p> <p>An unsecured loan, as the name implies, is a loan offered by a bank or other financial institution without securing a safety deposit or collateral from the customer.&nbsp; When a bank offers a housing loan, it keeps the property as collateral until the entire loan has been paid off. Similarly, in auto loans, the ownership papers of the vehicle are transferred only once the loan has been repaid. In the case of unsecured loans, the lender does not hold any asset of the customer as collateral in case of default on payments.</p> <p><strong>What are the different kinds of unsecured loans?</strong></p> <p>There two main types of unsecured loans for individuals are&nbsp;<a href="https://www.creditmantri.com/personal-loan/">personal loans</a> and credit cards. Sometimes, lenders offer unsecured loans to businesses as well.</p> <p><strong>What are the features of a personal loan</strong></p> <p>A personal loan is a loan taken by an individual to fund any personal expense like, for example, a wedding, to make renovations to the home or even for a vacation. There are two attractive features of a personal loan:</p> <p>a. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; This in contrast to a home loan or auto loan where the loan amount can only be used to buy a property or a vehicle respectively.&nbsp; You have the freedom to use the money in any way you want.</p> <p>b. Lack of collateral. You are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the cash required as collateral.</p> <p><strong>What is the typical amount and loan period of a personal loan?</strong></p> <p>There is no typical loan amount and the loans can range from a few thousand rupees to several lakhs. Of course, the final loan amount that is approved depends on the lending criteria used by the bank/NBFC and how they evaluate your ability to repay the loan.</p> <p>Personal loans are relatively short-term loans and the tenure can range from 1-5 years.&nbsp; This is in contrast to home loans, for example, that can have a decades-long repayment period.</p> <p><strong>What are the advantages and disadvantages of a personal loan?</strong></p> <p>The advantages of a personal loan are that</p> <p>i. they are relatively quick (because they do not require as much documentation as a home or auto loan)</p> <p>ii. there is no restriction on how you can spend the money</p> <p>iii.they do not require any collateral. If you do not have any assets like a home, or shares or gold to offer as security, and are in need of money urgently, this is perhaps the most convenient option.</p> <p><strong>Disadvantage:</strong></p> <p>The main disadvantage of a personal loan is the higher interest rate, when compared to other loans. Since the lenders do not have any security against payment default, they charge high&nbsp;<a href="https://www.creditmantri.com/articles/what-are-idbi-interest-rates">interest rates</a> to cover their lending risk. Personal loans can work out to be one of the most expensive loans to take in terms of interest payments.</p> <p><strong>Credit card</strong></p> <p>A credit card is an unsecured loan since you are, in effect, borrowing money from the bank to make your purchases and pay it back only at the end of the billing cycle. The bank is loaning you money, interest free, to allow you to make purchases on your credit card, without holding any collateral in case of default. If you make your payments on time and in full, you are borrowing money from your&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> issuer without offering any security and without even paying any interest on the money used.</p>https://www.creditmantri.com/articles/reasons-to-apply-for-a-commercial-loanReasons to apply for a commercial loanhttps://www.creditmantri.com/articles/reasons-to-apply-for-a-commercial-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7828b9899f0431122c4a90e97b5735a8_Reasons-to-Apply-For-a-Commercial-Loan.png'/></p><p>A commercial loan is a loan that is sanctioned for commercial use rather than for individual consumer use. A commercial loan, or business loan, is one that is taken for business related reasons. You might be a small entrepreneur who needs funds for a variety of reasons like buying office equipment, larger business expansion or maybe even software development &ndash; a commercial loan is designed for these requirements. A consumer loan, on the other hand, is taken by an individual for personal reasons &ndash; to buy a home or vehicle or to tide over personal financial shortfalls. Many small businesses depend on commercial loans from banks for an injection of capital since they do not have access to the debt and equity markets unlike large companies.</p> <p><strong>When to apply for a commercial loan</strong></p> <p>There are several situations where it might be a good idea to apply for a commercial loan. These include:</p> <p>Expanding the business: If your business is profitable and you have a clear and well- thought out plan for expansion, you stand a good chance of securing a loan. When you have a positive cash flow and a clear vision on how you will use the funds to expand, banks will be willing to lend to you.</p> <p>Buying equipment: If you are in need of equipment &ndash; whether heavy machinery or office computers, a&nbsp;<a href="https://www.creditmantri.com/articles/3-tips-for-qualifying-for-a-business-loan">business loan</a> is a good way to access funds. Moreover, the equipment purchased can be held as collateral by the lender without requiring any further security from the business owner.</p> <p>Buying/renting real estate: If your business is growing and you have outgrown your current&nbsp; space, then borrowing from a bank to finance your new premises &nbsp;is a sound reason to apply for a loan. It could be that your store needs more space to fit extra inventory or maybe your office has become too small for the number of employees. Or you might need real estate for manufacturing or storage reasons. Real estate can be very expensive and a big financial burden on a small business owner, which is why a commercial loan is a good source of funds.</p> <p>Building credit for the future: Small or young businesses can find it very difficult to access large loans from the banking system since they lack the requisite credit profile. In order to build up a solid credit history that will allow <a href="https://www.creditmantri.com/first-time-borrower/">borrowing</a> in the future, some business owners take out small business loans with the sole purpose of creating a strong credit profile. Of course, the most important thing to remember is to make all the repayment on time and in full so that you have a spotless credit record when you do decide to apply for a large loan. If you delay or skip payments on your business loan, your credit worthiness will suffer and you will find it even more difficult to be approved for loans in the future.</p>https://www.creditmantri.com/articles/tips-for-getting-a-home-loanTips for getting a home loanhttps://www.creditmantri.com/articles/tips-for-getting-a-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b9b4b2af81cfe55fecd958b74ba9bf07_Tips for getting a home loan.png'/></p><p>For millions of people, buying a home of their own is one of their most cherished dreams. Most people will achieve this dream with the help of a home loan - which is one of the most significant financial commitments they will make in their life. Home loans generally involve a substantial loan amount and a long repayment period that could stretch into decades, but it also the means of owning a valuable asset and confers a sense of security. &nbsp;Here are some useful tips to keep in mind to maximise your chances of a successful <a href="https://www.creditmantri.com/home-loan/">home loan</a> application!</p> <p><strong>What are the reasons my home loan application could be rejected?</strong></p> <p>There are three main reasons your loan application could be rejected.</p> <p>1. <em>Personal reasons</em>: If the loan amount you are asking for is greater than what you can afford, lenders may be unwilling to take on the risk of default. Make sure that you choose a property that is not too expensive and that fits in with your income. Also if you have too many loans and EMI obligations, lenders might think that you will not be able to take on an additional loan repayment on your current income.</p> <p>2. <em>Credit reasons:</em>&nbsp; If you have a poor credit history and credit score, lenders might not want to take the risk of lending to you. If your loan application has been rejected earlier (any kind of loan - whether home or auto or personal loan), banks will see that as a warning signal that other lenders have not found you to be a suitable for a loan and they may reject your application again. There could also be external credit &ndash;related reasons for rejection - for example, your co-applicant could have a bad credit score, or you might be guarantor of a loan that has been defaulted on.</p> <p>3. <em>Legal reasons</em>: If there is any problem with the legal documents pertaining to the property, the banks will be unwilling to approve your loan application.</p> <p><strong>Steps to take to ensure successful home loan application</strong></p> <p>Lenders look at several factors when determining whether to approve of your housing loan application. Here are some steps you can take to avoid rejection of your home loan.</p> <p>1.<em>Maintain a good credit score:</em> Typically, you need a minimum <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 for lenders to proceed with processing your application. A credit score of 750 or above reassures lenders that you are a responsible borrower and have a good track record of making repayments. If you have a score of less than 750, take time to improve your score <em>before</em> applying for a loan to avoid the possibility of rejection.</p> <p>2.<em>Ensure a healthy credit report:</em>Once they know you have a good credit score, lenders look at your credit report. They check your payment history over the years to see if you have a record of making payments on time and in full over a long period. They also check for any written-off accounts in the past to see if you have defaulted on any prior debt obligations. All these indicators of poor credit behaviour are red flags for lenders, even if your current credit score is adequate. They will also look at your existing loan obligations to see if you can take on</p> <p>additional debt payments on your present and predicted future salary. If you identify any weak areas in your report, work to rectify them before applying for a loan.</p> <p>1. <em>Demonstrate stable employment status and salary:</em> Lenders want to be assured that you will have a steady monthly income to pay off your housing loan EMIs over the loan period. The tenure of a&nbsp;<a href="https://www.creditmantri.com/home-loan/">home loan</a> can stretch for decades and lenders want to know if you have a high probability of steady employment and income during that period to enable you to make your loan repayments on time.&nbsp;</p> <p>2. <em>Ensure you have a clean title deed and complete documentation of the property:</em> While this requirement is not related to your individual credit situation, banks want to ensure that there is no problem with the collateral (the home) in case you default on your loan. They will first make sure that all the legal documents relating to the property are in order.</p>https://www.creditmantri.com/articles/what-is-master-cardWhat is Master Card?https://www.creditmantri.com/articles/what-is-master-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2235597548ad851243295f7b0dd53e51_What is a Mastercard.png'/></p><p>MasterCard is the name of an American financial services company which provides branded payment products for credit card issuers like banks or other companies. MasterCard is one of the leading payment systems companies globally for credit and debit cards, the other notable companies being Visa and American Express. All these companies work in generally the same way.</p> <p><strong>What is a credit card?</strong></p> <p>But first, what exactly is a credit card? A credit card is a small piece of plastic that allows you to pay for goods and services by &ldquo;<a href="https://www.creditmantri.com/first-time-borrower/">borrowing</a>&rdquo; money for free from your credit card issuer. Your card contains details of your account. When you buy a product in a store using your card, the merchant (the shop) gets an electronic message authorizing the transaction if you are within your credit limit.</p> <p>All credit cards carry the logo of one of these companies and it could be natural to assume that it is MasterCard or Visa that issues the card. However, this is not so. MasterCard (and the other mentioned companies) simply facilitates payments between the individual customer, the merchant (shop) and your credit card issuer. MasterCard provides the payment system that allows you to buy on credit and pay your bills later.&nbsp;</p> <p><strong>Advantages of a MasterCard credit card</strong></p> <p>The advantage of having a MasterCard card is that it is accepted the world over and in millions of retail shops and online stores. Even if you travel abroad, there is no problem with using your card to make purchases. You can also use your card to withdraw cash from an ATM. However, this could come with charges that can be especially heavy if you are abroad, so it is wise to be careful when using your credit card for this purpose.</p> <p>There is no significant difference between the various companies like Visa, Master Card or American Express. It is important to choose which <a href="https://www.creditmantri.com/credit-card/">credit card</a> provider offers you a card that suits your needs and requirements. Several banks offer detailed information online on the cards and their benefits and rewards. It is worthwhile to spend some time researching all the cards and their terms and conditions. The most important features to look at are the interest rate charged on the balance, the various fees charged and the rewards or benefits plans.</p> <p>Getting a credit card will make paying for your purchases easier and more convenient. All you need is some discipline in terms of making your credit card payments in time.</p>https://www.creditmantri.com/articles/what-is-an-education-loanWhat is an Education Loan?https://www.creditmantri.com/articles/what-is-an-education-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d1646195e78492ce3183b3c687909615_What is an Education Loan.png'/></p><p>Education is the one area that many people, especially Indians, are willing to spend on. Earning a good education is seen as one of the chief aspirations of millions, if not a billion, Indians and it is the one investment that an overwhelming majority of Indian families will agree on! However, a quality education, whether in India or overseas, can also be quite expensive and an education loan is one way of managing the cost.</p> <p><strong>Features of Education Loans in India </strong></p> <p><em>Eligibility:</em> Most banks in India offer education loans to students for study either within the country or abroad. You can avail of a loan for pursuing undergraduate, graduate, vocational or even certificate courses. Any student, typically between ages 16-35, can apply for a loan.</p> <p><em>Amount:</em> The loan amount can vary depending on the cost of the education.</p> <p><em>Interest rate:</em> The interest rate also varies between banks and can typically range between 9-15%. There is a moratorium on the interest payment &ndash; usually between 6 months after you get a job to one year after completion of the course, whichever is earlier. The EMI is calculated once this moratorium period is over and the repayment starts. Female applicants can get a discount on the loan at some banks.</p> <p><em>Guarantor:</em> If you are planning to study abroad, then a co-applicant on your loan is mandatory, and it has to be an immediate family member. Some banks may ask for third party security as well. However, the good news is that many banks offer unsecured (without security) loans for up to Rs 7.5 lakhs. In some cases, you might need to offer additional security like an LIC policy or a fixed deposit with the bank for availing of the full loan amount.</p> <p><em>Tax benefit:</em> You can get a tax benefit under Section 80E of the Income Tax Act of India.</p> <p><strong>Documents required</strong></p> <p>Some of the documents required when submitting the application form include attested mark sheets, proof of admission, details of expenditure, bank statements of the past six months, photographs, any scholarship offers and ID and address proof.</p> <p><strong>Central Scheme for Interest Subsidy </strong></p> <p>The Central Government has a scheme to pay the interest during the moratorium period for students from economically weaker Sections (gross annual family income of up to Rs 4.5 lakhs) availing of loans for technical or professional courses. Applicants must have an income certificate from the certifying authority to be eligible for this scheme.</p> <p><strong>How to apply for an Education Loan</strong></p> <p>Many banks will allow you to download the application form from their website or you can collect it at the branch. Once you decide on the best&nbsp;<a href="https://www.creditmantri.com/personal-loan/">loan</a> option, you can visit the branch to meet with a representative to get further details and submit the application with all the requisite documentation.</p>https://www.creditmantri.com/articles/what-is-cashback-on-credit-cardsWhat is cashback on credit cards?https://www.creditmantri.com/articles/what-is-cashback-on-credit-cards<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f2c5f78f38b834364162e574b9c174f6_what-is-cashback-on-credit-cards.png'/></p><p>Who doesn&rsquo;t like to get money for spending money? That, in effect, is what cash back credit cards are all about! Among the various kinds of credit cards, cash back cards are perhaps one of the most popular. THe main feature of these cards is that customers get back a certain percentage of the amount they spend. The percentage and the spending categories differ, but the basic feature of all cash back cards is that you receive a percentage of your spending amount back as cash.</p> <p>Let us take an example. Say, for instance, you have a monthly <a href="https://www.creditmantri.com/credit-card/">credit card </a>bill of Rs. 20,000. If your bank offers a cash back of 5%, then you receive Rs. 1000 (5% of 20,000). If you spend Rs 30,000, then you will receive Rs. 1500 as your cash back award. This amount could be paid to you sepatarately as a cheque, or could be shown a credit on your next monthly bill. THe percentage can vary from bank to bank but ranges from 2-5%.</p> <p><strong>What are the restrictions on cashback offers?</strong></p> <p>There often are restrictions on how much you can earn and where. Many issuers require a minimum expenditure on your card to qualify for the offer. Similarly, there may be a cap on how much you can receive in a month, regardless of your monthly bill. Make sure you check these conditions when you&nbsp;</p> <p>The cash back scheme applies to spending at only certain establishments, it does not apply to every single purchase you make on your card.&nbsp; You can look up the list of establishments on your bank&rsquo;s website or ask the customer service department.</p> <p><strong>Why do banks offer cash back cards?</strong></p> <p>The logic behind issuing such cards is to encourage you to spend more on your <a href="https://www.creditmantri.com/credit-card/">credit card</a> and use it more frequently. If you think you are &lsquo;earning&rsquo; money while spending, then you might be motivated to spend more. This is exactly what credit card companies would like to encourage you to do and both sides win.</p> <p><strong>What are the disadvantages?</strong></p> <p>The only disadvantage is that in order to earn the <a href="https://www.creditmantri.com/cashback-credit-cards/">cash reward</a>, you might be tempted into overspending and racking up a large balance. If you do not pay your bill in full, the interest charges on your outstanding will negate any gains you earned on the cash reward. &nbsp;</p> <p>A cashback card is a simple way to earn a little extra cash for doing nothing. Just make sure that you read the terms and conditions carefully, spend within your limits, and make your monthly payments in full and on time. Not following these three practices might end up erasing whatever gains you make on the offer. &nbsp;</p>https://www.creditmantri.com/articles/what-is-credit-controlWhat is Credit Control?https://www.creditmantri.com/articles/what-is-credit-control<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c0f21690e5954245d94390e67de3c9f9_what-is-credit-control.png'/></p><p>Credit control is a strategy by which lenders ensure that they lend money only to customers with a good credit record and who have a good probability of paying back their debts. At the same time, credit control also ensures that the company or institution does not extend credit to delinquent borrowers or those who have a poor credit record. Credit control is used by companies and banks to ensure judicious (and profitable) lending and minimizing the possibility of losses due to bad loans.&nbsp;</p> <p><strong>What type of lenders use Credit Control?</strong></p> <p>It could be used by manufacturers, retailers or banks and other lending institutions. It is a strategic method of ensuring that the company only lends where there is a high chance of being repaid. <a href="https://www.creditmantri.com/">Credit control</a> is also known as credit management and would usually work under the Risk Committee in the company.</p> <p><strong>Why is Credit Control important? </strong></p> <p>It can be a vital way of maintaining the company&rsquo;s cash flow. Let us, for example, say that the lender, Company X, has made several uncoordinated and bad credit decisions and has lent to borrower, Company Y, who has a patchy credit record. There is a high probability that Company Y might not repay its debts, given its past credit history. Now imagine this scenario with multiple borrowers defaulting on their payments. Company X fails to receive the money and, in the worst case, might not have the liquidity to maintain its operations. Worse still, it has to spend an enormous amount of time, energy and money in trying to recover these unpaid dues. &nbsp;It is far better to prevent the problem from occurring, instead of using valuable resources trying to trouble shoot after the problem has burgeoned. &nbsp;</p> <p>Credit Control checks ensure that credit is extended only to good customers while avoiding bad debts Injudicious sanctioning of credit can have very serious consequences for the health of the company.</p> <p><strong>How does Credit Control work?</strong></p> <p>The effectiveness of lending policies are only as good as the company&rsquo;s credit evaluation process. Credit control officers need to determine the creditworthiness of borrowers and balance the advantage of extending credit for the purpose of increasing sales with the risk of potential losses with delinquent <a href="https://www.creditmantri.com/first-time-borrower/">borrowers</a>. &nbsp;&nbsp;</p>https://www.creditmantri.com/articles/what-is-endowment-insuranceWhat is endowment insurance?https://www.creditmantri.com/articles/what-is-endowment-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/739ea0f099285adc10a3af7165b72f73_what-is-endowment-insurance.png'/></p><p>An endowment insurance plan is one that combines life insurance cover, a savings plan as well as tax benefits. An endowment plan provides a pay out to the beneficiary in case of death during the term of the policy. If the insured survives the term of the policy, then he/she is assured of a maturity amount on expiry of the term. Endowment plans offer a forced saving option in addition to pure protection. The maturity benefit is a form of savings that can be used for any purpose like, for example, funding your retirement, children&rsquo;s education expenses or weddings.</p> <p><strong>How are endowment insurance plans different from term plans?</strong></p> <p>&nbsp;A term plan pays the full value of the policy to the beneficiary in case of death of the policy holder <em>during the term of the policy</em>. If the policy holder survives the term, he/she is not eligible for any payout. This is the simplest form of life insurance and is also the cheapest in terms of premium costs.</p> <p>An endowment plan, on the other hand, has an element of savings as well and the policy holder gets a lump sum on maturity if he/she survives the term of the policy. The premiums of all the subscribers to the endowment plan are pooled together and invested by the <a href="https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company">insurance company</a>. The investment policy follows the rules laid down by the regulator and the returns are declared on an annual basis.</p> <p><strong>What are the advantages of an endowment insurance plan?</strong></p> <p>1. <strong>It offers a guarantee on your capital: </strong>Even if the market is volatile, endowment plans ensure that you will receive your capital at the time of maturity.</p> <p>2. <strong>Bonus payments: </strong>The returns on the investment are declared by the insurance company at the end of the financial year and is credited to your insurance account.</p> <p>3. <strong>Liquidity: </strong>Some endowment insurance plans allow you to make a partial withdrawal from your account to deal with financial emergencies. Similarly, you may be able to take a loan against your endowment plan.</p> <p>4. <strong>Tax benefits:</strong> You can enjoy the benefits of tax saving by investing in certain endowment plans.</p> <p>5. <strong>Low risk:</strong>Endowment plans are traditional, low risk options that provide insurance cover as well as investment opportunities.</p> <p><strong>When should you go in for an endowment plan?</strong></p> <p>If you have a regular income that you are reasonably sure will continue through your working life, then this might be a good, low risk option insurance plan to get. A steady income is an important factor in choosing this kind of plan as you will be making contributions on a regular basis for a long period. An endowment plan can typically stretch from 5-20 years and you should be able to make consistent payments throughout this period.</p> <p>If you have an irregular income stream, then you could opt for a single pay option or could choose term insurance instead.</p>https://www.creditmantri.com/articles/what-is-icici-lombardWhat is ICICI Lombard?https://www.creditmantri.com/articles/what-is-icici-lombard<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/28e45eb9d72193af983fb9b153d4b78f_what-is-icici-lombard.png'/></p><p>ICICI Lombard is a 74:26 joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited and offers a range of insurance services in India.</p> <p>ICICI is one of India&rsquo;s leading private banks. It is a multinational bank and financial services company with a strong corporate and retail presence. It was founded in 1994 and is headquartered in Mumbai. ICICI has over 4000 branches and is present in 17 countries including subsidiaries in the United Kingdom and Canada.</p> <p>Fairfax is a Canadian financial services company that is engaged in general insurance, reinsurance, insurance claims management and investment management.</p> <p>ICICI Lombard is one of the leading insurance companies in India and has issued over 13 million policies and settled more than 3 million claims since it began operations in India in 2001.</p> <p><strong>What are the products offered by ICICI Lombard?</strong></p> <p>ICICI Lombard offers a range of insurance products including:</p> <p>1. Health insurance &ndash; including Group Health insurance and Personal Accident insurance.</p> <p>2. Travel insurance &ndash; for domestic travel, international travel, student overseas travel, corporate overseas travel, senior citizen travel and Pravasi Bhartiya Bima Yojana.</p> <p>3. Home Insurance.</p> <p>4. Motor insurance &ndash; for two wheelers and four wheelers</p> <p>5. Rural insurance packages &ndash; weather insurance, tractor insurance</p> <p>6. Exports related &ndash; Export- import transit and export credit insurance</p> <p>7 .Business Solutions &ndash; this covers, among others, insurance against burglary, fire; machinery and electronic equipment insurance. Also part of this product range is inland transit insurance, Shop insurance and Event insurance (including weddings).</p> <p>8.Customised business products including Office Package Policy, Educational Institution Package Policy and Hotel Corporate cover</p> <p>ICICI Bank offers life insurance products through the joint venture company, ICICI Pru Life. It is a partnership between ICICI and the British financial services company Prudential PLC.</p> <p><strong>Where can I find the closest ICICI Lombard branch?</strong></p> <p>You can find a list of the branches on the company website. You could contact the company through the toll free number that is also listed on the website.</p> <p>You could also apply for insurance online like, for example, overseas medical insurance and complete the entire process online.</p> <p>You can also avail of the 24 hour helpline in case of any queries regarding insurance policies. You could buy or renew a policy, or get a free quote on how much your premium would cost. You could also contact the helpline to get free insurance advice on the various products that the company offers and how to choose the product most suited to your needs and requirements.</p>https://www.creditmantri.com/articles/can-i-buy-an-air-conditioner-on-emi-without-a-credit-cardCan I buy an air conditioner on EMI without a credit card?https://www.creditmantri.com/articles/can-i-buy-an-air-conditioner-on-emi-without-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/744b769fa3c86f424b320d58a8b77df3_Can-I-buy-an-air-conditioner-on-EMI-without-a-credit-card.png'/></p><p>As the full heat of summer bears down, thoughts automatically move towards buying an air conditioner for the home! When temperatures rise steadily, having an AC unit at home can make life much more comfortable and make your leisure time at home more enjoyable.</p> <p>The problem is that not everyone has extra cash ready to purchase an air conditioner. If this is the case, it is possible to apply for a consumer&nbsp;<a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan/">durable loan</a> that will help you buy a new AC unit.</p> <p><strong>Is it possible to buy an air conditioner on loan without a credit card?</strong></p> <p>Yes, you can buy an air conditioner on EMI without a credit card. If you fulfill the eligibility criteria for a consumer durable loan, you can pay off your EMIs by cheque. You will need to offer a security check to your bank or NBFC when submitting your loan application. &nbsp;Customers who have a <a href="https://www.creditmantri.com/credit-card/">credit card</a> may be eligible for a higher loan limit.</p> <p><strong>What is the typical amount, tenure and interest rate on a consumer durable loan? </strong></p> <p>Naturally, the amount, tenure and interest rate differs according to each lender. The loan amount could cover the cost of your air conditioning unit and is dependent on your income. The loan tenure could range from 8 months to 24 months.</p> <p>In general, you need to be between 21-60 years to apply for this type of loan and need to demonstrate proof of income. You can apply online at the lender&rsquo;s website or, in some cases, even apply at specific stores that have tie-ups with specific lenders.</p> <p>The interest rates on a consumer durable loan could range between 15-22% depending on whether you are a salaried employee or self&ndash;employed. Some lenders offer interest-free loans where the interest component is subvented and passed on to the finance company directly by the manufacturer or retailer.</p>https://www.creditmantri.com/articles/can-i-get-financing-for-an-air-conditionerCan I get financing for an air conditionerhttps://www.creditmantri.com/articles/can-i-get-financing-for-an-air-conditioner<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/16115bd8221d177099270d18132b0396_Can-I-get-financing-for-an-air-conditioner.png'/></p><p>Yes, it is possible to get a loan to buy an air conditioner. With the mercury rising every day, summer is the time most people long for an air conditioning unit at home to make life a little more bearable. After a hard day&rsquo;s work at the office, followed by a stressful commute home, having an air conditioner at home can seem like a necessity rather than a luxury!&nbsp;</p> <p>However, not everyone has ready cash to spare to buy an air conditioner &ndash; however urgent the requirement. To enable you to make such household purchases, banks and NBFCs ( Non-Banking Financial Companies) offer consumer durable loans. These loans are a quick - sometimes taking only minutes with certain lenders to be approved in-store - and convenient option for financing your air conditioning unit.</p> <p>While you are relaxing in the comfort of your newly air conditioned room, you might think that life would be even better if you could also install a big LED screen to watch cricket or movies. You could take similar loans to purchase other such household products as well.</p> <p><strong>What is the typical amount, tenure and interest rate to buy an air conditioner on loan? </strong></p> <p>Naturally, the amount, tenure and interest rate differs according to each lender. The loan amount could cover the cost of your air conditioning unit and is dependent on your income. The tenure could range from 8 months to 24 months. In general, you need to be between 21-60 years to apply for this type of loan and need to demonstrate proof of income. You can apply online on the lender&rsquo;s website or, in some cases, even apply at specific stores that have tie-ups with specific lenders.</p> <p>The interest rates on a consumer <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan/">durable loan</a> could range between 15-22% depending on whether you are a salaried employee or self&ndash;employed. Some lenders offer interest-free loans where the interest component is subvented and passed on to the finance company directly by the manufacturer or retailer.</p>https://www.creditmantri.com/articles/how-do-i-apply-online-for-a-loan-for-an-air-conditionerHow do I apply online for a loan for an air conditioner?https://www.creditmantri.com/articles/how-do-i-apply-online-for-a-loan-for-an-air-conditioner<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f8650fcb1f7c5263c305549a39e3f2d9_How-do-I-apply-for-a-loan-online-for-an-air-conditioner.png'/></p><p>With the mercury rising steadily in summer, it is natural to long for some air conditioned comfort at home. It is simple to apply online for a loan for an air conditioner online, without leaving your home in the summer heat. A consumer durable loan covers the purchase of household products including air conditioners. Many banks and NBFCs (Non-Banking Financial Companies) allow you to apply for a consumer <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan/">durable loan </a>online on their website for buying an air conditioner.</p> <p><strong>What is the process for applying for an &lsquo;air conditioner loan&rsquo; online? </strong></p> <p>If you have already researched the various consumer durable <a href="https://www.creditmantri.com/credit-products/">loan offers</a> and decided on a specific bank/NBFC, then log onto that lender&rsquo;s website. Click on the Consumer Durable Loan tab. Some lenders have a 3 step process for applying online for a loan.</p> <p>1. Check your eligibility by entering your personal details, including your monthly income 2. Enter the amount required and loan period (tenure). Naturally, the amount, tenure and interest rate differs according to each lender. The loan amount could cover the cost of your air conditioning unit and is dependent on your income. The tenure could range from 8 months to 24 months. 3. Submit your application with the required documentation. The documentation required is fairly simple and could include ID proof, residence proof, income proof, PAN card and a photograph. Again, the documentation varies depending on the value of the loan amount.</p> <p>In general, you need to be between 21-60 years to apply for this type of loan. The interest rates on a consumer durable loan could range between 15-22% depending on whether you are a salaried employee or self&ndash;employed. Some lenders offer interest-free loans where the interest component is subvented and passed on to the finance company directly by the manufacturer or retailer.</p>https://www.creditmantri.com/articles/what-is-a-consumer-durable-loanWhat is a consumer durable loan?https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/bae87dfde8bc18d9063fc7c594403ee0_What-is-a-consumer-durable-loan.png'/></p><p>Everyone&rsquo;s lifestyle could do with an upgrade and a consumer durable loan allows you to do that! In a nutshell, it enables you to buy household products that make your life easier and your leisure more enjoyable. You might want a washing machine to save you the chore of washing your clothes. Or you might think that the best way to de-stress from a hard day&rsquo;s work is to see the IPL matches on a large LED screen at home in the comfort of air conditioned room. The problem is not everyone has ready extra cash to pay for these household items and a consumer durable loan helps finance these purchases.</p> <p><strong>What are the products covered by a consumer durable loan?</strong></p> <p>The loan covers &nbsp;&nbsp;a whole range of products ranging from household necessities like a washing machine to luxury gadgets like a high-end smartphone. The products covered by a consumer durable loan could include the following:</p> <p>1. Washing machine</p> <p>2. Refrigerator</p> <p>3. Microwave oven</p> <p>4. Cooking range</p> <p>5. Air conditioner</p> <p>6. Tablet, laptop, desktop (might be subject to a minimum value)</p> <p>7. Smartphone (might be subject to a minimum value)</p> <p>8. TV</p> <p>9. Invertor and generator</p> <p>10. Water purifier</p> <p>11. Dishwasher</p> <p>12. Music system</p> <p><strong>What is the typical amount, tenure and interest rate on a consumer durable loan? </strong></p> <p>Naturally, the amount and tenure differs according to each lender and the product that you wish to purchase. The durable loan amount could range from a few thousands to a few lakhs, while the tenure could range from 8 months to 3 years. In general, you need to be between 21-60 years to apply for this type of <a href="https://www.creditmantri.com/personal-loan/">loan</a> and need to demonstrate proof of income. You can apply online or, in some cases, even apply at specific stores that have tie-ups with specific lenders.</p> <p>The interest rates could range between 15-22% depending on whether you are a salaried employee or self&ndash;employed. Some lenders offer interest-free loans where the interest component is subvented and passed on to the finance company directly by the manufacture or retailer.</p>https://www.creditmantri.com/articles/how-do-i-get-a-loan-to-buy-an-air-conditionerHow do I get a loan to buy an air conditioner?https://www.creditmantri.com/articles/how-do-i-get-a-loan-to-buy-an-air-conditioner<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a0c628d4a47d8f7e83e9e39a2b734d5f_How-do-I-get-a-loan-to-buy-an-air-conditioner.png'/></p><p>Air conditioners are no longer seen as an expensive luxury. Unlike 15 or 20 years ago, we have become accustomed to working in air conditioned offices, shopping in air conditioned malls, and watching movies in air conditioned multiplexes. It is only natural to want the same comfort at home as well. The problem is not everyone has ready extra cash to fund these kinds of more expensive household products and need to look for an &lsquo;air conditioner loan&rsquo;! If you want to buy an AC, you could apply to a bank or NBFC (Non-Banking Finance Companies) for a Consumer Durable Loan to cover the purchase. These loans are a quick and convenient finance option for buying household items.</p> <p><strong>What is the typical amount, tenure and interest rate to buy an AC? </strong></p> <p>Naturally, the amount, tenure and interest rate differ according to each lender. In general, the amount for a&nbsp;<a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan/">consumer durable loan</a> can range from a few thousands to a few lakhs. The actual loan amount is dependent on the cost of the item, so the amount for an &lsquo;air conditioner loan&rsquo; would be a few thousands. The tenure could range from 6 months to 24 months.</p> <p><strong>Eligibility</strong></p> <p>Each lender has its own criteria, but in general, you need to be between 21-65 years to apply for this type of loan and need to demonstrate proof of income. You can apply online on the lender&rsquo;s website or, in some cases, even apply at specific stores that have tie-ups with specific lenders. The documentation required is fairly simple and could include ID proof, residence proof, income proof, PAN card and a photograph. Again, the documentation varies depending on the value of the loan amount.</p> <p>The interest rates on a consumer durable loan could range between 15-22% depending on whether you are a salaried employee or self&ndash;employed. Some lenders offer interest-free loans where the interest component is subvented and passed on to the finance company directly by the manufacture or retailer.</p>https://www.creditmantri.com/articles/what-are-idbi-interest-ratesWhat are IDBI interest rates?https://www.creditmantri.com/articles/what-are-idbi-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ac7d49680cfaddeaf64ff7cf8f40e09f_IDBI-interest-rates.png'/></p><p>IDBI Bank currently offers an interest rate of 4% per annum for savings bank accounts.&nbsp; The rate is subject to change at any time.</p> <p><strong>IDBI Bank Interest rate on savings account</strong></p> <p>Most banks, including IDBI Bank, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account?</p> <p>If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>IDBI interest rate on fixed deposits</strong></p> <p>In general, the interest rates on a <a href="https://www.creditmantri.com/articles/what-are-the-interest-rates-on-fixed-deposits">fixed deposit range </a>from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>It is simple to calculate the interest you will earn on an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the</p> <p>1. the tenure of the deposit</p> <p>2. the amount you deposit</p> <p>3. the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/what-are-the-pnb-interest-ratesWhat are the PNB interest rates?https://www.creditmantri.com/articles/what-are-the-pnb-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f6ced2668ce6a396786527d22ee49460_PNB-interest-rates.png'/></p><p>Punjab National Bank (PNB) currently offers an interest rate of 4% per annum for savings bank accounts.&nbsp; The rate is subject to change at any time.</p> <p><strong>PNB Interest rate on savings account</strong></p> <p>Most banks, including PNB, offer an interest rate of 4% p.a. on savings bank accounts. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account?</p> <p>If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>PNB interest rate on fixed deposits</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>It is simple to calculate the interest you will earn on an FD. Many banks offer an online Fixed Deposit calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the</p> <p>1. the tenure of the deposit.</p> <p>2. the amount you deposit.</p> <p>3. the interest rate offered.</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/applying-for-a-loan-for-an-apartmentApplying for a loan for an apartmenthttps://www.creditmantri.com/articles/applying-for-a-loan-for-an-apartment<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/56970172cb0483707da670ab513cea03_Tips-for-applying-for-a-Home-loan.png'/></p><p>If you are looking for a loan for apartment purchase, there is a vast array of home loan options available on the market. A&nbsp;<a href="https://www.creditmantri.com/home-loan/">home loan</a> is a loan for buying any residential property &ndash; whether an independent house or an apartment/flat.&nbsp; Here are some tips on how to successfully apply for a loan for an apartment.</p> <p><strong>Tips for applying for loans for apartment purchase</strong></p> <p>Lenders look at several factors when determining whether to approve of your application for a loan for an apartment/flat or other residential property. A home loan can be a significant financial commitment stretching for decades, so it is important to choose the right loan and take steps to ensure that you are successful in your application. &nbsp;Here are some steps you can take to ensure that your dream of owning an apartment/flat of your own is fulfilled.</p> <p>1. <em>Maintain a good credit score:</em> Typically, you need a minimum credit score of 750 for lenders to proceed with processing your application. A credit score of 750 or above reassures lenders that you are a responsible borrower and have a good track record of making repayments. If you have a score of less than 750, take time to improve your score <em>before</em> applying for a loan to avoid the possibility of rejection.</p> <p>2. <em>Ensure a healthy credit report:</em> Once they know you have a good credit score, lenders look at your credit report. They check your payment history over the years to see if you have a record of making payments on time and in full over a long period. They also check for any written-off accounts in the past to see if you have defaulted on any prior debt obligations. All these indicators of poor credit behaviour are red flags for lenders, even if your current credit score is adequate. They will also look at your existing loan obligations to see if you can take on additional debt payments on your present and predicted future salary. If you identify any weak areas in your report, work to rectify them before applying for a loan.</p> <p>3. <em>Demonstrate stable employment status and salary:</em> Lenders want to be assured that you will have a steady monthly income to pay off your housing loan EMIs over the loan period. The tenure of a home loan can stretch for decades and lenders want to know if you have a high probability of steady employment and income during that period to enable you to make your loan repayments on time.&nbsp;</p> <p>4. <em>Ensure you have a clean title deed and complete documentation of the property:</em> While this requirement is not related to your individual credit situation, banks want to ensure that there is no problem with the collateral (the home) in case you default on your loan. They will first make sure that all the legal documents relating to the property are in order.</p>https://www.creditmantri.com/articles/what-is-a-kisan-credit-cardWhat is a Kisan Credit Card?https://www.creditmantri.com/articles/what-is-a-kisan-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0ae70fcb98521290715bdcce70fae3f8_What-is-a-Kisan-Credit-Card.png'/></p><p>A Kisan Credit Card (KCC) is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit. It was launched in 1998 by the Reserve Bank of India and NABARD. The scheme aims to reduce farmer dependence on the informal banking sector for credit &ndash; which can be very expensive and suck them into a debt spiral. The card is offered by cooperative banks, regional rural banks and public sector banks. Based on a review of the working of the KCC, the government has advised banks to convert the KCC into a smart card cum debit card.</p> <p><strong>Features of the Kisan Credit Card</strong></p> <p>1. All farmers including small and marginal farmers, share croppers and tenants are eligible for the Kisan Credit Card.</p> <p>2. It simplifies the screening and credit delivery process for farmers who may not be aware of banking procedures and practices. It requires one &ndash;time documentation, and all subsequent documentation is based on the farmer&rsquo;s declaration of crops to be raised etc.</p> <p>3. It simplifies the multi-layered credit evaluation process of urban centric credit schemes. The credit limit is based on the land holding, income and credit history of the farmer.</p> <p>4. Because of the simplified documentation and screening process, the Kisan&nbsp;<a href="https://www.creditmantri.com/credit-card/">Credit Card offers</a> quick and timely credit.</p> <p>5. Offers flexible repayment schedule after the harvest season and enables rescheduling of payments in case of a bad crop season.</p> <p>6. Farmer can use it to make cash withdrawals or to take loans.</p> <p>7. The Credit Card is now linked to a Savings bank account so that the farmer has one single account. Any credit balance in the account earns interest.</p> <p>8. Offers insurance coverage</p> <p>9. Acts as a single credit facility for the farmer for all agriculture requirements</p> <p><strong>How does the KCC work?</strong></p> <p>The KCC is like a plastic credit card and can be used as such at banks, ATMs and Points of Sale. Banks issue a credit card cum passbook that carried details of the customer&rsquo;s landholding, address, credit limit and validity.</p> <p>The KCC allows cash credit to farmers to take care of crop related expenses like seeds, fertilizers, pesticides, electricity and diesel charges etc. It also offers term credit for allied activities like buying equipment, land development and drip irrigation.&nbsp;</p> <p>Interest rate: Loans under the KCC are offered at generally 7% for amounts under Rs. 3 lakh. In addition, the central government offers interest subsidies that can go up to 3 % depending on the credit history of the farmer. The amount and interest rate on loans above Rs. 3 lakhs is decided by the bank.</p>https://www.creditmantri.com/articles/what-is-a-platinum-cardWhat is a Platinum Card?https://www.creditmantri.com/articles/what-is-a-platinum-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/15457fecb0aae51040cde909fce3e343_What-is-a-Platinum-Card.png'/></p><p>A Platinum card is a&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> which, as its name suggests, is a card with more prestige and benefits than a gold or regular credit card. Credit cards follow the same logic as the valuing of precious metals! Just like a platinum ring is more valuable than a gold ring, the platinum card enjoys higher status than a gold card. &nbsp;A Platinum card offers several tangible benefits when compared to other regular credit cards, and is also in demand for its image as a prestige card for high end customers. &nbsp;</p> <p><strong>What are the features of a Platinum card?</strong></p> <p>A Platinum card can be one of the most expensive cards to own in terms of annual fees (where applicable), but it also offers several benefits to cardholders. Each credit card issuer offers its own set of exclusive privileges to its Platinum customers and these could include:</p> <p><strong>High or uncapped credit limit:</strong> Platinum cards have a higher credit limit than regular or gold cards which gives you much more flexibility in spending.</p> <p><strong>More rewards points per rupees spent:</strong> These cards will give you more reward points than other credit cards for the same amount of money. You can redeem these points for a variety of gifts or vouchers. So, for instance, if you get I reward point for every Rs. 100 spent on your regular credit card, a Platinimum card could offer you 1 reward point for Rs 50 or perhaps 2 points for every Rs. 150 spent. Each bank or credit card company has its own rewards programme.</p> <p><strong>Travel privileges:</strong> You can get savings with Airline Partners, free membership to hotel rewards programmes, and complimentary access to airport lounges. You can also avail of conceneirge services to assist you on travel and enteretainment options.</p> <p><strong>Leisure:</strong> Some cards offer vouchers on movie tickets. You can avail of complimentary golf at premium courses across the country and enjoy savings at hundreds of restaurants.</p> <p><strong>Should you apply for a Platinum card?</strong></p> <p>Which card you apply for depends on your individual spending discipline, repayment behaviour and credit eligibility. You will need to have a good credit history (and a score of 750 or above) and a high income in order to qualify. Howeer, you need to also look at whether the benefits are of use to you.</p> <p>Privileges: If you do not play golf, then a card that offers complimentary golf is not of much use. Similarly, if you do not travel regularly by air then airline savings and lounge access is a waste.</p> <p>Charges: Don&rsquo;t forget that these cards do not come cheap &ndash; while some issuers might waive charges, in general the annual fees can be quite steep.</p> <p>Credit limit: If you are prone to spending freely, then having a high credit limit can lead to getting into debt.</p> <p>If you are sure of paying off your balance in full and on time, and if you think you will make use of the privileges, then you should consider applying for a platinum card. While a platinum card may seem glamourous and desirable, keep in mind the nitty gritty plastic details behind the shiny metal fa&ccedil;ade before you make a decision.</p>https://www.creditmantri.com/articles/what-is-icici-prudential-life-insuranceWhat is ICICI Prudential Life Insurance?https://www.creditmantri.com/articles/what-is-icici-prudential-life-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/77ea7034a7c3696fb8ca16c493028811_What-is-ICICI-Prudential-Life-Insurance.png'/></p><p>ICICI Prudential Life Insurance is a joint venture between ICICI Bank and Prudential PLC, a leading British financial services company. It was the first private sector life insurance company to begin operations in India in 2000 after approval by the Insurance Regulatory Development Authority of India, and it remains one of the leading life insurance companies in the country.&nbsp;</p> <p><strong>ICICI Prudential Life Insurance plans</strong></p> <p>ICICI Prudential has a range of plans to suit the differing needs of customers:</p> <p>Term Plans &ndash; These are also called Pure Protection plans where the aim of the policy is to offer coverage in case of death. This is the simplest and cheapest form of life insurance.</p> <p>Wealth Plans &ndash; Together with life insurance, you can opt for a plan that is an investment tool and helps grow your money even while you enjoy insurance coverage.</p> <p>Retirement Plans &ndash; These plans help you to cover your loss of income once you retire. It is never too early to plan for retirement, and the sooner you start planning and saving for it, the larger your corpus will be at the time of retirement.</p> <p><strong>How do I choose the right ICICI Prudential Life Insurance plan?</strong></p> <p>First, determine what your financial goal is at this stage of your life. Keep in mind your income, age, number of years left for retirement, health, expenditure and number of dependents.</p> <p>Research the various plans online to see which fits your requirements in terms of the assured sums, affordability of the premium and coverage of risks. In general, your life insurance cover should be ten times your annual income.</p> <p>You can also use online tools to calculate how much your premium will be so that you can make a more informed final decision.</p> <p>&nbsp;If you need some help with the options, you could ask for an ICICI Prudential advisor to contact you to guide you on the various offerings.</p> <p><strong>Can I buy ICICI Prudential life insurance online?</strong></p> <p>Yes, ICICI Prudential Life allows you to buy a policy online. You can fill in the application form and make the payment entirely online if you have decided on a plan.</p> <p><strong>Benefits of life insurance: </strong></p> <p>A good insurance policy will offer the following benefits:</p> <p><strong><em>Life cover: </em></strong></p> <p>Life insurance ensures that in the event of untimely death, the family will stay financially protected. The insurance cover can be used by the family for education, housing or other expenses if you are no longer around as the chief family breadwinner.</p> <p><strong><em>Long term savings</em></strong><em>:</em></p> <p>&nbsp;Life insurance helps you to save and build your wealth for the future, especially for the retirement years, when you no longer have a regular income. Life insurance can be a tool for both savings as well as protection against risk.</p> <p><strong>Tax advantage</strong>:</p> <p>&nbsp;Buying life insurance also allows certain tax benefits.&nbsp;</p>https://www.creditmantri.com/articles/what-is-max-life-insuranceWhat is Max Life Insurance?https://www.creditmantri.com/articles/what-is-max-life-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/65f5b1934b7f7546117f8e8e791bbb76_What-is-Max-Life-Insurance.png'/></p><p>Max Life Insurance is a life insurance provider. It is a joint venture between Max Financial Services (which is part of the Max Group, a large, multi-business Indian corporate), and Mitsui Sumitomo Insurance Company which is one of the leading general insurers globally.</p> <p>Max Financial Services owns and manages a little more than 72% of Max Life Insurance Company Limited.</p> <p><strong>Products offered by Max Life Insurance</strong></p> <p>Max Life insurance focuses exclusively on providing life insurance products. It has a variety of products spanning a range of insurance needs. These include</p> <p>Term plans that offer</p> <p>1. Basic life cover plan</p> <p>2. Life cover with a steady, level monthly income</p> <p>3. Life cover with an increasing monthly income</p> <p>These are term plans meaning that there is no Maturity Benefit when the policy expires. The lump sum amount and the monthly income, if applicable, are paid out to the beneficiary for a fixed number of years if the insured dies during the duration of the policy. There is no payment if the insured survives the term of the policy.</p> <p>You can apply for any of these plans online. Once you choose the life insurance term plan you need, you can submit the application online with the payment, paying by NEFT or credit or debit card. You can then upload the necessary documents and schedule an appointment for a medical examination.</p> <p>Other products offered by Max Life Insurance include:</p> <p>1. Retirement Plans</p> <p>2. Protection Plans</p> <p>3. Group Plans</p> <p>4. Child Plans</p> <p>5. Growth Plans</p> <p>6. Savings Plans</p> <p><strong>What are the reasons for buying life insurance?</strong></p> <p>If you are the main breadwinner and are worried about your family&rsquo;s ability to support themselves financially in case you die unexpectedly, you can buy a life insurance policy and name a family member as a beneficiary. In case of untimely death, a pre-fixed lump sum (the amount that you have been insured for) will be paid out to your beneficiary. You can choose this payment to be paid one time or on a recurring basis. In case of your untimely death and the loss of your earnings, your beneficiary or beneficiaries can use this money for living, education or marriage expenses and will not suffer financially due to the loss of your earnings.</p> <p>The premium can be paid on a regular basis - monthly, half yearly or annually or even as a one- time payment in some cases. &nbsp;In the case of endowment insurance plans, if the insured survives the tenure of the policy, he/she is eligible to receive a lump sum of money known as the Maturity Amount.</p> <p>Buying life insurance not only confers financial security in case of untimely death but it also brings mental peace of mind in knowing that your loved ones will be financially secure even if something were to happen to you.</p>https://www.creditmantri.com/articles/what-is-motor-insuranceWhat is motor insurance?https://www.creditmantri.com/articles/what-is-motor-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/dbee8a1561efa67e9f974a3822cdbcce_What-is-motor-insurance.png'/></p><p>Motor insurance is the insurance policy for vehicles. &nbsp;It could include Car Insurance and Two-Wheeler Insurance. Vehicles that are used for commercial purposes, like buses and trucks, are covered by Commercial Vehicle Insurance.</p> <p>Motor insurance is mandatory in India. It is compulsory to buy auto insurance when you purchase a vehicle.</p> <p><strong>What is covered in a motor insurance policy? </strong></p> <p>When you purchase motor insurance, the policy will typically provide you financial protection against the following:&nbsp;</p> <p>1. Loss or damage to your vehicle due to natural calamities: This could include fire, explosion, lightning, earthquake, flood, typhoon, hurricane and landslide.</p> <p>2. Loss or damage to your vehicle due to man-made calamities such as burglary, theft, riot, or a &nbsp;malicious act.</p> <p>3. Third Party Legal Liability: Protection against legal liability due to accidental damages resulting in the permanent injury or death of a person, and damage caused to the surrounding property.</p> <p>In general, auto insurance does not cover depreciation, wear and tear or mechanical breakdown.</p> <p><strong>What is the amount covered in auto insurance?</strong></p> <p>All vehicles are insured at a fixed value known as IDV or Insured&rsquo;s Declared Value. It is calculated based on the manufacturer&rsquo;s listed selling price plus the cost of any added accessories and deducting the annual depreciation.</p> <p><strong>What is the Claims process?</strong></p> <p>If you are involved in an accident involving your car or two-wheeler, contact your insurance company or agent immediately. You will be given a claim number or reference number which you need to refer to at all times.</p> <p>Note the license plate number of the other vehicle involved in the accident, if any, as well as the names and contact details of any witnesses.</p> <p><strong>How to apply for motor insurance</strong></p> <p>You can apply for auto insurance online and enjoy the benefit of minimal paperwork. However, there might be some restrictions regarding what kind of insurance you can buy online (e.g. some companies might limit it to only privately owned cars and two-wheelers). You can also renew your insurance online up to a few months before the date of expiry. Each company will have its own renewal schedule. If your policy has lapsed, your vehicle might have to undergo inspection.</p> <p>Alternatively, you can also submit your application physically with the requisite documents and payment.</p> <p><strong>What is a No-Claim Bonus (NCB)? </strong></p> <p>If you have not made any claim on our auto insurance for the past year, then you are eligible for a No-Claim Bonus, which takes the form of a discount on the following year&rsquo;s premium payment. The more years that are claim-free, the larger the discount you will get on your premium.</p>https://www.creditmantri.com/articles/what-is-the-best-health-insurance-companyWhat is the best health insurance company?https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/869eb5a53d099275ff6a0037776f99fd_What-is-the-best-health-insurance-company.png'/></p><p>There is no way to determine the &lsquo;best&rsquo; health&nbsp;<a href="https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company">insurance company</a> operating in India today. The best company is the one that provides the policy that suits your requirements and fulfills your health insurance needs with a price and service quality that you are satisfied with. There are several insurance companies that offer good health insurance plans and it is important to do the research or talk to an insurance advisor to determine which policy is most suitable for your needs.</p> <p><strong>Health insurance offered by Insurance companies</strong></p> <p>First, do you really need health insurance? The answer is very simply, yes. With medical bills rising steeply every day, you might be worried that in case of a medical emergency or serious medical condition, you will not be able to afford the expensive treatment. When you buy a health insurance policy, you can breathe easier knowing that your medical bills will be taken care of by the insurance company. Of course, the amount that you will covered depends on the particular policy you have bought, but in general, having insurance gives you some protection against potential financial loss in the future.</p> <p>Health insurance is becoming increasingly popular in India because of the rapid increase in medical costs and hospital stays. Treatment for a major illness like cancer or heart disease can run into several lakhs of rupees depending on the city you live in and swallow a large part of your savings. Buying a policy from an insurance company helps you plan and budget for such unexpected and potentially heavy expenditure in the future.&nbsp;</p> <p><strong>How do you choose which insurance company to buy from? </strong></p> <p>When choosing a health insurance plan, it would help to keep some of these factors in mind when making your decision:</p> <p>1. The amount of coverage required and the cost of the premium. Several insurance companies will have an online tool that will help you calculate your premium cost.</p> <p>2. Keep in mind the age and health condition of not just yourself but the other people in your family that you want coverage for &ndash; including spouse, children and, maybe, aged parents.</p> <p>3. Do not wait for too long &ndash; the older you get, the more health complications you might develop that will make buying health insurance more expensive. If you are below 45 and do not have a history of serious medical problems, this might be the best time to buy health insurance.</p> <p>4. Think carefully about the add-ons and whether you require them. For instance, ambulance transport might not cost much and it might be worthwhile paying for it out of your pocket rather than paying a larger premium.</p>https://www.creditmantri.com/articles/what-is-the-public-provident-fund-schemeWhat is the Public Provident Fund (PPF) Scheme?https://www.creditmantri.com/articles/what-is-the-public-provident-fund-scheme<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/68414aade1d53e8779691000367d5175_What-is-the-PPF-Scheme.png'/></p><p>The Public Provident Fund (PPF) Scheme was started in 1968 and is a popular long-term investment option that offers a relatively high rate of interest which is tax free.</p> <p><strong>What are the benefits of the Public Provident Fund (PPF) Scheme?</strong></p> <p>Safe: It is backed by the Government of India</p> <p>Attractive rate of interest: It offers a rate of 8.1 % per annum which is higher than many fixed deposit offerings.</p> <p>Tax free &ndash; Both the principal deposited and the interest earned are completely tax exempt under Section 80C.</p> <p><strong>How do I open a Public Provident Fund account and who is eligible?</strong></p> <p>Any resident of India can open a PPF account at the Post Office or with an authorised bank branch. Some people prefer opening a PPF account with a bank since they can view their balance and statement online through Net Banking.</p> <p>You will need to submit some documentation at the time of opening your account with a bank including Form A, KYC documents, and opening a savings account with the bank ( if not already a customer). You might also require to furnish residence proof in some cases (like a recent phone or electricity bill).</p> <p>There is no provision for a joint account but you can appoint a nominee on your account. The nominee will be paid in case of death of the account holder. However, the nominee cannot continue to make contributions to the account.</p> <p>You can also transfer your PPF account and it will be maintained as a continuing account. There is a separate form to be filled for transferring your account.</p> <p>Only one PPF account per person is allowed, except if a parent opens an account in the name of a minor child. Grandparents cannot open a PPF account in their grandchild&rsquo;s name, unless both parents of the child are deceased.</p> <p><strong>Features of a Public Provident Fund account</strong></p> <p>The minimum amount to be deposited is Rs. 500 a year, and the maximum is Rs. 1, 50, 000 a year. Failure to deposit the minimum annual amount results in a penalty of Rs. 50.</p> <p>The account has a lock-in period of 15 years since it is a long-term investment option. There is no provision for premature closure of the account. However you can make a premature withdrawal from your account from the 7<sup>th</sup> year onwards.</p> <p>You can avail of a loan facility against your PPF account between the 3<sup>rd</sup> and 6<sup>th</sup> financial year.</p> <p>You can close your account after maturity and withdraw the complete amount. You can also extend your PPF account for a block of 5 years on maturity.</p> <p><strong>How to check your PPF account</strong></p> <p>When you open a PPF account, you will be issued a passbook where you can look up all the details of your balance and withdrawals. Some banks may offer net banking in lieu of a passbook at the discretion of the customer.</p> <p>Your ability to look up your balance online is dependent on your bank or Post Office facility.</p> <p>If you have a PPF account with a bank that has net banking facilities, then you can view your account balance online. You can also view a detailed statement on deposits and withdrawals and any loan transactions online.</p> <p>You can also make online transfers to your PPF account from your savings account in the bank or in some cases, give standing instructions to your bank to ensure regular transfers to your PPF account.</p>https://www.creditmantri.com/articles/why-you-need-a-business-credit-cardWhy you need a business credit cardhttps://www.creditmantri.com/articles/why-you-need-a-business-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/18702f1baee68e538e5f3ddb8071421c_Why-you-need-a-business-credit-card.png'/></p><p>If you already have one or more personal credit cards, you might wonder why you need a business credit card as well. Whether you are a proprietor or even a freelance professional, there are several advantages to getting a business credit card. Many small businesses use the card as a means of financing but there are other reasons as well as to why it might be a good idea.</p> <p><strong>Higher credit limit on a business card</strong></p> <p>Since a business card has a higher limit than an regular individual card, many proprietors use the card as a source of funds to keep the business running. This is an especially convenient option when it is too time-consuming, expensive or just difficult to get a loan from a bank or other lender. Using your business credit card can help you take care of working capital expenses in the quickest and most seamless way.</p> <p><strong>Benefits tailored to business needs</strong></p> <p>A regular&nbsp;<a href="https://www.creditmantri.com/credit-card/">credit card</a> can offer benefits like movie vouchers or gifts or even complimentary golf that may not be relevant to your business needs. A business credit card has customised benefits like cash back rewards on fuel and telephone bills. Other cards may offer discounts on office equipment like computers and peripherals, or travel discounts on base air fare. These kinds of benefits can create valuable savings for a small business.</p> <p><strong>Builds business credit history</strong></p> <p>Having a separate credit card for your business expenses helps you build a credit profile for your business which will allow you easier access to loans in the future. If you use your personal credit card or personal funds for running the business, then you are locking up the opportunity of using&nbsp; your business credit card to access credit. When you use your business credit card in a responsible manner with timely repayments, you are setting up a healthy credit history that you can leverage to later access larger loans from the banking system.</p> <p><strong>Helps keep your finances organized</strong></p> <p>When you use a separate card for your business, it allows you to keep easier track of your expenses, profits and loss. It is also an advantage when doing your tax returns as you can more easily identify tax-deductible expenses.</p> <p>While there are several advantages to having a business credit card, you need to be also careful about the terms and conditions that come attached with it. For instance, you might be held personally liable for charges on the card. If you are careful about the usage and are responsible about payments, a business card can be a great help to a small business owner.</p>https://www.creditmantri.com/articles/what-are-yes-bank-interest-ratesWhat are Yes Bank Interest Rates?https://www.creditmantri.com/articles/what-are-yes-bank-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d8d67139fc8200a1e8583af312614046_Yes-Bank-Interest-Rate.png'/></p><p>Yes Bank offers an interest rate of 6% per annum for savings bank accounts with balances of less than Rs 1 crore with effect from November 2015.&nbsp; The rate is subject to change at any time.</p> <p><strong>Yes Bank Interest rate on savings account</strong></p> <p>&nbsp;Yes Bank currently offers an interest rate of 6% p.a. on savings bank accounts which is higher than most other banks. Earlier, the RBI had laid down a uniform interest rate on savings accounts for all banks which meant that there was no difference in the amount you earned as interest, regardless of which bank you had your money in. However, the RBI now allows banks to set their own interest rates for money held in savings accounts. This has led to more competition, and while some banks offer an interest rate of between 5-7% per annum, many banks in India continue to offer a standard rate of 4% per annum.</p> <p>How do you calculate the interest you earn on the money in your account?</p> <p>If, for instance, you have Rs 50,000 in a savings account and your bank offers an interest rate of 4% per annum, you will earn Rs 2000 a year in interest. (4% of 50,000 = 2000.)&nbsp; You can use a calculator to learn what you will receive for a particular sum, for a specific tenure and interest rate.</p> <p><em>Interest calculated on daily balance:</em> In addition, now the interest is calculated on the basis of the daily balance in your account as opposed to the earlier system which was calculated based on the minimum amount you had in your account in the month. So now you earn money for every rupee that you keep in your account.</p> <p>The interest earned on money in a savings account is usually paid out twice a year and credited to your account directly.</p> <p><strong>Yes Bank interest rate on fixed deposits</strong></p> <p>In general, the interest rates on a fixed deposit range from 4-9% per annum, depending on the tenure of the deposit and the issuer.</p> <p>It is simple to calculate the interest you will earn on an FD. Many banks offer an online&nbsp;<a href="https://www.creditmantri.com/articles/what-are-the-interest-rates-on-fixed-deposits">Fixed Deposit</a> calculator tool which helps you calculate the returns on your deposit. All you need to do is to enter some basic details including the deposit amount, deposit tenure and interest rate offered on the chosen FD scheme. The calculator will let you know how much you will earn as interest on maturity of your deposit.</p> <p>You can use the interest calculator to check the interest returns on the FD schemes offered by different banks so that you can make an informed decision while choosing between the various options.&nbsp;</p> <p>Fixed deposits are offered by banks and non-banking financial institutions as well as corporates. The interest you earn will vary based on the</p> <p>1. the tenure of the deposit</p> <p>2. the amount you deposit</p> <p>3. the interest rate offered</p> <p>The interest rate in turn varies depending on the issuer&rsquo;s internal policies and government regulations.&nbsp; For example, senior citizens enjoy a higher interest rate in India.</p>https://www.creditmantri.com/articles/how-to-apply-for-a-new-credit-cardHow to apply for a new credit cardhttps://www.creditmantri.com/articles/how-to-apply-for-a-new-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6bbcd35f17e715d20fc8575c5cfba260_How-to-apply-for-a-new-credit-card.png'/></p><p>A credit card is one of the easiest and most convenient ways to pay for your purchases. You can buy anything from a gold necklace to groceries on your credit card and pay for it by borrowing the money from the credit card issuer. It is a fairly simple and straightforward process to apply for a new credit card. If you use your card responsibly, it could be one of the safest and most convenient methods to pay for your purchases.</p> <p><strong>How do I apply for a new credit card?</strong></p> <p>If you are applying for the first time, it is important to only apply for a card which you have a good chance of being approved for. Any rejection of your application can have a negative impact on your credit score. Research the major cards that are available on the market and select the one that best suits your requirements in terms of the interest rate, rewards programme, safety features in case of fraud or theft, the various fees and charges, and that you are eligible for. Many banks have a feature which let you know which card offers you qualify for.</p> <p>&nbsp;Once you decide on a <a href="https://www.creditmantri.com/credit-card/">new credit card</a>, you can apply for it in two ways: You can log on directly to the bank&rsquo;s website. If you fulfill the criteria for the card you can apply for it online.</p> <p>Alternatively, you can visit the bank for details or ask for a representative to contact you regarding the process and the documentation required.&nbsp;</p> <p>Once you submit your application, you will be given an application reference number. Many banks will allow you to track the status of your application online with this reference number.</p> <p><strong>Things to keep in mind if you are a new credit card user: </strong></p> <p>If you are new to credit cards, then it is important to ensure that you maintain a healthy credit history and use your card wisely to avoid any damage to your credit profile. Here are some tips to ensure that you remain credit-healthy:</p> <ol> <li>Always pay your bills in full and on time. Every single late, missed or incomplete payment is reported by your bank to the credit bureaus. This will negatively affect your credit score.</li> <li>Do not buy things that you cannot afford, even though you have easy access to credit.</li> <li>Do not spend more than 50% of the credit limit on your card. &nbsp;</li> <li>Keep your credit card details and your card issuer&rsquo;s phone number with you in a safe place so you can immediately report any theft or misuse of your card.</li> <li>Retain your credit card sales slips so that you can check it against your monthly credit card statement. Any discrepancies or mistakes should be reported immediately, as they can be reversed.</li> </ol> <p>&nbsp;Read all the terms and conditions carefully when you first get your credit card so that you are aware of the interest charges, fees and other terms of agreement on the card.</p>https://www.creditmantri.com/articles/what-are-interest-rates-on-automobile-loansWhat are interest rates on automobile loanshttps://www.creditmantri.com/articles/what-are-interest-rates-on-automobile-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/34f2e4881bb1a55ac5ac0c004ba4511e_what-are-automobile-loan-interest-rates.png'/></p><p>Buying an automobile - whether a new or used car or even a two-wheeler - can be quite a drain on your wallet. An auto loan is probably the best way to finance your vehicle so long as you research for the loan that best suits your needs including the interest rate offered, loan period (tenure) and the various other terms and conditions.</p> <p><strong>What are the interest rates on an automobile loan?</strong></p> <p>&nbsp;Unlike home loans, automobile loans have <a href="https://www.creditmantri.com/articles/how-do-i-calculate-the-bank-interest-rate">fixed interest rates</a>. Your lender will fix a rate based on a variety of factors. For instance, the interest rate on a loan for purchasing a luxury car will be lower than the rate for a compact car since the down payment made on a luxury car is far larger making the loan amount relatively small compared to the value of the car.</p> <p>The rates on automobile loans can vary depending on a variety of other factors including your relationship with the bank (if you are existing customer), the car segment (as mentioned above), and the tenure of the loan. The interest rate charged for a used car loan will take into account all these factors plus the age and segment of the car, the tenure of the loan, and whether it is a product variant like a top-up loan or refinance.</p> <p><strong>What is the loan amount and tenure of an automobile loan?</strong></p> <p>In general, lenders can give up to 90% of the invoice value of the vehicle. Some lenders offer 100% financing on certain brands and models of cars. The invoice value does not include the additional costs incurred when you buy a vehicle such as taxes or insurance. The invoice value refers only to the price of the vehicle in the showroom.</p> <p>The tenure on an auto loan varies from 1-7 years. Again, lenders will decide the loan period based on the car segment, relationship with the bank, your monthly income and ability to repay. Auto loans have a shorter repayment period than <a href="https://www.creditmantri.com/home-loan/">home loans</a> since the loan amount is relatively smaller.&nbsp; Loans for used cars have a shorter tenure than new cars.</p> <p><strong>How do I know which car/loan offer to choose?</strong></p> <p>The only way to make a decision is to thoroughly research the various options offered. Some lender websites have a section on the various cars on the market that might help you get a more comprehensive idea of what is available in the market, without having to visit multiple dealers.</p> <p>Similarly, read up on all the offers compare the features and benefits, and determine which offer best fits your credit requirements.</p> <p>Above all, do not rush the decision. An&nbsp;<a href="https://www.creditmantri.com/auto-loan/">auto loan</a> can be a years-long commitment and it is important to find both the vehicle and the loan offer that is most suitable.</p>https://www.creditmantri.com/articles/can-i-get-a-home-loan-with-bad-creditCan I get a home loan with bad credithttps://www.creditmantri.com/articles/can-i-get-a-home-loan-with-bad-credit<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a9ad4ee7b9fe719adcd7df988d23bd2f_Can-I-get-a-home-loan-with-bad-credit.png'/></p><p>Are you nervous about being a first-time home buyer? Moreover, are you planning to apply for a home loan but are worried about your credit record? A home loan is a significant financial commitment on the part of the customer and a significant long -term investment by the lender. Having bad credit is a big barrier in the way of being approved for a loan and it is wise to take steps to improve your credit record right away.</p> <p><strong>Is it possible for a first-time buyer to get a loan with bad credit? </strong></p> <p>It is very difficult to get home <a href="https://www.creditmantri.com/articles/how-to-get-a-loan-with-bad-credit/">loans with bad credit</a>, even if you are a first-time buyer. Lenders do not want to risk giving loans to customers who already have demonstrated poor credit behaviour and might possibly default on EMI payments. However, each lender has a different set of requirements and criteria for sanctioning loans. So it is possible that even if multiple lenders reject you, you might have a small chance to qualify with a different lender who has different requirements.&nbsp;</p> <p>Generally, if you have a credit score below 750, it is difficult to get approved for a loan.</p> <p><strong>What are the disadvantages of being a first-time buyer with poor credit?</strong></p> <p>There are several disadvantages to applying for a home loan with a poor credit score:</p> <p>1. If your loan application is rejected by multiple lenders because of your credit record, each rejection will cause your credit score to drop further and damage your credit profile. If you are rejected four times before being approved by the fifth lender, your credit score will decrease four times with each rejection. This means your score will keep decreasing just by attempting to apply for a loan.</p> <p>2. Even if your application is approved, a low credit score means that you will not be able to avail of the more attractive offers on the market. In order to safeguard their money, lenders might offer you a loan with expensive terms and conditions such as a higher interest rate, shorter repayment period, or a small loan amount which might make repayment difficult.</p> <p><strong>If I have a poor credit record and want a home loan, what should I do?</strong></p> <p>It is possible to turn around your credit situation so that you are eligible for the home loans of your choice. First, you need to concentrate on <a href="https://www.creditmantri.com/credit-score-advice/">improving your credit score</a> to at least 750. This can take an average of 4-12 months, depending on how serious your individual credit situation is. Once you improve your score, you are in a much better position to have your loan approved and avoid the chance of rejection.&nbsp; A higher score means that you can avail of more attractive terms that will lighten your EMI repayment burden over the 10-30 year tenure of the loan.</p> <p><strong>&nbsp;</strong></p>https://www.creditmantri.com/articles/loans-for-mobile-phones-from-bajaj-financeLoans for Mobile Phones from Bajaj Financehttps://www.creditmantri.com/articles/loans-for-mobile-phones-from-bajaj-finance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a27caefe09bed879becc5b0a120ad81d_Loans-for-Mobile-Phones-from-Bajaj-Finance.png'/></p><p>All around you you see advertisements for the latest and smartest smartphones available and you might have set your heart on a particular model but do not have ready cash to pay for it. Or maybe you are looking to upgrade your current smartphone but don&rsquo;t know quite how to get a &lsquo;mobile loan&rsquo; to cover the cost?&nbsp; You could apply for a consumer durable loan from Bajaj Finance and be the happy owner of a smartphone.</p> <p><strong>What is the amount and tenure on a &lsquo;mobile loan&rsquo; from Bajaj Finance?</strong></p> <p>The loan amount and tenure depends on the value of the phone you want to buy. If you want to get a &lsquo;mobile loan&rsquo;, you need to apply for a <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan">Consumer Durable Loan</a> which covers the purchase of smartphones. The tenure for this kind of loan is 8-24 months and your specific loan period will depend on a variety of factors including the loan amount.</p> <p><strong>How can I apply for a loan to buy a mobile phone?</strong></p> <p>If you are at a Bajaj Finserve dealer partner store where you plan to purchase your mobile phone, you can contact the in-store executive to help you with the loan process. There are representatives at more than 7000 stores across the country. You can find the nearest partner store nearest by looking up the section on &lsquo;Find the nearest store&rsquo; on the Bajaj Finserve website.</p> <p>While at the store, you can fill in the application form and submit the required documentation later. This could include photo ID proof, residence proof, income proof among other documents.</p> <p>If you already possess an EMI card, you could use it to buy the product. All you need to do is to swipe the card and sign the receipt in order to go ahead with your purchase.</p> <p>If you do not have an EMI card, you could apply online on the website. Once you submit the application and upload the required documents, you will need to make a payment. If approved, your EMI card will be delivered to your registered address within 2 weeks.</p> <p><strong>Is it possible to pre-pay the loan?</strong></p> <p>Yes, you can foreclose the loan after a minimum of 6 months from the loan disbursal date. There is no charge for foreclosing a loan.</p> <p><strong>What are the other products covered under a consumer durable loan?</strong></p> <p>There are a variety of products that you can buy with a <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan/">consumer durable loan</a>. These include:</p> <p>LED/LCD TV, Washing machine, Microwave oven, Refrigerators, Air conditioner, Music system, Smart phones, Tablets, Camera/camcorder, Laptop/desktop, Inverter, Generator, Air/water purifier, Dryer, Dishwasher, Cooking range</p>https://www.creditmantri.com/articles/how-first-time-buyers-can-find-the-best-auto-loansHow first-time buyers can find the best auto loanshttps://www.creditmantri.com/articles/how-first-time-buyers-can-find-the-best-auto-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1e888e2117575ec70d59181eb27acc11_How-to-find-the-best-auto-loans-for-first.png'/></p><p>Buying a vehicle, and getting an auto loan to facilitate the purchase, can be the first significant financial commitment that many people make.&nbsp; It can be exciting to have your own transport and be liberated from crowded trains and buses, waiting times, and unpredictable schedules!&nbsp; Buying your own vehicle can give you an exhilarating sense of freedom but is also accompanied by some natural concerns for a first time buyer &ndash; how to find the best <a href="https://www.creditmantri.com/auto-loan/">auto loans</a>.</p> <p><strong>Tips for a first time buyer on how to choose the most suitable auto loans</strong></p> <p>The only way to make a decision is to thoroughly research the various loan offers available in the market. Some lender websites will allow you to do a quick online eligibility check to see what kind of loan you qualify for so that you can make your decision accordingly. It is important to be informed of the products and compare the features and benefits to determine which offer best fits your credit requirements.</p> <p>Above all, do not rush the decision. Auto loans mean a commitment of several years and it is important to find both the vehicle and the loan offer that is most suitable for your needs.</p> <p><strong>What are the first steps when applying for auto loans? </strong></p> <p>First, it is important to obtain a copy of your credit report well in advance of applying for a loan to check your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and minimise the chance of rejection. In general, lenders look for a score of 750 or above to sanction a loan. You need to concentrate on improving your credit score to at least 750, if required. This can take an average of 4-12 months, depending on how serious your individual credit situation is.&nbsp; If you have a low score, you can spend time improving your score so that you become loan-eligible <em>before</em> you apply for a loan.</p> <p>It is also useful to check your credit report for any errors that are needlessly dragging down your score. This could include any reporting errors - for example, showing a loan as being outstanding although you have paid it off in full. It is important to quickly file a dispute and get these errors rectified so that your credit score is not dragged down by these errors unnecessarily.</p> <p>Once you improve your score and have a clean credit report, you stand a good chance of having your loan approved.&nbsp; A higher score also means you can avail of more attractive terms that will lighten your loan repayment burden.</p>https://www.creditmantri.com/articles/getting-a-business-loanGetting a business loanhttps://www.creditmantri.com/articles/getting-a-business-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6c8de859baae695d9df42f3de4e91e83_6.-Getting-a-business-loan-to-start-a-business.png'/></p><p>Being an entrepreneur can be a very exciting business! The satisfaction of creating a new business from scratch and making it grow is a unique experience, both exhilarating and frustrating in equal measure.&nbsp; As always, money plays an important part in converting dreams into reality and a business loan is probably one of the simplest and most effective ways to fund your independent venture.</p> <p><strong>What is a business loan?</strong></p> <p>A business loan is a simple way of raising funds to start a new business or expand an existing business. It is often an unsecured loan which means that you do not have to provide collateral. This can be a big relief for a small entrepreneur who might not have any asset to spare as collateral.</p> <p><strong>Typical amount and tenure of a business loan</strong></p> <p>The loan amount can vary with each lender but can go up to Rs 30 lakhs, depending on the borrower&rsquo;s eligibility.&nbsp; <a href="https://www.creditmantri.com/articles/3-tips-for-qualifying-for-a-business-loan">Business loans</a> are generally short term loans and the repayment period ranges from 1- 5 years.</p> <p><strong>Documents required</strong></p> <p>&nbsp;The documents required differ from bank to bank and could include:</p> <p>-&nbsp; Completed application form</p> <p>-&nbsp; Bank Statements</p> <p>-&nbsp; Income Tax returns, balance sheet with profit and loss account statement, Form 16A</p> <p>-&nbsp;&nbsp; KYC of the co-applicant</p> <p>-&nbsp;&nbsp; Proof of business practice</p> <p><strong>How to apply</strong></p> <p>You can apply online at many lender websites. You can also ask to be contacted by a representative of the bank or NBFC for further details on the loans offered and to check your eligibility.</p> <p><strong>Tips for a successful loan application </strong></p> <p><strong>i.Offer a good business plan:</strong> Banks will lend you money if they think that you have a clear idea on how the money will be used and if they feel reassured that their money will be used productively. A clearly thought-out plan that includes cash flows will be a significant factor <a href="https://www.creditmantri.com/articles/common-small-business-loan-mistakes-to-avoid">in your loan being approved</a>.</p> <p><strong>ii.Check your eligibility:</strong> Lenders have a set of eligibility criteria which could include a minimum turnover, number of years in business and minimum annual income. It is important to make sure that you qualify for each of these <em>before</em> you apply for the loan to avoid the possibility of being rejected. Some banks allow you to check your eligibility online in a couple of minutes.&nbsp;</p> <p><strong>iii.Have the required documentation ready:</strong> Many loan applications are rejected because the documentation is incomplete. If necessary, speak with a bank official so that you have an exact list of the documentation required. This will include ID and PAN card details, latest bank statements, latest ITR returns along with a CA certified balance sheet among other requirements. Make sure that you include every document when you submit your application.</p>https://www.creditmantri.com/articles/how-to-get-a-business-loan-in-chennaiHow to get a business loan in Chennaihttps://www.creditmantri.com/articles/how-to-get-a-business-loan-in-chennai<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b9bb2f4d5e874415cfb47e2d5a32d140_7.-How-to-get-a-business-loan-in-Chennai.png'/></p><p>If you are based in Chennai and looking for a business loan, the internet can bring the best loan offers from around the country to your doorstep. You need not limit yourself to a local lender &ndash; every major bank and NBFC has a branch presence in the city and you can choose which offer best suits your requirements.</p> <p><strong>How do I apply for a business loan when located in Chennai?</strong></p> <p>First, you should research the various business <a href="https://www.creditmantri.com/credit-products">loan offers available</a> in the market and determine which lender offers the product most suited to your needs, including the interest rate charged and the processing fees. Many lenders allow you to do a quick check of your eligibility on their website. Once you determine the kind of loan you want and the lender, you can go ahead and <a href="https://www.creditmantri.com/personal-loan/">apply for the loan online</a>, or ask for a representative to contact you, or contact the lender directly through the contact details on their website. &nbsp;</p> <p><strong>Tips for a successful business loan application</strong></p> <p>Here are some pointers on how to maximise your chances of a successful loan application.</p> <p><strong>1. Have a clear business plan:</strong> Banks will lend you money if they think that you have a clear idea on how the money will be used. Before you apply for the loan, create a detailed business plan including cash flow projections. This will help lenders get good idea of how their money will be used and the expected results.</p> <p><strong>2. Check your eligibility:</strong> Most banks have a set of eligibility criteria with regard to this kind of loan which could include the minimum turnover, number of years in business and minimum annual income. It is important to make sure that you qualify for each of these <em>before</em> you apply for the loan to avoid the possibility of being rejected. Some banks allow you to check your eligibility online in a couple of minutes.&nbsp;</p> <p><strong>3. Have the required documentation ready:</strong> Many loan applications are rejected because the documentation is incomplete. If necessary, speak with a lending officer to get an accurate idea of the kind of documentation required for the loan. This will include ID and PAN card details, latest bank statements, latest ITR returns along with a CA certified balance sheet among other requirements.</p> <p><strong>4. Estimate the size of the required loan accurately:</strong> Make sure that you have a good business plan that justifies the size of the loan you are applying for. If you ask for too little you might run out of working capital, if you ask for too much, lenders might question your projections and planning.</p>https://www.creditmantri.com/articles/how-to-get-a-loan-with-no-prior-credit-historyHow to get a loan with no prior credit historyhttps://www.creditmantri.com/articles/how-to-get-a-loan-with-no-prior-credit-history<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ed5e3f956ca881bf15875bcd50d02e0d_9-How-to-get-a-loan-with-no-prior-credit-history.png'/></p><p>You might think that you have the model application to get a loan &ndash; no prior history of taking a loan, no credit issues with a loan or credit card, no credit cards ( or maybe one at most). In effect, you have a perfect debt-free record.</p> <p>However, lenders do not see a credit-free past in the same way. They want a substantial credit record comprising of multiple loans or credit cards over a long time span to check if you have demonstrated responsible repayment behaviour in the past and to evaluate if you are at low risk for defaulting on payments. They cannot do this with a customer who has absolutely no credit record, or only a very minimal record.</p> <p>What is the way out of this situation? How do you build a credit record when no one is willing to extend credit to you?</p> <p>Fortunately, there are a couple of actions you can take that are guaranteed to build your credit history, provided you do it the right way.</p> <p><strong>Take out a series of small value loans:</strong> Even if you don&rsquo;t need these small amounts, a small loan is an invaluable way of building your record if you have absolutely no credit history. Each loan that you repay in full and on time will help you build a good credit record. Small loans do not require an extensive credit history for approval so they are a good way for people with no prior credit history to create a credit record. It is very important to make all your repayments on time and in full. Any late or skipped payment will have a negative effect on your credit score. Ensuring that you have a perfect repayment record will play a substantial role in making you loan eligible in the quickest time.</p> <p><strong>Apply for a secured credit card:</strong> A secured <a href="https://www.creditmantri.com/credit-card/">credit card</a> is another way for people with no prior credit history to become loan eligible. It works exactly like a regular credit card, the only difference being that you will need to make a security deposit with the issuing bank in order to qualify. In case you do not make your payment, the bank will use your security deposit to recover their dues.</p> <p>Every time you make your monthly payment to clear your credit card bill, the bank reports it to the credit bureaus. Each payment you make will have an immediate positive impact on your score and help build a healthy <a href="https://www.creditmantri.com/free-credit-score-analysis-online/">credit profile</a>.&nbsp;</p> <p>If you have a problem with securing a loan because of a lack of prior credit history, you can approach a reputed credit management company, like CreditMantri, to help build your credit record in the quickest and most optimum way.</p>https://www.creditmantri.com/articles/how-do-i-apply-for-a-capital-first-personal-loanHow do I apply for a Capital First personal loanhttps://www.creditmantri.com/articles/how-do-i-apply-for-a-capital-first-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/91f2eb1a52b2d3b600eea4fe004eccdf_10.-How-do-I-apply-for-a-Capital-First-personal-loan.png'/></p><p>Capital First is an NBFC (Non-Banking Financial Company) that is in the consumer and corporate businesses.&nbsp; You can avail of a variety of loans under its retail lending portfolio, including a personal loan.</p> <p><strong>Am I eligible for a personal loan from Capital First? </strong></p> <p>If you have already availed of a consumer <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan">durable loan</a> or a two-wheeler loan from Capital First, then you may be eligible for the loan. You need to be at least 21 years of age to apply.</p> <p><strong>What is the documentation required?</strong></p> <p>In order to apply, you will need to furnish the following documents:</p> <p>1. A completed application form</p> <p>2. Photo identity</p> <p>3. Proof of date of birth</p> <p>4. Photograph</p> <p>5. Security cheques and a cancelled cheque</p> <p><strong>What is the loan application process?</strong></p> <p>You can submit the Online Enquiry form on the Capital First website. Alternatively, you can</p> <p>1. Visit the nearest branch in order to apply. A list of branches is available on the website.</p> <p>2. Call the toll-free number listed on the website for details on the loan process.</p> <p>3. Ask a representative to get in touch with you with details about the loan</p> <p><strong>Other features of the loan</strong></p> <p>You can avail of insurance options on your loan with competitive premiums</p> <p>You can choose to foreclose your loan</p> <p><strong>What are the advantages of a </strong><a href="https://www.creditmantri.com/personal-loan/"><strong>personal loan</strong></a><strong>?</strong></p> <p>1. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You have the freedom to use the money in any way you want &ndash; it could be for a child&rsquo;s wedding celebration, home renovations, medical emergency or even a vacation. This in contrast to a home loan or auto loan where the loan amount can only be used to buy a property or a vehicle respectively.</p> <p>2. Lack of collateral. This is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the cash required as collateral.</p> <p>3. Relatively quick. This type of loan does not require as much documentation as a home or auto loan, for instance, as it is not being taken for a specific purpose.</p> <p>If you do not have any assets like a home, or shares or <a href="https://www.creditmantri.com/gold-loan/">gold to offer</a> as security, and are in need of money urgently, this is perhaps the most convenient option.</p>https://www.creditmantri.com/articles/tips-for-a-first-time-home-buyerTips for a first-time home buyerhttps://www.creditmantri.com/articles/tips-for-a-first-time-home-buyer<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/22520deacd908644f519ebb9c57039dc_12-Tips-for-a-first-time-home-buyer.png'/></p><p>Buying a home of one&rsquo;s own is a universal dream shared by millions around the world. And while it can be an exciting experience, the decision to be a <a href="https://www.creditmantri.com/first-time-borrower/">first-time</a> home buyer can also be accompanied nervousness and apprehension about the process! However, identifying a home and finding an appropriate loan should not be the cause of excitement and fulfillment, not worry! Here are some tips for a first-time home buyer in India.</p> <p><strong>I am a first-time home buyer. What should my first steps be? </strong></p> <p>a. If you are thinking of buying a home with a loan, then your first step should be to obtain a copy of your Credit Information Report (CIR) or credit report to check your credit history and credit score. That way, if you have a low score, you have enough time to strengthen your credit profile and become loan eligible, instead of running the risk of loan rejection.</p> <p>b. One you have started working on your credit score and identified a property, research the loan offers available. As a first-time home buyer, it might initially seem a bit overwhelming but it is important to compare interest rates, tenures, fees and other features in detail since it is a significant personal financial commitment that can stretch for decades. You can consult with a professional, if required. Make sure to clarify any doubts with the bank/housing finance company and, most importantly, do not hurry and rush into a decision.</p> <p><strong>How can I qualify for a home loan as a first-time buyer? What do lenders look for?</strong></p> <p>Lenders look at several factors when determining whether to approve of your housing loan application. They include the following indicators:</p> <p>1. Your credit score: Typically, you need a minimum <a href="https://www.creditmantri.com/cibil-score/">credit score</a>of 750 for lenders to proceed with processing your application.</p> <p>2. Your credit report: Lenders check your payment history over the years to see if you have a record of making payments on time and in full over all your past loans.</p> <p>3. Employment status and salary: Lenders want to be assured that you will have a steady monthly income to pay off your EMIs over the loan period.</p> <p>4. Clean title deed and complete documentation of the property: While this requirement is not related to your individual credit situation, banks want to ensure that there is no problem with the collateral (the home) in case you default on your loan.</p> <p><strong>What are the reasons my home loan application could be rejected?</strong></p> <p>There are three main reasons your loan application could be rejected.</p> <p>1. <em>Personal reasons</em>: If the loan amount you are asking for is greater than what you can afford, lenders may be unwilling to take on the risk of default. Make sure that you choose a property that is not too expensive and that fits in with your income. Also if you have too many loans and EMI obligations, lenders might think that you will not be able to take on an additional loan repayment on your current income.</p> <p>2. <em>Credit reasons:</em>&nbsp; If you have a poor credit history and credit score, lenders might not want to take the risk of lending to you. If your loan application has been rejected earlier (any kind of loan - whether home or auto or <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>), banks will see that as a warning signal that other lenders have not found you to be a suitable for a loan and they may reject your application again. There could also be external credit &ndash;related reasons for rejection - for example, your co-applicant could have a bad credit score, or you might be guarantor of a loan that has been defaulted on.</p> <p>3. <em>Legal reasons</em>: If there is any problem with the legal documents pertaining to the property, the banks will be unwilling to approve your loan application.</p>https://www.creditmantri.com/articles/credit-profile-for-first-time-home-buyersCredit profile for first-time home buyershttps://www.creditmantri.com/articles/credit-profile-for-first-time-home-buyers<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1bc94a273a81625b357edfa3d30dd2dd_14-First-time-home-buyer-credit.png'/></p><p>Are you in the loan market as a first-time house buyer? Identifying a suitable home and then finding the finances to purchase it can be a new and unfamiliar terrain for most people. Here are some tips on the kind of buyer credit that lenders look for when they review a <a href="https://www.creditmantri.com/home-loan/">home loan</a> application.&nbsp;</p> <p><strong>How can I qualify for a home loan as a first-time house buyer? What do lenders look for?</strong></p> <p>Lenders look at several factors regarding the buyer&rsquo;s credit when determining whether to approve the housing loan application. They include the following indicators:</p> <p>1. Your credit score: Typically, you need a minimum credit score of 750 for lenders to proceed with processing your application.</p> <p>2. Your credit report: Lenders check your payment history over the years to see if you have a record of making payments on time and in full over all your past loans.</p> <p>3. Employment status and salary: Lenders want to be assured that you will have a steady monthly income to pay off your EMIs over the entire loan period.</p> <p>4. Clean title deed and complete documentation of the property: While this requirement is not related to your individual credit situation, banks want to ensure that there is no problem with the collateral (the home) in case you default on your loan.</p> <p><strong>As a first-time house buyer, what are the reasons my home loan application could be rejected?</strong></p> <p>There are three main <a href="https://www.creditmantri.com/articles/6-Reasons-Your-Home-Loan-Could-Be-Rejected/">reasons your loan application could be rejected</a>.</p> <p>1. <em>Personal reasons</em>: If the loan amount you are asking for is greater than what you can afford, lenders may be unwilling to take on the risk of default. Make sure that you choose a property that is not too expensive and that fits in with your income. Also if you have too many loans and EMI obligations, lenders might think that you will not be able to take on an additional loan repayment on your current income.</p> <p>2. <em>Credit reasons:</em>&nbsp; If you have a poor credit history and credit score, lenders might not want to take the risk of lending to you. If your loan application has been rejected earlier (any kind of loan - whether home or auto or <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>), banks will see that as a warning signal that other lenders have not found you to be a suitable for a loan and they may reject your application again. There could also be external credit &ndash;related reasons for rejection - for example, your co-applicant could have a bad credit score, or you might be guarantor of a loan that has been defaulted on.</p> <p>3. <em>Legal reasons</em>: If there is any problem with the legal documents pertaining to the property, the banks will be unwilling to approve your loan application.</p>https://www.creditmantri.com/articles/loans-from-hdfc-for-wedding-expensesLoans from HDFC for wedding expenseshttps://www.creditmantri.com/articles/loans-from-hdfc-for-wedding-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/5eadfb078fdc0b01f8a17e92ff6fdb09_15.-Marriage-loan-HDFC.PNG'/></p><p>Celebrating a child&rsquo;s wedding is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude &ndash; which is why many parents and couples look for a suitable &lsquo;marriage loan&rsquo; that can help them tide over this huge cash outflow.</p> <p>While there is no specific product known as a marriage loan, you can take a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> to cover the costs of organizing a wedding. A personal loan can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies.&nbsp; You do not need to specify the end-use of the loan amount.&nbsp; Almost all banks and NBFCs offer personal loans and HDFC is one of the leading lenders in the country.</p> <p><strong>How to apply to HDFC for a &lsquo;marriage loan&rsquo;</strong></p> <p>It is easy to apply for a personal loan from HDFC to help you cover wedding expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online on the bank&rsquo;s website <a href="https://www.creditmantri.com/should-I-check-my-cibil-score-before-applying-for-a-loan">before applying for the loan</a>. Once you complete the eligibility check, you can apply for the loan online or visit a branch for details. At some select branches (listed on the website) you can get approval within a day.</p> <p>There is not much documentation required as there is no specific loan purpose ( like a home or automobile) and could include ID proof, address proof, bank statements and salary slips. The documentation will vary with your profession, income and loan requirement.</p> <p>&nbsp;Once you apply online, you will receive an application reference number. You can use that number to track the status of your loan application online.</p> <p><strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate on a personal loan ranges from 15%-20%. The interest rate charged depends on a number of factors including income, profession, credit score, and relationship with the bank among others. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>1. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You have complete freedom to use the money for any purpose you want; even it is not related to marriage expenses.</p> <p>2. Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise collateral quickly.</p>https://www.creditmantri.com/articles/how-much-can-i-borrow-for-a-home-loanHow much can I borrow for a home loanhttps://www.creditmantri.com/articles/how-much-can-i-borrow-for-a-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/10318f6d47d9a6ab4c5957052b5952fb_16-How-much-can-I-borrow-for-a-home-loan.png'/></p><p>It is not an exaggeration to say that one of the goals common to people across the world is to own a home. However, for most people, buying a home automatically means having to get a home loan to help them finance the huge cost. In India too, buying a house of your own is perceived as a much desired sign of stability and security. Fortunately, it has never been easier to borrow money for buying a house and the market is flush with a multitude of loan products and offers to choose from.</p> <p><strong>What is the amount I can borrow on a home loan?</strong></p> <p>The amount that the bank is willing to offer as credit is dependent on a variety of factors including your credit history and <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, your age, your income and employment status, and your existing loan obligations. The <a href="https://www.creditmantri.com/home-loan/">home loan</a> amount can go up to 85% of the value of the property, but this is a variable figure and the final decision lies with your lender. In general, you will be eligible to borrow a high loan amount if:</p> <p>1. You have a credit score of 750 or above.</p> <p>2. You have a healthy credit profile with no delinquencies or accounts with &lsquo;Closed&rsquo; or &lsquo;Written-Off&rsquo; status</p> <p>3. You have steady employment and a reasonable monthly income. If you have a healthy projection of your future salary, you stand to be eligible for a higher loan amount.</p> <p>4. Your monthly loan obligations (including all your existing EMIs) do not exceed 50% of your net monthly income. How much the bank/financial institution decides to lend you depends on, among other factors, your existing loan obligations and your ability to take on further debt and service it over the long duration of the loan.</p> <p>If the loan amount you are asking for is greater than what you can afford, lenders may be unwilling to take on the risk of default. Make sure that you choose a property that is not too expensive and that fits in with your income.</p> <p><strong>What are the tenure interest rates on a home loan?</strong></p> <p>Since home loans can be large, the repayment period is commensurately long. The tenure can stretch to up to 30 years.&nbsp;</p> <p>There are two basic types of interest rates and you need to study all the interest rate options carefully before deciding which one to choose:</p> <p>Fixed rate: You pay one <a href="https://www.creditmantri.com/articles/icici-fixed-deposit-interest-rates">fixed interest rate</a> for the entire tenure of your loan and you have a fixed EMI for the entire duration of the loan.</p> <p>Floating rate: The interest rate you pay varies during your loan tenure, depending on external market conditions.&nbsp; You would choose this option if you are confident that interest rates will go down during your loan period.</p> <p>A home loan is a substantial financial commitment and you need to learn about all the options or consult a professional to determine which combination of loan amount, tenure and interest rate suits your needs the best.&nbsp;</p>https://www.creditmantri.com/articles/tips-for-taking-a-personal-loan-for-the-first-timeTips for taking a personal loan for the first timehttps://www.creditmantri.com/articles/tips-for-taking-a-personal-loan-for-the-first-time<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/542d6b7dfc35adfce7afea7d5eb06322_18-Tips-for-taking-a-personal-loan-for-the-first-time.png'/></p><p>Taking a personal loan for the first time can be a fairly straightforward matter so long as you keep in mind a few factors. If you are in need of money for a personal expense and do not have any asset to offer as collateral, then this kind of loan might be the best option. You, the borrower, have full freedom to use the money for any purpose you want.</p> <p>There are two attractive features of a personal loan if you are in need of quick funds for a personal expense:</p> <p>1. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount. You can use the loan money to fund any personal expense like, for example, a wedding, or to make renovations to the home, pay for medical expenses, or even for a vacation. This in contrast to a <a href="https://www.creditmantri.com/home-loan/">home loan</a> or <a href="https://www.creditmantri.com/auto-loan/">auto loan </a>where the loan amount can only be used to buy a property or a vehicle respectively.</p> <p>2. Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.</p> <p><strong>When should I choose a personal loan?</strong></p> <p>1. If you need money quickly and for a relatively short term, then a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>is a good option. The loan disbursal is relatively quicker than for most other loans since you do not have to provide documentation for the purpose the loan amount will be used for.</p> <p>2. If you do not have any assets to pledge as collateral for a loan, then a personal loan is a good option. In order to safeguard their money, lenders will instead study your credit and repayment history to judge if you are at low risk for default and decide whether to approve your application.</p> <p>Make sure that you have a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of at least 750 before you apply for a personal loan to maximise your chances of success. If your application is rejected because of a low credit score, your score will drop even further with each rejection, making it even more difficult to access loans in the future.</p> <p><strong>What is the typical amount and loan period of a personal loan?</strong></p> <p>There is no typical loan amount and the loans can range from a few thousand rupees to several lakhs.</p> <p>When applying for a personal loan, make sure you apply for an amount that is possible for you to repay within the period. If you apply for too large an amount compared to your net monthly income, you might be rejected.</p> <p>The tenure can range from 1-5 years. &nbsp;</p> <p><strong>How do I choose the best loan offer?</strong></p> <p>The only way to decide which loan offer to apply for is to research the various options thoroughly. Once you have a good idea of the offers and schemes available, you can judge which offer suits your financial situation and requirements the best.</p> <p>If you are in immediate need of money and do not have any asset to use as collateral, then a personal loan might be the best option. However, it is important to keep in mind that you will be paying high interest rate charges on this kind of loan, so you should be have a plan for being able to make all your repayments on time.</p>https://www.creditmantri.com/articles/things-to-know-when-applying-for-a-first-credit-cardThings to know when applying for a first credit cardhttps://www.creditmantri.com/articles/things-to-know-when-applying-for-a-first-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d9c53772664df977cce3e43174671670_20-Things-to-know-when-applying-for-your-first-credit-card.png'/></p><p>Are you applying for a first credit card? You might have many questions and concerns regarding their use and how to choose the card best suited to you.&nbsp; In many developing economies, like India, credit cards are becoming increasingly popular because of their convenience and ease of use. You can use a <a href="https://www.creditmantri.com/credit-card/">credit card</a> to buy anything from jewelry to groceries. Having a credit card means that you do not need to carry around cash with you at all times to make purchases. It is a safe and convenient method of payment.</p> <p>&nbsp;In very simple terms, a credit card</p> <p>1. Allows you to borrow money from the bank on a monthly basis to make purchases. When you buy something using your credit card, you are using your credit card issuer&rsquo;s money on loan &ndash; for free- &nbsp;until you pay off the amount when you get your credit card bill at the end of a month</p> <p>2. Allows you to make cash withdrawals from an ATM in case of an emergency &ndash; i.e. if you in a foreign country, or do not have your ATM card with you, or do not have time to go to the bank to withdraw cash from your account, you can use a credit card to make a cash withdrawal from an ATM machine.</p> <p><strong>What is the best kind of first credit card/beginner credit card?</strong></p> <p>There are several options for a first credit card. If you have absolutely no credit history &ndash; i.e. if you have never taken a loan or credit card, then it might be difficult to get approved for a first credit card with absolutely no credit background. In this case, a secured credit card might be a good option. A secured credit card works just like a credit card except that you need to make a fixed deposit in order to get a secured card. The bank uses the deposit as collateral in case you default on your payment.</p> <p>&nbsp;A secured credit card is typically used by people who cannot qualify for a regular unsecured credit card either because they have bad credit or because they do not have a sufficient credit history. Even people with bad or no credit can get a card as the bank is safeguarded against default. It is a simple and quick way to improve your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and build your credit history, provided you make all your payments on time.</p> <p><strong>How to get approved for a first card</strong></p> <p>Credit card issuers like to see a long credit history so that they can judge if you are a low risk or high risk customer.&nbsp; If you have a minimal credit history, then apply for a &lsquo;secured credit card&rsquo; to ensure that you can first build your credit before applying for a regular credit card.</p> <p>If you have already taken loans and have a <a href="https://www.creditmantri.com/what-is-a-good-credit-score">good credit record</a>, then you can apply online or in person at the branch, once you have researched the various offers available.</p> <p>Make special note of the following when making your decision:</p> <p>-&nbsp;&nbsp; Interest rate</p> <p>-&nbsp;&nbsp;&nbsp; Joining fee</p> <p>-&nbsp;&nbsp;&nbsp; Annual fee</p> <p>Make sure you have a credit score of at least 750 to maximise your chances of being approved. If you have a <a href="https://www.creditmantri.com/">low score</a>, take time to improve it <em>before </em>you apply for a card.</p>https://www.creditmantri.com/articles/how-to-apply-for-a-new-icici-credit-cardHow to apply for a new ICICI credit cardhttps://www.creditmantri.com/articles/how-to-apply-for-a-new-icici-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/1ae2ccc1ab9c3105c95bf1f2b5aa59da_22-How-to-apply-for-a-new-ICICI-credit-card.png'/></p><p>If you are planning to apply for a new credit card from ICICI Bank, you have a huge array of cards to choose from. You have the option of lifestyle cards that offer discounts on shopping, dining at restaurants and leisure activities like movies; or you can choose a card with travel benefits including frequent flyer miles, complimentary airport lounge access, fuel surcharge waivers; or you can choose a card that offers attractive cashback benefits and rewards programmes.</p> <p>If you are a little undecided, the ICICI Bank website offers a feature where you can compare the cards you are considering. It lists the main features of the cards, the benefits, the joining fee and the annual fee. This comparative list will help you make a quick comparison on the benefits of each card.</p> <p>When you are choosing which <a href="https://www.creditmantri.com/credit-card/">new credit card</a> to apply for, make note of the interest rate charged on the balance, the joining fee, the annual fee, the whether the benefits suit your lifestyle and requirements. For instance, if you do not play golf, then a card that offers golfing privileges will not be of much use. Similarly, if you do not fly frequently, then a card that links your expenditure to airline miles is not suitable, and it might make more sense to go for a lifestyle card that offers discounts on shopping and dining.</p> <p><strong>How to apply for a new credit card from ICICI Bank</strong></p> <p>You can apply two ways for a new card:</p> <p>Online: It is quick and simple to apply for a new card online. You need to fill in a few personal details including your date of birth, city of residence, employment status, net monthly income and company name among other details. Based on this information, you will be offered a list of <a href="https://www.creditmantri.com/icici-bank-credit-cards/">ICICI credit cards</a> that you qualify for. You simply need to choose the card that best suits your specifications and upload the necessary documents including ID, address and income proof.</p> <p>Offline: You can visit the nearest ICICI branch and fill in the application form and submit the requisite documentation. Alternatively, you can ask for a representative to contact you by phone, sms or email with details on the application process.</p> <p>It typically takes a maximum of 21 working days for a new credit card application to be processed.</p> <p><strong>Tracking your application</strong></p> <p>It is possible to track the status of your application online. When you submit your application, you will receive a reference number. Click on the &ldquo;Track Application Status&rdquo; tab on the credit cards section of the ICICI bank website, and enter the reference number. You can instantly learn the progress of your application.</p>https://www.creditmantri.com/articles/eligibility-for-loan-against-propertyEligibility for Loan against Propertyhttps://www.creditmantri.com/articles/eligibility-for-loan-against-property<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7216fcc82ebe018aa9dc7a4b01debaa5_24-Eligibility-for-Loan-against-Property.png'/></p><p>A Loan Against Property is exactly what its name suggests &ndash; it is a loan where the bank or NBFC (Non-Banking Financial Company) lends you money and holds your property as security until the loan is repaid. Of course, the loan approval is dependent on the property eligibility, among other factors.&nbsp; Once you repay the loan in full, you regain possession of the property. In case you fail to repay the loan, the lender can attach the property and dispose of it to recover the unpaid dues.</p> <p><strong>Advantage of Loan Against Property over a personal loan</strong></p> <p>A Loan Against Property is a popular type of loan to take as it is one of the cheaper retail loans available. It is similar to a personal loan in that you can use the loan amount for any purpose &ndash; like debt consolidation, business expansion, education expenses, family or medical emergency. However, when compared to a personal loan (which offers similar flexibility of end-use), it offers a lower interest rate, a larger loan amount and a longer repayment period.</p> <p><strong>What are the property eligibility criteria for a Loan Against Property?</strong></p> <p>1. Residential properties are eligible, either self-occupied or if you have rented it out to a tenant. You cannot avail of a <a href="https://www.creditmantri.com/loan-against-property/">loan against property</a>that you do not own, or that you pay rent on. You can also avail of a LAP (Loan Against Property) for an empty unused plot of land.</p> <p>2. You must have a clean title deed, with no encumbrances (like other loans, mortgage or litigation) which could adversely affect the title.</p> <p>3. Commercial properties can also be used for a mortgage loan against property. Using a commercial property for loan will also require similarly clean property documentation.</p> <p>4. If the property being mortgaged is under construction, then the bank usually disburses the loan in tranches or installments. Only interest will be levied on the amount that is already disbursed &ndash; i.e. you only need to pay interest on the amount you have received, you do not need to make payments towards repayment of the undisbursed loan amount. This is the Pre-EMI. Only once the full loan is disbursed, you will be liable to pay the regular EMI that includes both interest and principal repayment.</p> <p>You will need to get all the property papers stamped according to local stamp duty laws. You will be responsible for all the costs relating to the property documents. You can ask your lender for the applicable stamp duty on your loan.</p> <p><strong>Can I get a loan against property if the property is jointly owned?</strong></p> <p>Yes, you can get a loan on property even if it has multiple owners so long as all the co-owners are co-applicants for the loan.</p> <p><strong>Is there any restriction on the location of the pledged property?</strong></p> <p>Some lenders might have a list of cities where the property needs to be located. However, it is best to check these details with each individual lender.</p>https://www.creditmantri.com/articles/what-are-the-interest-rates-on-a-loan-against-propertyWhat are the interest rates on a Loan Against Propertyhttps://www.creditmantri.com/articles/what-are-the-interest-rates-on-a-loan-against-property<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a9771f27742ad3689d4b3649833812b1_25-What-are-the-interest-rates-on-a-Loan-Against-Property.png'/></p><p>If you are in need of a significant amount of money and own property, then a Loan Against Property is an attractive, and relatively reasonable, credit option to consider. People often view a property as being of value only in bringing in rental income or selling at an appreciated price. It is often overlooked as an asset when raising funds for business or personal expenses. If you are in need of substantial funds, you can unlock the dormant potential of your property and raise funds at a relatively lower interest rates than a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>.</p> <p><strong>What are Loan Against Property interest rates?</strong></p> <p>There are two types of interest rates on such loans:</p> <p>Fixed rate of interest: The interest rate remains the same for the entire duration of the loan. Lenders usually offer this type of interest rate for a pre-specified tenure of loan, and many may not offer this as an option for a <a href="https://www.creditmantri.com/loan-against-property/">loan against property</a>.</p> <p>Floating rate of interest: The interest rate changes according to prevailing market rates. Since the rate changes and is dependent on fluctuating market conditions, it is not possible to predict a typical rate.</p> <p>The floating interest rate is linked to the Marginal Cost of Funds based Lending Rate (MCLR). The rates are typically published on the lender website and could change periodically. In general, the interest rate on this kind of loan could range from 11%-15% per annum.</p> <p><strong>How do the interest rates affect the EMI?</strong></p> <p>The floating interest rates could change on a regular basis, depending on your lender, leading to a potential change in your EMI as well. You may, however, choose to leave your EMI amount unchanged by changing the tenure of your loan. The longer the tenure, the lower the monthly EMI burden will be. If there is a change in the rate, you will be notified in advance by the bank. If you have chosen to repay your loan with post-dated cheques, you will need to pay the difference between the existing interest amount and the new interest amount separately.</p> <p>Your EMI could also change if you make a partial pre-payment on your loan. Full prepayment of the loan is also possible in many cases. When making any prepayment &ndash; whether full or partial -keep in mind that it is subject to the terms and conditions of the loan regarding charges.</p>https://www.creditmantri.com/articles/loans-for-setting-up-a-new-businessLoans for setting up a new businesshttps://www.creditmantri.com/articles/loans-for-setting-up-a-new-business<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/5b526b09385702acc7ffaf7e45ad8dfd_27.-Loans-for-setting-up-a-new-business.png'/></p><p>Being an entrepreneur can be a very exciting business! The satisfaction of creating a new business from scratch and making it grow is a unique experience, both exhilarating and frustrating in equal measure.&nbsp; As always, money plays an important part in converting dreams into reality and a business loan is probably one of the simplest and most effective ways to fund your independent venture.</p> <p><strong>Can I get a loan to start a new business?</strong></p> <p>A business loan is a simple way of raising funds to start a new business or expand an existing business. It is often an unsecured loan which means that you do not have to provide collateral. This can be a big relief for a small entrepreneur who might not have any ready asset to offer as collateral.</p> <p><strong>Typical amount and tenure </strong></p> <p>&nbsp;The loan amount can vary with each lender but can go up to Rs 30 lakhs, depending on the <a href="https://www.creditmantri.com/first-time-borrower">borrower&rsquo;s eligibility</a>.&nbsp; &nbsp;A new business might not be eligible for a large loan, but if the repayments are made on time and you build a good credit record, you will qualify for a larger loan. Business loans are generally short term loans and the repayment period ranges from 1- 5 years.</p> <p><strong>Documents required</strong></p> <p>&nbsp;The documents required differ from bank to bank and could include:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp; Completed application form</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp; Bank Statements</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp; Income Tax returns</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp; KYC of the co-applicant</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp; Proof of business practice</p> <p><strong>How to apply </strong></p> <p>You can apply online at many lender websites for a loan to start your new business. Alternatively, you can also ask to be contacted by a representative of the bank or NBFC for further details on the loans offered and to check your eligibility.</p> <p><strong>Tips for a successful application </strong></p> <p>1. Offer a good business plan with cash flow projections: Banks will lend you money if they think that you have a clear idea on how the money will be used and if they feel reassured that their money will be used productively.</p> <p>2. Check your eligibility: Lenders have a set of eligibility criteria which could include a minimum turnover, number of years in business and minimum annual income. It is important to make sure that you qualify for each of these <em>before</em> you apply for the loan to avoid the possibility of being rejected. Some banks allow you to check your eligibility online in a couple of minutes.&nbsp;</p> <p>3. Have the required documentation ready: Many applications are rejected because the documentation is incomplete. If necessary, speak with a bank official so that you have an exact list of the documentation required. Make sure that you include every document when you submit your application.</p>https://www.creditmantri.com/articles/obtaining-a-gold-loan-from-manappuramObtaining a gold loan from Manappuramhttps://www.creditmantri.com/articles/obtaining-a-gold-loan-from-manappuram<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/9572b9384348eecd8eb4daf6d7ef8d51_28-Mannapuram-branches-in-Chennai.png'/></p><p>If you are in quick need of money and own gold jewellery, then a gold loan is an attractive and convenient option. Several lenders, including Manappuram Finance Limited, offer <a href="https://www.creditmantri.com/gold-loan/">gold loans</a> that are disbursed quickly and with minimal documentation.</p> <p>Of course, since family jewelry is involved, it is important to make sure that you choose a reliable lender and that you are confident of redeeming your gold at the end of the loan tenure.</p> <p><strong>Loan amount and tenure for a gold loan from Manappuram</strong></p> <p>Amount: The loan amount depends on the value of the gold pledged. The gold should be of 18K-24K purity and the minimum loan amount is Rs 1000 while the maximum is Rs 1 crore.&nbsp;</p> <p>Tenure: The tenure for a gold loan ranges from 1 month to 1 year. The tenure can be extended if you service the interest periodically.</p> <p>Interest rate: The interest rate depends on the ratio of the loan amount to the value of the gold pledged or Loan to Value (LTV). For instance, if your gold is valued at Rs 1 lakh, a loan amount of Rs. 60,000 would attract a higher interest rate than a loan amount of Rs. 30,000. Manappuram does not charge a penalty for prepayment of the loan.</p> <p><strong>Documentation required for a gold loan</strong></p> <p>There is minimal documentation required since your gold is held as security. You need to have documents for ID proof and residence proof. There is no need for a Guarantor or Co-Signer.</p> <p><strong>Chennai branches of Manappuram</strong></p> <p>There are over 100 branches of Manappuram Finance Limited in Chennai district and it is simple to walk into the closest branch to procure your gold loan. There is a list of branches available on the company website. After the gold is valued, the approval is completed in minutes.</p> <p><strong>General advantages of a gold loan</strong></p> <p><em>It is a quick process:</em> In India, gold loans are some of the quickest loans to be sanctioned.</p> <p><em>Quick disbursal of money:</em> Many lenders can have your gold valued quickly and sanction the loan immediately.</p> <p><em>Minimal documentation required</em>: Another advantage of a gold loan is that you are not required to submit a salary certificate since your gold is used as collateral. Even if you are currently unemployed or do not have a good credit score, you will still be eligible for this kind of loan. However, it is possible that for loans above a certain amount, some lenders might ask for a salary certificate.</p> <p><em>Safe way to utilize an idle asset:</em> Instead of storing your gold in a locker or at home, you can use it to raise money.</p> <p><em>Lower interest rates:</em> In general, interest rates on these loans are lower than on <a href="https://www.creditmantri.com/personal-loan/">personal loans</a> since the lenders have your gold as collateral.</p>https://www.creditmantri.com/articles/loans-from-sbi-for-wedding-expensesLoans from SBI for wedding expenseshttps://www.creditmantri.com/articles/loans-from-sbi-for-wedding-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a968b5deee77302c8498e04d39ef0c29_29-Loans-from-SBI-for-wedding-celebrations.png'/></p><p>Celebrating a child&rsquo;s wedding is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude &ndash; which is why many parents and couples look for a suitable &lsquo;marriage loan&rsquo; that can help them tide over this huge cash outflow.</p> <p>While there is no specific product known as a marriage loan, you can take a personal loan to cover the costs of organising the wedding. A <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies.&nbsp; You do not need to specify the end-use of the loan amount.&nbsp; Almost all banks and NBFCs offer personal loans and State Bank of India (SBI) is one of the leading lenders in the country.</p> <p><strong>How to apply to State Bank of India for a &lsquo;marriage loan&rsquo;</strong></p> <p>It is easy to apply for a personal loan from SBI to help you cover wedding expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online on the website before applying and get a loan quote. You can apply for the loan online or visit a branch for details.&nbsp; You can also call the toll free number listed on their website for more details on personal loans.</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, credit score and relationship with the bank among others. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>1. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You have complete freedom to use the money from the &lsquo;marriage loan&rsquo; for any purpose you want - even it is not related to the marriage.&nbsp;</p> <p>2. Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to readily raise collateral.</p>https://www.creditmantri.com/articles/interest-rates-on-loans-for-wedding-expensesInterest rates on loans for wedding expenseshttps://www.creditmantri.com/articles/interest-rates-on-loans-for-wedding-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/8a02ac5e401a1dc70c5ed9058fd93dec_30-Interest-rates-on-loans-for-wedding-expenses.png'/></p><p>Celebrating a child&rsquo;s wedding is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude &ndash; which is why many parents and couples look for a suitable &lsquo;marriage loan&rsquo; that can help them tide over this huge cash outflow.</p> <p>While there is no specific product known as a marriage loan, you can take a personal loan to cover the costs of organising the wedding. A <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies.&nbsp; You do not need to specify the end-use of the loan amount.&nbsp; Most banks and NBFCs offer personal loans, though the only disadvantage of a personal loan is that it has a higher than average interest rate.</p> <p><strong>How to apply for a &lsquo;marriage loan&rsquo;</strong></p> <p>It is easy to apply for a personal loan to help you cover your child&rsquo;s wedding expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a loan. You can apply for the loan online or visit a branch for details.&nbsp;</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, credit score, relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-20%. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>&bull; Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You have complete freedom to use the money from the &lsquo;marriage loan&rsquo; for any purpose you want - even it is not related to marriage expenses.&nbsp;</p> <p>&bull; Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the collateral required.</p>https://www.creditmantri.com/articles/loans-in-chennai-for-wedding-expensesLoans in Chennai for wedding expenseshttps://www.creditmantri.com/articles/loans-in-chennai-for-wedding-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ba3f0e281c7b258b7fe7b477e2fd1579_31-Loans-in-Chennai-for-wedding-expenses.png'/></p><p>If you are based in Chennai and looking for &nbsp;&lsquo;marriage loans&rsquo; that will help you cover the enormous expenses associated with a wedding, the internet can bring the best loan offers from around the country to your doorstep. You need not limit yourself to a local lender &ndash; every major bank and NBFC has a branch presence in the city and you can choose which offer best suits your requirements.</p> <p>Celebrating a child&rsquo;s wedding is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. While there is no specific product known as a marriage loan, you can take a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> to cover the costs of organising the wedding. A personal loan can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies.&nbsp; You do not need to specify the end-use of the loan amount.&nbsp; Almost all banks and NBFCs offer personal loans, though the only disadvantage of a personal loan is that it has a higher than average interest rate.</p> <p><strong>How to apply for &lsquo;marriage loans&rsquo; </strong></p> <p>You may live in <a href="https://www.creditmantri.com/chennai-personal-loan/">Chennai</a>, but you can search the net for the best personal loan offers that will help you cover your child&rsquo;s wedding expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a loan. You can apply for the loan online or visit a branch for details.&nbsp;</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, credit score and relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-20%. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>1. Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You have complete freedom to use the money from &lsquo;marriage loans&rsquo; &nbsp;for any purpose you want, even it is not related to marriage expenses.</p> <p>2. Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the required collateral.</p>https://www.creditmantri.com/articles/taking-a-personal-loan-for-marriage-expensesTaking a personal loan for marriage expenseshttps://www.creditmantri.com/articles/taking-a-personal-loan-for-marriage-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a65a7fca862cf2c1e3a4994751b2f735_39-Taking-a-personal-loan-for-marriage-expenses.png'/></p><p>A big fat Indian wedding also means big fat expenses for the couple and the parents of the couple!&nbsp; Celebrating a child&rsquo;s wedding is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude &ndash; which is why many parents and individuals look for a loan for marriage expenses and take out a personal loan that can help them tide over this huge cash outflow.</p> <p>While there is no specific product that is a loan for marriage, a personal loan is one of the most convenient options for covering the huge costs of a wedding. It can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies. &nbsp;Most banks and NBFCs offer personal loans, though one needs to keep in mind the relatively high interest rate - it is one of the most expensive loans to take as the customer does not provide any collateral or security.</p> <p><strong>How to apply for a personal loan</strong></p> <p>It is easy to apply for a loan for marriage expenses to help you cover wedding expenses by <a href="https://www.creditmantri.com/personal-loan/">applying for a personal loan</a>. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a loan. You can apply for the loan online or visit a branch for details.&nbsp;</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-20%. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>&bull; Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You have complete freedom to use the money for any purpose you want, even it is not related to the marriage.&nbsp;</p> <p>&bull; Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the collateral required.</p>https://www.creditmantri.com/articles/loans-to-cover-wedding-expensesLoans to cover wedding expenseshttps://www.creditmantri.com/articles/loans-to-cover-wedding-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/dea64beb2f63ccad1bee3ca5ba2a1d86_43-Loans-to-cover-wedding-expenses.png'/></p><p>Celebrating a child&rsquo;s marriage is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude &ndash; which is why many parents and couples look for suitable &lsquo;wedding loans&rsquo; that can help them tide over this huge cash outflow.</p> <p>While there is no specific product known as wedding loans, you can take a personal loan to cover the costs of organising the marriage. Personal loans can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies.&nbsp; You do not need to specify how the loan amount will be used.&nbsp; Most banks and NBFCs offer personal loans, though the only disadvantage of a personal loan is that it has a higher than average interest rate.</p> <p><strong>How to apply for &lsquo;wedding loans&rsquo;</strong></p> <p>It is easy to <a href="https://www.creditmantri.com/personal-loan/">apply for a personal loan</a> to help you cover your child&rsquo;s wedding expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a loan. You can apply for the loan online or visit a branch for details.&nbsp;</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure on personal loans</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-20%. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>&bull;&nbsp; Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount as a &lsquo;wedding loan&rsquo; to cover the numerous marriage-related expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenditure. You have complete freedom to use the money from the &lsquo;wedding loans&rsquo; for any purpose you want, even it is not related to marriage expenses.&nbsp;</p> <p>&bull;&nbsp; Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the cash required as collateral.</p>https://www.creditmantri.com/articles/low-interest-loans-for-wedding-expensesLow interest loans for wedding expenseshttps://www.creditmantri.com/articles/low-interest-loans-for-wedding-expenses<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/488ef26fb692fbb837cb2c4751ad9b6c_45-Low-interest-loans-for-wedding-expenses.png'/></p><p>A big fat Indian wedding also means big fat expenses for the couple and the parents of the couple!&nbsp; Celebrating a child&rsquo;s wedding is one of the most important occasions in any parent&rsquo;s life &ndash; and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude &ndash; which is why many parents look for suitable &lsquo;wedding loans&rsquo; at a low interest rate that can help them tide over this huge cash outflow.</p> <p>While there is no specific product known as wedding loans, you can take a personal loan to cover the costs of organising the wedding. A personal loan can be used for any purpose &ndash; whether a wedding celebration or an expensive vacation or even medical emergencies.&nbsp; You do not need to specify the end-use of the loan amount.&nbsp; Most banks and NBFCs offer personal loans, though the only disadvantage of a personal loan is that it does not have a low interest rate &ndash; it is one of the most expensive loans to take as it does not involve giving any collateral or security.</p> <p><strong>How to apply for &lsquo;wedding loans&rsquo;</strong></p> <p>It is easy to apply for a personal loan to help you cover your child&rsquo;s marriage expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a loan. You can apply for the loan online or visit a branch for details.&nbsp;</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, credit score and relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-20%. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>&bull;&nbsp; Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You have complete freedom to use the money from the &lsquo;wedding loans&rsquo; for any purpose you want - even it is not related to marriage expenses.&nbsp;</p> <p>&bull;&nbsp; Lack of collateral. A <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to raise the collateral required.</p>https://www.creditmantri.com/articles/how-to-check-your-cibil-score-with-your-pan-cardHow to check your CIBIL score with your PAN cardhttps://www.creditmantri.com/articles/how-to-check-your-cibil-score-with-your-pan-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7fecf40e38990b1e0836daa595538f3b_17.how-to-check-cibil-score-with-pan-card.png'/></p><p>Your CIBIL score can have a significant impact on your ability to access loans and credit cards and it is advisable to ensure that you have a good credit score at all times. Remaining updated on your credit health is possible by obtaining your score online. Once you log on to the website, you will need to provide a few personal details for authentication including your PAN card number, and will receive your credit score on payment of a fee.</p> <p><strong>Can I access my CIBIL score with just PAN card details?</strong></p> <p>You will need to input further details (in addition to your PAN card details) in order to be authenticated. You will need to enter a few personal details like your date of birth, contact details, ID proof and possibly answer a few questions based on your credit history. Once your authentication is successful and you make the requisite payment, you will receive your CIBIL score shortly thereafter.</p> <p>You can opt for one of 3 updates on your <a href="https://www.creditmantri.com/cibil-score/">CIBIL score</a>. You can get a quarterly update (4 times a year), biannual (twice a year) or buy a one-time subscription to learn your score.</p> <p><strong>Why do I need to know my CIBIL score? Which other institutions offer valid credit scores?</strong></p> <p>Your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> gives potential lenders a quick and accurate idea of your credit history. There are 3 well established credit bureaus in India that issue credit reports. They are:</p> <p>&bull; CIBIL</p> <p>&bull; Equifax</p> <p>&bull; Experian</p> <p>The credit scores and credit reports issued by all three bureaus are equally valid, though perhaps CIBIL is the most well-known currently. You can get your Equifax credit score for free by registering with CreditMantri.</p> <p>When you approach a bank or other financial institution for a loan or credit card, the primary eligibility criteria is your credit score. It is advisable to have a credit score of 750 or above in order to qualify for a loan or card. Once you pass this first stage, lenders access your credit report to get a more detailed picture of your repayment behaviour. Some lenders might even make a lending decision primarily on the basis of your credit score.</p> <p>If you are planning to apply for a loan or <a href="https://www.creditmantri.com/credit-card/">credit card</a>, it is a good idea to check your credit score well in advance. You then have enough time to improve your score and rebuild your credit profile before you apply for the loan and avoid the risk of loan-rejection.</p>https://www.creditmantri.com/articles/how-to-get-a-bank-loanHow to get a bank loanhttps://www.creditmantri.com/articles/how-to-get-a-bank-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/4d0e97960a51d196015bea7f1947630c_21.how-to-get-loan-from-bank.png'/></p><p>Need money to pay for emergency medical expenses? Or to buy a two-wheeler? Or maybe to finally own a home? There is a bank loan for all these situations &ndash; and more. Before you apply for a loan, you need to be clear about what type of bank loan you need so you can apply for the right one.</p> <p><strong>How can I qualify for a bank loan? </strong></p> <p><a href="https://www.creditmantri.com/credit-score-advice/"><em>Credit score</em></a><em>:</em> Your loan- eligibility depends on the kind of loan you want. In general, banks look at your credit history (previous loans and credit cards) to see if you have paid off your loans on time. It is advisable to have a credit score of 750 or more to get the best possible terms and conditions on your loan.</p> <p>If you have not taken any loans or <a href="https://www.creditmantri.com/credit-card/">credit cards</a> before, then it is a good idea to build your credit profile <em>before</em> applying for a loan. Many banks might reject your loan application simply because you do not have a credit history.</p> <p><em>Employment status and salary: </em>Banks want to know if you will have a steady income for the duration of the loan so that you will be able to make your loan repayments in full and on time. They also want to make sure that you have a stable job and do not change jobs frequently.</p> <p><strong>What kind of loan can I apply for?</strong></p> <p>Your eligibility also depends on the kind of loan you want to apply for:</p> <p><em>Personal loans:</em> You can use a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> for any personal expense, including your children&rsquo;s education, buying furniture for the home, hospital expenses, celebrating a wedding, or even to pay for a vacation. There are no restrictions on how you can use the money. However, since there is no security or collateral involved bankers will look primarily at your credit history and income before approving the loan since they want to make sure you have a history of making loan repayments on time.</p> <p><em>Auto loans:</em> You can get a loan to buy a two-wheeler or a car. There are a variety of <a href="https://www.creditmantri.com/auto-loan/">auto loan</a> offers in the market. Once again, you need to have a good credit score and minimum income in order to qualify. Your vehicle will be held by the bank as collateral until you repay the loan in full with the interest.</p> <p><em>Home loans:</em> Having a good credit score and credit history will help you get a home loan at the best possible terms.</p> <p><a href="https://www.creditmantri.com/gold-loan/"><em>Gold loans</em></a>: If you have gold jewelry, you can use it as security and get a loan. Since you are pledging your gold as collateral, there is not much documentation involved and the approval and disbursal process is much quicker.</p> <p><strong>How do I choose the best loan offer?</strong></p> <p>There is a ton of material online and you can refer to the various bank websites for details. Alternatively you could leave your contact details and ask a bank representative to contact you. If you do not have the time or inclination to wade through the loan offers, CreditMantri can help you improve your credit profile, if required, match you with the offers that best suit you, and guide you through the entire application process.</p>https://www.creditmantri.com/articles/how-to-get-a-loan-to-cover-wedding-festivitiesHow to get a loan to cover wedding festivitieshttps://www.creditmantri.com/articles/how-to-get-a-loan-to-cover-wedding-festivities<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/aa7a6a11695169f5c350759dd400919d_26.how-to-get-loan-for-marriage.png'/></p><p>Would you love to have a big fat Indian wedding but are wondering where to get the money from? Most people look forward to being able to celebrate their wedding or their children&rsquo;s marriage in lavish style but, as always, the biggest question is where to find funds to cover the enormous marriage expenses. If you are sure you want to take a loan to celebrate the wedding, then a personal loan is the best option as it gives you the freedom to spend on anything you want, does not require a security deposit and does not require excessive documentation. Almost all banks and NBFCs offer personal loans, though the only disadvantage of a personal loan is that it has a higher than average interest rate.</p> <p><strong>How to apply for personal loans</strong></p> <p>You can search the net for the best <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> offers that will help you cover your child&rsquo;s marriage expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a personal loan. You can apply for the loan online or visit a branch for details.&nbsp;</p> <p>There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p>&nbsp;<strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-25%. The loan period typically ranges from 1-5 years. Make sure that even if you use all this loan money on marriage expenses, you will have enough income to repay the loan in full and on time.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>&bull; Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount.&nbsp; You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You also have complete freedom to use the money for any purpose you want, even it is not related to marriage expenses.&nbsp;</p> <p>&bull; Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets.&nbsp; This might make it more attractive to some customers who may not be able to readily provide any security.</p> <p>Celebrating a marriage in the way you want is the dream of every parent and child. A personal loan will help you make that dream a reality!</p>https://www.creditmantri.com/articles/what-are-mortgage-loan-interest-ratesWhat are mortgage loan interest rateshttps://www.creditmantri.com/articles/what-are-mortgage-loan-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a84f2b19f57a15f5fc286a5e9857642b_32.mortgage-loan-interest-rates.png'/></p><p>If you own a property and are in need of funds, a mortgage loan is a simple and relatively inexpensive way to raise money.&nbsp; People often view a property as being of value only in bringing in rental income or selling at an appreciated price. It is often overlooked as an asset when raising funds for business or personal expenses. If you are in need of substantial funds, you can unlock the dormant potential of your property and raise funds at a relatively lower interest rates than a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. A mortgage loan is also known as a loan against property.</p> <p><strong>What are mortgage loan interest rates?</strong></p> <p>There are two types of interest rates on mortgage loans and you need to study all the interest rate options before making a final decision.</p> <p><em>Fixed rate of interest:</em> The interest rate remains the same for the entire duration of the loan. Lenders usually offer this type of interest rate for a pre-specified tenure of loan, and many may not offer this as an option for a <a href="https://www.creditmantri.com/loan-against-property/">loan against property</a>.</p> <p><em>Floating rate of interest:</em> The interest rate changes according to prevailing market rates. Since the rate changes and is dependent on fluctuating market conditions, it is not possible to predict a typical rate.</p> <p>The floating interest rate is linked to the Marginal Cost of Funds based Lending Rate (MCLR). The rates are typically published on the lender website and could change periodically. In general, the interest rate on this kind of loan could range from 11%-15% per annum.</p> <p><strong>How do the interest rates affect the EMI?</strong></p> <p>The floating interest rates could change on a regular basis, depending on your lender, leading to a potential change in your EMI as well. You may, however, choose to leave your EMI amount unchanged by changing the tenure of your loan. The longer the tenure, the lower the monthly EMI burden will be. If there is a change in the rate, you will be notified in advance by the bank. If you have chosen to repay your loan with post-dated cheques, you will need to pay the difference between the existing interest amount and the new interest amount separately.</p> <p>Your EMI could also change if you make a partial pre-payment on your loan. Full prepayment of the loan is also possible in many cases. When making any prepayment &ndash; whether full or partial -keep in mind that it is subject to the terms and conditions of the loan regarding charges.</p>https://www.creditmantri.com/articles/what-are-interest-rates-on-a-new-home-loanWhat are interest rates on a new home loanhttps://www.creditmantri.com/articles/what-are-interest-rates-on-a-new-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/43235ab181cf405d4472a06f54fefaa2_38. new-home-loan-interest-rates.png'/></p><p>Owning your own home can be a big and impossible dream, but very often that dream does come true. If you are looking for a new home loan, there is a huge array of possibilities available in the market. You will need to look at the interest rates, the loan amount you are eligible for, and the tenure of the loans on offer and compare the benefits and features. Once you identify a property, finding a suitable home loan to enable you to buy it should not be a problem.</p> <p><strong>What are the interest rates on a home loan?</strong></p> <p>The interest rates on a new home loan generally vary between 9%-11% per annum. Of course, the rate depends on a variety of factors including if you have an existing relationship with the bank, your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, and your CIR (Credit Information Report). In general, banks give the most attractive terms and conditions on the loan to customers who have a credit score of at least 750 or above.&nbsp;</p> <p>If you have a score of 750 or better, you might be eligible for a lower interest rate on your new home loan, a longer repayment period and perhaps, a larger loan amount. A high credit score demonstrates responsible repayment behaviour in the past and banks and other lenders are more inclined to offer favourable terms to such customers.</p> <p>If you have a credit score of less than 750, it might be advisable to improve your score <em>before</em> you <a href="https://www.creditmantri.com/home-loan/">apply for a new home loan</a>, so that you qualify for the best repayment terms.</p> <p><strong>What are the types of interest rates?</strong></p> <p>There are two basic types of interest rates on a home loan and you need to study all the interest rate options carefully before deciding which one to choose.</p> <p>Fixed rate: You pay one fixed interest rate for the entire tenure of your loan and you have a fixed EMI for the entire duration of the loan.</p> <p>Floating rate: The interest rate you pay varies during your loan tenure, depending on external market conditions.&nbsp; You would choose this option if you are confident that interest rates will go down during your loan period.</p> <p>There is also the option of a partially fixed and partially floating rate. You need to learn about all the options or consult a professional to see which option suits your needs the best.&nbsp;</p> <p><strong>What is an EMI?</strong></p> <p>EMI stands for Equated Monthly Installment. It is the amount you need to pay on a monthly basis to repay your entire loan. It consists of principal plus interest due, spread over the entire tenure of your loan. If your loan period is 20 years, then you will be paying an EMI every month for 20 years.</p> <p>If your monthly EMI burden is very high, you can reduce it by lengthening the tenure of the loan.&nbsp; However, if you extend the tenure of your loan, you will be paying out more in interest amount since your repayment obligation is over a longer period.</p>https://www.creditmantri.com/articles/getting-a-personal-loan-in-chennaiGetting a personal loan in Chennaihttps://www.creditmantri.com/articles/getting-a-personal-loan-in-chennai<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f1f2f2e86ea23eb000c7effc6c355822_40. personal-loan-in-Chennai.png'/></p><p>If you are based in Chennai and looking for a personal loan, the internet can bring the best loan offers from around the country to your doorstep! You need not limit yourself to a local lender &ndash; most leading banks and NBFCs in the country have a branch presence in Chennai and you can choose which offer best suits your requirements. Not only can you choose the best offer from anywhere in the country while based in Chennai, you can also complete the loan application entirely online.</p> <p><strong>How do I apply for a personal loan when located in Chennai?</strong></p> <p>First, you should research the various <a href="https://www.creditmantri.com/chennai-personal-loan/">Chennai personal loan</a> offers available in the market and determine which lender offers the product most suited to your needs, including the interest rate charged and the processing fees. Many lenders allow you to do a quick check of your eligibility on their website. Once you identify the loan offer that best suits your needs, you can go ahead and apply for the loan online, or ask for a representative to contact you, or contact the lender directly through the contact details on their website.</p> <p>The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a loan.</p> <p>You do not need extensive documentation for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>. It could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.</p> <p><strong>Interest rate and tenure on a personal loan</strong></p> <p>The interest rate charged depends on a number of factors including income, profession, credit score and relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-25%. The loan period typically ranges from 1-5 years.</p> <p><strong>Advantages of a personal loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p>&bull; Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount. You could use it to buy new furniture, pay medical expenses, or even to fund a vacation!</p> <p>&bull; Lack of collateral. A personal loan is an &lsquo;unsecured loan&rsquo;, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets. This might make it more attractive to some customers who may not be able to readily provide any security for a loan.</p>https://www.creditmantri.com/articles/do-i-need-a-credit-card-to-get-a-mobile-loanDo I need a credit card to get a mobile loanhttps://www.creditmantri.com/articles/do-i-need-a-credit-card-to-get-a-mobile-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/bdbdff3f4960d8a28c4cd0e140255cdf_41. mobile-loan-without-credit-card.png'/></p><p>You might have been eyeing a cool new smartphone for a little while, doing copious online research on price and features, asking friends for recommendations - and now think it is high time it became yours! You are in a good job, with a steady income and you are ready to take a &lsquo;mobile loan&rsquo; in the showroom to finally own this brand new toy. The only question is &ndash; do you need a credit card to get a loan?</p> <p>A credit card is not necessary for getting a mobile loan, but it certainly helps to make the loan approval process even quicker and smoother. If you are planning to buy the phone with a loan in the dealer showroom, then having a credit card can speed up the approval process. Why is this so?</p> <p>Having one or more <a href="https://www.creditmantri.com/credit-card/">credit cards</a>, accompanied by a healthy credit card history demonstrates that you are a responsible borrower who can be trusted to make repayments on time. When you have a credit card, it is much easier for potential lenders to evaluate your credit worthiness and approve your loan.&nbsp; If you apply for a mobile loan in-store through the dealer, you could walk out of the store with your new mobile in hand.</p> <p><strong>Advantage of taking a loan for buying a mobile phone</strong></p> <p>Having said that, it is not necessary to have a credit card in order to apply for a &lsquo;mobile loan.&rsquo; While your loan may be approved quicker with a card, if you do not have a credit card, it does not mean your loan application will be rejected. In fact, if you do not have a card, taking a small loan to buy a smartphone can help build your credit profile and will help you become eligible for larger loans in the future.</p> <p><strong>Relationship between credit history and loan eligibility</strong></p> <p>If you do not have a credit card or loans in your name, you will not have a good <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> as you have no history of repayments. While it might seem a good idea not to have any debts, banks and other lenders want to see a long history of credit card and loan repayments so that they can evaluate if you make all your repayments on time. If you do not have a credit track record that they can evaluate, you might not qualify for larger loans. It is a good idea to start building your credit with small loans (like a &lsquo;mobile loan&rsquo;) that you can repay in full and on time. This way you can demonstrate perfect repayment behaviour and develop a good credit score.</p> <p>With a solid loan repayment record and a good credit score, you can ensure that you do not face a problem in future when you apply for a larger loan to buy a vehicle or a house.</p>https://www.creditmantri.com/articles/can-i-get-a-wedding-loan-with-bad-creditCan I get a wedding loan with bad credithttps://www.creditmantri.com/articles/can-i-get-a-wedding-loan-with-bad-credit<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/12cbf730472a5f1b1835c2477eaeb042_44. wedding-loans-for-bad-credit.png'/></p><p>Everyone loves weddings, but we might not all have the ready money to celebrate them in the style we would like to. While there is no specific banking term known as wedding loans, you can take a <em>personal loan</em> to cover any expenses you might have in connection with celebrating a wedding in grand style! For many Indians, a wedding is the one event in their lives that they do not hesitate to spend on, and taking a loan might seem like the most viable option. But what do you do if you have a bad credit history and are in need of a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> for wedding expenses?</p> <p><strong>How does a bad credit score affect chances of getting &lsquo;wedding loans&rsquo; or personal loans?&nbsp; </strong></p> <p>&nbsp;It is generally advisable to have a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 or above to qualify for &lsquo;wedding loans&rsquo; &ndash; or more correctly, personal loans to cover marriage-related expenses. The higher your score, the better are your chances of your application being approved.</p> <p>As a first step, lenders typically look for a minimum credit score of 750 before deciding whether to go ahead with processing your application. Since personal loans are not secured by any security deposit, lenders look at your credit score to judge if you can be trusted to fulfill your debt obligations. If you have a low credit score, it is a good idea to try and improve it before applying for a personal loan in order to avoid rejection.</p> <p>Next, lenders will look at your Credit Information Report (CIR), commonly referred to as a credit report, to assess your track record of making repayments. If you have several late or skipped payments in your report, or have one or more delinquent accounts, it serves as a warning flag to lenders that you have not been a responsible borrower in the past and have failed to fulfill your prior loan obligations.</p> <p><strong>How to improve bad credit score in order to become loan eligible</strong></p> <p>&nbsp;The only thing to do for people who have poor credit and want &lsquo;wedding loans&rsquo; is to take immediate steps to improve their credit score so that it reaches a minimum of 750. It can take 2-12 months to become loan-eligible depending on how good or bad your credit score is. It is possible to improve your score in a systematic and effective manner by using a secured credit card, getting &lsquo;Closed&rsquo; status on previously &lsquo;Settled&rsquo; or &lsquo;Written-Off&rsquo; accounts and undertaking various other initiatives to improve your credit profile. With a little bit of patience, commitment and self-discipline, the wedding celebrations of your dreams is not far away!</p>https://www.creditmantri.com/articles/what-is-a-debit-cardWhat is a debit cardhttps://www.creditmantri.com/articles/what-is-a-debit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0d46aaed8c4c7237cabcc5f156dda772_46. what-is-a-debit-card.png'/></p><p>In simple terms, a debit card deducts money from your bank account when you use it to make purchases. It is a widely accepted method of payment worldwide. The biggest advantage of using this type of card is that you never fall into debt &ndash; if you do not have sufficient money in your bank account to pay for your purchase, your transaction simply will not go through. If you think you might have a problem with paying your credit card bills, it is advisable to apply for this type of card.</p> <p><strong>What are the advantages of a debit card?</strong></p> <p>A <a href="https://www.creditmantri.com/articles/Debit-Cards">debit card</a> allows you to enjoy many of the advantage of a credit card, without the fear of falling into debt due to excessive spending.</p> <p>&bull; You no longer need to carry around cash or cheques.</p> <p>&bull; You can avail of online banking facilities like credit card holders.</p> <p>&bull; Debit cards are accepted at millions of shops and retail establishment outlets worldwide.</p> <p>&bull; No possibility of getting into debt.</p> <p>&bull; No constant worry about interest rates, payment due dates, credit limits, paying monthly bills, unlike credit cards.</p> <p><strong>How to apply for a debit card</strong></p> <p>You can apply either online or offline. Once you have determined which card you want, you can go to the bank&rsquo;s website and apply. Alternatively, you can visit the nearest branch of the bank and submit your application and the requisite documents.</p> <p><strong>What is the difference between a credit card and a debit card?</strong></p> <p>The big difference between credit and debit cards is whose money you are using when you make your purchases. When you use a credit card, all your purchases are made on your credit card provider&rsquo;s money. You are simply &lsquo;borrowing&rsquo; the money until you pay it in full at the end of the billing cycle.&nbsp; If you make late or incomplete payments, the credit card issuer charges you interest on the money you owe.</p> <p>When you make purchases on a debit card, you are using your own money. Your purchase amount is taken directly from your bank account. The advantage of a debit card is that you avoid debt because you can spend only what is available in your account. There is no possibility of spending on credit and making a payment later.</p> <p>Also, since you are spending only whatever money you have in your account, you might not be able to make big purchases using credit, unlike a credit card. &nbsp;<br /> <br /> <strong>What is a debit card&rsquo;s safety features?</strong></p> <p>Debit cards share many of the conveniences and safety features of <a href="https://www.creditmantri.com/credit-card/">credit cards</a>. In case of loss of your card or fraudulent activity, you can inform your bank immediately and you will not be held liable for the fraudulent transactions after notification. Many debit cards come with a chip for added security and PIN numbers for ATM use and online banking.</p>https://www.creditmantri.com/articles/choosing-a-good-health-insurance-policyChoosing a good health insurance policyhttps://www.creditmantri.com/articles/choosing-a-good-health-insurance-policy<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3f4964bad1fcbbd0de2300b902b549c0_47. what-is-health-insurance-in-India.png'/></p><p>Buying health insurance is becoming increasingly common in India today. Naturally, you would want to choose the &lsquo;best&rsquo; insurance policy that suits your medical and financial requirements. There is no way to determine the company that provides the best health insurance in India -&nbsp; the best company is the one that provides the policy that fulfills your specific health insurance needs with a price and service quality that you are satisfied with. There are several insurance companies that offer good health insurance plans and it is important to do the research or talk to an insurance advisor to determine which policy is right for you.</p> <p><strong>Factors to keep in mind when choosing health insurance </strong></p> <p>First, do you really need health insurance? The answer is very simply, yes. With medical bills rising steeply every day, you might be worried that in case of a medical emergency or serious medical condition, you will not be able to afford the expensive treatment. When you buy a health insurance policy, you can breathe easier knowing that your medical bills will be taken care of by the insurance company. Of course, the amount that you will covered depends on the particular policy you have bought, but in general, having insurance gives you some protection against potential financial loss in the future.</p> <p>More and more people are choosing to buy <a href="https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company">health insurance in India</a> because of the rapid increase in medical costs and hospital stays. Treatment for a major illness like cancer or heart disease can run into several lakhs of rupees depending on the city you live in and swallow a large part of your savings. Buying a policy from an insurance company helps you plan and budget for such unexpected and potentially heavy expenditure in the future.&nbsp;</p> <p><strong>How to choose health insurance in India </strong></p> <p>When choosing a health insurance plan, it would help to keep some of these factors in mind when making your decision:</p> <p>&bull; The amount of coverage required and the cost of the premium. Several insurance companies will have an online tool that will help you calculate your premium cost.</p> <p>&bull; Keep in mind the age and health condition of not just yourself but the other people in your family that you want coverage for &ndash; including spouse, children and, maybe, aged parents.</p> <p>&bull; Do not wait for too long &ndash; the older you get, the more health complications you might develop that will make buying health insurance more expensive. If you are below 45 and do not have a history of serious medical problems, this might be the best time to buy health insurance.</p> <p>&bull; Think carefully about the add-ons and whether you require them. For instance, ambulance transport might not cost much and it might be worthwhile paying for it out of your pocket rather than paying a larger premium.</p>https://www.creditmantri.com/articles/what-is-an-insurance-policyWhat is an insurance policyhttps://www.creditmantri.com/articles/what-is-an-insurance-policy<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3bc514ebdfb6d3aae4869555efaae591_48. what-is-insurance-policy.png'/></p><p>Insurance is quite simply protection against the risk of potential significant financial loss in the future. While choosing a policy might initially seem confusing, it is an essential part of organizing your personal finances. An <a href="https://www.creditmantri.com/articles/what-is-term-insurance">insurance policy</a> is a way of buying financial peace of mind against the uncertainties and risks in life such as untimely death, loss of property, serious health issues requiring heavy expenditure, and accidents among others.</p> <p><strong>Common insurance terms:</strong></p> <p>Here are some of the most common terms used in insurance:</p> <p>Insurer: The party that provides the insurance cover, usually the insurance companies. For instance, in India the insurer would be a company like LIC.</p> <p>Insured/Policy holder: The party/parties covered by the insurance. Also known as the policy holder/s, this refers to the customers who buy the policy i.e. &ndash; like you.</p> <p>Insurance Policy: A written contract that is the legal basis of the insurance agreement. All insurance payments are made on the basis of the terms laid down in the insurance policy.</p> <p>Premium: The money that the policy holder has to pay periodically &ndash; it is calculated based on the expectation of the loss.</p> <p><strong>Life insurance:</strong> Let&rsquo;s take the example of one of the more popular types of insurance in India - life insurance. What does this mean to the individual in terms of loss and risk? If you are the main breadwinner and worried about your family&rsquo;s ability to support themselves in case you die unexpectedly, you can take out a life insurance policy and name a family member as a beneficiary. In case of untimely death, a pre-fixed lump sum (the amount that you have been insured for) will be paid out to your beneficiary.</p> <p><strong>Health insurance:</strong> This is the case with <a href="https://www.creditmantri.com/articles/what-is-the-best-health-insurance-company">health insurance</a> as well. With medical bills rising steeply every day, you might be worried that in case of a medical emergency or serious medical condition, you will not be able to afford the expenses. When you take out a health insurance policy that reimburses a certain amount of medical-related expenses, you can breathe easier knowing that your medical bills will be taken care of. Of course, the amount that you will receive depends on the particular policy you have bought, but in general, having insurance gives you some protection against potential financial loss in the future.</p> <p><strong>Auto insurance</strong>: This is mandatory when you buy a vehicle in India.</p> <p><strong>Insurance companies in India:</strong> Life Insurance Corporation of India (LIC) is the biggest life insurance company in India. There are four other government insurance companies in addition to several private sector companies. You should choose your insurance policy based on not only the cost of premiums, the coverage given but also the reputation of the company and their record of settling claims.</p>https://www.creditmantri.com/articles/what-is-an-income-tax-refundWhat is an income tax refundhttps://www.creditmantri.com/articles/what-is-an-income-tax-refund<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3e29b9513a9b2063c63294d46548f3af_49. what-is-tax-refund.png'/></p><p>Filing an accurate income tax return and paying taxes on time is a necessary annual ritual that you need to undertake every year. However, you can also be the recipient of a pleasant surprise is the form of an income tax refund from the government! Sometimes, due to lack of knowledge, oversight or time, we could make errors on our income tax return and pay more tax than is due.&nbsp; This can be quickly rectified.</p> <p><strong>How to apply for an income tax refund</strong></p> <p>If you have paid excess tax, you can claim an <a href="https://www.creditmantri.com/income-tax-calculator/">income tax</a> refund. In order to file a claim for a refund, you need to submit Form 30. The claim should be made within one year of the last day of the assessment year.&nbsp; No refund claim will be entertained after a limit of 6 years after the assessment year in question.</p> <p>If excess TDS has been deducted, you will be eligible for a refund. However, there is no separate application form to apply for a TDS refund. When filing your income tax return, you need to show how you have computed your income, the tax to be paid, and the TDS that has been deducted. The software used by the income tax department will automatically identify excess TDS that has been paid and the refund will be credited to your bank account. In some cases, interest of 6% per annum might also be added if the refund is more than 10% of the total payable tax.</p> <p>It is important to beware of fraud emails purporting to be from the IT department informing you that an IT refund has been approved and asking for your bank details to deposit the refund amount. The income tax department will never ask you for your PIN number. In case of a refund, the amount will be automatically credited to the bank account that you have entered at the time of filing your income tax return.</p> <p><strong>How to check IT refund status</strong></p> <p>It is easy to check online to see if your TDS refund has been sanctioned. You can track your TDS refund status by logging on to https://tin.tin.nsdl.com/oltas/refundstatuslogin.html. You need to enter your PAN number and the year of assessment to determine the status of your claim.</p> <p>Taxpayers can view the status of their refund 10 days after their refund has been sent by the Assessing Officer to the Refund Banker. You can also check the status of your refund by contacting the help desk at SBI at their toll free number.</p>https://www.creditmantri.com/articles/how-do-i-choose-a-first-credit-cardHow do I choose a first credit cardhttps://www.creditmantri.com/articles/how-do-i-choose-a-first-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/952af14fd95dce743ea2fbcb8aa8255c_50. what-is-the-best-first-credit-card.png'/></p><p>Are you applying for a first credit card? Do you wish you could whip out a piece of plastic instead of fumbling with wads of cash, every time you go shopping?&nbsp; You might have many questions and concerns regarding their use and how to choose the card best suited to you.&nbsp; In many developing economies, like India, credit cards are becoming increasingly popular because of their safety, convenience and ease of use. You can use a credit card to buy anything from jewelry to groceries. Having a credit card means that you do not need to have cash with you at all times to make purchases.</p> <p>In very simple terms, a credit card allows you to borrow money on a monthly basis to make purchases. When you buy something using your credit card, you are using your credit card issuer&rsquo;s money on loan until you pay off the amount when you get your credit card bill at the end of a month</p> <p><strong>What is the best first credit card to get?</strong></p> <p>There are several options for a first credit card. If you have absolutely no credit history &ndash; i.e. if you have never taken a loan or credit card - then it might be difficult to get approved for a first <a href="https://www.creditmantri.com/credit-card/">credit card</a> with no credit background. A secured credit card might be a good option for someone with no credit history. It works just like a credit card except that you need to make a fixed deposit in order to get a secured card. The bank uses the deposit to recover their dues in case you default on your payment.</p> <p>&nbsp;A secured credit card is typically used by people who cannot qualify for a regular unsecured credit card either because they have bad credit or because they do not have a sufficient credit history.</p> <p><strong>How do I choose the best first credit card?</strong></p> <p>The only way to choose the best card is to research the features and benefits of the various cards on offer to judge if it suits your credit needs. Each person has different requirements for their card. You will need to check</p> <p>&bull; the interest rate charged on the balance</p> <p>&bull; whether the credit limit suits your spending pattern</p> <p>&bull; whether using the card offers any rewards or benefits ( like air miles or shopping discounts)</p> <p>&bull; the security features in case of fraud or theft</p> <p>&bull; the various fees charged including annual fees, late fees etc.</p> <p>Compare the features of various cards to see which is most suitable for you.</p>https://www.creditmantri.com/articles/how-to-apply-for-home-loanHow to Apply for Home Loanhttps://www.creditmantri.com/articles/how-to-apply-for-home-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/025f8329c59c69fb2d80906bcc98d6eb_2.how-to-apply-for-home-loan.png'/></p><p>If you dream of owning your own home but wonder if you will be able to ever afford it &ndash; worry not! The overwhelming majority of home owners need that extra support of a home loan from to help them fulfill their dream. Owning a home is the ultimate dream of almost everyone and very few have the financial means to achieve it. That is where a home loan can help you.</p> <p>The market is flooded with innumerable home loan offers and it is easy to get confused about which product is the best one for you. Before applying for a home loan, there are few things you must be very careful about.</p> <p>Taking a home loan means committing a significant chunk of your monthly income towards paying off your loan &ndash; principal amount and interest included, month after month, for a substantial number of years. Ask yourself this question &ndash; are you ready for this commitment which requires meticulous planning of your finances? If the answer is a Yes, then you need to do the following:</p> <p><strong>Pull Out Your Credit Report</strong></p> <p>Once you have decided that you will buy your house, you need to obtain a copy of your credit report from the Credit Bureaus. Typically, you need to have a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 and above to qualify for a home loan.&nbsp; You may be accepted for a loan below that score too, albeit at unattractive terms like a high interest rate. It is better to have a good credit score before you apply for a loan to avoid loan rejection and to qualify for the most favourable terms and conditions.</p> <p>If your credit score is low, make a commitment to improve it before you put in your loan application. While you are researching properties and identifying the ideal home, use that time to increase your credit score. It can take anywhere from a couple of months to a year to improve your credit score, depending on the severity of your credit situation.</p> <p><strong>Ok, got it. What next?</strong></p> <p>Shop around for the property that suits your budget and lifestyle needs while you are working on your credit score. Make sure to check the background of the builders and promoters. You don&rsquo;t want to find yourself in a legal fix after having paid for your house. It might make it easier if the property you are considering in your bank&rsquo;s list of approved builders/developments.</p> <p>Simultaneously, shop around for the best interest rate possible. This is extremely important, as even a 0.05% reduction in the interest rate could mean savings of a significant amount of money in interest costs. Thought it may sound tedious, take care to go through the fine print on the terms and conditions. Have clarity on all the fees and charges involved with the home loan and the repayment terms, so that you can make an accurate estimate of your potential outflow. You can use an online EMI calculator to determine what your future EMI burden will be. Take time to determine which home loan offer best fits your income and credit profile.</p> <p><strong>&nbsp;I think I have decided on a lender, what next? </strong></p> <p><a href="https://www.creditmantri.com/home-loan/">Apply for a home loan!</a><em>&nbsp;</em>Once you have finished with the research on the home loan that best suits your profile, it is time to apply. You can walk in to the nearest branch of your chosen lender and apply along with all the supporting documents or you may consider applying online and uploading the required documents. It is possible to track the status of your application online as well, although this facility is not available with all lenders.</p> <p>Alternatively, if you think you need help with identifying the most suitable loan offer, advice on eligibility, and assistance with the loan application, CreditMantri can guide you through the entire process and match you with the loan that suits your credit profile the best.&nbsp;</p>https://www.creditmantri.com/articles/citibank-credit-card-online-paymentCitibank Credit Card Online Paymenthttps://www.creditmantri.com/articles/citibank-credit-card-online-payment<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/087db8b3dcffc429f39ec2cb1ecfad55_6.citibank-credit-card-online-payment.png'/></p><p>Citibank, which was incorporated in India in 1902 in Kolkata, is now one of the leading private sector banks in India and one of the largest credit card issuers in the country. It provides a wide range of banking products and financial services, and offers an array of credit cards designed to suit the differing needs of its large customer base.</p> <p>Citibank Credit Cards offer a multitude of advantages to the holder. It offers Dining privileges, with up to 20% savings across 2000 partner restaurants. &nbsp;It also comes with a host of other advantages like Secure Utility Bill Payment Facility, value-added services like Instant Loan, EMI options on shopping bills above Rs. 2,500, and easy payment options to settle your Citibank credit card bills. With the Citibank Credit Card, you also have the option to pay your bills online in a quick and hassle-free manner. No more worries about late payment, or trying to you&rsquo;re your payment so that the cheque reaches in time. Citibank offers the following options for online Credit Card payments:</p> <p><strong>From your Citibank account</strong></p> <p><em>&nbsp;Citibank Online:</em></p> <p><em>Standing Instruction:</em> You can set up a standing instruction to pay either minimum amount due or total amount due from your existing Citibank account.</p> <p><em>Regular payment:</em> You can choose to pay your Credit Card bills using Citibank Online every month on your own. You just need to Login using your unique User ID &amp; Password and click on the "Pay Credit Card Bill" link.</p> <p><strong>From accounts in other banks</strong></p> <p><em>E-Pay:</em> You can pay Credit Card bills online via Citibank E-Pay. Note that it will take 2 working days for the payment to get credited into your account depending on the time taken by your bank to process the payment. So plan your payment in advance to avoid late payment fees.</p> <p><em>E-Pay via Other Bank Websites</em>: If you have banking accounts with any Citi partner banks, then you can log on to the Online banking platform of your bank account and pay. <a href="https://www.creditmantri.com/citi-credit-cards/">Citibank Credit Card</a> has been added as a Utility Biller with the banks listed below:</p> <p>&bull; HDFC Bank</p> <p>&bull; ING Vysya Bank</p> <p>&bull; State Bank of India</p> <p>&bull; IndusInd Bank</p> <p>&bull; Yes Bank</p> <p>It is advisable to get in touch with your bank in order to know the processing time.</p> <p><em>NEFT Payment to Credit Card</em>: You can initiate payment of your Citibank Credit Card via NEFT as well. The actual time taken to credit depends on the time taken by your bank to process the payment. Plan your payment ahead to avoid overdue fees. Just login to your non-Citibank bank account and provide your Citibank (Payee) details for funds transfer. While doing the transfer, choose the following payee details:</p> <p>&bull; Payee Name: Name as it appears on your Citibank Credit Card.</p> <p>&bull; Payee Account Number: Your Citibank credit card number.</p> <p>&bull; Bank Name: Citibank N.A.</p> <p>&bull; Payment Account Type: Select the Account Type.</p> <p>&bull; IFSC Code: Choose your Citibank branch&rsquo;s IFSC code.</p> <p>&bull; Branch Address: Choose the address with which your credit card is registered.</p> <p><em>ECS:</em> You can also pay your <a href="https://www.creditmantri.com/credit-card/">credit card</a> bills by way of ECS (Electronic Clearance System) to facilitate electronic transfer of funds. In order to avail ECS facility, you need to provide a mandate to Citibank authorizing the transfer of funds from your non-Citibank account.</p> <p><em>Visa Money Transfer(VMT):</em> You can also use Visa Money Transfer(VMT) option when you are paying your Citibank Credit Card bill from a non-Citibank account. This normally takes 2 to 4 working days to get credited to your Citibank Credit Card account, so it is advisable to contact your bank directly in order to know the processing time.</p> <p>Paying your credit card bills online is a fast, safe and convenient method. End physical visits to the branch/ATM to drop off cheques, or having to mail it well in time so it reaches before the due date. Online payments are completed in a matter of minutes from the convenience of your house. Once you switch to the ease of online payments, you will not look back!</p>https://www.creditmantri.com/articles/bookmyshow-credit-card-offersBookMyShow Credit Card Offershttps://www.creditmantri.com/articles/bookmyshow-credit-card-offers<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/174a16d2382cc5bf97ee7f0484270b1e_12. bookmyshow-credit-card-offers.png'/></p><p>Who doesn&rsquo;t love offers on movies! Spending a couple of hours watching the latest blockbuster, accompanied by friends or family (and a tub of popcorn) is a good way to destress. If you are a movie fan, then look into the credit cards that offer movie privileges from BookMyShow.</p> <p>Here are a few credit cards that offer perks when you make an online transaction on the BookMyShow website.</p> <p><strong>RBL Bank credit card offer:</strong></p> <p>RBL Bank Platinum Maxima &amp; RBL Bank Titanium Delight Credit Card holders get &lsquo;Buy One, Get One Free&rsquo; offer&rsquo;. This offer is valid only for shows on Wednesday for RBL Bank Titanium Delight Credit Card holders. Bookings can be done throughout the week. RBL Bank Platinum Maxima card holders can book for shows on any day of the week and are not limited to only Wednesdays.</p> <p>If you are an <a href="https://www.creditmantri.com/rbl-bank-fun+-credit-card/">RBL Bank Fun Plus Credit Card</a> holder, you get 2 free movie tickets amounting to Rs. 500, if your monthly card usage exceeds Rs.5000. A temporary code will be shared with you which will enable you to get the tickets.</p> <p><strong>SBI Platinum Credit Card offer</strong></p> <p>With SBI Platinum Credit Card, you get 2 free movie tickets per month or Rs.500 off, whichever is less. This offer is valid on purchase of a minimum of 2 movie tickets on BookMyShow.com. This offer is not valid for secondary card holders. This offer is valid for SBI Signature and Elite Credit card holders as well.&nbsp;</p> <p><strong>ICICI Bank Credit Card Offer:</strong></p> <p>If you are an <a href="https://www.creditmantri.com/icici-bank-credit-cards/">ICICI Credit Card</a> holder, then you are eligible for the &lsquo;Buy One Get One Free&rsquo; offer. The offer is valid on the Gemstone Collection of Credit cards including the Coral Credit Card and Coral American Express credit Card, Sapphiro Credit Card, Diamant Credit Card, Rubyx Credit Card, Carbon Visa Infinite EMV Credit Card, Signature Credit Card, British Airways Credit Card, and Ferrari Platinum Credit Card.</p> <p><strong>HDFC Bank Credit Card Offer:</strong></p> <p>If you are an <a href="https://www.creditmantri.com/hdfc-bank-credit-cards/">HDFC Credit Card</a> holder, then you can get a discount of 5% when booking movie tickets through the BookMyShow Mobile App. HDFC Card holders can avail the offer twice in a calendar month, the maximum discount is capped at Rs 100. This offer is valid on all HDFC cards.</p> <p>If you are an HDFC Diners Club Credit Card holder, you stand to earn 10X Reward Points and save 10%, when you book any ticket on the BookMyShow website. This offer is valid on Rewardz, Premium &amp; Black range of credit cards.</p> <p><strong>Axis Bank Neo Credit Card Offer</strong></p> <p>Axis Bank Neo Credit Card holders get 10% off on the BookMyShow transaction. Individual customers can get a maximum discount of Rs. 50 per month through this offer.</p> <p><strong>Need help?</strong></p> <p>The world of credit cards can be filled with rewards, but choosing the right card can also be confusing with many cards offering different benefits designed for different interests. &nbsp;If you need help with choosing the right credit card suited for your particular needs, then CreditMantri can guide you through the entire process and match you with the best offer.</p> <p><em>Note: The cards mentioned in the article are merely indicative of the kinds of rewards and benefits available. You will need to choose your card based on your specific requirements.</em></p>https://www.creditmantri.com/articles/how-to-apply-for-citibank-credit-cardHow to Apply for Citibank Credit Cardhttps://www.creditmantri.com/articles/how-to-apply-for-citibank-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d1675a7ab1dc966f3db31d950751a552_7.how-to-apply-for-citibank-credit-card.png'/></p><p>Citibank was incorporated in India in 1902 in Kolkata. It is the consumer division of financial services multinational Citigroup. It is one of the leading private sector banks in India and one of the largest credit card issuers in the country.</p> <p>Citibank offers Credit cards suited to the differing lifestyle needs of its customers. Some cards offer cashback rewards like Citi Cashback Credit Card, while other cards give fuel benefits like the IndianOil Citi Platinum Credit Card.</p> <p>Before applying for a Credit Card, you need to consider the following:</p> <p><strong>Your credit score:</strong> One of the most important things is to do is to check your credit score. Obtain a copy of your credit report from the credit bureau and check it for any kind inconsistencies including mistakes about your name or address, or wrongly entered credit account status or credit limit. All these mistakes can needlessly drag down your credit score and hurt your ability to be approved for a credit card. If you find an error, file a dispute with the credit bureau immediately and get it corrected. Having a good credit history and score makes your chances of getting a credit card much higher.</p> <p><strong>Your spending patterns:</strong> Observe your spending patterns and identify what your needs are. Are you spending more on travel? Then you can go for a credit card which offers travel perks like the Citibank PremierMiles Credit Card. If you are an online shopaholic, then choose one which has benefits and reward programs specially designed for that particular purpose.</p> <p><strong>Your income:</strong> You should consider your monthly net income and decide whether you can afford to have a credit card which could considerably increase your expense and might possibly put you in debt. Check your income eligibility before you apply for a credit card to avoid the chance of rejection.&nbsp;</p> <p><strong>A plan to repay your credit card bills:</strong> You should have a concrete plan on how you will pay your credit card bills. Keep in mind that even If you pay the minimum amount due, interest charges will continue to accrue on the balance amount and it might possibly cause you repayment problems. &nbsp;</p> <p><strong>Eligibility:</strong> Make sure you fulfill all the eligibility requirements when you apply for a Citibank credit card to avoid rejection.&nbsp; You should be minimum 18 years of age, a resident of India, and be able to demonstrate a stable income in order to qualify for a Citibank Credit Card.&nbsp;</p> <p><strong>Fees and other charges:</strong> Be absolutely sure about all the fees and charges involved, including the joining fee, annual fee and renewal fee. This will help you avoid nasty surprises later on.</p> <p><strong>I have decided on my card, what next?</strong></p> <p>Once you have decided on the card you want, you can apply online by logging onto the Citibank website or by visiting the nearest Citibank branch and submitting the application and required documentation. You can track the status of your application online by referencing your application number.</p> <p><strong>Great, but I think I might need help&hellip;</strong></p> <p>It can get a little overwhelming to choose from the wide array of credit cards available and identifying the most suitable card. If you think you need help with choosing the right credit card that is best suited to your credit profile and needs, then CreditMantri can guide you through the entire application process and match you with the best offer.&nbsp;</p>https://www.creditmantri.com/articles/how-to-check-credit-card-statement-onlineHow to Check Credit Card Statement Onlinehttps://www.creditmantri.com/articles/how-to-check-credit-card-statement-online<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/115027a251f89bd67c2b844748c59358_13.how-to-check-credit-card-statement-online.png'/></p><p>Gone are the days when you had to trek to your bank every time you needed something done. Remember how you used to wait in line at the bank, wondering whom to ask the query you had in mind, clueless about what to do, and wondering how much money you had in your account? Wave goodbye to all those doubts and hesitations!</p> <p>With the era of Internet banking, the bank has come close to you - in fact, it has come to your doorstep! With the online credit card statement facility, there is now no need to write down every single expense incurred. All that information is just a click away on your computer with many banks offering online statement services that give you a detailed account of your credit card activity.</p> <p>Many banks enable their customers to view their credit card statements online. For example, if you are a Citibank Credit card holder, then you can sign up for Statement On Email and receive your credit card statement in your email inbox. You can sign up online on the Citibank website by:</p> <p>&bull; Providing your credit card number, date of card expiry, your date of birth and your mobile number.</p> <p>&bull; Logging into your Citibank Online account and clicking on the register tab in the statements page</p> <p>&bull; Calling the CitiPhone number and placing a request</p> <p>You can also view your credit card statement online through Citibank Online banking as well. You just need to register for online banking and generate your user ID and IPIN(your Internet personal identification number). By availing this facility, you can view transactions on your account and view statements for the last 18 months.</p> <p>If, for example, you are an ICICI credit card holder, you can access your statement too. ICICI Bank enables its users to view their credit card statements online easily via three options:</p> <p>&bull; Accessing ICICI Bank Online -The credit card statement facility provided by ICICI Bank is only for informational purposes, so you will not be able to transact or do any kid of bill payment with this facility.</p> <p>&bull; Accessing ICICI Internet Banking - If you intend to view your credit card statement and make any transactions, simply access your ICICI Credit Card online through Internet Banking.</p> <p>&bull; You can also request for your credit card statement to be emailed to you. In order to place this request, you need to click on the ICICI Bank Credit Card Statement E-mail Request Service online, and provide the required credentials. This option lets you your credit card statement only for the last 6 months through e-mail.</p> <p>&bull; You can also call ICICI Bank customer care for help with your credit card statement and other credit card queries.</p> <p>Each bank will have its own procedure for viewing the credit card statement online. Viewing your statement online is convenient, fast and secure. Instead of waiting in long queues to place your request, you can now request for and view your statement in a matter of minutes from the convenience of your own home. Once you discover the ease of viewing credit card statements online, you will leave behind traditional methods and never look back!</p>https://www.creditmantri.com/articles/tips-on-how-to-compare-credit-cardsTips on how to compare credit cardshttps://www.creditmantri.com/articles/tips-on-how-to-compare-credit-cards<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/62d7841a2d9313d8b9a5d624409b6077_14.compare-credit-cards.png'/></p><p>Does this sound like a familiar situation? You are very keen to get a new credit card, are bombarded by an array of very tempting offers being advertised, but end up back at Square 1 as confused as ever because you simply don&rsquo;t know which one would be the right one for you. The market is flooded with a number of credit cards and it can quite overwhelming to try and compare the various features and benefits. There are a multitude of credit cards available on the market today to suit the lifestyle needs of the large customer base and there are several suitable options available - if you can identify them.</p> <p>There are several resources today in the internet, which could be a boon but can also lead to a complete mind freeze! &nbsp;This article would help explore how you can compare credit cards and what to look for while comparing credit cards.</p> <p><strong>What to consider</strong></p> <p><em>Hunt for the lowest interest rates:</em> Of course, the interest rate offered to you on your card depends on a variety of individual factors like your credit score or your relationship with the bank. But it still pays off to do research on which cards offer the lowest interest rates. Don&rsquo;t be fooled by 0% offers, as they are usually promotional offers and you will find yourself paying high interest once the promotional period is over.</p> <p><em>Fees and charges matter:</em> Don&rsquo;t just go for a card that has zero joining fees. Dig deep as to why it&rsquo;s free. These kinds of card sometimes come with a high interest rate. Be sure to check and compare.</p> <p><em>Annual fees aren't all bad</em>: <a href="https://www.creditmantri.com/credit-card/">Credit cards</a> with an exorbitant annual fee are generally the ones that offer super premium advantages, which outweigh the fee. With many the cards, the annual fees get waived when your annual spends exceed a certain limit. Hence, cards with an annual fee can work out if you are a big spender.</p> <p><em>Cashback/Reward Points/Miles:</em> Carefully consider your lifestyle habits and decide whether you want to go for one which offers cashback, or Rewards Points or air miles. Different rewards programs offer different perks&mdash;choose one that suits your lifestyle needs.</p> <p>&nbsp;</p> <p><em>Comb through your mailbox for the best offers:</em> If you are not a first time credit card applicant, chances are you might have lots of offers waiting for you either by post or in your email inbox. Deals in your mailbox may offer better terms than general offers those available to a wider set of applicants online. Banks usually give better deals to their existing customers, and sometimes, you can even get upgraded to a super-premium card. Do make a note of the terms and conditions&mdash;an upgrade could entail sacrificing some or all of your hard earned reward points.&nbsp;</p> <p>Here are some practical tips to keep in mind when considering a new credit card:</p> <p><strong>The <em>Don&rsquo;ts</em></strong></p> <p><em>Don't</em> forget about your credit score. Having a good credit score is vital in order to land the best interest offer for your credit card.&nbsp; If your credit score is less than 750, then you are unlikely to get the best (lowest) interest rates. If your credit score is poor, you run the risk of being rejected and damaging your score further.</p> <p><em>Don&rsquo;t </em>make multiple applications for credit cards &ndash; it signifies that you are in need of credit from various sources and will decrease your credit score. Take your time to identify which card you qualify for and suits your requirements and apply for only that one.</p> <p><em>Don't </em>use just one online comparison site that lists out the various cards. When you are doing your research online, there are some sites that only list the cards that advertise with them. This means only a select number of cards will be featured, which is a huge negative. Instead, use multiple resources to do your research.</p> <p><strong>The <em>Do&rsquo;s</em></strong></p> <p><em>Do</em> focus on improving your credit score. Obtain a copy of your credit report (you can do this online) and check for any errors like wrong spellings or contact details or incorrect loan status. File a dispute and get it corrected immediately.</p> <p><em>Do</em> pay off your dues consistently on time. You will see your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> rise.</p> <p>Comparing the best credit card and choosing one can be tough, given the number of options available. If you think you need help with choosing the right credit card suited to your particular credit profile and needs, then CreditMantri can guide you through the entire process and match you with the best offer that you are qualified for.</p>https://www.creditmantri.com/articles/hdfc-credit-card-online-paymentHDFC Credit Card Online Paymenthttps://www.creditmantri.com/articles/hdfc-credit-card-online-payment<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/0afbe9cc035ce934fd4930f26d8c74f6_18.hdfc-credit-card-online-payment.png'/></p><p>If you are tired of taking time out of your day to trek to your ATM or branch to drop off your credit card payment cheque, or have had enough of the stress of remembering your due date well in advance, then online payment is the answer to your problems. Remember you can also pay an extra fee for paying in cash at the bank branch or ATM rather than by cheque or electronically.</p> <p>With the HDFC Bank Credit Card, you have the option to pay your bills online. It is a quick and hassle-free way of making your monthly payment. No more worries about lost bills, delayed payments or unnecessary payments to agents.</p> <p>Advantages of paying HDFC credit card bills online:</p> <p>&bull; It&rsquo;s free and can be done in minutes</p> <p>&bull; You can &nbsp;make payments from a non-HDFC Bank account</p> <p>&bull; Removes the stress of planning payments in advance every month</p> <p>Following are the modes of payment that you can use to settle your credit card bills:</p> <p><em>HDFC Bank NetBanking</em>: HDFC Bank savings or current account holders can avail this facility. You need to sign up and register for NetBanking if you intend to use this mode of payment. Once you have registered, you need to link your credit card to your Netbanking Account using your credit card ATM PIN. Once you are done with this, you can transfer the outstanding Credit Card amount online with a click.</p> <p><em>Pay HDFC Credit Card bills from another bank account: </em>You can now pay your HDFC credit card bills from a non HDFC Bank account. Following are the steps:</p> <p>&bull; Log into your Non HDFC Payment platform.</p> <p>&bull; Enter your HDFC Bank Credit Card number and Payment amount.</p> <p>&bull; Select your net banker and click on PAY.</p> <p>Once you click on &lsquo;PAY&rsquo;, you will be securely redirected to the bank payment interface of your chosen net banking option. Once the transaction is complete, you will receive an online transaction confirmation and a Transaction Reference Number. You will also receive an email acknowledgement of your transaction if you have provided your valid email id.</p> <p><em>HDFC Bank Mobile Banking: </em>&nbsp;If you have installed the HDFC Bank Mobile Banking App on your phone and have internet access, you can make the payment from your HDFC account.</p> <p>&nbsp;Mobile Banking App on browser: You can make payments via the Mobile Banking App through Browser as well.</p> <p><em>NEFT Payment to </em><a href="https://www.creditmantri.com/credit-card/"><em>Credit Card</em></a>: You can initiate payment of your HDFC Credit Card bill via NEFT as well. The actual time taken to credit depends on the time taken by your bank to process the payment. Plan your payment ahead to avoid overdue fees. Just login to your non-HDFC bank account and provide your HDFC credit card details for funds transfer.</p> <p><em>Visa Money Transfer(VMT):</em> You can also use the Visa Money Transfer(VMT) option when you are paying your HDFC Credit Card bill from a non-HDFC account. This normally takes 2 to 4 working days to get credited to your <a href="https://www.creditmantri.com/hdfc-bank-credit-cards/">HDFC Credit Card</a> account, so it is advisable to contact your bank in advance in order to know the processing time.</p> <p><em>Auto Pay</em> &ndash; you can also give standing instructions for your HDFC account to be automatically debited for the entire bill amount or the Minimum Due every month.</p> <p>Paying your credit card bills online is fast, convenient, time-saving and safe and can be completed in a matter of minutes from the convenience of your house. Once you switch to the sheer ease of online payments, you will not look back!</p>https://www.creditmantri.com/articles/how-to-calculate-home-loan-eligibilityHow to Calculate Home Loan Eligibilityhttps://www.creditmantri.com/articles/how-to-calculate-home-loan-eligibility<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2616c9dbe034cdb45d7b784e61cdd857_25.how-to-calculate-home-loan-eligibility.png'/></p><p>Buying or building your own home is the ultimate step to being financially &lsquo;settled&rsquo; in many countries, including India. While it is a dream for many millions, most do not have the financial wherewithal to buy or own a home on their own. Banks and other lenders have come up with affordable home loan options in order to make this dream into a reality!</p> <p><strong>Am I Eligible? </strong></p> <p>In order to be eligible for a home loan, you need to be</p> <p>&bull; A salaried employee or a self-employed individual/ professional.</p> <p>&bull; Able to satisfy the minimum and maximum age requirement age</p> <p>&bull; &nbsp;Fulfill income requirements and be able to demonstrate a stable income.</p> <p>If you have a spouse who is salaried, then you can add him/her as a co applicant. Your spouse&rsquo;s income will be taken into account and will help eligibility.</p> <p><strong>How Do I Calculate My Home Loan Eligibility?</strong></p> <p>There are a lot of resources available online with which you can check your home loan eligibility and you need to do thorough research to sort out the various offers available on the market.</p> <p>&nbsp;Different lenders have different eligibility requirements. For example, in order to be eligible for a home loan from Axis Bank you need to be a minimum of 24 years of age at the time of commencement of the loan and salaried/self-employed. In order to be eligible for a Home Loan from DHFL, you need to be above 21 years of age at the time of commencement of the loan.</p> <p>Most lenders have online eligibility calculators on their websites, which you could use to check if you qualify for a loan. &nbsp;</p> <p><strong>How Can I Calculate Home Loan EMI?</strong></p> <p>One of the biggest concerns when planning to apply for a home loan is how much exactly you will have to pay in interest costs for the loan, and how much of your monthly income you can afford to commit towards paying off your home loan. Using an online <a href="https://www.creditmantri.com/home-loan-emi-calculator/">Home Loan EMI Calculator</a> helps you determine how much your loan will cost on a monthly basis. This way, you will know your exact financial commitment over the tenure of the loan. Knowing this outflow helps you plan your budget accordingly.</p> <p>If you want a simple and stress free way of calculating your probable EMI, you can use CreditMantri&rsquo;s online Home Loan EMI Calculator&mdash;it is free, very easy to use, and you can use it any number of times with different combinations of loan amount, interest rate and tenure.</p> <p><strong>Need Help?</strong></p> <p>If you think you need help evaluating the various loan offers on the market, and advice on <a href="https://www.creditmantri.com/home-loan/">home loan</a> eligibility, CreditMantri can guide you through the entire process and match you up with the loan offer that best suits your credit profile and needs.</p>https://www.creditmantri.com/articles/axis-bank-mortgage-loanAxis Bank Mortgage Loanhttps://www.creditmantri.com/articles/axis-bank-mortgage-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c3160163026aa480faa141e90e6f001f_35.axis-bank-mortgage-loan.png'/></p><p>Starting a new business but short of funds? Want to buy a plot of land but are short of resources? Want to finance your child&rsquo;s dream to study overseas? Want to remodel your home, to make it the perfect living space? All this is possible with a mortgage loan &ndash; it utilizes an existing asset and gives you loans at a lower rate than some other consumer loans. You can unlock the potential of your property with this multi-purpose loan from Axis Bank.</p> <p><strong>Features of Axis Bank Mortgage Loan:</strong></p> <p>&bull; Attractive interest rates with longer tenures</p> <p>&bull; The bank comes to your doorstep</p> <p>&bull; Loans against both residential as well as commercial property</p> <p>&bull; Take-over of existing loan with refinancing option also available</p> <p>&bull; Flexible EMI options and payment options</p> <p><strong>What is the eligibility criteria?</strong></p> <p>You need to be either salaried, or self-employed, or a professional (doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, and management consultants). You should be a minimum of 24 years at the time of loan commencement and up to 65 years or retirement age, whichever is earlier at the time of loan maturity. Salaried NRI individuals can also apply. A co-applicant is mandatory in order to apply for this loan.</p> <p><strong>How much money can I borrow?</strong></p> <p>You can borrow a minimum of Rs. 2 lakhs to a maximum of Rs. 5 crores, depending on the type of property and its value. The margin is 20 - 30% in case of purchase of commercial property and 40 - 55% in case of loan against residential/commercial property.</p> <p><strong>Payment Options</strong></p> <p>You can choose to pay via the following convenient options:</p> <p><em>Standing Instruction (SI):</em> You can provide standing instruction to debit your Axis Bank savings, salary or current account with the specified EMI amount every month. This is generally the preferred mode as it is less prone to error and delays.</p> <p><em>Electronic Clearing Service (ECS):</em> If you have a non-Axis bank account and would like your EMIs to be debited automatically from this account, then you can avail of this mode.</p> <p><em>Post-Dated Cheques (PDCs):</em> You can submit post-dated EMI cheques if you have a non-Axis Bank account and drop it off at your nearest Axis Bank Loan Center. You need to issue a fresh set of PDCs in a timely manner in order to avoid late payment fees. Post Dated Cheques will be collected at non-ECS Axis Bank loan centers only.</p> <p><strong>Apply for Axis Bank Mortgage Loan</strong></p> <p>You can apply online at the Axis Bank website. Alternatively, you can also visit your nearest Axis Bank Loan Center. A list of all the branches along with the address is given on the Axis bank website. You can also call the toll free number listed on their website for help with your application process.</p> <p><strong>Need help?</strong></p> <p>Alternatively, if you think you need help with your loan application and advice on loan eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your profile.</p>https://www.creditmantri.com/articles/canara-bank-mortgage-loanCanara Bank Mortgage Loanhttps://www.creditmantri.com/articles/canara-bank-mortgage-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c40553ef1153c15c8a2aa587a42539d8_36.canara-bank-mortgage-loan.png'/></p><p>Life throws various situations at you, where you need some financial help from external sources. The advantage of a mortgage loan is that it helps you use an asset you already own to raise funds &ndash; and at a cheaper cost than getting a personal loan. Going abroad for higher education and need help? Have a medical emergency, and don&rsquo;t know how to finance it? Or identified your dream home and need funds to buy it? A mortgage loan from Canara Bank lets you discover the power of your property and help you tide over times of need.</p> <p><strong>Features of Canara Bank Mortgage Loan:</strong></p> <p>&bull; Attractive interest rates with longer tenures ranging from 7-10 years</p> <p>&bull; Flexible EMI options and payment options</p> <p>&bull; Loan for non-business purpose only, for meeting any medical emergency or other personal and legal needs.</p> <p>&bull; Loan available by mortgage of residential house/flat/ commercial property in the name and possession of the borrower. It can either be self-occupied or vacant or partially tenanted.</p> <p>&bull; &nbsp;Loan against vacant land not permissible.</p> <p><strong>What is the eligibility criteria?</strong></p> <p>You need to be either a salaried employee or self-employed, and be able to demonstrate a stable income. Existing customers who have satisfactory relationship with Canara Bank can &nbsp;apply directly. Non Canara Bank account holders need to be introduced by an existing Canara Bank account holder and need to be creditworthy. NRI customers are also eligible. A guarantor is required in order to apply for a loan in Canara Bank.</p> <p><strong>How much money can I borrow?</strong></p> <p>You can borrow a maximum of Rs. 10 crores depending on the type of property and its value. Up to 50% on the value of the property is offered as security, upon successful verification by the bank&rsquo;s evaluators.</p> <p><strong>What are the documents required?</strong></p> <p>&bull; Completed Loan Application form with passport size photographs</p> <p>&bull; Copy of lease deed</p> <p>&bull; Income proof of the applicant and guarantor</p> <p>&bull; Income Tax Assessment Order / IT Returns</p> <p>&bull; Title deeds of the property / EC, latest tax paid receipt / Legal Scrutiny Report</p> <p>&bull; Approved plan of building</p> <p>&bull; Annual Financial Statements for the past 2 years - applicable for the self employed</p> <p><strong>Apply for Canara Bank Mortgage Loan</strong></p> <p>You can apply online at the Canara Bank website.</p> <p>&nbsp;You can also visit your nearest Canara Bank branch and have a representative help you with the loan process.</p> <p>You can also call the customer care number listed on their website for help with your application process.</p> <p><strong>Need help?</strong></p> <p>Alternatively, if you think you need help with your loan application and advice on loan eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your profile.</p>https://www.creditmantri.com/articles/hdfc-bank-mortgage-loanHDFC Bank Mortgage Loanhttps://www.creditmantri.com/articles/hdfc-bank-mortgage-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/21beaca8ee7dde6981207273e4a971fa_37.hdfc-bank-mortgage-loan.png'/></p><p>There is always a situation in life when you need an extra injection of funds &ndash; it could be for educational expenses, medical expenses, marriage expenses or even business reasons. If you have a property in your name, then you can unlock its potential by availing an HDFC Mortgage Loan. A mortgage loan allows you to retain your property while availing of a loan at a reasonable rate of interest.</p> <p><strong>Features of HDFC Bank Mortgage Loan:</strong></p> <p>&bull; Higher loan amount available for longer tenure, lower EMIs and at attractive interest rates.</p> <p>&bull; Flexible repayment options &ndash; you can choose between Dropline Overdraft Facility or EMI based loan.</p> <p>&bull; Minimal documentation and speedy approval process</p> <p>&bull; Type of collateral accepted &ndash; both residential and commercial properties</p> <p>&bull; Can be used as a debt consolidation tool</p> <p>&bull; Funds can be used for personal as well as business needs.</p> <p><strong>What is the eligibility criteria?</strong></p> <p>You need to be either a salaried employee or a self-employed professional/individual and be able to demonstrate a stable source of income.&nbsp; It is advisable to check the specific income and age requirements with the bank directly.</p> <p><strong>What are the documents required?</strong></p> <p>For the salaried:</p> <p>&bull; Proof of Residence - &nbsp;Ration Card / Telephone Bill / Electricity Bill / Voters Card</p> <p>&bull; Proof of Identity - Voter's Card / Driver's License / Employer's Card</p> <p>&bull; Your latest Bank Statement (where salary is credited) for the past 6 months as a proof of income</p> <p>&bull; Your Salary Slip from the last 6 months with all deductions shown</p> <p>&bull; Form 16 from the last 2 years</p> <p>&bull; Copies of all Property Documents with clear titles of the concerned property that you are about to pledge for the loan</p> <p>For the self-employed professional/individual:</p> <p>&bull; Financial Statement for the last 3 years duly certified by a CA</p> <p>&bull; Your Proof of Residence - ration Card / Telephone Bill / Electricity Bill / Voters Card</p> <p>&bull; Your Proof of Identity - Voter's Card / Driver's License / Employer's Card</p> <p>&bull; Your latest Bank Statement (where salary is credited) for the past 6 months as a proof of income</p> <p>&bull; Copies of all Property Documents with clear titles of the concerned property that you are about to pledge for the loan.</p> <p><strong>How much can I borrow?</strong></p> <p>You can get a maximum of 60% of the market value of the property pledged, depending on its type and its value, upon successful verification by the bank&rsquo;s evaluators.</p> <p><strong>How do I apply for an HDFC Mortgage Loan?</strong></p> <p>You can apply for a mortgage loan from HDFC in the following ways:</p> <p>&bull; You can apply online by filling in the online application form. A representative will get in touch with you.</p> <p>&bull; You can call one of the PhoneBanking numbers listed on the website</p> <p>&bull; You can visit your nearest branch, and have a representative help you with the application process.</p> <p>&bull; Existing loan customers can contact their Relationship Manager for loan details</p> <p><strong>Need help?</strong></p> <p>Alternatively, if you think you need help with your mortgage loan application and advice on loan eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your profile.</p>https://www.creditmantri.com/articles/bajaj-finance-personal-loanBajaj Finance Personal Loanhttps://www.creditmantri.com/articles/bajaj-finance-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3e0ca8ec8b187c5ee0786ad538aeffcf_40. bajaj-finance-personal-loan.png'/></p><p>A personal loan could serve many purposes and come to your aid when you have no other source of money to turn to. Life throws a variety of situations at us that require that little extra source of funds - be it covering expenses for a marriage- whether of your child, sibling or your own; higher education; emergency buffer to recover from the loss of a job; home renovation; medical emergency, or a myriad other reasons.</p> <p>&nbsp;Since a personal loan doesn&rsquo;t require any collateral and no restrictions on how you spend the loan amount, it could be a very welcome source of quick funds. In times of need, a Bajaj Finance personal loan could be a good choice, provided you know how to manage your finances and have an accurate plan on how to repay your loan.</p> <p><strong>Bajaj Finance Personal Loan - What You Need to Know</strong></p> <p>With Bajaj, you can get a variety of online personal loan solutions, which include information on personal loan eligibility criteria, EMI calculation, the documentation required, and application help for the personal loan.</p> <p><strong>Am I Eligible?</strong></p> <p>You are eligible for a personal loan from Bajaj Finance, if you are</p> <p>&bull; A salaried person</p> <p>&bull; You earn a minimum of Rs. 25,000 to Rs. 40,000 (Salary requirements differ from city to city, check with Bajaj Finance for more details.)</p> <p>You can also use the Bajaj Finserv Personal Loan Eligibility Calculator online tool in order to do a quick check of your eligibility. You can also use the <a href="https://www.creditmantri.com/personal-loan/">Personal Loan</a> EMI Calculator to determine how much EMI you will have to pay for your personal loan, and plan your finances accordingly.</p> <p><strong>Ok. What&rsquo;s the interest rate?</strong></p> <p>The interest rate varies with each customer depending on his/her income, credit score and repayment history among several other factors. You will need to check with the company about the interest rate that is being offered to you. Personal loans are some of the most expensive retail loans on the market and it is important to check the rate so you can plan the repayment accordingly.</p> <p><strong>How do I get the best interest rate possible?</strong></p> <p>Obtain your credit report and check your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>. &nbsp;Generally, a credit score of 750 or above qualifies you for the most favourable terms and conditions, including a lower interest rate. While a high credit score does not guarantee loan approval or low interest rate, it certainly helps your cause considerably.</p> <p>You need to be aware and updated on your most recent credit report. Take a fine comb to your report and check for any inconsistencies or errors. If you find one, immediately file a dispute and get it corrected. If your credit score is low, then take time to improve it before applying for a personal loan to avoid the possibility of rejection or unattractive interest rates.</p> <p><strong>I Am Ready! What Next?</strong></p> <p>Great. Now you can apply for a <a href="https://www.creditmantri.com/bajaj-finance-personal-loan/">Bajaj Finance Personal Loan</a>. You can do so by logging onto the Bajaj Finance website and uploading the required documents or by visiting the nearest Bajaj Finance branch and submitting the application with the required documentation.</p> <p>Alternatively, if you think you need help with the loan application process and advice on eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your credit profile.</p>https://www.creditmantri.com/articles/how-to-apply-for-a-personal-loan-at-icici-bankHow to apply for a Personal Loan at ICICI Bankhttps://www.creditmantri.com/articles/how-to-apply-for-a-personal-loan-at-icici-bank<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/b817bc99b65052ceaf11743c73e0e72a_48.how-to-apply-personal-loan-in-icici-bank.png'/></p><p>At some point or the other, almost all of us have faced a point in life where we need a helping hand.All you need is that little something extra to ease your financial burden a little. A <a href="https://www.creditmantri.com/icici-bank-personal-loan/">personal loan from ICICI Bank</a> is one way of making your life easier, your finances more stable and providing you the financial freedom to make certain spending choices. &nbsp;</p> <p>ICICI Bank which was founded in 1994, is one of the premier private sector banks in India and offers a wide array of finance products catering to its many customer needs. It offers a range of loan options designed to suit the differing needs of its customers. A personal loan from ICICI Bank could be the answer to all your worries when you find yourself facing an immediate and temporary financial shortfall.</p> <p><strong>Personal Loan in ICICI Bank - Things You Need to Know</strong></p> <p>Before you apply for a loan, keep in mind the following:</p> <p><em>Credit score:</em> Make sure to pull out your credit report <em>well before</em> you apply for a loan and review it for any inconsistencies and errors. If you find any errors like mistakes with your name or address, or wrongly entered loan status or credit limit, file a dispute immediately and have it corrected. Left uncorrected, these errors will drag down your credit score and affect your ability to secure the loan. Usually, lenders look for a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 and above to approve a loan. You may be accepted for a loan below that score too, but at less attractive terms and a higher interest rate. Keep in mind, that personal loans have some of the highest interest rates of all retail loans. &nbsp;It is better to have a good credit score before you apply for a loan to avoid loan rejection and to qualify for the most favorable terms and conditions.</p> <p><em>Loan amount:</em> There are different caps regarding the maximum loan amount that can be availed depending on whether you are a salaried employee, self-employed professional, or a doctor. ICICI Bank offers loans of up to Rs. 20 lakhs for salaried employees, up to Rs.30 lakh for self-employed professionals and up to Rs. 40 lakh for doctors.</p> <p><em>Interest rate:</em> Personal loans are unsecured loans, meaning that they do not require any form of collateral or security. Hence the interest rates on such loans are generally higher than any other loan, to minimize the risk of loss to the bank/lender. So it becomes doubly important to have a stable income and good credit score, so that you are eligible for a personal loan at attractive interest rate and other loan terms.</p> <p><em>Eligibility:</em> At the very minimum, you need to be a salaried or self-employed individual earning a stable income in order to qualify for a personal loan. You can check your eligibility online on their website and also get an estimate of what loan amount you are eligible for. Keep in mind that all loan decisions are solely at the discretion of ICICI Bank.</p> <p><strong>Ok, Got it! What next?</strong></p> <p>Apply for a Personal Loan at ICICI Bank! You can apply by following any of the steps mentioned below:</p> <p>&bull; Apply online from the convenience of your home and upload the requisite documents</p> <p>&bull; &nbsp;Call or e mail&nbsp; the customer care center</p> <p>&bull; Visit the Help Desk at your nearest ICICI Bank Branch.</p> <p>Alternatively, if you think you need help with your loan application and advice on eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your credit profile.</p>https://www.creditmantri.com/articles/how-to-apply-for-a-car-loan-in-indiaHow to Apply for a Car Loan in Indiahttps://www.creditmantri.com/articles/how-to-apply-for-a-car-loan-in-india<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/eadaa4cc67ada58dc4769bdd77970c8f_1.how-to-apply-for-car-loan.png'/></p><p>There are many <strong><em>firsts</em> </strong>in life, for which almost everyone needs a little bit of help. Buying your first car is one of them. It could a hugely liberating experience &ndash; no more wasting time at bus stops or negotiating with autorikshaw drivers or taking multiple modes of transport on your office commute every day. To buy that dream car, a car loan is can come in very handy. Read on how to apply for the best car loan in India.</p> <p><strong>Things to Look for While Choosing the Best Car Loan in India</strong></p> <p><em>Interest rate:</em> Perhaps the most important thing to look out for when considering a car loan is the interest rate. Shop around for the lowest interest rate possible. Even a 0.05% reduction in the interest rate could mean savings of a couple of thousands of rupees in interest costs. Of course, the interest rate also depends on your credit score and other factors, but is advisable to shop around for the best deal.</p> <p><em>Fine print:</em> Thoroughly research the various loan offers available in the market. Take care to go through the fine print on the terms and conditions, however tedious it might seem to be. Be sure of the kinds of fees and charges involved, as that might put a considerable dent in your pocket.</p> <p><em>Compare financing options:</em> Compare the features and benefits to determine which car loan offer best fits your income and credit requirements. Some banks offer 100% financing for select car models. (Some lender websites have detailed information on the cars available on the market which will help you make your choice.)</p> <p>&nbsp;You can use an online EMI calculator to determine what your EMI will be for various loan offers and decide what kind of loan you can afford.</p> <p><strong>What next? Pull out your credit report</strong></p> <p>Once you have decided on the loan offer, it is vital to obtain a copy of your credit report well before put in your car loan application. You can check your credit score, report any inconsistencies in your report, and work on any areas of credit weakness.</p> <p>Typically, banks and other lenders look for a <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> of 750 or above to sanction a loan. If your score is below 750, you need to concentrate on improving your credit score to at least 750. Depending on how grave your credit situation is, this can take anywhere from 4-12 months.&nbsp;If you spot any administrative errors, you will need to file a dispute immediately to get them rectifies, so that your credit score is not unnecessarily dragged down.</p> <p>Once you have a good credit score and a clean credit report, you stand a good chance of having your loan approved.&nbsp; A higher score also means you can avail of more attractive terms, like a lower interest rate, that will lighten your loan repayment burden.</p> <p><strong>Ok, I have chosen my car loan, what next? Apply for A Car Loan!</strong></p> <p>Once you have finished with the research on the <a href="https://www.creditmantri.com/articles/how-to-get-a-loan-for-a-used-car">best car loan available</a>, it is time to apply. You can walk in to the nearest branch of your chosen lender and apply along with all the supporting documents or you can apply online. It is possible to track the status of your application online as well.</p> <p>Alternatively, if you think you need help with identifying the best loan offer and would like advice on eligibility and assistance with your application, CreditMantri can guide you through the entire process and match you with the loan that suits your credit profile the best.</p>https://www.creditmantri.com/articles/what-is-the-best-credit-card-for-rewardsWhat Is the Best Credit Card for Rewardshttps://www.creditmantri.com/articles/what-is-the-best-credit-card-for-rewards<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/03d106c86b611728cf882274df4fc373_3what-is-the-best-credit-card-for-rewards.png'/></p><p>There is no one &ldquo;best&rdquo; rewards credit card as such. You might want to be rewarded with free shopping vouchers at your favourite store, your friend might prefer a card that offers airline miles for cheap or free tickets, your colleague might choose movie and entertainment perks for those weekend evenings. Each card offers particular benefits in <a href="https://www.creditmantri.com/travel-credit-cards/">travel</a> or <a href="https://www.creditmantri.com/entertainment-credit-cards/">entertainment</a> or <a href="https://www.creditmantri.com/lifestyle-credit-cards/">lifestyle</a>, <a href="https://www.creditmantri.com/shopping-credit-cards/">shopping</a> and it depends on what rewards you think are the most rewarding for you!</p> <p>It could get a little confusing to choose the best rewards program since there are so many offers on the market today. The best rewards credit card would depend on various factors, such as your income, your requirements, your spending habits and so on.&nbsp; Here are some practical tips on how to go about choosing a rewards card.</p> <p><strong>Things to keep in mind when choosing a rewards card</strong></p> <p>While choosing the best rewards credit card, consider the following points before making your choice:</p> <p>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Your net income: Credit cards have income eligibility criteria since they can be a pretty significant monthly expense. There are various cards available to individuals under different income brackets. It&rsquo;s absolutely vital to consider your monthly net income and then decide whether you can really afford the credit card you have in mind. A <a href="https://www.creditmantri.com/credit-card/">credit card</a> could considerably increase your monthly expenses and might possibly put you in debt.</p> <p>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Your spending pattern: You need to carefully examine your spending habits and then decide what you would like to use your credit card for. If you are an online shopaholic, go for a credit card which offers the best rewards for online shopping like the HDFC Snapdeal Credit Card. This card enables you to earn 3X more Reward points for spending online at the Snapdeal website.</p> <p>Similarly, if you spend heavily on movies, then it would be a good idea to get a credit card which offers accelerated reward points on entertainment spends.&nbsp; Determine what you spend on and how you would like to be rewarded when making your choice.</p> <p>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees and other charges: Be aware of the fees and charges involved before applying for a rewards credit card. Thoroughly research the annual fee, joining fee, renewal fee and other associated charges. Don&rsquo;t get carried away by attractive rewards offers, as the fees might outweigh the benefits.</p> <p>&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest Rate: A vital factor. Don&rsquo;t be fooled by attractive offers that could mask a high interest rate. Here too, the amount you pay in interest will negate any rewards you get on your spending. Consider applying for a card with a lower interest rate, even if it gives lower reward points, as compared to a credit card that offers great reward points but a higher interest rate. Also, credit card issuers could have promotional offers like 0% interest. Generally, the promotional period spans a couple of months and you will most probably find yourself paying a steep interest rate thereafter. Be careful to avoid the debt trap.</p> <p>To put it in a nutshell, the <a href="https://www.creditmantri.com/rewards-credit-cards/">best rewards credit card</a> is one that offers good benefits in terms of reward points and loyalty program but which also offers a low interest rate. Accumulating rewards points feels great&mdash;until the time it is wiped off if you&rsquo;re paying fees that outweigh the benefits. So, do your research diligently even if it feels tiresome&mdash;it will pay off in the long run.&nbsp;</p> <p><strong>Need help? </strong></p> <p>Alternatively, if you think you need help with your credit card application and advice on eligibility, CreditMantri can guide you through the entire process and match you with the credit card that suits you needs the best.</p>https://www.creditmantri.com/articles/how-is-credit-card-interest-calculatedHow Is Credit Card Interest Calculatedhttps://www.creditmantri.com/articles/how-is-credit-card-interest-calculated<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/39b9692d445cdfb905437c7089a4ceb2_8.how-is-credit-card-interest-calculated.png'/></p><p>It is extremely important to know learn about a credit card before applying for one. The fees, charges, rewards, perks and privileges are all important features of a credit card. The most important feature is perhaps, you guessed it, the interest rate charged on the credit card. The interest rate on your card can mean the difference between a healthy credit user and a debtor. Here is a primer on how the interest on your <a href="https://www.creditmantri.com/credit-card/">credit card</a> is calculated.</p> <p><strong>How to Calculate Credit Card Interest</strong></p> <p>While many credit cardholders focus on the annual fees, late fees, joining fee etc., it is the finance charge &ndash; or interest charges that you should focus on.</p> <p>The interest rate is applied only to your outstanding balance on your credit card. If you pay your entire bill on time, then you are not subject to any interest charges. You are, in effect, using your bank&rsquo;s money for free until repayment.</p> <p>However, if you pay only part of your bill, and have a resultant outstanding, you will be charged interest on this balance. Most credit cards charge interest on the basis of the average daily balance method. In simple terms, they will calculate interest on the actual number of days and actual balance outstanding, rather than on an aggregated monthly basis.&nbsp;</p> <p><strong>Interest on Cash Advances</strong></p> <p>Credit cards have advance cash facility which can be a boon in times of crisis. But it comes with a withdrawal limit and an additional tag of high interest rate. Only withdraw from your credit card if you <em>absolutely</em> have to. The cash advances taken from credit card do not enjoy any grace period and interest is charged from the very day you withdraw and keeps accumulating up to the time you repay it in full.</p> <p><strong>What happens if I don&rsquo;t pay my bills completely before the due date?</strong></p> <p>If you don&rsquo;t pay your bills completely before the due date, your entire outstanding balance will attract interest rate. In addition, any further spending on your card in the next monthly cycle will be added to your balance and the whole amount will attract interest charges &ndash; until the repayment is made in full. If you avail of a cash advance on your credit card, your interest-free period is no longer valid.</p> <p>All in all, if you do not pay careful attention to your interest charges &ndash; how it is charged, on what amount, and for how long &ndash; the accumulated interest can creep up on you and make it very difficult to pay back in full. So always keep in mind what your balance is, how much you are paying on it, whether you need a cash advance on your card, and how much you will have to pay for the facility.</p> <p>Another thing to keep in mind is the late payment charges. You must absolutely make sure that you pay your bills before the due date. Depending on the credit card issuer, you can pay interest charges as well as a late penalty on your outstanding &ndash; so keep a track of your payment behavior.</p> <p>A credit card could be your friend in need, provided you know how to utilize the perks and rewards, and you carefully plan your finances. Make sure you pay your outstanding balance on time and in full every month, to avoid falling into a debt trap with ever-mounting interest payments. &nbsp;</p> <p><strong>Need help?</strong></p> <p>If you are confused about interest rates and charges and need some help on how to choose the right credit card, CreditMantri can help match you with the card that best suits your credit profile and financial requirements.</p>https://www.creditmantri.com/articles/what-is-a-credit-card-numberWhat Is a Credit Card Numberhttps://www.creditmantri.com/articles/what-is-a-credit-card-number<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ce3cd4fb84f734e66c055cacda557c28_11.what-is-credit-card-no.png'/></p><p>As a credit card holder, have you ever wondered what those set of numbers embossed on the front part of your credit card mean? This 16-digit number is referred to as your <em>Credit Card Number </em>and is unique for every individual.</p> <p>Typically, credit cards have the 16 digits on the front of the card. These digits are exclusive for every card holder and denote the individual account number for the card. These sixteen digit numbers and not randomly generated and follow a pattern.</p> <p>There is a lot more information packed into those sets of numbers, and the first few digits helps identify the kind of card you are holding. &nbsp;If you have your <a href="https://www.creditmantri.com/credit-card/">credit card</a> handy, then you can pull it out so that you follow the meaning of these numbers.</p> <p>The first digit in the number denotes the type of card you are holding. This number is always a 3, 4, 5, or 6 (in case of international credit card). Following is a breakdown on which number denotes what:</p> <p>3&nbsp;- Travel or entertainment card <br /> 4&nbsp;- Visa Card<br /> 5&nbsp;- MasterCard<br /> 6&nbsp;- Discover</p> <p>In a typical sixteen-digit credit card number, the first fifteen digits are determined by the issuing bank, while the last number is mathematically determined to rule out any error. To elaborate, in your credit card number, the 2nd through to 6th digits denote the bank number, and the 7th-15th numbers denotes your account number. The remaining digit is known as the <em>check digit</em>. This number is used to determine the authenticity of the overall number and to rule out any invalid numbers. The check digit is mathematically determined based on all the other digits.</p> <p><strong>Importance of Check Digit</strong></p> <p>When the bank processes a payment, you need to quote your credit card number. Credit card numbers are often typed in, input by a third person, transferred or quoted. All these kinds of communication can result in error. &nbsp;A check digit is included to try and minimize these kinds of human errors. The check digit also serves the purpose of protection - it provides a small amount of protection from poorly educated hackers who might attempt to randomly estimate and generate credit card numbers by guessing the numbers.</p> <p><strong>How Are Credit Card Numbers Generated?</strong></p> <p>Credit card numbers are generated by using an algorithm known as the Luhn algorithm. A credit card number is valid if, and only if, it satisfies the <em>Luhn Check.</em> To put it in simple terms, it is a simple mathematical test that involves manipulating and adding the credit card number. Only then, a credit card number is deemed valid.</p>https://www.creditmantri.com/articles/education-loan-interest-ratesEducation loan interest rateshttps://www.creditmantri.com/articles/education-loan-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/570754268fb77d0d7c0dde8a43f738f9_16.education-loan-interest-rate.png'/></p><p>You&rsquo;ve done well in your exams, you&rsquo;ve got admission into the college/university of your choice for an undergrad or post graduate programme but&hellip;..you do not have the funds to finance your education dream? If you need an education loan, worry not. Finding money to support your studies is no longer an insurmountable problem &ndash; whether you decide to study in India or overseas - so long as you qualify for the terms and conditions of the loan.</p> <p><strong>Features of Education Loans in India</strong></p> <p>Who is eligible? Most banks in India offer education loans to students for study either within the country or abroad and you can borrow money for undergraduate, post graduate, certificate or vocational courses. Any student, typically between ages 16-35, can apply for an education loan.</p> <p>The loan amount can vary depending on the cost of the education. Some lenders will even fund 100% of your education, whether in India or overseas.</p> <p>Interest rate: The interest rate for an education loan also varies between banks and can typically range between 9-15% p.a. There is usually a grace period before you need to start paying off your loan &ndash; this period is usually between 6 months after you get a job to one year after completion of the course, whichever is earlier. The <a href="https://www.creditmantri.com/personal-loan-emi-calculator/">EMI is calculated</a> once this moratorium period is over and the repayment starts. Some banks offer a discount to female applicants for an education loan.</p> <p>Guarantor: A co-applicant on your loan is mandatory if you are planning to study abroad, and it has to be an immediate family member like a parent, sibling, uncle, aunt or grandparent. They will need to show salary proof as part of the loan application. You will also need to provide collateral.</p> <p>If you are planning to study in India, many banks offer unsecured loans (that do not require security) for up to Rs 7.5 lakhs. In some cases, you might need to offer additional security like an LIC policy or a fixed deposit with the bank for availing of the full loan amount.</p> <p>Tax benefit: You can get a tax benefit under Section 80E of the Income Tax Act of India.</p> <p>Documents required</p> <p>The documentation varies with each bank but most applications will require attested mark sheets, proof of admission, ID and residence proof, bank statements of the past six months, photographs, and any scholarship documents.</p> <p><strong>Central Scheme for Interest Subsidy</strong></p> <p>The Central Government has a scheme to pay the interest during the moratorium period for students from economically weaker Sections (gross annual family income of up to Rs 4.5 lakhs) availing of loans for technical or professional courses. Applicants must have an income certificate from the certifying authority to be eligible for this scheme.</p>https://www.creditmantri.com/articles/family-health-insuranceFamily Health Insurancehttps://www.creditmantri.com/articles/family-health-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/92479b7539f12b9f168fb36ebe71e38c_20.family-health-insurance.png'/></p><p>Life is unpredictable and there is nothing so frustrating and worrying as a family member being taken ill. While you stress about medical treatment and recovery, at least you need not worry about the financial aspect&ndash; it will be taken care of by your insurance coverage, if you have a family health insurance plan in place.</p> <p>Keeping in mind the steep rise in medical costs in the country, it has become necessary for everyone to have a health insurance plan, and more and more people are opting for family health insurance plans. A medical emergency can prove to be a setback financially and emotionally. Nothing can compensate for the emotional upheaval experienced, but having a financial buffer in the form of health insurance can prove to be a savior.</p> <p><strong>What does a family health insurance plan cover?</strong></p> <p>A family health insurance, as the name suggests, is an insurance plan that covers the whole family in case of a medical emergency of any of the member of the family.</p> <p>This kind of insurance generally covers the whole family including yourself, spouse, and children. However, there are some insurance companies that offer complete protection extending to cover your siblings and parents and in laws as well. The premium on these are &nbsp;generally on the higher end than that of a normal family health insurance plan since it covers a larger number of people. Since this is a single health insurance intended for the whole family, it saves you the hassle of buying multiple insurance plans and maintaining track of each and every single plan.</p> <p>If you are a married person, then it is advisable to buy a family <a href="https://www.creditmantri.com/articles/choosing-a-good-health-insurance-policy">healthcare insurance</a> as it is more cost effective than a single health insurance plan.</p> <p><strong>Benefits of buying a Family Health insurance plan</strong></p> <p>Listed below are some of the benefits of having a family insurance policy:</p> <p>&bull;Assured payments for medical and hospitalization bills (depending on the plan and premium paid)</p> <p>&bull;Saves heavy future financial losses due to costly and unexpected medical expenses</p> <p>&bull;Greater sense of mental and financial security</p> <p>&bull;Eligible for tax exemption under Indian Income Tax Act's Section 80D</p> <p>There are a number of insurance companies today that provide family health <a href="https://www.creditmantri.com/articles/Insurance?act=17">insurance</a> plans in India. Decide what kind of coverage you want and choose a policy that is affordable to you and provides you and your family with the most comprehensive coverage. Read through the fine print carefully before buying a policy. Having a family health insurance policy helps you plan ahead for any unwanted and possibly heavy expenditure in the future. Stay insured, stay happy!</p>https://www.creditmantri.com/articles/home-loan-comparisonHome Loan Comparisonhttps://www.creditmantri.com/articles/home-loan-comparison<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ada2f56831da59efb456a53565d5acb0_21.home-loan-comparison.png'/></p><p>Planning to buy a home? You are probably already imagining the furniture you will buy, where you will have the TV, and enjoying the many delights of setting up a home of your own.&nbsp; But owning a home also comes with its own set of responsibilities like pay your EMIs every month without fail, and planning your budget every month to accommodate your EMIs.</p> <p>When you actually sit down to research home loans you will find that you are bombarded by an array of very tempting offers being advertised. The market is flooded with home loan options and it can quite overwhelming to try and compare the various features and benefits in offer.&nbsp;</p> <p>There are several online resources today that could help you compare the loan offers but it could be a boon as well as a bane as the overwhelming number of options could well result in a mind freeze!&nbsp; If you are seriously considering buying your very dream home, then here are some tips to keep in mind on what to look for while loan comparison.</p> <p><strong>What to consider</strong></p> <p><em>Hunt for the lowest interest rates:</em> A home loan is a considerable long term commitment, with tenures that can stretch to even 20 years or more. Of course, the interest rate offered to you depends on a variety of factors like your credit score or your existing relationship with your bank. However, it still pays to do research on who offers the lowest interest rates. Even a 0.50% reduction in the interest rate could mean substantial savings every month for many years.</p> <p><em>Fees and charges matter:</em> Be aware of the various extra costs associated with a home loan. There are several fees and charges involved like the processing fee, which is non-refundable, and the documentation fee. Other charges to look out for are the part pre-payment charges, payment mode swapping charges, etc. These kind of charges could substantially add to your loan so check that the terms suit your needs.</p> <p><em>Comb through your mailbox for the best offers:</em> If you already have an existing relationship with your bank, chances are you might have offers waiting for you in your email inbox. Deals in your mailbox may offer better terms than general offers sent to a wider set of applicants online.</p> <p>Here are some do&rsquo;s and don&rsquo;ts to keep in mind when considering applying for a home loan:</p> <p><strong>The <em>Do&rsquo;s</em></strong></p> <p><em>Do</em> focus on improving your credit score. It is absolutely necessary to do this if you have a bad score. It is advisable to have a credit score of at least 750 or above when applying for a loan. You might be able to get a home loan with a lower credit score but be prepared for more unfavourable loan terms like a higher interest rate or smaller loan amount.&nbsp;</p> <p>Obtain a copy of your credit report well in advance of applying so that you have enough time to improve your score, if required. Check for any errors like wrong personal details or incorrect loan status that could be unnecessarily dragging down your score.</p> <p><em>Do</em> pay off your dues consistently on time and in full. You will see your credit score rise.</p> <p><strong>The <em>Don&rsquo;ts</em></strong></p> <p><em>Don&rsquo;t </em>make multiple applications for loans. This rings an alarm bell for lenders who think that you are desperate for credit and need to apply to various sources. Multiple simultaneous applications will decrease your credit score. Take your time researching for the best home loan rates and only apply for the one which suits your needs and where you have the best chance of being approved.</p> <p><em>Don't </em>use just one online comparison site that lists out various home loan offers. There are some sites that only list the loan lenders who advertise with them. This means only a select number of loan will be featured, which is a huge negative since you miss out on the pool of potentially better <a href="https://www.creditmantri.com/home-loan/">home loan</a> offers. Use multiple resources to do your research instead.</p> <p><em>Don&rsquo;t</em> and absolutely <em>don&rsquo;t</em> hurry on a home loan decision since your choice can have consequences that will impact you for many years to come.</p> <p>The best way of comparing and choosing a home loan provider is to do a thorough research on the various offers available in the market and decide which one is most suitable for you in terms of interest rates, fees, and other features. Clarify any doubt or questions you have with the potential lenders and make sure you are clear about what your financial commitment will be. You can use online tools like a <a href="https://www.creditmantri.com/home-loan-emi-calculator/">home loan EMI calculator</a> to calculate the cost of each loan offer. </p> <p><strong>Need Help?</strong></p> <p>Comparing home loans and choosing the best offer suited can be a difficult job, given the number of options available. If you think you need help with choosing the right home loan suited to your particular credit profile and needs, then CreditMantri can guide you through the entire process and match you with the best offer that you are qualified for.</p>https://www.creditmantri.com/articles/how-to-get-home-loan-with-bad-creditHow to Get Home Loan with Bad Credithttps://www.creditmantri.com/articles/how-to-get-home-loan-with-bad-credit<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/13cd4f2b86296147ea3bd1a344e6a698_22.how-to-get-a-home-loan-with-bad-credit.png'/></p><p>Buying a home is a huge investment - it can&rsquo;t be emphasized enough. It is a wonderful feeling to be able to own a valuable asset like a house. &nbsp;For most people in India, it is the main acquisition they will ever make, considering the real estate prices nowadays. Homeownership is something that almost every Indian &ndash; urban or rural - dreams of and banks have come up with loans suited for that very purpose!</p> <p>Before you decide on a housing loan, you need to make sure you are prepared so that your application is not rejected. Do your research thoroughly and do a home loan comparison in order to apply for the home loan with the best rate. Of course, the best rate would depend on a variety of factors like your credit score. You need to have a good credit score in order to land an attractive loan offer having the lowest interest rates. Even a .5% reduction in the rate can mean significant savings in interest payments for the entire tenure of the loan, stretching for 10-30 years. &nbsp;</p> <p><strong>Do you know your credit score?</strong></p> <p>Before applying for any kind of loan, you should obtain a copy of your credit report from the credit bureaus. If your credit score is low (below 750), then it is unlikely that you will be approved for a home loan. If your loan application is approved with a low score, you might have to face unattractive terms like a high interest rate. Make sure you improve your credit score before you apply for a <a href="https://www.creditmantri.com/home-loan/">home loan</a> since the interest rate and other repayment terms will affect you for many, many years.</p> <p><strong>I want to apply for a Home Loan but have bad credit. What should I do? </strong></p> <p>-First, avoid applying for any kind of loan if you have a bad credit score. There is a high chance that your loan application would only get rejected. Rejection of a loan application has a negative effect on your score, and your rating will only be knocked further down.</p> <p>-Obtain your credit score and a copy of your credit report: Do obtain a copy of your credit report from the bureaus and take a fine comb to it. Check for any inconsistencies or errors. If an error is present, file a dispute and get it corrected immediately, as these mistakes can drag your credit score down.</p> <p>-Improve your <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a>, if required: What you need to do is concentrate on improving your credit score to at least 750. This can take an average of 4-12 months, depending on the seriousness of your credit situation.</p> <p>-Pay your bills: One of the main reasons why a credit score gets knocked down is the payment behavior. Pay your dues every month, on time, every time. This will increase your credit score considerably. Do not default on any payments.</p> <p>-Convert any &lsquo;Settled&rsquo; accounts into &lsquo;Closed&rsquo; accounts. This will also help your loan application.</p> <p>Once you improve your score and credit profile, you will be in a position to have your loan application approved and avoid the chance of rejections. As mentioned before, a higher credit score means you can avail of more attractive terms that will lighten your repayment burden.</p> <p><strong>Need help?</strong></p> <p>Having a good credit score is one of the main prerequisites to obtaining a home loan at attractive interest rates. Do you think you need help with improving your credit score or improving your credit health so that you become loan-eligible? CreditMantri can guide you on how to improve your score in the most efficient and effective way so that your loan application is approved and also match you with the most suitable loan offer.</p>https://www.creditmantri.com/articles/what-is-home-loan-interest-rateWhat is home loan interest ratehttps://www.creditmantri.com/articles/what-is-home-loan-interest-rate<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7d54021187118b71f32a72d8af9fcf5c_23.what-is-home-loan-interest-rate.png'/></p><p>Are you planning to buy your dream home? You might have your property selected, your down payment ready, and your finances planned. But have you done enough research on the interest rates you will incur when you take the home loan? Have you done enough home work on which kind of interest suits you best? Here are some pointers on what you should consider when you are evaluating home loan interest rates.</p> <p><strong>What is a home loan and EMI?</strong></p> <p>When a bank or NBFC lends a customer money for the purpose of buying or building a property, the loan is known as a <a href="https://www.creditmantri.com/home-loan/">home loan</a>. The loan is repaid by way of EMIs (Equated Monthly Installment). It is the amount you need to pay on a monthly basis to repay your entire loan including the interest accrued.</p> <p>If you feel your EMI burden is too high, then you have the option to reduce it by lengthening the tenure of the loan. If you choose this option then keep in mind that you will be paying out more in interest amount since your repayment obligation is over a longer period.</p> <p><strong>Kind of interest rates </strong></p> <p>A home loan comes with two different kinds of interest rate. You need to study all the interest rate options carefully before deciding which one to choose. Check with your lender to make sure that you know the terms and conditions associated with each type of interest rate.</p> <p>Fixed Interest rate: You pay one fixed interest rate for the entire tenure of your loan and you have a fixed EMI for the entire duration of the loan.</p> <p>Floating Interest rate: The interest rate you pay varies during your loan tenure and is determined by external market conditions. You can choose this option if you are confident that interest rates will go down during your loan period.</p> <p>There is also the option of a partially fixed and partially floating rate. Talk to your potential lender to learn about all the options or consult a professional to decide which option suits your financial needs the best.</p> <p><strong>Still Confused and Need Help?</strong></p> <p>Choosing the home loan with the best interest rate can be daunting, given the number of options available. If you think you need help with choosing the right home loan with an interest rate best suited to your particular needs, CreditMantri can guide you through the entire process and match you with the best offer that you are qualified for.</p>https://www.creditmantri.com/articles/compare-home-loan-interest-ratesCompare Home Loan Interest Rateshttps://www.creditmantri.com/articles/compare-home-loan-interest-rates<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3a56013689568a0f9725ef6f6c7ea2bf_27.compare-home-loan-interest-rates.png'/></p><p>Are you ready to make one of the largest and most significant financial investments (a.k.a buying a house) of your life? Owning a home is the aim of almost every Indian, if not the aim of millions the world over. It is a valuable, and usually appreciating, asset. It is one asset that confers mental and emotional security in addition to financial stability as well. In order to fill that huge demand for buying a home, banks and other financial institutions have developed a variety of home loan options for you to choose from.</p> <p><strong>Importance of the interest rate</strong></p> <p>However, too many options can also lead to too much confusion! Whether you are starting to look at properties, or already identified a property, one of the most important factors when choosing a home loan is the interest rate. Even a 0.5% reduction in the rate can translate into big savings every month on your EMI for the entire tenure of your loan, stretching to 10-30 years. So while the loan amount or tenure is also important, you need to pay special attention to the different interest rate features of the housing loan options before you. &nbsp;</p> <p>In order to land the best deal on a <a href="https://www.creditmantri.com/home-loan/">home loan</a>, you need to make sure you have a healthy credit score. A credit score of 750 and above would ensure you get a loan offer at attractive terms and interest rate.</p> <p><strong>Things to do when comparing home loans</strong></p> <p>Once you ensure you have a good credit rating, you can use an online home loan comparison website in order to contrast and compare various loan offers. Don&rsquo;t rely on only one site for comparison, shop around and compare rates, EMIs, fees, and other terms and conditions of repayment.</p> <p>&nbsp;If you are an existing customer of a bank and have a good relationship with them, then approach them first. As an existing customer, you might be eligible for preferential rates as compared to rates offered to the general public. Make sure to check with your lender before approaching new lenders.</p> <p>Read the fine print and ask for clarifications. A home loan is a big commitment and you need to be completely clear about what your financial outflow will be every month for the next 10-20 years. For instance, you would need to choose between a fixed rate or floating rate of interest loan. Ask your lender representative or even consult with a professional in case you have any doubt.</p> <p><strong>How do I calculate the interest I need to pay on various loan offers?</strong></p> <p>You can use CreditMantri&rsquo;s online <a href="https://www.creditmantri.com/home-loan-emi-calculator/">Home Loan EMI Calculator</a> to find out how much interest amount you will pay towards your loan. &nbsp;The Calculator is fast, accurate, free, easy to use and can be used multiple times for various combinations of loan amount, interest rate, and tenure from each bank/NBFC.</p> <p>Just enter the interest rate, the loan amount and the tenure, and the calculator will show you how much you need to pay as EMI. &nbsp;You cannot use the EMI calculator to calculate the interest rate &ndash; the interest rate is determined by the lender. You can use the Home Loan EMI Calculator to get an idea of exactly how much you will be paying as interest on each loan offer.</p> <p><strong>Deciding on a loan is a bit confusing? </strong></p> <p>Deciding on a home loan can be a pretty nerve-wracking experience if you are doing it on your own and for the first time. If you think you need help with securing the home loan best suited to your credit profile and financial needs, then CreditMantri can analyse your credit profile, guide you through the entire application process, and match you with the offers most suitable for you. &nbsp;&nbsp;</p>https://www.creditmantri.com/articles/icici-bank-credit-card-statementICICI Bank Credit Card Statementhttps://www.creditmantri.com/articles/icici-bank-credit-card-statement<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ec4f05787b348a5230d4499b48b728c2_28.icici-bank-credit-card-statement.png'/></p><p>Remember how you kept track of your expenses during pre-credit card days? Writing down every expense, poring over your bank passbook to see how much you had withdrawn, waiting in line to get your passbook updated, and wondering how much you have left over in your account. Now all that information is just a click away on your computer with many banks offering online statement services that a give you a detailed picture of your credit card activity.</p> <p>Once you are done with all your shopping, you might want to know how much you owe, or much you spent and what exactly you spent it on, or you might just want to plan your finances and want to know your financial situation. Now all this information is just a click away on your computer.</p> <p>ICICI Bank enables its users to view their credit card statements easily online. There are three options to view your credit card statement online.</p> <p><strong>ICICI Bank Online &ndash; Credit Card Statement Online</strong></p> <p>This option enables you to view your current and previous credit card statements. Just access ICICI Bank Online and follow the steps mentioned below to login.</p> <p>&bull; Enter your Credit card details &ndash; your 16-digit Credit Card number</p> <p>&bull; Enter your Date of Birth</p> <p>&bull; Enter your Card Validity details</p> <p>&bull; Finally, click on 'Login'</p> <p>This facility is provided by ICICI Bank only for informational purposes, so you will not be able to perform any kind of transactions through this login, like paying bills.</p> <p><strong>Through Internet Banking</strong></p> <p>If you intend to transact, then you need to access your <a href="https://www.creditmantri.com/icici-bank-credit-cards/">ICICI Bank Credit Card</a> online through Internet Banking. You need to obtain your Internet Banking User ID and Passwords if you don&rsquo;t have one. You can do so by calling the 24-Hour ICICI Bank Phone Banking Numbers.</p> <p>This option lets you to view your credit card statement and make any transactions like pay your bills etc. You just need to</p> <p>&bull; log in to your Internet Banking account</p> <p>&bull; &nbsp;provide your valid credentials (User ID and Password)</p> <p>&bull; &nbsp;view your statement online</p> <p>&bull; conduct any other credit card-related transactions.</p> <p><strong>ICICI Bank Credit Card Statement Email Request </strong></p> <p>You can also request for your credit card statement to be emailed to you. In order to place this request, you need to click on the ICICI Bank Credit Card Statement E-mail Request Service online, and provide the following credentials:</p> <p>&bull; Credit Card Number&nbsp;&nbsp;&nbsp;</p> <p>&bull; From Date (for which statement is required)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</p> <p>&bull; To Date &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</p> <p>&bull; Contact Number along with the STD code&nbsp;&nbsp;&nbsp;&nbsp;</p> <p>&bull; Mobile Number &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p> <p>&bull; E-mail ID &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p> <p>All the above fields are mandatory and are required to be filled.</p> <p>You can place this request if you would like to have a copy of your credit card statement only for the last 6 months through e-mail. The statement will be sent to your registered e-mail ID. It generally takes up to one working day in order for your request to be processed.</p> <p>You can also call the ICICI Bank customer care for help with your <a href="https://www.creditmantri.com/credit-card/">credit card</a> statement and other credit card queries.</p>https://www.creditmantri.com/articles/how-to-get-an-icici-credit-cardHow to get an ICICI Credit Cardhttps://www.creditmantri.com/articles/how-to-get-an-icici-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ebfb07e0c060d23cb8daacb6c054ebb5_29.how-to-get-icici-credit-card.png'/></p><p>Banks offer a wide range of credit cards, suited to people of all income groups, wants budgets and needs. There are credit cards specially designed for lifestyle benefits, fuel benefits, air miles benefits, shopping benefits, etc. The choice available in the credit card world can be very tempting, but you also need to be careful about which card to apply for.</p> <p>ICICI Bank, which is one of the leading private sector banks in India, is also one of the largest credit card issuers in the country. It has come up with a host of features, offers and benefits for its wide customer base.</p> <p><strong>Types of ICICI credit cards</strong></p> <p>&nbsp;<a href="https://www.creditmantri.com/icici-bank-credit-cards/">ICICI&rsquo;s credit cards offers</a> lifestyle benefits such as discounts on shopping, dining &amp; movies, and complimentary rounds of golf every month. Some of its cards are packed with travel benefits like complimentary airport lounge access, fuel surcharge waiver, air miles which can be redeemed for air tickets, etc. Other benefits include Cashback rewards, PAYBACK offers, 24x7 concierge service &amp; many more.</p> <p>Some cards offer generous rewards points programmes. Keep in mind that different ICICI credit cards accrue differing number of Reward Points. For example, with <a href="https://www.creditmantri.com/icici-bank-coral-credit-card/">ICICI Coral Credit Card</a>, you earn 4 PAYBACK points for every Rs. 100 spent on dining, groceries and supermarkets. With ICICI Mumbai Metro Credit Card, you earn 8 PAYBACK Points on every Auto Recharge transaction. You can choose to redeem the points accrued in the following ways:</p> <p>&bull; Redeem through PAYBACK program</p> <p>&bull; Redeem for Cash</p> <p>&bull; Redeem for exclusive gifts and vouchers</p> <p>Only select ICICI Credit cards offer cashback.</p> <p><strong>How to Get ICICI Credit Card &ndash; Eligibility criteria</strong></p> <p>Not every individual is eligible for ICICI Credit cards. You need to be a salaried or self-employed professional, and be able to demonstrate a stable income. Make sure you fulfill the age and salary criteria when you apply for an ICICI credit card to avoid rejection. &nbsp;</p> <p>You can easily check your eligibility online on the ICICI Bank&rsquo;s website. If you are found eligible, then you will be given a list of cards to choose from. Keep in mind that all approvals are solely at the discretion of ICICI Bank.</p> <p><strong>Fees and other charges</strong></p> <p>Look for the joining fees, annual fees and other charges of the credit card you wish to apply for and make sure it is suited to your kind of lifestyle. If you are a frequent online shopper, then it makes no sense to apply for a card which gives travelling benefits. Get a card that rewards online shopping with extra points. Given the vast selection, it can be confusing to identify the most suitable card, which is why research is important before applying for a particular credit card.</p> <p><strong>Ok, what next?</strong></p> <p>Once you have decided on the card you want, you can apply online by logging onto the ICICI Bank website or by visiting the nearest ICICI bank branch and submitting the application and required documentation. You can track the status of your application online by referencing your application number.</p> <p><strong>Great, but I think I might need help&hellip;</strong></p> <p>It can get a little overwhelming to choose from the wide array of credit cards available and identify the most suitable card. If you think you need help with choosing the right <a href="https://www.creditmantri.com/credit-card/">credit card</a> that is best suited to your credit profile and needs, then CreditMantri can guide you through the entire application process and match you with the best offer.</p>https://www.creditmantri.com/articles/different-types-of-insurance-policiesDifferent Types of Insurance Policieshttps://www.creditmantri.com/articles/different-types-of-insurance-policies<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/5e41337fff0934adb720c35e783446ee_31.different-types-of-insurance-policies.png'/></p><p>What is insurance? Insurance is an agreement by which a company provides you financial compensation for loss, damage, illness, or death. In return, you pay a specified premium on a periodic basis &ndash; monthly, quarterly, bi-annual or annual. Naturally, the amount you receive as payout &ndash; or the coverage - depends on the premium paid. The bigger the premium, the greater the benefits.</p> <p><strong>Why do I need insurance?</strong></p> <p>Having insurance helps you in many ways. It is mandatory in India to have vehicle insurance. It covers the damage done to the vehicle and the third party in case of any accident. Rising health cost mandates that you buy a health insurance or better, a family health insurance if you are married. Death is inevitable; hence buying life insurance becomes useful, as this would help provide for your family in case of your untimely death and loss of income, if you are the main breadwinner. &nbsp;</p> <p><strong>Kinds of Insurance</strong></p> <p>There are various kinds of <a href="https://www.creditmantri.com/articles/Insurance/">insurance</a> in India. Life insurance, health insurance and auto insurance are the most sought after policies in India. Listed below are some of the common insurance in India.</p> <p>Life insurance: A life insurance policy is a contract between you and your insurance provider, where you pay a premium for a set period of time and in return your family will get a financial payout in case of your unfortunate demise.</p> <p>Health insurance: Health insurance will help you tide over the expenses related to medical treatment and hospitalization. When you are in the hospital, at least you will not have to deal with the financial worry &ndash; it will be taken care of by your health insurance coverage.</p> <p>Vehicle Insurance: Also referred to as auto insurance, car insurance, and motor insurance in India. Vehicle insurance basically protects you against financial loss in case of an accident, theft or natural disaster like fire, floods or landslides.</p> <p>Vehicle insurance includes car insurance as well as two-wheeler insurance. Commercial Vehicles like buses, lorries and trucks are generally covered by Commercial Vehicle Insurance.</p> <p>Property insurance: Property insurance or home insurance provides coverage against risks to property due to man-made or natural calamities like fire, weather damage, earthquake or theft to name a few.</p> <p>Travel insurance: Travel insurance policies generally cover medical expense when you are travelling abroad. It can be availed to cover both long and short trips. These plans can also cover non-medical cost while traveling depending on the premium paid &ndash; for instance, paying for hotel accommodation and expenses in case of cancellation of flights or other untoward circumstances. &nbsp;</p> <p>It is always a good thing to have insurance. It is especially advisable to have at least life insurance and health insurance (auto insurance is compulsory on purchasing a vehicle). In both cases, it is cheaper to buy the insurance when you are young and healthy rather than when you are older and the premium becomes more expensive. Buying insurance also buys peace of mind and it is one purchase you will never regret.</p>https://www.creditmantri.com/articles/life-insurance-corporation-of-indiaLife Insurance Corporation of Indiahttps://www.creditmantri.com/articles/life-insurance-corporation-of-india<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/14c81c776ab01d4b030da490367c08c5_32.life-insurance-corporation-of-india.png'/></p><p>Who hasn&rsquo;t heard of LIC?! The Life Insurance Corporation of India (LIC) was set up in 1956 with the aim of providing insurance cover to wider sections of the population &ndash; especially in the rural areas &ndash; and at a reasonable cost. From 112 branch offices in 1956, LIC now has over 2000 branch offices and issues more than 1 crore policies a year. It is the leading issuer of life insurance policies in the country.</p> <p>Life insurance protects you financially from two main uncertainties in life:</p> <p>1.Premature death, leaving the family without the means to support itself</p> <p>2.Old age without a secure means of income</p> <p>Life Insurance Corporation offers a variety of insurance policies that will help you overcome the financial crisis brought about by the either of the above two situations and helps you plan ahead. Having insurance cover brings both financial and mental well-being and peace of mind with regard to an uncertain future. Anyone who is of majority age can get a life insurance policy.</p> <p><strong>What are the advantages of life insurance?</strong></p> <p>&bull; It provides you with financial protection against potential losses in the future due to untimely death.</p> <p>&bull; It is a form of saving. You can pay the premium in monthly, quarterly, semiannual or annual installments. You can have your income deducted directly as well under the Salary Saving Scheme (SSS). All these payments will help you save for a rainy day, later in life.</p> <p>&bull; Allows you to take loans using the policy as collateral, provided the policy has enough value. You do not need to offer any other asset, you can simply use your policy to secure a loan, if you qualify on other counts.</p> <p>&bull; Offers tax benefits on premiums paid. Not only are you saving money, getting insurance cover, but also getting tax relief on the amount paid.</p> <p><strong>Age at which to buy life insurance</strong></p> <p>In general, the younger you buy life <a href="https://www.creditmantri.com/articles/Insurance/">insurance</a>, the cheaper it is. Even if you are unmarried or without children, it is a good idea to invest in a life insurance policy now while you are young, so that you enjoy the advantages of lower premiums and can save for a lump sum payment later in life.</p> <p>If you have a dependent family, then it is a good idea to buy a life insurance policy right away. The older you get, the more expensive the premiums become and there is no advantage in postponing the decision.</p> <p><strong>How to reduce the cost of a life insurance policy</strong></p> <p>&bull; Buy when you are young &ndash; the policy is cheaper since the risk of premature death is lower.</p> <p>&bull; Buy insurance for a long period.</p> <p>&bull; Opt for a large assured sum and pay an annual premium, which will enable you to avail of discounts</p>https://www.creditmantri.com/articles/what-is-non-life-insuranceWhat is non-life insurancehttps://www.creditmantri.com/articles/what-is-non-life-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f7ab81c141f7081be09866255645662b_33.what-is-non-life-insurance.png'/></p><p>&lsquo;Non-life insurance&rsquo; is simply the other forms of insurance, apart from life insurance. Growing up, all we hear is life insurance, but there are other forms of insurance that are equally vital to our physical and mental well-being. What are these?</p> <p>First of all, what is insurance, what is life insurance and what are the various other kinds of insurance?</p> <p>Buying an insurance policy is a way of protecting yourself from loss in the future. You might not actually experience this loss, but knowing that you are financially protected in case it does happen can lead to precious peace of mind.</p> <p>Having a life insurance policy means that in case of untimely passing away and loss of income, your family will not be left financially helpless. A pre-fixed sum (which is the amount you have been covered for) will be paid to your nominee &ndash; your spouse or any other next of kin &ndash; to help your family financially. You can choose to either have a one-time payout or as a recurring payment.</p> <p>There are various other kinds of insurance but the two most popular and important ones, both in India and throughout the world, are vehicle insurance and health insurance. &nbsp;</p> <p>Vehicle Insurance: It is mandatory to buy vehicle insurance when you buy any vehicle in India, whether a car or a two-wheeler. This kind of insurance protects you against financial expenses and loss when your vehicle is damaged due to an accident, theft or due to natural hazards like fire, floods, earthquakes and landslides. The insurance policy could also cover financial losses related to hospitalization due to an accident and other legal liabilities. &nbsp;</p> <p>Medical insurance: This is another kind of insurance that is becoming rapidly popular in India given the skyrocketing costs of medical treatment. It is quite a scary thought to think that you might not be able to afford the expenses related to treatment and hospitalization especially with conditions such as cancer or heart disease. Medical costs in metro cities across the country are rising inexorably and medical insurance is a way of ensuring that you can afford the treatment you want. Of course, each policy is different and your <a href="https://www.creditmantri.com/articles/Insurance/">insurance</a> payout will depend on what kind of policy you have bought. However, just knowing that you can depend on your health insurance policy to provide financial support can be a huge relief. You do not need to worry about draining your savings or being in debt because of illness. &nbsp;</p> <p>It is advisable to have life, auto and medical insurance so that you and your family are protected against financial loss in case of untimely death, accident or theft of vehicle, and in case of medical needs. The peace of mind it brings is far more valuable than the money you will spend to buy the policies!</p>https://www.creditmantri.com/articles/what-is-medical-insuranceWhat Is Medical Insurancehttps://www.creditmantri.com/articles/what-is-medical-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/fde3dd7c426ee49ccbcaed05453c2607_34.what-is-medical-insurance.png'/></p><p>Life is unpredictable. Anyone can fall prey to serious illness at any stage of life. Medical insurance will help you in such times of personal and financial crisis. When you are in the hospital, sick or worried about a family member, at least you will not have to deal with the financial worry &ndash; it will be taken care of by your insurance coverage.</p> <p>What is medical insurance? It is a contract between the insurance policy issuer and an individual. To put it in simple terms, it gives you financial protection against future medical expenditure.</p> <p>The main purpose of having a medical insurance is that you don&rsquo;t need to spend your hard earned savings when a medical emergency arises, and that you have the financial buffer to tide over such unexpected and financially draining situations.</p> <p><strong>What Does Medical Insurance Cover?</strong></p> <p>Of course, each policy is different, but typically a good medical insurance policy will cover hospitalization and treatment expenses, subject to terms and conditions.</p> <p>Keep in mind that a medical <a href="https://www.creditmantri.com/articles/Insurance/">insurance</a> policy does not always cover every possible medical expense that you might encounter in the future. A medical insurance plan comes with its set of terms and conditions. &nbsp;</p> <p><strong>When should I buy a Medical Insurance Plan?</strong></p> <p>In one word &ndash; now. The longer you wait, and the older you become, the more expensive it will be to buy medical insurance. You will also have to undergo more qualifying medical tests. It is much cheaper to sign up for a plan when you are young and healthy.</p> <p>The general consensus among the youth is that they won&rsquo;t need any insurance plan, since they are young and healthy, but postponing the decision could prove to be very expensive in the long run. You will save much more in premium payments if you buy medical coverage when you are young, and in good physical condition. The ideal time would be when you first start a career. The older you are, the higher the premium. So plan ahead.</p> <p><strong>Benefits of having a medical insurance policy</strong></p> <p>Listed below are some of the benefits of having a medical insurance policy:</p> <p>&bull; Assured payments for medical and hospitalization bills (depending on the premium)</p> <p>&bull; Saves future financial losses due to costly medical treatment</p> <p>&bull; Sense of security &ndash; financial and mental.</p> <p>&bull; Eligible for tax exemption under Indian Income Tax Act's Section 80D</p> <p>&bull; Policies can even be availed even after crossing 60 years of age</p> <p>More and more people are opting to buy medical insurance in India because of the steep rise in medical costs and hospital stays. Treatment for a major illness like cancer or heart disease can run into several lakhs of rupees and can consume a large part of your savings, or worse, leave you in debt. Buying a medical policy from a reputed insurance company helps you plan ahead and set aside a budget for such unexpected and potentially heavy expenditure in the future.</p>https://www.creditmantri.com/articles/icici-bank-mortgage-loanICICI Bank Mortgage Loanhttps://www.creditmantri.com/articles/icici-bank-mortgage-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/ea50e78a4ca39a57425caf32ec37ba8e_38.icici-bank-mortgage-loan.png'/></p><p>If you own a property which has a clear deed, free from any legal or financial encumbrances, then it could well be the magic key to unlock your dreams! Few people realize the potential of their existing property as a valuable and untapped source of funds. You do not need to sell your property to gain access to money, and you can get the loan amount at a relatively reasonable interest rate (compared to a personal loan.)</p> <p>A mortgage loan could be your answer to funding your child&rsquo;s higher education or wedding or your business.&nbsp; ICICI Bank&rsquo;s mortgage loan is a multi-purpose loan that can be used both for your personal or business needs.</p> <p><strong>Features of ICICI Bank Mortgage Loan</strong></p> <p>&bull; Attractive interest rates with long tenures ranging up to 15 years</p> <p>&bull; Speedy approval process and faster processing</p> <p>&bull; Loan against commercial and residential property</p> <p>&bull; Multipurpose loan &ndash; can be used as funds to start a new business, or for long term working capital, to fund your child&rsquo;s higher education / marriage, or as a debt consolidation tool.</p> <p><strong>What is the eligibility criteria?</strong></p> <p>You need to be either a salaried employee or a self-employed professional/individual and be able to demonstrate a stable income. It is advisable to check the income and age requirements with the bank directly.</p> <p><strong>What is the loan application process?</strong></p> <p>&bull; The first step is the sanction process. Once you decide to apply and have submitted all the required documents along with the application form, a credit appraisal is done.</p> <p>&bull; If you are found creditworthy, your loan request will be approved and the sanction letter delivered to your doorstep. This process typically takes 3 &ndash; 5 days upon the receipt of your filled in application along with the complete set of documents. If you are not eligible, you will be informed about the rejection of your loan application.</p> <p>&bull; Next is the disbursement process. Once your loan amount is sanctioned, the request for disbursal will be received by ICICI. A bank representative will get in touch with you to explain the process and collect the property documents. The documents are legally verified and the disbursement cheque is prepared and delivered to you. This typically takes 5 working days.</p> <p>You can calculate your EMI using their online <a href="https://www.creditmantri.com/home-loan-emi-calculator/">EMI calculator</a> and plan your finances accordingly.</p> <p><strong>Apply for an ICICI Bank Mortgage Loan</strong></p> <p>You can apply for mortgage loan from ICICI</p> <p>&bull; by sending an SMS to the number listed on their website</p> <p>&bull; visiting your nearest ICICI Bank Branch</p> <p>&bull; calling the toll free number listed on their website</p> <p><strong>Need help?</strong></p> <p>Alternatively, if you think you need help with your loan application and advice on loan eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your profile.</p>https://www.creditmantri.com/articles/types-of-mortgage-loansTypes of Mortgage Loanshttps://www.creditmantri.com/articles/types-of-mortgage-loans<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/c8391da4c483717f72db8ed5d68a300b_39.types-of-mortgage-loans.png'/></p><p>Do you own a property and need money? A mortgage loan is a relatively cheap and efficient way of raising funds. Quite simply, instead of selling your property to raise money, you can leverage it as collateral to get a loan. In India, the bank or NBFC (Non-Banking Financial Company) holds your property as security until you repay the loan, after which you get back your property. If you fail to repay the loan, the lender can dispose of it to recover the unpaid dues.</p> <p><strong>What is a mortgage loan in India? </strong></p> <p>&bull; A mortgage loan, or loan against property, is a popular type of loan to take as it is cheaper than taking a personal loan. Banks are willing to offer lower interest rates since they hold your property as security.</p> <p>&bull; It is like a personal loan because you can use the loan amount for any purpose &ndash; like debt consolidation, business expansion, education expenses, family or medical emergency.</p> <p>&bull; However, it differs from a personal loan in that you can get this kind of loan at a lower interest rate since you are offering significant collateral in the form of property.</p> <p>&bull; You can get a larger loan amount and a longer repayment period when compared to a personal loan.</p> <p>Thus, the key difference is that a loan against property is a secured loan, (i.e. secured by collateral), whereas a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> does not involve any security. This makes a loan against property less expensive than a personal loan.</p> <p><strong>Types of interest rates on a mortgage loan</strong></p> <p>There are two main types of interest rates on a mortgage loan:</p> <p><em>Fixed rate of interest:</em> The interest rate remains the same for the entire duration of the loan. Lenders usually offer this type of interest rate for a specific tenure of loan, and many may not offer this as an option at all for a loan against property.</p> <p><em>Floating rate of interest:</em> The interest rate changes according to prevailing market rates. Since the rate changes and is dependent on fluctuating market conditions, it is not possible to predict a typical rate. You need to be fairly familiar with the movement of interest rates and the larger economy when choosing this type of interest rate. Naturally, choosing a floating rate of interest would also mean changes in your EMI, depending on current interest rates.</p> <p>The floating interest is linked to the Marginal Cost of Funds based Lending Rate (MCLR). The rates are typically published on the lender website and could change periodically.</p> <p><strong>Need help choosing the right loan?</strong></p> <p>If you are confused about the various offerings available on the market and need advice on which loan offer suits you best, CreditMantri can help you. We will study your loan requirement, the details of your property, your income and credit profile, guide you through the entire application process and match you with the best possible offer on the market that suits your profile and needs.</p>https://www.creditmantri.com/articles/how-to-get-personal-loan-with-bad-credit-in-indiaHow to Get Personal Loan with Bad Credit in Indiahttps://www.creditmantri.com/articles/how-to-get-personal-loan-with-bad-credit-in-india<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/950162dce5d5d98639540f3ff322b89e_42.how-to-get-personal-loan-with-bad-credit-in-india.png'/></p><p>Your brother is getting married and you want some money to help with the marriage expenses. A personal loan seems the best bet but...you do not have a very good credit score. What can you do? Having a bad credit score can be a nightmare for individuals trying to apply for any kind of loan, and especially a personal loan. There is a high chance of rejection when you have bad credit.</p> <p><strong>Why is a credit score so important for a personal loan approval?</strong></p> <p>A <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> is an unsecured loan&mdash;meaning it requires no collateral or guarantor. If you have a poor credit score/history, lenders know you are at high risk of defaulting and will not lend to you as they have no collateral to fall back on to recover their dues. With a home loan or auto loan, on the other hand, lenders can dispose of the home/vehicle in case of customer default.</p> <p>It is very difficult to secure a personal loan with bad credit, primarily because it is an unsecured loan. Lending institutions majorly look at your credit history before making a decision, hence it becomes doubly important to have a good credit score.</p> <p><strong>Options if you have bad credit</strong></p> <p>&bull; Do you have a good income and stable employment? Then you might have a chance of being approved for a personal loan. In addition to credit history, lenders also look at other factors like your annual income. They <em>might</em> be willing to lend to you if you draw a good salary and seem like you will continue in employment at least until the tenure of the loan. A good, stable income reflects repayment capacity.</p> <p>&bull; Be open to more unattractive terms on your loan: If you have a bad credit score, you might still be able to secure a loan, but it might come with harsher repayment terms and conditions. Since lenders want to safeguard their money against default from someone who has a poor credit history, they will offer a higher interest rate or smaller loan amount. If you do not have the time to improve your score and be eligible for better terms, then this is your best option.</p> <p><strong>Mistakes people make that affects their score</strong></p> <p>People don&rsquo;t know the importance of a good <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> until they apply for a loan and get rejected. Following are some of the common reasons why you might have a bad credit score:</p> <p>&bull; Not paying EMIs or loan installments on time</p> <p>&bull; A consistent history of delayed credit card payments.</p> <p>&bull; Applying for credit ( loans or credit cards) with multiple lenders within a short period of time</p> <p>&bull; Getting close to or crossing your total credit limit</p> <p>Try to improve your credit score to at least 700 and above in order for your loan application to be accepted. Any rejection will hurt your credit score even further.</p> <p><strong>Need some help?</strong></p> <p>If you want to apply for a personal loan and think your credit score might not be good enough, CreditMantri can guide you on how to improve your score in the most efficient and effective way so that your loan application is approved. You will also be matched with the most suitable loan offer.</p>https://www.creditmantri.com/articles/personal-loan-eligibility-calculatorPersonal Loan Eligibility Calculatorhttps://www.creditmantri.com/articles/personal-loan-eligibility-calculator<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/7a580767e1de1007ddbe33bc084da340_44.personal-loan-eligibility-calculator.png'/></p><p>Life is uncertain and anything can happen anytime. While there is nothing you can do to prevent these hard times, you can certainly find help to tide you over the crisis. Have you found yourself battling a financial crunch? Or faced the prospect of job loss and didn&rsquo;t know what to do? Or perhaps, you might need a considerable amount of money to fund your child&rsquo;s wedding or higher education. Whatever the need be, a personal loan could be the answer. It could be a blessing when you have an urgent requirement for money and have no other source to turn to.</p> <p>A personal loan is an unsecured loan which doesn&rsquo;t require any collateral. It comes with zero restrictions on how you can spend the money. If you have an urgent need for money, and have a specific plan on how to repay it diligently and consistently, then a personal loan is a possible choice.&nbsp;&nbsp;</p> <p><strong>Am I Eligible?</strong></p> <p>In order to be eligible for a personal loan, you need to be</p> <p>&bull; A salaried employee or a self-employed individual/professional.</p> <p>&bull; Able to satisfy the minimum and maximum age prerequisite</p> <p>&bull; &nbsp;Fulfill the income requirements and be able to demonstrate a stable income and employment history</p> <p><strong>Personal Loan Eligibility </strong></p> <p>Different lenders have different eligibility criteria. Following factors are taken into account when you apply for a personal loan with any lender:</p> <p>&bull; Your age</p> <p>&bull; Your net annual income</p> <p>&bull; Your credit score and borrowing history</p> <p>&bull; Your repayment capacity</p> <p>&bull; Your relationship with the bank</p> <p>For example, in order to be eligible for a <a href="https://www.creditmantri.com/icici-bank-personal-loan/">personal loan from ICICI Bank</a>, you need to be at least 23 years if you are salaried and at least 28 years (25 years for doctors) if you are self-employed.</p> <p>To be eligible for a personal loan from IndusInd bank, you need to be at least 21 years old if you are salaried with at least 2 years of work experience, and at least 25 years old if you are self-employed.</p> <p><strong>How Do I Check My Personal Loan Eligibility?</strong></p> <p>Checking the eligibility for a personal loan has been made easier, thanks to the convenience of online eligibility calculators.&nbsp; Many lenders nowadays have an eligibility tool on their website so that prospective applicants can check if they qualify for a loan before they decide to apply.</p> <p>Another major factor that needs to be considered when taking a personal loan is calculating your potential EMIs. If you want a simple and hassle-free way of calculating your likely EMI amount, you can use CreditMantri&rsquo;s online Personal Loan EMI Calculator&mdash;it is easy, simple and above all, free to use. It gives you quick and accurate results and you can use it any number of times with different combinations of loan amount, interest rate and tenure to calculate your monthly EMIs. Knowing what your monthly outflow will be will help you decide what kind of loan amount you can afford. This way, you can even guesstimate whether you will be eligible for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a>, as lenders also look at your probable EMIs and calculate your repayment capacity in relation to your income.&nbsp;</p> <p><strong>Need Help?</strong></p> <p>If you think you need help in assessing the various loan offers on the market, and advice on personal loan eligibility, CreditMantri can guide you through the entire process and match you up with the loan offer that best suits your credit profile and needs.</p>https://www.creditmantri.com/articles/what-is-a-personal-loanWhat Is a Personal Loanhttps://www.creditmantri.com/articles/what-is-a-personal-loan<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/fc7df93e3f436cc128fe1240f68f21b7_46.what-is-a-personal-loan.png'/></p><p>Are any of the following scenarios familiar?&nbsp; You need some extra cash to go on that much dreamed of European holiday; you need some money to buy some big &ndash;ticket furniture items and to redesign your house; or your child or sibling&rsquo;s marriage expenses are beyond your income; or a parent has a medical emergency and you do not have enough savings to cover the expenses. In all these cases, a personal loan is the quick answer.</p> <p>A personal loan is generally an unsecured loan&mdash;meaning no collateral or guarantor is required in order to obtain it. As the name suggests, it is a loan taken by an individual to fund any personal expenses and doesn&rsquo;t have any restriction on the end use, unlike many other kinds of loans. The borrower has the full freedom to use the money for any purpose they want.</p> <p><strong>Features of A Personal Loan</strong></p> <p>There are two attractive features of a personal loan:</p> <p><em>Complete flexibility of end-use.</em> There are no restrictions on how you should spend your loan amount. A home loan, or a vehicle loan, or education loan, on the other hand, can be only used to buy a property or a vehicle or fund a course respectively. With a personal loan, you have the freedom to use the money in your own way &ndash; whether to fund your hobby, or to finance unexpected expenditure. &nbsp;</p> <p><em>No security required.</em> A personal loan is an 'unsecured loan', meaning you are not required to provide any security to the lender in the form of asset, shares or cash. This might make it more attractive to some customers who may not be able to raise the assets required as collateral.</p> <p>The only downside to taking a personal loan is the high interest rate. Since it is an unsecured loan, the lender usually charges you a high interest rate to avoid risk of falling into bad debt.</p> <p><strong>When Should You Choose a Personal Loan?</strong></p> <p>A personal loan come in handy in two cases:</p> <p><em>If you are in an urgent need for money</em>, and have a good plan on repaying it, then availing a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> is a good choice. This is because the loan disbursal can be relatively quicker than for most other loans. In case of a personal loan, you do not need to provide extensive documentation since there is no specified end-use for the loan. &nbsp;The documentation and approval process is relatively simple and speedy, and the loan amount is disbursed within a short span of time.</p> <p><em>If you do not have any assets to pledge as security for a loan</em>, then opting for a personal loan is a good choice. Lenders will instead pull out your credit report from the credit bureau and have a look at your credit and repayment history and income stability to judge if you are a low-risk customer.</p> <p><strong>Need Help?</strong></p> <p>If you think you need a personal loan and are unsure about the eligibility requirements, and which personal loan is best for you, then CreditMantri can guide you through the entire process and match you with the offer that best suits your needs.</p>https://www.creditmantri.com/articles/what-is-personal-loan-interest-rateWhat is Personal Loan Interest Ratehttps://www.creditmantri.com/articles/what-is-personal-loan-interest-rate<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/a4e64b80464b75f7b4a7f5685b523801_47.what-is-personal-loan-interest-rate.png'/></p><p>It is important to note that personal loans are among the most expensive loans on the market. They come with the highest interest rates since they are 'unsecured' &ndash; that is, they do not require any collateral. Personal loans are relatively high risk loans for lenders because they do not hold any collateral from the customer in case of default. In order to safeguard their money in case of default, they charge a high interest rate on personal loans. &nbsp;</p> <p>Naturally, the interest rate varies with each bank or lender. The interest rate on a personal loan could typically range from 12 % to as high as 32% and is influenced by a variety of factors. Some of these factors are detailed below.</p> <p><strong>What Factors Affect the Interest Rate On Personal Loans? </strong></p> <p><em>Your borrowing history and credit score:</em> Lenders look into your borrowing history in order to evaluate your ability to repay the loan. The general consensus is this&mdash;the higher your credit score, the better your interest rate will be. If you have a high credit score, it means you are a responsible borrower and lenders are confident that you will not default on your repayments and that their money is safe. With a good <a href="https://www.creditmantri.com/credit-score-advice/">credit score</a> and healthy credit profile, you might be able to negotiate a lower interest rate with your lender.</p> <p><em>Your loan amount as compared to your annual income:</em> Your loan amount is taken into consideration while deciding on the interest rate. If your loan amount is a small percentage of your annual income, then your interest rate will tend to be lower since lenders are assured that you will have the capacity to repay the loan. Conversely, if your loan amount is a high percentage of your annual income, then lenders might not be confident about your repayment capacity and might sanction the loan amount at unfavorable interest rates.&nbsp;</p> <p><em>Your relationship with the bank.</em> If you are a long-time customer with your lender and enjoy a healthy relationship, then you might be able to get a better interest rate. You will also be eligible for their special offers that might not be available to the general public. So make sure you get the best deal if you are an existing customer!</p> <p><strong>How to apply for a personal loan?</strong></p> <p>There are several ways to apply for a personal loan.</p> <p>You can apply directly online at the bank/NBFC's website; or you can go in person to the branch with the required documentation; or you can contact the customer care department of your lender; or you can contact a sales agent.</p> <p><strong>Need help?</strong></p> <p>If you want to apply for a <a href="https://www.creditmantri.com/personal-loan/">personal loan</a> with the lowest interest rates as applicable to your credit profile, then CreditMantri can guide you through the entire process and match you up with the loan offer best suited to your needs.</p>https://www.creditmantri.com/articles/recurring-deposit-calculatorRecurring deposit calculatorhttps://www.creditmantri.com/articles/recurring-deposit-calculator<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/5567137bb9c7e96bdcb2e5bf6bcc62cc_49.recurring-deposit-calculator.png'/></p><p>Want a safe way to save money? Don&rsquo;t have ready extra cash in a lump sum to invest in a fixed deposit? No problem. There are a multitude of safe saving options available with banks today and a recurring deposit might be the best option for you.</p> <p>First, what is a Recurring Deposit (RD)? It is a form of a term deposit which allows you to deposit a fixed amount of money on a regular basis and enjoy the same higher interest rate as a fixed deposit. So while you need to put in a lump sum to open a fixed deposit, a recurring deposit allows you to make regular additions to your deposit. An RD helps people who want to save, but do not have a large amount of ready cash to open an FD. Instead, they deposit money in the RD as and when they have cash, on an ongoing basis.</p> <p>If you want to &lsquo;force save&rsquo;, you can give your bank a standing instruction to debit your savings account for a fixed amount of money at a fixed time to be credited to your recurring deposit. This way you can make sure that you save every month without the temptation of spending what money you have in your account.</p> <p><strong>Features of a Recurring Deposit:</strong></p> <p><strong>Interest rates </strong></p> <p>The interest rates on recurring deposits can differ with each bank. However, after you open an RD, you will enjoy the same rate for the entire tenure of the deposit. Banks offer competitive rates on RDs and FDs and you need to check the rates being offered by multiple banks. In general, the recurring deposit interest rates are the same as the FD rates and can range from 6%-9% depending on the individual bank.</p> <p>Remember, senior citizens can enjoy a higher interest rate on RDs.</p> <p>As of 2015, the interest accrued on an RD is subject to TDS (Tax Deducted at Source).</p> <p><strong>How to calculate interest earned on an RD</strong></p> <p>It can be slightly more complicated to calculate interest earned in an RD since the deposit amount keeps increasing periodically with every addition you make. However, it is fairly simple to find online tools that will help you calculate interest. Many banks have an online recurring deposit calculator on their website which helps you calculate the amount you will earn as interest.</p> <p><strong>Period and amount</strong></p> <p>Period: The minimum period is typically 6 months, but some banks can insist on a minimum period of 2 years. The maximum period is generally 10 years.</p> <p>Amount: The minimum amount to be deposited on the periodic basis also depends on the bank.</p> <p><strong>Withdrawal</strong></p> <p>Some banks may allow you to make an early full withdrawal of your RD (subject to their terms and conditions) and after paying a penalty fee. In general, banks do not allow partial withdrawal, but will offer it in the form of an overdraft or loan facility, with the balance in the RD being held as collateral.</p> <p><strong>Loan against deposit</strong></p> <p>You can also use your RD to take a loan for up to 80-90% of the amount you have deposited. Your balance in the RD will be used by the bank as collateral.</p> <p><strong>Eligibility</strong></p> <p>You need to be a resident Indian. Some banks also allow minors to have an RD with a guardian.</p>https://www.creditmantri.com/articles/reliance-life-insuranceReliance Life Insurancehttps://www.creditmantri.com/articles/reliance-life-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/f4bc2695563d80627fb4e9cf758cbfef_50.reliance-life-insurance.png'/></p><p>A life insurance policy is kind of a contract between you and your insurance provider. In simple terms, when you buy a policy, you pay a premium for a set period of time and in return your family will get financial security in case of untimely death and loss of earnings. Reliance Life Insurance coverage is one such option.&nbsp;</p> <p><strong>Why Is Taking a Life Insurance Policy Important?</strong></p> <p>If you are the sole or main breadwinner of the family, an untimely demise can potentially put your family in severe financial distress. Having life insurance gives you the peace of mind knowing that your family will have financial support even in case of your absence. Taking a Reliance Life Insurance policy works as a financial buffer to fulfil your family&rsquo;s financial needs &ndash; whether it is for education or marriage expenses or just living expenses, even if you are not around.</p> <p>Reliance life insurance allows your family to pay off any outstanding loans, medical expenses, etc. so that these responsibilities don&rsquo;t cause an additional burden to them. Therefore, it becomes doubly important to choose the right kind of life insurance policy in order to enable your family to tide over a crisis.</p> <p><strong>Advantages of Life Insurance</strong></p> <p><em>Life insurance is an investment.</em> Apart from providing your family with the financial support, Reliance life insurance can also be an investment choice. Reliance life insurance policies carry minimal investment risk and provide long-term benefits.</p> <p><em>Retirement income on maturity.</em> Many life insurance policies provide a maturity amount if you outlive the policy &ndash; this amount acts like a retirement income.</p> <p><em>Coverage amount can be increased over time.</em> If at present, you can only afford to pay a low premium, you need not worry. Over time, you can increase your insurance cover by paying slightly higher premiums for better coverage, as your income increases.</p> <p><em>Lump sum benefit payable on death is exempted from taxes.</em> A life <a href="https://www.creditmantri.com/articles/Insurance/">insurance</a> policy can also save you tax. As your income increases, so does the tax bracket. Opting for a life insurance policy not only gives you an income, it also saves your hard earned money from tax.</p> <p><strong>How to Choose the Best Life Insurance Policy?</strong></p> <p>There is no single policy that is perfect for everyone. You need to choose what suits your financial and family needs the best. Look at various products and compare them to find out the benefits. One word though &ndash; the earlier you apply for insurance, the better. As you grow older, the premiums become more expensive and the process can become longer and more complicated.</p> <p><strong>Who Can Apply for Life Insurance?</strong></p> <p>Whether you have quite recently begun your career, or are recently married to your partner, or have children, you can secure suitable coverage. It can end up being one of the best financial decisions you ever made.</p>https://www.creditmantri.com/articles/sbi-credit-card-online-paymentSBI Credit Card Online Paymenthttps://www.creditmantri.com/articles/sbi-credit-card-online-payment<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/572750c399a9baea41db155322e2982d_52.sbi-credit-card-online-payment.png'/></p><p>If you need to pay your credit card bills, don&rsquo;t worry any longer about late payments or forgetting to make payments. Everything has been made much easier, thanks to online banking. Gone are the days when you had to trek to your bank every time you needed to make a payment or some other banking work done. Remember those days of waiting at the bank and wondering whom to ask the query you had in mind, clueless about what to do? Wave goodbye to all that waste of time and energy and the stress of waiting in queues!</p> <p>With online banking, the bank has come closer to you&mdash;to your doorstep, in fact! With the online credit card payment facility, there is now no need to spend time going to your nearest ATM or branch, praying that you haven&rsquo;t missed the deadline.</p> <p>Following are the ways you can make your SBI credit card payment online sitting in the convenience of your home:</p> <p><strong>NEFT Payment</strong></p> <p>You can pay your SBI credit card bill online, using NEFT Facility, which is a fast and secure way of paying your SBI Card Bill. The benefits of availing this facility is that you can make payments anytime at your convenience from any bank account (with the exception of your SBI account) that offers the NEFT facility. You need to register your banking account in order to avail this facility. Just log in your net banking account of your bank. Add your SBI Card and other details as a beneficiary, under third party transfer. Once you are done registering, you can start making payments. The payment will reflect within 1 working day in your SBI Credit Card account. Hence, you need to make sure to pay before the due date in order to avoid penalty.</p> <p><strong>Paynet-Pay Online</strong></p> <p>You can pay your SBI Card dues using the net banking facility provided by your bank. You just need to log in to sbicard.com using your user ID and password. You can then proceed to make your payment from the list of banks from the drop down menu. You will be securely redirected to your bank&rsquo;s payment platform for authorization and your account will get debited. You will receive a confirmation on your registered phone number and email.</p> <p>You can also pay your dues without logging in to your SBI Card online account. Just log in to Paynet-Pay Online, input your SBI credit card number, e-mail ID, phone number and the amount you wish to pay. You need to select &lsquo;Net Banking&rsquo;, and choose the bank account you wish to debit. You will be securely redirected to your chosen net banking option and the amount will be debited from your chosen account. You will receive an online transaction confirmation. The payment will reflect within 2 working days in your SBI Credit Card account.</p> <p><strong>Visa Credit Card Pay</strong></p> <p>You can avail of this benefit using the net banking facility provided by your bank. You can transfer funds to any SBI Visa Credit Card 24/7. This is a quick and hassle-free way to pay your bills. You can transact by logging into your net banking account and choosing &lsquo;Visa Credit Card Pay&rsquo; under &lsquo;Third Party Funds Transfer&rsquo; section.</p> <p><strong>Online SBI</strong></p> <p>You can simply log on to SBI website and pay your SBI credit card bills online from your SBI account. You need to register your SBI account with Online SBI in order to make use of this facility. The payment will reflect within 3 working days in your SBI Credit Card account, so plan your payment accordingly to avoid overdue penalty.</p> <p><strong>SBI Mobile Banking</strong></p> <p>Now you can pay your SBI credit card bills through your mobile phone with the SBI Freedom Application. The registration process is quick, and once you finish the registration, you can start making payments right away from your phone! The payment will reflect in your SBI <a href="https://www.creditmantri.com/credit-card/">Credit Card</a> account within 2 working days.</p> <p><strong>Electronic Bill Payment</strong></p> <p>You can use the Electronic Bill Pay facility to make online payments, directly from your bank account. Only a few banks are listed in this facility. You can avail this service through net banking, ATM, or mobile service of State Bank of India, Indian Overseas Bank, Citibank and Bank of India. The payment will reflect within 3 working days.</p> <p><strong>Electronic Clearing Services</strong></p> <p>You can opt for this facility if you have trouble remembering the due date. You can give standing instructions for your dues to be deducted directly from your bank account, on a fixed date. You just need to authorize SBI to deduct the amount directly from your bank account on a fixed date every month. Your card account will be credited on the due date itself.</p> <p><strong>SBI Auto Debit</strong></p> <p>You can get your SBI Card dues debited directly from your SBI and SBI-associated banks. The amount will be deducted directly from your bank account. You need to enroll your bank account in order to avail this facility. In order to do this, you need to fill a form and get it verified by your bank. The banks associated with SBI for auto debit facility are:</p> <p>&bull; State Bank of Bikaner &amp; Jaipur</p> <p>&bull; State Bank of Hyderabad</p> <p>&bull; State Bank of Mysore</p> <p>&bull; State Bank of Patiala</p> <p>&bull; State Bank of Travancore</p> <p>With the ease of online payment comes the relief of knowing that you can manage and handle all your finances without undue amounts of time wasted on physically visiting a branch or ATM. Heave a sigh of relief and proceed to make your payments online! Once you discover the ease of doing making online payments, you will wonder why you did not do it earlier!</p>https://www.creditmantri.com/articles/what-is-vehicle-insuranceWhat Is Vehicle Insurancehttps://www.creditmantri.com/articles/what-is-vehicle-insurance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/66414c73286a15b25fe04c029aff8ff2_53.what-is-vehicle-insurance.png'/></p><p>If you buy a vehicle, you must know that purchasing vehicle insurance is mandatory in India. By law, you need to have insurance when you own a vehicle. In simple terms, vehicle insurance basically protects you against financial loss in case of an accident&mdash;man made or natural.</p> <p>Vehicle insurance could include insurance for a car as well as a two-wheeler. Vehicles like buses, lorries and trucks that are used for commercial purposes are generally covered by Commercial Vehicle Insurance.</p> <p><strong>What is a Vehicle insurance?</strong></p> <p>As the name suggests, vehicle insurance protects you from financial loss in case of an accident or natural disaster like floods or fire. You must pay a premium (generally annually) and the insurance company agrees to pay your losses as per the terms and conditions defined in your policy. Vehicle insurance provides could also cover damage to property, third person liability expenses, and medical coverage depending on the premium paid. Naturally, the higher the premium, the larger the benefits you get.</p> <p><strong>What is covered in a Vehicle insurance policy?</strong></p> <p>A typical policy would give the following protection when you purchase vehicle insurance:</p> <p>1. Loss or damage to your vehicle due to natural disasters: This includes, but is not limited to, fire, explosion, lightning, earthquake, flood, typhoon, hurricane and landslide.</p> <p>2. Loss or damage to your vehicle due to non-natural disasters such as burglary, theft, riot, or a malicious act.</p> <p>3. Third Party Legal Liability: This is protection against legal liability if your vehicle happens to be in an accident resulting in the permanent injury or death of a person and damage caused to the surrounding property.</p> <p><strong>What Is not covered in a Vehicle insurance?</strong></p> <p>In general, vehicle insurance does not cover wear and tear or mechanical breakdown of your vehicle.</p> <p><strong>What is the amount covered in Vehicle insurance?</strong></p> <p>All vehicles are insured at a fixed value known as Insured&rsquo;s Declared Value abbreviated as IDV. It is calculated based on the vehicle manufacturer&rsquo;s listed selling price, the cost of any added accessories and deducting the annual depreciation.</p> <p><strong>What is the process to claim insurance money?</strong></p> <p>If you are unfortunately involved in an accident involving your car or two-wheeler, do contact your <a href="https://www.creditmantri.com/articles/Insurance/">insurance</a> company or agent immediately if you are in a position to do so. If you are not in a position to do so ( if you are hospitalized, for example), ask a trusted family member or friend to contact your insurance agent on your behalf. You will be given a claim number which is also called the reference number which you need to keep handy as reference for any claims.</p>https://www.creditmantri.com/articles/gift-yourself-an-iphone-this-diwaliGift yourself an iPhone this Diwalihttps://www.creditmantri.com/articles/gift-yourself-an-iphone-this-diwali<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e627d84e64f16e15e0c6fe80e5a61b7e_01.png'/></p><p><strong>Gift yourself an iPhone this Diwali</strong></p> <p>It&rsquo;s that time of the year again - festive lights, parties, visiting friends, family and neighbours and fun times with your near and dear ones. It&rsquo;s Diwali time! Everywhere you turn, it&rsquo;s the season for shopping and making a new start! Advertisements for gadgets of every kind bombard you from every direction, while retailers try and entice you with attractive offers that are hard to resist.</p> <p>So, getting into the festive spirit, how about buying yourself an iPhone this Diwali?! Sounds impossible? Short of cash after all the festivities? &nbsp;Fret not, there is always a way around a situation like this! Do you know that several banks and NBFCs have special loans exclusively for covering the cost of expensive mobile phones and consumer durables? For example, Bajaj Finance offers loans specifically to buy high-end smartphones &ndash; this loan can be called a &lsquo;mobile loan&rsquo; though technically it is a consumer durable loan. &nbsp;So read on and see how easy it is to indulge in a festive gift for yourself this season!</p> <p><strong>All about Mobile Loans from Bajaj Finance:</strong></p> <p>Amount &amp; Tenure: If you want to get a loan to buy a smartphone, then you need to apply for a Consumer Durable Loan which covers the purchase of smartphones. The tenure for this kind of loan generally ranges from 8 months to 24 months depending on the loan amount. The loan amount and tenure depends on the value of the phone you want to buy.</p> <p>How to apply for a Mobile Loan: Applying for a mobile loan is very simple. You need to buy your mobile phone from a Bajaj Finserve dealer partner-store. The in-store customer care executive will help you with the loan process. You can find the nearest partner-store by looking up the section on &lsquo;Find the nearest store&rsquo; on the Bajaj Finserve website.</p> <p>Once you choose your phone, all you have to do is to submit a filled-in application form, and submit the supporting documentation. This could include photo ID proof, residence proof, income proof, and post-dated cheques among other documents.</p> <p><strong>Features of Bajaj Finance Mobile Loan</strong></p> <p>&nbsp;&bull;&nbsp;Youcan foreclose the loan after a minimum of 6 months from the loan disbursal date.</p> <p>&nbsp;&bull;&nbsp;There is no charge for foreclosing a mobile loan, which makes it an attractive deal. Once you save some money, you can pay off the loan with no additional charge.</p> <p>&nbsp;&bull;&nbsp;There are a variety of other household products that are covered under a consumer durable loan. These include but are not limited to: washing machines, microwave ovens, LED/LCD TV, refrigerators, music systems, air conditioners, tablets, camera/camcorder, smart phones, laptop/desktop, inverter, air/water purifier, generator, dryer, dishwasher, etc.</p> <p>So go ahead, and gift yourself a mobile phone. It&rsquo;s much easier than you think. You could apply for a consumer durable loan from Bajaj Finance and be the happy owner of a top-end mobile phone this Diwali!</p>https://www.creditmantri.com/articles/how-to-manage-your-finances-this-diwaliHow to manage your finances this Diwalihttps://www.creditmantri.com/articles/how-to-manage-your-finances-this-diwali<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/d87e176f8243022f1a45904e0ab8f76a_02.png'/></p><p><strong>How To Manage Your Finances This Diwali</strong></p> <p>Come Diwali time and it&rsquo;s difficult to fight the temptation to shop like there is no tomorrow. Decorating the home, organising get togethers, shopping till you are dropping, and a lot of catching up with your loved ones sums up the essence of the Diwali season.</p> <p>It is also that time of the year when you are seduced&nbsp; into buying things - that you might not really want - at 'mega bumper sales'. Your expenses can really skyrocket during this period. It&rsquo;s a happy but also a very expensive month&mdash;which you realize later! The shopping for new house decorations, clothes, sweets, entertaining, gadgets (because they are on sale!) &mdash;the list is endless.</p> <p>What do you do? How do you ensure that your Diwali expenditure does not&nbsp; burn a serious hole in your pocket? Here are some tips on how to manage your money this Diwali.</p> <p><strong>Make A List of Things to Buy</strong></p> <p>First, sit down and make a list of what you <em>really</em> want. It could be clothes, home renovation, jewelry, a gadget - anything. Also, specify the quantity of each item you want. This way, you will know what to shop for. This one simple step gives you an overall picture of what your expenses is going to look like and you can make changes according to your priorities and preferences.</p> <p><strong>Don</strong><strong>&rsquo;</strong><strong>t Carry Your Credit Card</strong></p> <p>When you are using plastic, it's all too easy to lose track of your spending and spend far more than you can afford.&nbsp; It is best <em>not</em> to carry a credit card and get carried away while shopping. Carry cash, or your debit card with a preset budget. This way, you will be able to stay within the budget and not overspend. Stick to your list and your expenses should be okay.</p> <p><strong>Track Your Expenses Carefully</strong></p> <p>Whetheryouusecash<strong>, </strong>a creditcardordebitcard<strong>, </strong>review your purchases everyday that you go shopping. It is important to be disciplined about tracking your spending or you can go off the rails with unchecked spending. You can monitor how much you have spent and what&rsquo;s left to be bought. You will also be able to compare to your list and see if you have stayed within the budget.</p> <p><strong>Don</strong><strong>&rsquo;</strong><strong>t Buy Things Just Because They Are&nbsp; On Sale </strong></p> <p>Make sure whatever you are buying is what you really <em>want. </em>You can save your hard earned <em>moolah</em> if you plan your shopping well in advance and take advantage of bargains.&nbsp; Do not hurry your shopping trips, don't&nbsp; wait till the last minute or you will be forced into blind, panic shopping at high prices. Most importantly, do not add to the shopping list. This will help you stay within your budget.</p> <p>If you need to add any expenses, make sure you compensate by cutting down on another area. For instance, if you have to add a gift for a relative you had missed on a list, or have overshot your decorations budget, then make up for the extra expense by skipping the dinner or movie outing with friends.</p> <p>If you follow these tips, you will find that at the end of the festive season, your pockets are not completely empty! Celebrate this Diwali with your family, friends, near and dear ones without the worry or fear of being sucked into unpayable debt. Happy Diwali!</p>https://www.creditmantri.com/articles/how-to-buy-a-mobile-phone-on-emi-without-a-credit-cardHow to Buy a Mobile Phone on EMI without a Credit Cardhttps://www.creditmantri.com/articles/how-to-buy-a-mobile-phone-on-emi-without-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/95d58606a5600bc676c603bedc991a32_01.png'/></p><p>&nbsp;Want to hear some good news? You don&rsquo;t need a credit card, or months of scrounging and saving to get yourself a snazzy phone. Maybe you are a student &ndash; or perhaps you have just started working - and don&rsquo;t have either the cash or the credit to make a big purchase. Getting a credit card is not easy as it sounds, especially if you are a student or a young professional. &nbsp;You might find that your credit card application is rejected because you are a student with no income or, if you are employed, because you do not have a large enough salary to qualify for a <a href="https://www.creditmantri.com/credit-card/">credit card</a>. With the credit route not possible - and no savings in the bank to buy with cash - lending agencies like NBFCs are a great option and will allow you to buy your desired phone in easy EMIs. Read on to know how simple and hassle-free it is to buy your phone on EMIs <em>without</em> a credit card.&nbsp;&nbsp;</p> <p><em>Consumer durable loans: your route to credit without a credit card</em></p> <p>If you do not have a credit card, a consumer durable loan from an NBFC will succeed in putting that phone in your pocket. For instance, Bajaj Finserve is one such NBFC that offers customer-friendly <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan">consumer durable loans</a> that you can use for buying gadgets like mobile phones, televisions, washing machines, refrigerators, music systems, even water purifiers etc. The tenure for this kind of loan generally ranges from 8 months to 24 months depending on the amount of the loan.</p> <p><em>It&rsquo;s as easy as 1-2-3 </em></p> <p>All you need to do is buy your <a href="https://www.creditmantri.com/articles/loans-for-mobile-phones-from-bajaj-finance">mobile phone from a Bajaj Finserve</a> partner store. The in-store customer care executive will take care of the rest and help you with the entire loan process while you are at the store. You can find the nearest partner store by looking up the section on &lsquo;Find the nearest store&rsquo; on the Bajaj Finserve website. The documents that you generally need to submit would be a filled-in application form, a photograph, and valid KYC documents. This could include photo ID proof, residence proof, income proof, and post-dated cheques among other documents.</p> <p>Other NBFCs like Home Credit also works in a similar manner. You can simply visit a Home Credit partner store and choose your mobile phone. There is a comprehensive list of Home Credit partner stores listed on their website. You can approach the in-store Home Credit representative for help with filling your loan application form and the documentation required.&nbsp; Once your loan application is accepted, you can decide on your monthly EMI amount, sign the agreement and make the requisite down payment. Once the formalities are complete (which shouldn&rsquo;t take much time&mdash;provided your documents are in place), you can walk out of the store with your brand new mobile phone in hand the very same day.</p> <p><em>No credit history? There are other options!</em></p> <p>Often, people opt for a credit card for the easy EMI options it offers. If you want a credit card solely for buying gadget and other consumer durables, stop and think. &nbsp;If you are new to credit and don&rsquo;t have any credit cards, then you might find your loan / credit card applications rejected because of your lack of credit history. In such situations, NBFCs offering a consumer durable loan can be a quick, reliable and easy alternative to buying on a credit card. Getting that phone is much simpler than you think!</p>https://www.creditmantri.com/articles/how-to-buy-an-iphone-on-emi-through-bajaj-financeHow to Buy an iPhone on EMI through Bajaj Financehttps://www.creditmantri.com/articles/how-to-buy-an-iphone-on-emi-through-bajaj-finance<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/6cf163be325714f53bd45a596cb027f3_02.png'/></p><p>Who doesn&rsquo;t want to be the owner of a brand-new iPhone? With the benefits it has on offer, it can be a hard phone to resist. But is the price tag of an iPhone turning you down? Well, now there is no need to wait to buy your favorite iPhone, with an easy consumer durable loan from Bajaj Finance. You don&rsquo;t need a credit card; you don&rsquo;t even need to wait for months saving every bit of penny you have got.</p> <p>Getting a credit card might be difficult&mdash;you need to satisfy the requisite salary criteria, and have a prior credit history which might not be possible especially if you are a young student or a working professional who has just started out in his career. Credit card issuers have stringent policies when it comes to issuing a credit card.</p> <p>With no credit card options&mdash;and no little savings in the bank&mdash;lending agencies like Bajaj Finance are a boon. Bajaj Finance has various options that will allow you to buy your desired iPhone in easy EMIs&mdash; <em>without</em> a credit card.&nbsp;&nbsp;</p> <p><strong>Consumer durable loan from Bajaj Finserv</strong><strong>&mdash;</strong><strong>Your path to credit for an iPhone</strong></p> <p>All you need to do is buy your desired iPhone from a Bajaj Finserv partner durable store. You can approach the in-store representative for help with your loan application process. Presently, there are more than 7000&nbsp; stores across the country that have partnered with Bajaj Finserv.</p> <p>The documentation required is minimal. You would be required complete an application form and submit basic documents like ID proof and proof of address, etc. The formalities can be completed in-store while you are purchasing your favorite mobile.</p> <p>The advantage to getting a durable loan from Bajaj is that there are no foreclosure charges. In case you choose to pay off your loan anytime during your chosen tenure after the first EMI is paid, you can do so without any added foreclosure charges.</p> <p>You can find the nearest Bajaj Finserv partner store by looking up the section on &lsquo;Find the nearest store&rsquo; on the Bajaj Finserve website. Just walk-in to the store, choose your mobile phone, complete the loan formalities and walk out of the store with your brand new mobile phone in hand the very same day.</p> <p>What&rsquo;s more, this durable loan from Bajaj Finserv doesn&rsquo;t require you to have any prior credit history! So, what are you waiting for? Go ahead and make that much-coveted iPhone purchase! Happy shopping!</p>https://www.creditmantri.com/articles/buy-an-iphone-on-emi-without-credit-cardBuy an iPhone On EMI Without Credit Cardhttps://www.creditmantri.com/articles/buy-an-iphone-on-emi-without-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e0a8a0d1a97b768b2fc9e1f188d88573_03.png'/></p><p>With the iPhone fever unabated around you, it is hard to resist getting one for yourself. Who doesn&rsquo;t crave for an iPhone after all? You want to buy one, but only one thing is holding you back&mdash;your lack of a credit card to buy it in easy EMIs. Everywhere you go, you are required to have a credit card to avail the EMI option. You dig into your pocket. All that comes out is your debit card. Wish it could magically turn into a credit card, right? Is the price tag of the much-desired Apple holding you back? Read on how to buy your coveted iPhone in easy EMIs&mdash;<em>without a credit card!</em></p> <p><strong>Don</strong><strong>&rsquo;</strong><strong>t have a Credit Card? Not a problem!</strong></p> <p>Getting a credit card might be difficult for some, mainly due to the lack of a credit history or insufficient salary. Checking every box in the criteria list for a credit card might be impossible for a young student or a young professional. Credit card issuers usually have stringent policies governing the issuance of a credit card.</p> <p>Well, you needn&rsquo;t worry, as you can now buy your coveted iPhone in easy EMIs without the need of a <a href="https://www.creditmantri.com/credit-card/">credit card</a>!</p> <p>As it turns out, there are certain mobile marketplaces that allow you to shop with your debit card, and convert your purchase into easy EMIs! There is no need for a credit card, and you don&rsquo;t need to wait for several months, saving up every rupee for your iPhone.&nbsp;</p> <p>These online platforms work by providing loans on your debit card, after an assessment of your creditworthiness. This is done by analyzing your digital footprint using machine-learning algorithms, big data and Artificial Intelligence. ZestMoney and Finomena are some technology platforms that enable you to buy electronic gadgets, mobile phones and other products in easy EMIs.</p> <p>To enjoy the benefits of such technology platforms, you should be over 18 years old, have a PAN card, preferably have an Aadhar Card and a consistent source of income. It is not mandatory to have a credit card. You can shop on such platforms, have your eligibility checked and if your application is approved, you will be asked to make a down payment. Once this is done, your product will be shipped.</p> <p>Other lending agencies like Bajaj Finserv offers consumer durable loans which you could avail to buy your iPhone in easy EMIs. Again, it is not mandatory to have a credit history.</p> <p>So, what are you waiting for? Go ahead, make full use of the technology that enables you to buy on EMIs, and put the Apple on your shopping list!</p>https://www.creditmantri.com/articles/How-to-buy-an-iphone-7-on-emi-without-a-credit-cardHow to Buy an iPhone 7 on EMIs without a Credit Cardhttps://www.creditmantri.com/articles/How-to-buy-an-iphone-7-on-emi-without-a-credit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/642c9d32f41055a1e693cc39ecfaee7d_04.png'/></p><p><em>&ldquo;</em><em>Apple iPhone 7 and iPhone 7 Plus launches in India</em><em>&rdquo;</em>&mdash; Have you been waiting to hear these words? Well, if you have, you are not alone. The gadget geeks have been waiting with bated breath for the launch of the newest avatar of the iPhone from Apple - and with its official launch comes the sinking realization that the phone is a bit far beyond your budget. Let&rsquo;s have a look at the price of the recently launched Apple Phones:</p> <p>The iPhone 7 32GB is retailing at Rs. 60,000; the 128GB version at Rs. 70,000, and the 256GB version at Rs. 80,000. The iPhone 7 Plus will be priced at Rs. 72,000 for the 32GB variant; Rs. 82,000 for the 128GB version, and Rs. 92,000 for the 256GB phone.</p> <p>It is impossible to buy the phone outright, but you also do not have a credit card to break it up into EMIs - makes you kind of wish your debit card would magically turn into a <a href="https://www.creditmantri.com/credit-card/">credit card</a>, even just for a day, so that you could buy your much-desired phone in easy EMIs, right?</p> <p><strong>Your Way to Credit</strong><strong>&mdash;</strong><strong>without a Credit Card!</strong></p> <p><em>Lending platforms: </em>Good news! You can now buy your much-desired iPhone 7 in easy-peasy installments, <em>on your debit card,</em> thanks to the advent of technology platforms that allow you to shop with your debit card, and converts your purchase into EMIs for you. The technology provider pays the price to the seller upfront, and you make the down payment and the EMIs to the technology provider. In short, such companies provide a loan on your debit card, enabling you to purchase your dream phone. ZestMoney, Finomena, and FastBanking are a few&nbsp; such platforms that have a quick approval process and EMI options that enable you to buy mobile phones, electronics and&nbsp; even furniture on your debit card.</p> <p>All you need to do is to buy your mobile phone at their partner outlets, and your purchase will be converted into EMIs if you are considered creditworthy. You need to sign up and upload your bank statements and KYC documents for that purpose.</p> <p><em>Consumer Durable Loans: </em>Alternatively, you can buy your phone by applying for a consumer durable loan from a reputed lender, like Bajaj Finserv for example. The process is simple. Again, you need to shop for your iPhone 7 at their partner outlets and submit your application for a loan. The in-store representative will guide you on how to apply. Approval is speedy, and if your documents are found to be in order, you can walk out of the store, a proud owner of iPhone 7 that very day!</p> <p>So, go ahead and take advantage of such online lending platforms or consumer durable loans - achieving your iPhone dream can be easy!</p>https://www.creditmantri.com/articles/how-to-get-iphone7-on-emiHow to Get iPhone7 on EMIhttps://www.creditmantri.com/articles/how-to-get-iphone7-on-emi<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/3ff79905c92660be26a715e030a504ef_05a.png'/></p><p>Everyone knows the value of an iPhone. No matter how effective or user-friendly an Android phone may be, the iOS of an Apple is something entirely different. With the recent launch of the iPhone 7 and iPhone 7 Plus it is time to upgrade your old phone.</p> <p>But wait, is the steep prince of the Apple holding you back? Is the lack of funds, or rather, lack of a credit card holding you back? Well, good news, there is no need to dip into your savings to be the proud owner of the recent iPhone 7!</p> <p><strong>Buy iPhone 7&mdash;Without A Credit Card!</strong></p> <p>Why worry, when you can get your mobile purchase financed? Be smart about the purchase of your smartphone, and research various options for buying the phone in easy EMIs, rather than saving up for months and forgoing of that money in one-go. You can instead opt to buy your dream phone in easy EMIS, <em>even without a </em><a href="https://www.creditmantri.com/credit-card/">credit card</a><em>. </em></p> <p>Be sure to check out the interest rates of various options&mdash;you don&rsquo;t want to shell out large amount of money towards interest rates, do you? Following are some ways to buy your desired mobile in easy EMIs even when you do not have a credit card.</p> <p><em>Technology Platforms that convert your debit card purchase into EMI</em>s:</p> <p>With the advent of technology, there are several lending platforms that allow you to convert your <em>debit card purchase</em> into easy EMIs. Such companies provide a loan on your debit card, with nominal interest rates after assessing your creditworthiness. This is done by analyzing your digital footprint using various algorithms, big data and Artificial Intelligence. ZestMoney and Finomena are some platforms that enable you to buy electronic gadgets, mobile phones and other products in easy EMIs. All you need to do is shop on their website and buy your mobile phone at their partner outlets. your purchase will be converted into EMIs if you are considered creditworthy. You need to sign up and upload your bank statements and KYC documents for that purpose. Such platforms often have a quick approval process and various EMI options suited to your budget that enable you to gadgets, electronics, jewelry and even furniture on your debit card.</p> <p><em>Consumer Durable Loans&mdash;Your Path to Buying Your Desired iPhone In Easy</em> EMIs:</p> <p>You can alternatively consider consumer durable loans, such as the one offered by reputed lenders like Bajaj Finserv. Again, you need to purchase your iPhone from a Bajaj Finserv partner outlet, and the in-store representative will guide you on the loan process. You can have your purchase converted into easy EMIs as per your budget. Approval is speedy, provided your documents are in place. Interest rates are nominal, and you can walk out of the store, a proud owner of iPhone 7 that very day!</p> <p>So, go ahead and grab your favorite mobile phone today!</p>https://www.creditmantri.com/articles/loans-for-buying-mobile-phonesLoans for Buying Mobile Phoneshttps://www.creditmantri.com/articles/loans-for-buying-mobile-phones<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/2bcd48c3538a11312a16ec1ee5202875_07.png'/></p><p><strong>Loans for Buying Mobile Phones</strong></p> <p>The market is flooded with newer, smarter, faster mobile phones. The phone you bought last month might already seem to be outdated, with the sheer number of mobile phones being introduced every day. Who wouldn&rsquo;t want a brand-new phone to keep in touch with their loved one, stay tuned to the latest happenings, and keep oneself digitally updated? Maybe you&rsquo;ve decided it&rsquo;s time to upgrade your old phone!</p> <p>There is a slight catch to buying that much-desired phone&mdash;the better the phone, the steeper the price. Is your dream of owning a phone taking a back seat due to the cost factor? Well, let it not bother you, since there is always a way out for such a situation!</p> <p>You might be a student, or a working professional who has just started on the career path. While getting a credit card might not be possible for everyone due to the stringent policies of the bank including the need of having a super-good credit history, a good salary and other such criteria, there are some readily available and simple options, like a &lsquo;mobile loan&rsquo; &nbsp;to buy it even without having a credit card.</p> <p>A &lsquo;mobile loan&rsquo; is actually a consumer durable loan that can be used to purchase a mobile or any other household item. It is specially designed to buy durables like electronic items, washing machines, refrigerators, TVs, water purifiers, mobile phones etc. NBFCs like Bajaj Finserv and Homecredit offer customer-friendly consumer durable loans that can help in putting that desired phone in your pocket.</p> <p>If you plan to get a Bajaj <a href="https://www.creditmantri.com/articles/what-is-a-consumer-durable-loan">consumer durable loan</a>, all you need to do is to buy your mobile phone from a Bajaj Finserv partner store. If you want to find your nearest partner store, simply log on to the Bajaj Finserv website and look up the section on &lsquo;Find the Nearest Store&rsquo;. You can approach the in-store customer care executive for help with the loan application process. Make sure you carry your documents while you go shopping for your favorite mobile. The documents that you generally need to submit would be a filled-in application form, a photograph, and valid KYC documents. This could include photo ID proof, residence proof, income proof, and post-dated cheques among other documents.</p> <p>Other NBFCs like Home Credit also work in a similar manner. You can simply visit a Home Credit partner store and choose your mobile phone. You can approach the in-store Home Credit representative for help with filling your loan application form and the documentation required.&nbsp;</p> <p>Once your loan application is accepted, you can decide on your monthly EMI amount, sign the agreement and make the requisite down payment. Once the formalities are complete, you can walk out of the store with your brand new mobile phone in your pocket the very same day!</p> <p>Often, people resort to a credit card for the easy EMI options it offers. Before applying for a credit card, think about the possible purchases that you would make using a credit card. If it is solely for buying a mobile gadget and other consumer durables, stop and think. If you are new to credit and don&rsquo;t have any <a href="https://www.creditmantri.com/credit-card/">credit card</a>, you can always consider NBFCs offering a consumer durable loan which can be a quick, reliable and easy alternative to buying on a credit card. Getting that phone is much simpler than you think!</p>https://www.creditmantri.com/articles/buy-a-mobile-on-emi-with-an-hdfc-debit-cardBuy a Mobile on EMI with an HDFC Debit Cardhttps://www.creditmantri.com/articles/buy-a-mobile-on-emi-with-an-hdfc-debit-card<p><img class='center' src='https://www.creditmantri.com/data/forum/articles/e0edb41ba32d4f59398cb1add41cdcd4_09.png'/></p><p><strong>Buy a Mobile on EMI with an HDFC Debit Card</strong></p> <p>Itching to buy that new mobile phone but find its price too steep? Do not have a credit card to buy it in easy EMIs? Find your loan rejected because of income or other issues?</p> <p>Well, you are not alone. Millions of people are clamoring to buy that one phone their heart desires, but are not able to due to lack of a credit card that will allow them to buy it in easy EMIs. Are you one of those who is tempted to apply for a credit card ju