Breaking Stereotypes: The Future Of Finance And Tech Is (And Will Be) Women

Work culture in organizations is gradually moving towards diversification and inclusion. The current times are witnessing gender stereotypes bring identified and shattered in the wake of gender sensitization and diversity. Organizations across the globe are making concerted efforts towards the goal of equality of opportunity. Still, equality at workplaces is a far fetched dream. Take for instance the case of the US, where: 

Yet they earn lower salaries and fill up fewer seats in male-dominated professions like technology and finance. Fortunately, these stereotypes – those of women typically avoiding math, science and often all things logic – are on the verge of shattering.

A study conducted by the global research organization Catalyst stated that among Fortune 500 companies, the companies which had the highest number of women directors on board have shown better financial results and those having at least three women on their board have stronger-than-average results.

Gender Stereotyping deeply impacts the psyche and confidence of the female workforce. As per research, by the age of 6 years stereotypes regarding intellectual ability take root in girls. Girls identify themselves less with STEM subjects (Science, Technology, Engineering, and Mathematics). At the workplace, women find a less conducive environment to hold leadership and skill-based jobs, share their ideas in discussions concerning these subjects. 

Indian Scenario: Tech

The current Indian scene has begun a positive, and hopefully soon – pretty picture: 

  • Women representation in corporate jobs has increased from 21% to 30% in a span of five years, as posted in  Zinnov-Intel Gender Diversity Study 2019
  • Females are represented higher in non-technical roles at 31%, while in technical roles their share is 26%. 
  • Only 11% of the C-suite positions are held by the women, they were represented at  20% in mid-roles and 38% in junior roles. 
Women's Day

If these stats are compared with the global figures, Indians are surely taking strides in leaps and bounds to cut across cultural misfits and gender Stereotyping issues. As per a NASSCOM study of IT professionals and middle management from companies of Europe and India, 35% of the people with specialist technology roles are women in India as compared to a mere 17% female representation in Europe. 

Several organizations like Oxfam India through its campaign Bano Nayi Soch are all in for progressive ideas that subvert the norms of patriarchy.   

In 2016, Facebook initiated recruitment practices focused on bringing in black and female workers into their workforce – in who now make up 36% of its workforce. Sheryl Sandberg, COO of Facebook and the only woman on their board posits the concept of ‘leaning in’ in her recent book as the idea of being ambitious in any pursuit.  

Kiran Mazumdar Shaw, the CEO of Biocon and the first woman billionaire entrepreneur, reiterates that there is no dearth of talent in meritorious women and even though a small minority, they are well respected and worthy of inclusion. 

Indian scene: Finance

Women are considered excellent investors, but female representation in the finance sector remains meager. A CFA Institute Gender in Investment Management study shows a mere 11% representation of women investment professionals in the industry.  Research across the globe has proved how a culturally rich and diverse workforce delivers optimum results and lower risks for investors. Experts cite several pros of getting the women included in the workforce. 

  • Firstly, female inclusion will tend to bring in newer perspectives into the industry that can usher in a new revolution in the industry. Quality of output and decisions will definitely see improvements. 
  • Gender diversity can lead to innovations and rethinking of the old investment strategies that are sure to impact investment outcomes. 

Several initiatives have been taken to improve the involvement of the females at all levels. For instance, Young Women in Investment, India’s first initiative seeks to create female awareness and interest in the investment management industry. The initiative focuses on presenting investment as a long term viable career option to the women. The success and support of this initiative have definitely paved the way for the inclusion of females in the future of finance. 

Initiatives to Break Stereotypes

While we’re doing well, there can be several initiatives that can make the future of tech and finance into a substantial female-centric arena: 

  • Tech can be leveraged to advance gender parity and women empowerment in a number of ways. The development of the gig economy is offering a contingent workforce that is sure to lessen such gaps in the future. 
  • Unlearning the biases in our mindset and doing away with gender stereotypes will be a daunting task that would demand our attention towards sustainable and all-inclusive economic growth. 
  • A survey conducted by Unilever showed that 77% of men and 55% of women felt that men are best suited for high-stake projects. Such views deeply impact gender parity issues. Marketers and media need to stop the sexist portrayal of women. 
  • Social, political and cultural fronts should take it upon themselves to curb these formative practices of stereotyping and expose both the genders to all kinds of non-traditional fields like tech or finance to let them make their decisions rationally. 
  • There is a dire need to bridge the skill gap among women by taking advantage of digitization and tech innovations. The global “talent shortage” is currently at 38%, with the top ten hardest jobs to fill in STEM professions. The focus has to shift to building competencies and skillsets among women. 
  • Another key area of concern is the online representation of women. There are 250 million fewer females present online as compared to males. Connecting and bringing greater access to regions with no internet can bring about unforeseen opportunities and can even act as catalysts synthesizing women’s inclusion in tech and finance. 

The instilling of the right temperament among the youth holds prime importance as the majority of them make their career choices by the age of 26 as per a survey. Women do not lack in tech or finance skills and knowledge, what they lack is the proper nurturing environment enabling them to fulfill their dreams sans any bias or stereotyping. Once the institutions of today get in sync with gender equality and diversity themes, the potential and opportunities awaiting women in tech and finance can be attained.
And we can surely hope for a feminine era in finance and technology awaiting us in the near future. 

“You are fierce, bold and daring! Also, the best when it comes to caring.”
Happy Women’s Day!


Spouse In The Same Office: A Closer Look At The Implications for HR

Compiled By: Sandeep Raghunath
About Sandeep: He is the Head of Human Resources at EarlySalary, with 10+ years of international experience in HR across industries.

It is perfectly natural for a professional to fall for another if they’re working in the same office, or are spending a significant amount of time together. Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction. While they may be frowned upon, relationships within an office setting are far from uncommon. Some partners even often end up getting married. 

In this context, however, the HR function isn’t expected to remain out of the loop. Organizational policies, cultural sensitivities, etc – there are many factors influencing the HR functions’ role in managing professionals with a spouse in the same office. How can they approach this? Let’s look at some important aspects.

Disclosure of relationship

It is vital to maintain an environment where it is known that keeping a relationship or marriage secret is not in the interest of the company and can have larger implications. According to Sarah Churchman, head of diversity and inclusion and employee well being at PwC, the only way to manage relationships is for the couple to be totally out in the open. “If they don’t inform us, someone else in the department will. Not because they are necessarily behaving in an inappropriate manner, but simply because they may fear a problem with favoritism.”

Some enterprises have a policy in place allowing for managers to be demoted, transferred or even dismissed in the case of the manager being in a relationship with their direct report without disclosing the same. It is, therefore, essential that an office couple is made to sign out a disclosure form with the HR Department. This allows for a line of communication between the office and the parties involved and also serves as a formal notice of their relationship. It also prevents misinformation and rumor-mongering in the workspace which hampers productivity. 

Different organizations have varying HR policies on how they deal with a spouse at the same office. If a company is strictly against work relationships, one of the spouses can be dismissed, though it would not be a popular move and discourage transparency. “You can’t legislate against office romances or indeed falling in love, and an outright ban would be totally unworkable,” says Churchman.

It is imperative for a company to have a policy on office relationships and furthermore ensure that all employees, especially spouses, get familiar with these and abide by them at all times during work hours. This includes coffee breaks, lunch breaks, business trips, etc.

Personal life and Professional life

The need to maintain a professional relationship between spouses in the same office space is vital. Often, the hardest battle in managing office relationships is inculcating the need to strike a balance between personal life and professional life. According to a research “on flirting at work” conducted by Amy Nicole Baker, an associate professor of psychology in University of New Haven, and an author on workplace romance papers, it was found that people who frequently witness other colleagues flirting often feel less valued by the company and have a decline in job satisfaction. This feeling of discomfort can also lead to many quitting their jobs. In order to prevent others from being uncomfortable and thus putting oneself under the radar. 

Spouse In The Same Office: A Closer Look At The Implications for HR
“Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction”

Public displays of affection and flirtatious conversations can disrupt the working of the office and reek of unprofessionalism. It is essential to treat your spouse like a regular colleague within office hours and even in work parties, off-sites and other such events which are an extension to the office workspace.

Senior-Junior Relationship

In the case of a senior and subordinate getting married, the need for professionalism is critical in order to prevent conflict of interest. According to most office guidelines – it is necessary for the senior spouse not to be involved in the appraisal or evaluation of their partner. The two must not work together in the same department in order to curb the space for favoritism and nepotism within the workspace. There is also a potential threat to the security of confidential client information and the risk of information leaks.

To avoid the occurrence of favoritism, one spouse should be transferred to another department, and ideally, no couples should work together in the same department.


The unfortunate scenario of a married couple splitting up can have deep repercussions on their work ethic, their behavior in the office as well as the office environment itself. The disclosure form should specify what would happen to both the parties in case of this occurrence. The way two ex-partners are treated in the office also deserves attention. They might act in a more isolated nature and may be unable to maintain good performance. This situation is a nursing ground for potential blame-game and office politics. This difficult period of the employees’ life should be battled with care and acceptance. They might not need advice and might need someone to listen to them in order to clear their mind and concentrate during work hours. In case of poor performance, they should be nudged towards the direction of working better and given gentle reminders instead of indifferent statements like “Your divorce is not our problem.”
Perhaps an Employee Assistance Program to help deal with such traumatic instances is worthy of consideration from employers.


Can Millennial Stress be Resolved by Financial Wellness?

Stress is an issue bigger than ever for millennials, who are rushing ahead with their worklife, finding little time to enjoy the intricacies of life. They are not only toiling themselves with projects, preparing reports and meeting targets, but also when off the work they busy themselves worrying about their debt, savings and expenditure.  India has been, off late, a very volatile economy with companies shutting down production and filtering out chunks of employees. As such millennials are forcing themselves to work in return for poorly paid salaries and unsatisfactory job environments. In most of the cases, they are not able to manage their day-to-day expenses and have to revert to debt; while in other cases are confused about their financial course.

A whopping 76% of Millennials say they are experiencing financial stress, up 23 percentage points from 2018, according to the PwC 2019 Employee Financial Wellness Survey.

Financial stress is the top contributor in affecting employee health and morale followed by their jobs and relationships. Matching your salary with your expenses is only the tip of the iceberg, when cash flow and debt issues add to the worries. Employees are worried that they are not able to save enough and will face or are facing a financial crunch. Let’s look at the major issues hounding today’s millennials in terms of finance:

Past concerns  

With higher education becoming more expensive each year, an increasing number of new employees enter the corporate sector already laden with the burden of huge debt in the form of education loans or personal loans. As per Workplace benefits report 2017, 40% of millennials say that they left high school and college unprepared for the real world. As such they look upon their employers for the necessary guidance and help related to a majority of topics around financial wellness. 18% of millennials want more help with their student loans.

In some cases, these debts may be gifted down from one generation to another. A son may have to pay off a home loan or some other debt incurred by his father. These circumstances dilute the finances and millennials find it difficult to lay away the stress.

Present concerns

According to the 2017 Workplace Benefits Report, a significant number of Millennials say they feel unprepared to manage their finances and need help with topics across the financial wellness spectrum, including saving for retirement (43 percent), general savings help (40 percent), paying down or managing debt (34 percent), saving for major expenses (36 percent) and budgeting (31 percent). 

Peer pressure, maintaining the status quo and lavish lifestyles often lead millennials to the brink of a financial crisis if they do not plan their finances well in advance. Many are highly ignorant about how to proceed with investments; banks or mutual funds, long term or short term, commodity or shares, and a lot more. About 43% feel that they require more help with investing, 40% wanting more information on how to save taxes and 21% feel that they want to save more. It’s an additional issue when they require funds in a lump sum for unforeseen expenditure or a major purchase. They either trap themselves in instalments or else fall in a debt trap. 63% of Millennials consistently carry balances on their credit cards and two out of five have trouble making minimum monthly credit card payments.

Future Concerns

Besides provident fund schemes, gratuity and a few other benefits, employees aren’t assured adequately about their future. They remain concerned about their retirement and pension, their children’s education, medical expenses and a lot more. Pension schemes are offered by insurance firms, but which one is best suited remains a matter of concern. Career opportunities and growth also impact future and present decision making. Not surprising then that employees, especially millennials, find themselves to be dependent on their employers.

Why should employers take up financial wellness programmes?

Financial stress not only impacts an employee on a personal level, but his working capabilities and mental faculties get impacted too. Stress can be behind severe health concerns that may lead to employee absenteeism, employee turnover, and dissatisfaction. The issue of financial health becomes of utmost importance to keep the solubility of the firm intact on one hand and to achieve common organisational goals on the other. As per a survey, an employee spends 12 hours on an average each month stressing about their finances. 

Bank of America Merrill Lynch report says that the lack of confidence in financial matters affects Millennials’ workplace behavior. On average, employees spend 3 work hours each week (12 hours per month) dealing with financial stressors.

A well thought of and structured wellness programme may act as a tonic for the employees’ financial health:

#1 Making an in depth study of employee concerns before finalising on the mode the financial programme is critical. Not everyone shares the same crisis, and not everyone will desire third party approvals or advice before taking decisions. A financial assessment is essential before you initiate the program and want it to succeed. This can be an eyeopener for those employees who may have been unaware of the causes of their financial stress and will make them ready to adopt the new financial course.

#2 Educating employees about financial health and other resources should be taken care of as well. This can be one through seminars, online courses, or even lectures and classes conducted by an expert or professional.

#3 The employees must be educated on healthcare costs as well. It doesn’t hurt to take this opportunity to promote healthier lifestyles as well. This can save them a lot in the long run. Group insurance schemes and health insurance schemes should be encouraged as a norm in the organisation.

#4 Financial debt management, especially the management of student loans, is another area of focus. Employers, if possible, could even consider taking it upon themselves to sort out the education loan or debt of the employees as a gesture of goodwill. This can be offered as an employee benefit as well. Executed right, the company can go a long way in earning the reputation of being the best in class when it comes to their employees’ welfare.

#5 Then comes the basic question of managing the current expenses such as installments, deductibles, premiums and other expenses. There are several paradigms involved in financial planning and it can be overwhelming for a millennial who has just been placed on his job.

Encouraging employees to take part in these programmes and letting them get involved through participation, and one on one discussion will assist them in reducing their financial stress. The overall focus of the employee can shift to organisational task boosting his productivity and overall efficiency. At the individual level, it will boost their confidence to manage their current expenses and plan for their future expenses in advance. Financial wellness programmes can, therefore, help in improving employee health and quality of life. A healthy and financially sound human resource can be an unending source of profitability and efficiency for any enterprise.

Loan Against Mutual Funds

Secured loans are those that often have lower interest rates. This is because you are required to pledge your assets such as property or gold. However, if you do not have either, you can always avail loans against mutual funds. Choosing this lending option has twin benefits.

One, you get to enjoy the loan for your desired purpose. Second, your investments continue to accrue interest, undisturbed. Considering these perks, you may be wondering, ‘How can I get a loan against a mutual fund?’. Read on to find out.

Online application and overdraft facility

Taking a loan against a mutual fund investment is easier than ever before. Thanks to the online application process offered by most lenders, you can get this loan from the comfort of your home.

In most cases, you can simply apply for a secured loan and pledge your investments as security. In some cases, you may even be able to avail the overdraft facility. The overdraft scheme is a pre-approved credit arrangement.

Here, you can withdraw more than what you have in your bank account by pledging your assets as collateral. The lender will then extend a line of credit, charging interest on the sanction you utilise.

Loan against mutual funds: Interest rate

Lenders offer loans at lower interest rates if they are backed by collateral. As such, the loan against mutual funds interest rate is generally lower, making it better than unsecured loans. 

Moreover, with loan against mutual funds, you get to enjoy a continuous flow of yield on your investments. Your assets are safe and your returns are unaffected throughout loan repayment. 

Loan against mutual funds: Eligibility criteria

Most lenders have different loans against mutual funds eligibility criteria. However, there are some common requirements to get this loan. For instance, to enjoy this loan, you must qualify as any one of the following:

  • Individual Resident Investor
  • Non-Resident Indians (NRIs)
  • Hindu Undivided Family (HUF) 
  • Firm, Trust, or Company

The lender decides on your loan amount, tenure and interest rate based on various factors, including:

  • Quantum of mutual funds’ holdings
  • Credit score
  • Repayment history 

Loan amount against mutual funds: Maximum limit

The amount of loan against mutual funds depends on the following factors:

  • The type of mutual funds you have invested in
  • The lender from which you avail the loan against a mutual fund

Banks provide a loan sanction from 50%-60% of your equity holdings. On the other hand, you can get up to 80%-85% of the net asset value (NAV) on your debt funds.  

On the other hand, lenders also set an upper limit on loans against mutual funds. For instance, some lenders have set a limit of ₹10 crores that you can get as a loan against mutual funds. However, this limit can vary depending on the lender’s policy. 

In case a secured loan isn’t accessible to you, you can always avail of the Fibe Instant Personal Loan. Get funds between ₹5,000 to ₹5 lacs and borrow affordably. Best of all, you can access these funds online hassle-free. 

Simply download the Fibe instant loan app or visit the official website to get started. 

FAQs about Loans Against Mutual Funds

When will I receive the funds after applying for a loan against mutual funds?

While it depends on the lender, some of them disburse the funds within 24 hours of your loan request getting approved.

Is loan against mutual funds a good idea?

Yes. The cost of borrowing a loan against mutual funds is lower compared to personal loans. Moreover, during the loan term, your earnings from the mutual fund investments remain unaffected.

What is the interest rate for loans against mutual funds?

The loan against mutual funds interest rate varies depending on the lender. However, it generally ranges between 8% to 10% p.a.

How much loan can I get against a mutual fund?

You can get a loan amount of about 50% to 60% of the market price of your equities. For debt securities, banks generally provide a loan amounting to 80% to 85% of its value.

What are the advantages of taking a loan against mutual funds? 

The following are some advantages of taking a loan against mutual funds:

  • Your mutual funds will remain invested in the market unless you fail to repay the loan. Moreover, you will continue to earn returns as you repay your loan.  
  • These loans also provide lower interest rates as compared to unsecured loans.

A loan against mutual funds is the best option if you want to enjoy instant liquidity.

Types of Loan for Agricultural Land Purchase

A loan for purchasing agricultural land can help you buy land to cultivate crops or do other agricultural activities. This secured loan is one of many types of land loans, some of which are:

  • Lot loans: These loans are for developed land that has some infrastructure or utilities, such as roads, water, or sewer lines
  • Agricultural land loans: These loans are specifically designed for farmers or horticulturists who need to get a loan for agriculture land purchase
  • Commercial land loans: These loans are for investors or businesses looking to purchase land for commercial development, such as building a shopping center or office complex

There are multiple financiers in the market that can help you fund your land purchase for agriculture. Make sure you do your research and choose the right type of land loan for your needs. Read on to know more about loans for agricultural land purchase.

Eligibility criteria for a loan for agriculture land

The eligibility criteria for a loan for agricultural land purchase differs based on the lender you choose. Here are some common requirements:

Age: You must be at least 18 years old to be eligible for a loan

Type of land: The land should be agricultural land and should not be used for any other commercial or residential purpose

Income: You should have a regular source of income, either from farming or any other business or profession

Credit score: A good credit score is usually required to get approved for a loan, although some lenders may be willing to work with borrowers with lower credit scores

Documentation: You’ll need to provide proper documentation such as land records, proof of ownership, income tax returns, and bank statements

Characteristics of an agricultural land loan

Here are some common features of an agricultural land purchase loan.

  • Loan amount: Agricultural land loans can range from a few lakhs to several crores.
  • Interest rate: Interest rates on agricultural land loans can be fixed or floating and vary depending on the lender, loan amount, and tenure.
  • Loan tenure: The tenure for agricultural land loans can range from a few years to several decades, depending on the borrower’s repayment capacity and the lender’s policies.
  • Collateral: Agricultural land is usually considered as collateral for the loan, and the lender may also require additional collateral such as crops, livestock, or farm equipment.
  • Repayment options: Agricultural land loans can be repaid in flexible monthly or annual installments, depending on the lender’s policies.

How to apply for a loan to buy agricultural land 

Applying for this type of loan is very similar to that of a home loan. You can visit the lender’s physical branch, talk to a representative and submit the required documents. You can also visit the lender’s website, go to the loan on agricultural land purchase section, fill in the required details, and submit the necessary documents. Post approval you will get the requested loan amount credited to your bank account.

Armed with this information, you can now plan your loan for buying agricultural land with ease. Remember, public sector banks often have agricultural land purchase schemes for small or marginal farmers that come with affordable terms. However, check the eligibility criteria carefully as these may be stringent.

FAQs on Loan for Agricultural Land Purchase

Can I get a personal loan to buy agricultural land?

An agricultural land purchase loan is usually a secured loan backed by the land as collateral. A personal loan is usually unsecured.

What is the interest rate on a loan to buy agricultural land?

The interest rate on a loan for agricultural land can vary depending on the lender, loan amount, and repayment tenure. In some cases, they may be based on the MCLR and base rate with an additional interest of 2-3% as per the lender.

What documents are required for a loan to buy agricultural land?

The documents required for a loan to purchase agricultural land may include a copy of the land records, proof of ownership, a copy of the sale agreement, income tax returns, bank statements, and any other relevant documents requested by the lender.

Can farmers get a personal loan?

Yes, farmers can get personal loans if they meet the lender’s eligibility criteria and have proper income documentation.

Impact of GST on Personal Loans: How Is GST Calculated on Loans?

Taking a loan allows you to finance a range of expenses without any restrictions. Be it a holiday, a wedding, a medical emergency, or a home renovation, you can use funds from a personal loan hassle-free. Since this collateral-free loan comes with zero risk to your assets, it offers convenient and simplified financing. 

However, knowing the fees and charges associated with a personal loan is key to borrowing comfortably. The personal loan processing fee is one of the charges you should know about as are the charges related to GST on personal loans.

Read on to know more. 

What are Personal loan processing fees?

When you apply for a personal loan, the lender reviews your application and checks your eligibility. This requires an administrative procedure that comes at a cost. The personal loan processing fee you pay covers this cost.

This processing fee is computed on the total loan amount you are approved for and is deducted from the loan amount that the lender disburses to your bank account. Usually, personal loan processing fees vary from 0.50% to 5% of the loan amount. 

For instance, say you are approved for a personal loan of ₹50,000 and the processing fee is 5%. You will need to pay ₹2,500 as your processing fee. 

Knowing your lender’s processing fee is important, so you can account for it when you plan your loan and choose a lender with low processing charges. 

What is GST on personal loan?

With the introduction of the Goods and Services Tax in 2017, personal loan charges now have the applicable GST levied on them instead of the service tax that was applicable in the past. The rate of GST on loans is 18% and only applies to charges such as:

  • Processing fees
  • Prepayment charges 

The impact of GST on personal loan charges is very manageable as it replaces a 15% service tax that was applicable earlier. GST does not impact your loan EMIs or monthly payments. 

Here’s a calculation to help you understand this better. Assume that you are taking a loan of ₹50,000, as in the earlier example, and the processing fee is 5%. You will need to pay ₹2,500 as your processing fee. On ₹2,500, the GST of 18% comes to just ₹450. 

On Fibe, you not only get instant personal loans of up to ₹5 lacs but also pay nominal processing fees of up to 3%. Download our instant loan app or log in to our website to enjoy simple and easy access to funds. 

Frequently Asked Questions

How much does it cost to process a loan?

The personal loan processing fee varies based on the lender you choose and can go up to 5% of the loan amount. At Fibe, you pay up to 3% of your loan amount as the processing fee. 

Is the personal loan processing fee refundable?

Usually, the personal loan processing fee is not refundable as it covers the administrative costs of processing your loan application. It may be waived off or reduced for certain types of borrowers by some lenders. 

How are loan processing fees calculated?

The personal loan processing fee applies as a percentage of your loan amount. So, if you borrow ₹15,000 and the processing fee is 3%, the processing fee amount you pay is ₹450.

Do personal loans have hidden fees?

Reputed lenders are transparent about all personal loan fees and charges. Sometimes, you may come across hidden fees such as personal loan processing fees, EMI bounce charges, secure fees, penalty fees and prepayment fees. 

How can I reduce my processing fees?

In some cases, you can reduce your personal loan processing fees if you have a prior relationship with the lender or fall into a special category of applicants for whom the processing fees are reduced or waived. You can also apply for a loan from lenders who offer a personal loan with zero processing fees. Sometimes, you can also get seasonal offers where lenders waive the processing fees. 

Is it possible to get pre-approved for a zero processing fee personal loan?

Yes, sometimes lenders may offer a zero processing fee personal loan if you qualify for a pre-approved loan. However, in most cases, the processing fee is applicable even for a pre-approved personal loan. 

How long does it take to get approved for a zero processing fee personal loan?

The approval timeline for a personal loan depends on the lender and may vary from 5-10 minutes up to 1 week. 

How do I avoid paying processing fees?

By choosing a lender who doesn’t charge processing fees or by getting a season offer where the processing fees are waived you can avoid paying this fee.

Is the processing fee negotiable?

In some cases, you can negotiate with the lender to reduce the personal loan processing fees. 

How can I qualify for a zero processing fee personal loan?

To qualify for a personal loan without any processing fee, you will need to apply with a lender offering this waiver. To get approval for such a loan, meet all of the lender’s eligibility terms relating to age, income, place of residence and employment type. 

Is GST applicable on personal loans?

Yes, GST on personal loan processing fees applies at the rate of 18%. GST is also applicable to other personal loan charges such as prepayment. However, keep in mind that it does not apply to your personal loan EMIs. 

Is a personal loan taxable under GST?

Yes, a personal loan is taxable under the Goods and Services Tax since it is a service offered by lenders. However, the only times you will need to pay GST are on the personal loan processing fee and the prepayment fee. 

What is the impact of GST on personal loans?

The impact of GST on a personal loan is quite minimal. Earlier, a service tax of 15% was applicable on personal loan charges such as processing fees and prepayment fees. Now, 18% GST applies instead. So, if your loan amount is ₹15,000 and the processing fee is 3%, your processing fee is ₹450 and the GST is ₹81. 

Which loan is exempt from tax?

A home loan allows you to get tax deductions on both principal repayment and interest payment. However, this exemption only goes up to a specified limit. Other loans that also offer tax benefits on interest payments include education loans and personal loans used for education, home renovation, or business-related expenses. 

Is there tax on the loan amount?

No, there is no income tax you need to pay on the personal loan amount as it is not considered income.

Boost Your Career Through a Personal Loan

loans are tools that help to fund various expenses. Expediting your career can be one of them. After all, education is known to be the best investment. If you are looking for career growth without having to invest a fortune from your savings, a career loan can help you get started.

This type of loan is simply a personal loan that you take to invest in career development opportunities such as professional courses, equipment or tools, and many more. 

Read on to know more.

Tips on using a personal loan to develop career

Determine your professional goals

Before applying for a personal loan for the growth of your career, chalk out your career goals. Then create a plan that helps you understand how a loan can help you achieve them. This will help you to find out the amount of money you need.

Check your CIBIL score

You can get an affordable personal loan with a good credit score. This can help you finance your career development plans with ease. Remember, taking a small loan and repaying it on time can also help improve your credit score. This helps open doors for future credit that you can take to further study overseas or start your own business.

How to use a personal career loan to boost your professional growth

By taking a personal loan for boosting your career, you can invest in the following:


This loan can help you pay for courses, certifications, and training programs. These can enhance your skills and make you a more competitive candidate in the job market. By investing in yourself, you can increase your earning potential. 

Beginning a side hustle

Starting a side project can be a great way to earn extra money while developing essential career skills. It takes less time and effort than setting up a full-time business. However, you may require supplies, equipment, or other specialized tools.

This is where a personal loan can help you cover initial costs.

Professional networking

Attending industry events, conferences, and workshops can help you make valuable connections that can lead to job opportunities or mentorship. However, these events can have expensive entry fees or require travel. A personal loan can help finance these costs.

Starting a business

If you have an entrepreneurial spirit and want to start your own business, this type of credit can help you finance startup expenses. You may need to create a website, rent a small studio or office or invest in marketing.

With a personal loan for career improvement, you can launch your business without having to drain your savings. This loan is especially useful if you cannot get business financing via other means.

Investing in wardrobe and devices 

Having a sharp, professional appearance is certainly important for your career. It can make the right impact whether during a job interview or an elevator pitch. You may also need specific devices to do your job better and get more opportunities such as a better, more powerful laptop, smartphone or even software. You can rely on a personal loan for such investments.

As you can see, a personal loan for professional development can be a powerful tool for advancing your career. To invest in yourself for this purpose, you can get instant funds of up to ₹5 lac with Fibe. Download our Personal Loan App and get going!

FAQs on personal loan for career

Who is eligible for an upskilling loan?

Eligibility criteria for a loan vary based on the lender. Typically, salaried individuals, self-employed professionals, and business owners can apply for personal loans for upskilling.

Can we get a loan for professional courses?

Yes, many banks and financial institutions offer loans for professional courses such as MBA, engineering, medicine, etc. However, the loan amount, interest rates, and repayment terms vary from lender to lender.

What are the documents required to get a loan for developing career?

The documents required to get a loan for boosting your career include proof of identity, address, income, educational qualifications, admission letter from the institution, and course fee structure.

Is there any processing fee to apply for a loan to develop career? 

Lenders usually charge a minimal processing fee when you apply for a loan to improve your professional career. So, check your chosen lender’s policies before applying.

What is a Personal Loan Sanction Letter

Taking a loan allows you to access funds for both strategic and unexpected needs. However, getting the loan amount disbursed to your bank account requires a series of steps. One among them is getting your personal loan sanction letter from the lender. Read on to know more about this letter and how you can get it.

Meaning of sanction letter for personal loan

A loan sanction letter for credit facilities like a personal loan plays an important role. Lenders send it as a sign of initial approval of your loan application. While there are other formalities that lenders will complete after the sanction letter, it offers you important information related to the terms of your personal loan offer.

Do not mistake this letter for the loan agreement. Instead, think of it as the first step to disbursal of your loan amount. You can read the personal loan sanction letter to check the loan offer and other relevant details of the loan such as the interest rate, EMI and tenure.

This letter helps you get a snapshot of the loan amount you can expect and gives you the time to get back to your lender in case you have doubts or want to negotiate on any terms. In general, you get up to six months to review the terms in this letter. After this process, the lender will verify your documents and do other checks to ensure you can repay the loan. Once this is done, you will receive the loan agreement. On signing it, you can expect to receive the loan amount.

Steps to get a loan sanction letter

Here are the main steps to getting a personal loan sanction letter.

  • Meet the lender’s eligibility criteria
  • Apply by filling out the application form
  • Submit documents such as bank statements, employment proof, a photo or selfie, and KYC documents such as PAN and Aadhaar card

Once this process is complete, the lender authenticates the application and if it is approved, sends you this letter as the next step.

Loan sanction letter format

Though every lender has a slightly different loan sanction letter format, here is what most letters contain:

  • Application or reference number for your personal loan application
  • The type of loan being offered
  • The loan amount being sanctioned
  • The personal loan interest rate and the base rate it is calculated on
  • The type of rate, fixed or floating
  • The loan’s repayment duration
  • The EMI you will pay
  • The processing fee and all other charges you may expect such as prepayment and EMI bounce charges
  • Your name, address and other details

Now that you understand a loan sanction letter better, prepare yourself to boost your eligibility and do your homework before you apply. At Fibe, we make the process simple. You can apply for an instant loan online or on our app and submit minimal documents to get a personal loan of up to ₹5 Lacs. Simply download our Personal Loan App and apply for a personal loan online in minutes!

FAQs on sanction letters for personal loans

What happens after the loan sanction letter?

Once you get the sanction letter for a personal loan, you have time to read and accept the offer. After you do, lenders disburse the loan amount in your bank account.

How long is a personal loan sanction letter valid?

Usually, a sanction letter for personal loan is valid for up to 6 months.

Can a loan get rejected after a sanction letter?

Yes, there are cases when a loan may get canceled after the sanction letter is issued by the lender. This may happen if there are issues with verifying documents or if you choose to cancel the loan.

What is the importance of a loan sanction letter?

This letter is important as it gives you all the important information related to the personal loan such as the interest rate, tenure, EMIs, fees and charges as well as the approved loan amount. This letter signals the first step of approval from the lender and comes before the amount is disbursed.

How do I check my loan sanction status?

You can check your loan sanction status on the lender’s app or by logging in to the website and using your application number. You can also contact customer care.

Mistakes to Avoid While Taking a Loan

Loans are easy and quick to apply for without risking any assets. However, there are several factors for you to consider before applying for instant personal loan to ensure that it is the right choice for you. 

Read on to know what they are and how you can avoid common mistakes while applying. 

Factors to consider while applying for a personal loan

Determine your reason for borrowing

Personal loans can be used for a variety of purposes, such as financing home renovations, higher studies, or even vacations. By ensuring that you know why and how much you want to borrow, you can create a repayment plan. This helps you avoid defaulting in the future and being judicious with the loan amount. 

Consider your credit score

Lenders use your credit score to determine your creditworthiness. A high score helps you get pocket-friendly loan terms along with a more competitive interest rate. So, work on building your credit loan before you take a personal loan. 

Check the associated fees

Personal loans may come with application fees, processing fees, origination fees and prepayment penalties. Be sure to read the fine print and understand the true cost of borrowing before you proceed.

Compare your options

Different lenders offer different interest rates, loan amounts, and repayment terms. Take the time to compare offers to ensure that you are getting the best possible terms for your loan. 

Top 6 mistakes to avoid while taking a personal loan 

Taking a loan can be a major financial decision with long-lasting consequences. Personal loans in particular usually have higher interest rates, which means you must be careful while applying for one. Here are the most common mistakes to avoid while taking a loan:

  • Not reading the terms and conditions

Since different lenders have distinct terms, penalties, and associated costs, read and understand the terms and conditions before signing any documents. 

  • Borrowing more than required

Take a realistic look at your finances before applying for a personal loan. Taking on more debt than required can lead to financial distress. 

  • Not comparing your options to get the best deal

Borrowing in a hurry can lead to costly decisions that can impact your future financial health. Avoid this by evaluating different lenders’ terms to choose the most affordable loan. 

  • Ignoring your credit score

Your credit score plays a significant role in determining your eligibility for a loan and your interest rate. So, before applying for a loan, check your credit score and take steps to improve it if necessary.

  • Not having a repayment plan

Ensure you can comfortably make the monthly payments and repay the loan in full and on time before you apply. Use an EMI calculator to know your EMIs in minutes and plan accordingly. 

  • Taking a loan for the wrong reasons

Applying for a loan for frivolous expenses or luxuries can lead to financial difficulties. So, ensure your loan can either improve your financial situation or at least doesn’t hurt it in any way.

By avoiding these common mistakes, you can make an informed decision when taking a personal loan while not compromising your financial health. At Fibe, you can get an instant loan up to ₹5 lac with minimum documentation, nominal interest rates and zero foreclosure charges. Download our Personal Loan App to get started!

FAQs on mistakes to avoid while taking a loan

What are the main risks of a loan?

The main risks of taking a loan include defaulting on the loan, which can damage your credit score and result in legal action taken by the lender. 

What should you not do before applying for a loan?

Before applying for a loan, you should not take on any new debts. Doing this can negatively impact your credit score and make it more challenging to qualify for a loan.

What 4 things should you consider before deciding to take out a loan?

Before deciding to get a loan, consider the reason for borrowing, your credit score, the interest rate and fees associated with the loan, and your ability to repay the loan on time.

What should you watch out for when getting a loan?

When getting a loan, watch out for hidden fees and penalties, high-interest rates, and loan terms. Read and understand the fine print before signing any documents.

Why do loans get rejected?

Loan applications get rejected for various reasons, including a poor credit score, too much existing debt, insufficient income, or a history of late payments or defaults in your recent credit history.

4 Reasons Why Personal Loans for Holidays are Ideal Solutions

Whether it is a solo trip or a holiday with friends or family, taking a vacation is essential to feeling recharged and refreshed. Rising costs of travel and stays, however, can delay your trip or result in a dip in savings. Loans for holidays offer a simple solution to avoid this and enable you to take a trip anytime you like. 

With a loan for vacation spending, you can finance a group of travel-related costs affordably and leave your savings intact for a rainy day.
Read on to know more about how personal loans for holidays can be ideal financing solutions.

Why avail of a personal loan for a vacation?

Personal loans have numerous benefits that make them an excellent option for various needs, including vacation planning. A key benefit of availing of personal loans for holidays is that you can get money in your account without any obligations on how you use it.

Be it airline or train bookings, accommodation, transportation costs, adventure and sightseeing activities, or more – you have the freedom to use the funds in any way you like.

Here are some more reasons why an online personal loan for a trip can be a good idea:

Ample funds to meet your holiday needs

From a few thousand to a few lacs, lenders offer personal loans in all ranges and without any collateral. This allows you to go to whichever destination you would like to without any financial stress.

Attractive interest rates for easy repayment

Lenders levy competitive interest rates on personal loans for holidays. This makes borrowing easy on the pocket. Make sure you meet the eligibility terms set by the lenders or financial institutions to get the most nominal interest rate.

Online application for faster and easier access  

Digital advancements have made it possible for lenders to offer credit digitally, without physical meetings or paperwork. To get a loan for vacation, simply fill in an online loan application form and submit a few documents. You can apply from anywhere and anytime, even if you are on the go! 

Quick disbursement for planned and spontaneous trips 

Based on your lender, you can get the cash in your bank account as quickly as a day. This makes planning trips easy, fun and fast.

How to get the best personal loan for a trip?

Here are a few tips to ensure that you get the best deal on your loan for a trip:

Assess your finances

Check your income and expenses to understand your borrowing capacity. Finding an ideal loan amount that fits both helps ensure you don’t overburden your finances when you repay. 

Check your eligibility

Before applying, check if you qualify for this loan to increase your chances of getting fast approval and reduce your borrowing costs.

Research and compare

Check if there are any hidden charges that your shortlisted lenders’ levy, as they can drive up your cost. Then, compare offers using an EMI calculator to choose the most affordable option.

Now that you know why taking a personal loan for a vacation is a smart option, be sure to use the tips above to get the best deal. At Fibe, you can apply for instant personal loans for holidays or any other purpose and enjoy attractive interest rates and flexible repayment tenures. 

What’s more, you only need to meet our simple eligibility terms to get up to ₹5 lacs. Download our instant loan app or log in to our website for a seamless digital process and plan your vacation today!

FAQs on loans for holidays

What documents are required to get approval on a personal loan for travel?

To get a personal loan to finance a holiday, you need to submit your PAN card, address proof and income proof with your application. Do remember that the lender may ask for additional information depending on your application and credit profile.

Is it a good idea to opt for a personal loan for a vacation or a holiday?

Personal loans are quick to avail and have no restrictions on end use. These features allow you to go on your dream trip without waiting for long or depleting your savings. Moreover, personal loans come with a longer repayment tenure and lower interest rates as compared to credit cards. By taking a personal loan, you can also build your credit score.

How does a personal loan for travel work?

A personal loan for a trip works like a regular personal loan. Once you check your eligibility and assess your finances, apply with a lender of your choice. The lender will assess your application and disburse the loan amount to your bank account upon approval. You can use the money freely and repay it in EMIs within your chosen tenure. At Fibe, you can get a loan of up to ₹5 lacs and repay within 3 to 24 months.

Can I get a personal loan to travel abroad?

Yes, you can travel to any destination within or outside India with a personal loan for a trip.

Floating Interest Rates Vs Fixed Interest Rate

Deciding between fixed and floating interest rates is crucial as it affects the amount you have to pay as EMIs. So, where you do stand in the fixed rate vs floating rate debate? Confused about why this matters? Choosing the right type of interest rate allows you to save more on interest payments. 

In any discussion about fixed interest vs floating interest rates, you first need to understand them. To find out the difference between fixed interest rates and floating interest rates, read further. 

What is a floating interest rate?

A floating interest rate depends on a benchmark rate set by the lender. The EMIs towards your loan repayment change accordingly. Simply put, a floating interest rate varies as per market fluctuations.

The lenders set a period after which they revise the rate of interest on your loan. The lender can change these rates annually, half-yearly or quarterly. Note that the EMI amount that you pay monthly remains the same. The lender only alters the tenure according to the changing benchmark rate. 

Benefits of floating interest rates

If you decide to go with the floating interest rates, you get to enjoy the following benefits:  

  • Floating rates are generally lower than the fixed rates. Due to this, you stand to save on your total cost of borrowing.
  • If the lender makes a downward revision to the benchmark rate, you stand to gain from the reduced interest payments and shorter loan tenure. 

Drawbacks of floating interest rates

There are also certain disadvantages when you choose a loan with floating interest rates. These include: 

  • As the interest rate fluctuates according to market conditions, this lending option is considered unstable.
  • In a low-inflationary market, the floating interest rates can remain high for a long time. This can burn a hole in your pocket.

What is a fixed interest rate?

As its name suggests, a fixed interest rate is fixed at the time of your loan agreement. Here, the rate of interest on your loan remains unchanged throughout your repayment duration.  However, lenders generally peg it at 1%-2% higher than the prevailing benchmark rates. 

As opposed to floating interest rates, you can not avail yourself of reduced interest payments when the repo rate lowers. However, it provides you with a sense of certainty as your EMI amount also remains unchanged through the repayment tenure. 

Benefits of fixed interest rates

When you choose a loan with a fixed interest rate, these are the benefits that you enjoy:

  • Fixed interest rate offers predictability and certainty about the EMI amount that you need to pay to service the loan
  • Fixed interest rates become a more viable option when the repo rate is low
  • This type of interest also allows you to calculate the overall cost of your borrowing with ease

Drawbacks of fixed interest rates

Similar to floating interest rates, fixed interest rates have some drawbacks:

  • As opposed to the floating interest rates, you do not benefit even if the repo rate lowers.
  • A fixed interest rate is generally higher in comparison to floating interest rates.

At Fibe, you can get an instant personal loan up to Rs.5 Lakh at fixed rates. You can pay off the loan early and become debt-free faster without any prepayment charges. To access easy credit, simply download our Personal Loan App from the App Store or Google Play. 

FAQs about fixed vs floating interest rates

Which is better among fixed vs floating interest rates?

It depends on you to decide which is better between fixed vs floating interest rates. If you are looking for stability, a fixed interest rate is the perfect option for you. However, if security is not your prime consideration, you can go with the floating interest rate. If the benchmark rates remain low, you can end up saving considerably on interest payments.  

Do market conditions affect fixed and floating interest rates?

The RBI periodically revises the repo rate based on market conditions. While the revised rates affect the floating interest rates, it bears no effect on the fixed rates. 

Can I switch from a fixed interest rate to a floating interest rate?

Yes, some lenders offer the facility to shift to the floating interest rate after paying a certain number of EMIs.

How do the floating interest rates work?

Repo rates and floating interest rates are directly related. When the repo rate goes up, the floating interest rates also spike, and vice versa.

Is a floating interest rate a good option?

A floating interest rate is an attractive option if you wish to save on interest payments. You may benefit if the lender lowers the benchmark rate shortly.

Everything You Should Know About Top-up Loan

To fulfil some dreams, you don’t need to wait for your savings to stack up. With personal loan, you can cover varied expenses, be it purchasing a new gadget or a vacation. But 

what if you have exhausted your existing loan and need additional funds? To cover the expense of such needs, you can get top-up loans.

To know about loan top-up meaning, how it works and how you can get it, read on.

What is a top-up loan and how does it work?

A top-up loan is a loan facility provided by your lender over and above an existing loan. When in need of excess funds, you can apply for this loan. 

The loan top-up process is quite simple as it is provided by the same lender. After the approval of the loan, the lender adjusts the existing repayment tenure as per the terms of the additional loan.

For instance, say you take a personal loan to cover the cost of renovating your home. But what happens if you need extra funds to upgrade your kitchen appliances? You can contact the same lender to provide you with a top-up loan. 

Features of a top-up loan

The following are some of the aspects that you get to enjoy with a top-up loan:

Multiple use cases

A top-up loan comes without any use-related restrictions. It means that you can use the funds for varied purposes. 

Flexible repayment

For most top-up loans, lenders adjust the repayment tenure to match that of your existing loan. This makes repayment seamless as you do not have to track two different schedules. 

Easy application process

Since you can get this loan from the same lender on top of an existing loan, you save on many aspects of the application process. The time and effort you spend applying for top-up loans is usually less as compared to applying for a new loan from scratch. 

Competitive interest rate

The interest rate on top-up loans is generally lower as compared to other consumer loans. So, you can save on interest payments by taking this loan. 

How to get a top-up loan?

To get a top-up loan, follow these simple steps:

  • Get in touch with your existing lender to initiate the loan top-up process
  • Fill out the application form 
  • Submit the form along with the required documents
  • You will receive the additional funds after the approval of your top-up loan request 

If your existing lender does not provide this facility, you can opt for a personal loan balance transfer. This will allow you to shift your loan to a lender that provides a top-up loan facility.

To enjoy credit that is easy to use and repay, you can always go with Fibe’s Instant Loan. For your personal needs, you can get funds ranging between ₹5,000 and ₹5 lacs without any questions asked. Simply download the Fibe instant loan app or visit the website to get started and upgrade your life! 

FAQs about top-up loans

What is a top-up loan?

A top-up loan is an additional loan facility that you can get in addition to your existing loan. To get this loan, contact your existing lender and apply online. Once the lender approves your application, you get the sanctioned amount in your bank account. 

What are the documents required for a top-up loan?

To get a top-up loan, you will need to submit the documents that your lender requires. While these can vary from one lender to another, you will usually need to submit:

  • Identity proof: PAN card, Aadhaar card, Driver’s license, or Voter ID
  • Address proof: Aadhaar card, Passport, rental agreement
  • Employment proof: Employee ID card
  • Income proof: Salary slips and bank account statement

Which is better, a home loan top-up or a personal loan?

You can take a home loan to buy a home or property. This secured loan has a well-defined purpose. In contrast, you can take a personal loan to meet urgent financial needs. There is no limit on usage. Both loans come with a top-up facility. So, you can choose the ideal one based on your needs. 

What are the benefits of a top-up loan?

Since you have already taken a loan from the lender, they set easy eligibility criteria for top-up loans. Most lenders have a simple online application process for such loans, making it easier for you to apply and receive the funds. Moreover, you require less paperwork to get approval on such loans. 

Can I foreclose my top-up loan?

Yes, many lenders provide the facility to foreclose your top-up loan. However, they may charge you a penalty fee for the same.

What Is Microfinance? How Does it Work

Financial services are an efficient way to help meet your personal goals. But how do these solutions impact the economy on a larger scale? By facilitating cash flow and liquidity in the market. But when most of the population cannot access these services, growth gets stunted. 

One reason for the financial exclusion is the stringent eligibility requirements set by institutions. Due to these, individuals in the low-income group are often left out. However, microfinance serves as a viable solution, promoting financial inclusion.

But what is microfinance? Read on to know all about it, its importance, benefits and more.

What is microfinance?

Microfinance in India and across the globe refers to the financial services made accessible to those who cannot access them through traditional institutions. Microfinance was traditionally made available through microfinance institutions (MFIs).

Microfinance companies in India operate similarly to banks, NBFCs and financial institutions that offer services on a larger scale. The difference, however, lies in the fact that MFIs offer services catered to meet the requirements and financial capability of the low-income group.

A key eligibility requirement to avail of microfinance services is the income limit, which is set at ₹3 lacs by the RBI. This is important because companies and institutions offering services to a larger group often have high-income requirements, thus making them inaccessible to the low-income group. 

Given how it benefits individuals and the country as a whole, there has been a tremendous rise in the number of people borrowing from microfinance institutions in India. Realising the need that a microfinance company caters to, banks and NBFCs have started offering basic financial services to the underserved too. 

Types of microfinances

A microfinance company is often differentiated based on the service it offers. Listed below are the basic financial services offered through microfinance:

  • Microloans 

A collateral-free credit option that enables borrowers to boost their financial situation by granting access to credit, which in turn helps improve their credit history. This also gives them a chance to avail of larger services from traditional institutions that require a good credit history.

  • Microinsurance

Through this, the group can get access to insurance coverage that protects them against unexpected expenses at a lower premium.

  • Microsavings

By eliminating the minimum balance requirement, such services encourage the group to invest at their convenience and earn returns on it, ultimately inculcating financial discipline.

Benefits of microfinance

Here are some of the top benefits of microfinance that the underserved enjoy:

  • Immediate access to funding that is often not available through traditional institutions
  • Offers opportunities for employment by allowing small business owners to grow
  • Gives the group a chance to become self-sufficient and meet their goals
  • Reduces financial stress and makes better opportunities accessible

Microfinance in India is growing rapidly due to the emerging MFIs and financial institutions, which now offer financial services inclusively. Among the many banks, NBFCs, and financial institutions promoting financially inclusive growth is Fibe. 

Through Fibe, you can get Instant Personal Loan ranging from anywhere between ₹5,000 to ₹5 lacs, affordably. With easy-to-meet eligibility criteria, Fibe aims to make loans accessible even to those who are new to credit.

Download the Fibe instant loan app or log in to our website to apply digitally and get quick access to funds.

FAQs on microfinance

How to apply for microfinance in India?

To avail of microfinance, you need to visit the microfinance institution (MFI) of your choice. Talk to a representative about the service you want, fill out the necessary form, and submit the required documents. Every financial institution, including MFIs, has different processes and requirements. As such, it is crucial that you check these factors before applying.

What documents do I need to submit to avail of a microfinance loan?

The documents you need to submit to get a microfinance loan depend on the institution you borrow from. Generally, institutions require you to submit your ID proof, address proof, and income proof with a completely filled application form.

How do I know if I am eligible for a microfinance loan?

An important eligibility criterion for microfinance loans is your income, and the RBI has set the income threshold at ₹3 lacs. In addition to this, microfinance institutions may have other eligibility criteria. Therefore, you need to check the eligibility criteria set by the particular institution to know if you qualify for the loan.

What are the benefits of microfinance?

A few of the top benefits of microfinance include immediate access to funds, financing solutions for those excluded from traditional institutions, and better financial growth on a personal and market level.

What is the difference between a bank and a microfinance institution?

A key difference between a bank and a microfinance companies in India is that the latter provides services to people in the low-income group, whereas a bank offers services to people belonging to all income groups.