Tips for adjusting your budget when facing a crisis

After the 2008 global financial recession, this is what Martin Khor, the then Director of South Centre, wrote – “ The causes of the global financial crisis are to be found in the financial and economic policies of the developed countries, primarily the United States (US). Developing countries are not responsible for it, but they are now seriously affected”.

An ongoing crisis like the current pandemic is a looming threat to not just a particular nation, but the entire world. People panic with their finances; they don’t know how to use them in a good way.

In India, the start of the pandemic brought with it negative news. The stock market fell by as much as 30%, e-commerce platforms had to shut their operations, corporate layoffs increased, the GDP growth fell to 3.1% during the fourth quarter of fiscal year 2020 and the common public was left to fend for themselves, scared and frightened. (See Economic impact of the COVID-19 pandemic in India)

In scenarios like these, it’s paramount for people to understand how to construct their budget and get through tough times without falling into debt traps.

Understanding A Crisis and Overcoming Financial Stress

Identifying problems: What is the primary problem causing financial challenges? This could be an existing loan with high interest or an exorbitant monthly bill. Identify it first and learn to mitigate the risks. It helps in getting a permanent solution to your troubles and plugging the gaps in your financial situation.

Setting priorities: Panicky behavior is the biggest obstacle during a crisis. Considering setting priorities between your finances; and necessary expenses. Understanding the situation and listing out needs vs wants will help.

Address the problem: Stop delaying making decisions because of panic, fright, or lethargy. Don’t ignore the rat hole in your kitchen. Decide to confront the crisis and start working on it.

Developing a plan and budget: Consider creating a budget. It will help in getting your finances back on track. A detailed, well set out plan always helps in reaping future benefits.

Tracking progress: Don’t just sit back after making a plan. Execute it and track your progress. See if it works, and if not, start working on a different plan. Keep on your toes and keep working your way up.

Learning to adjust budgets in times of crisis

  • Cutting down unnecessary expenses: Ask yourself – do you need that Netflix subscription right now? Can you survive without getting yourself some sweet treats? Do you need the latest smartphone in the market?
Budget

Economics, as defined by Lionel Robbins, is summarized as ‘making choices in the face of scarcity’. This is what everyone would do well to remember, making the essential, and important choices. Consider your utmost necessities. They could be your usual groceries, paying off basic utility bills like water and electricity, or fuel charges.

  • Considering substitution: Consider this – your budget doesn’t allow you to eat out or have some sweet treats. You can’t afford expensive books or going to movies. What do you do then? You substitute them. Create treats at home, read through online open-source libraries, and watch old uploaded movies online. Substitutions might not be exactly what you desire, but it can satisfy your cravings in a cinch!
  • Staying on track with debt payments: Remember, the more you delay paying off existing loans, the more you get stuck in the debt trap. Take it slowly but ensure your debts don’t become a raging mountain. It helps to get financial help sooner rather than later because the more you second-guess your financial choices, the less you can put your hard-earned money to good use. It helps your financial stability and you would sooner come out of the crisis.
  • Considering assistance from financial organizations: Taking up this step wasn’t the norm in earlier times, but not today. There are many quality instant loan apps all around ready to help you with your cash crunch while offering a simple, easy to use interface right from your smartphone for the whole process. With proper budgeting and expense planning, you wouldn’t consider yourself into falling into any debt traps.

Fibe is one of the forerunners hereby being India’s earliest consumer lending platform. They have helped in getting short tenure instant loans to people in the form of salary advances and have now passed a million instant loan disbursals.

Yes, it’s no hidden secret that a crisis can be scary. But at the end of the day, all that matters is how you manage yourself and confront the crisis. Things can become hard, but we could find our way through by using various methods and techniques.

Think smart, work hard, and keep yourself stress-free!

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the instant loan app here, or simply log in to our website and be a part of the #OneSmallStep experience.

Bolstering Financial Wellness Programs for Remote Employees

After the pandemic, work from home has become a norm rather than an anomaly.  A sudden, big shift in the corporate landscape has been witnessed, and organizational activities such as meetings, deadlines, action plans are now well-tuned to work while we sit comfortably in our living rooms.

However, there is a major problem – related to employee financial wellness – surfacing because of the Covid-19 crisis. Many businesses have already implemented pay cuts and withdrawal of benefits to stay afloat. It is not that this financial wellness concern is seeking global attention only at the moment; it was in question even in the pre-pandemic times. But this time around, its importance is rather much realized (for more details on this, refer to our previous blog here).

What does financial wellness bring to the table?

To put it simply, financial wellness programs involve steps taken by employers to bolster benefits for employees and enable them to manage their personal and professional finances effectively. With due assistance, the employees are enabled to address a range of issues – credit score building, financial goal setting, financial crisis management, personal and household budgeting, and so on. Not only is this the ethically right thing to do, but it’s also prudent. These moves boost overall productivity at an organizational level. It is only logical that if employees have their finances not generating any stress, they raise the bar on output.

Importance in the pandemic hour

In 2019, data from a financial firm, John Hancock, showed that as many as 69 percent of workers had stress due to their shaky financial position. In fact, as many as 72 percent of the employees admitted to having been anxious about their personal finances at work, which adversely impacted their performance. 

Thus, with Covid-19 creating spillovers across the globe, the ongoing year must differ from 2019: economic downturn, shutdowns, and job cuts. Also, more people this year are not so financially well-equipped, and even if the employees work from home, there are some teething problems such as electricity and Wi-Fi bills cropping up, and they need to be immediately addressed. 

Therefore, it can be said that remote employees should be pulled out of the financial crunch by their employers as pointed out in a study by Travis Credit Union. The study concluded that 73 percent of employees believe the COVID-19 pandemic will change financial habits in the future. Therefore, due to the rise in such contingent expenditures coupled with a reduction in pay in a lot of cases, it has become imperative for the employees to have some sort of guidance on financial management. The employer, during these unsettling times, should rise to the occasion and work out these new problems. 

Financial wellness, COVID-19

Ways to engage remote employees in financial wellness programs

There are several ways in which employers can help remote employees with financial wellness without them being physically present:

  • Organizing online workshops and seminars on stress management with respect to personal finances, taxation, etc. can churn out benefits. As per March 2020’s Betterment for Business report, 77% of millennials and Gen Z savers say that thinking about their finances causes them stress. Stress is one of the primary factors reducing employee performance, which ultimately affects productivity. 
  • An employee discount program by negotiating with different hospitals, restaurants, tourist attraction agents, and grocery vendors can be initiated to ensure the most basic of necessities, especially in crisis situations. 
  • Implementing merit-based reward policies during these testing times will provide positive incentives for the employees.
  • Extending some short-term emergency lending services is also a way out to help the employees in case of an unfortunate incident under precarious circumstances. 

There are also several other ways the organization can introduce to redress the balance for its employees in this post-COVID-19 fix. Several third-party organizations have come up with financial wellness programs that the employer can pay for while other aspects are outsourced. This can be the game-changer for remote employees, providing adequate financial support within the confines of their homes. At Fibe, we’re happy to be amongst the leaders in this segment. Organizations can partner with Fibe and offer instant personal loans, education fees financing, medical emergency loans, and many more financial tools for their workforce. Register here and make sure that your employees’ financial management needs are taken care of. 

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the instant loan app here, or simply log in to our website and be a part of the #OneSmallStep experience.

Build a Positive Credit Score with Good Credit Habits

Your financial habits will majorly impact your financial standing which is why maintaining healthy habits comes to the picture. This is true especially when it comes to your credit profile, as it can help you build a positive credit score. However, building a favourable credit profile is much more than spending and borrowing and doesn’t happen overnight. 

While it is possible to get a loan without a credit score, you must consistently practice good credit habits. Clearing your credit card bills and paying your loan EMIs on time helps building a positive CIBIL or credit score. Uncertain about how to improve credit score?

Here are top 5 credit habits to consider for improving your credit score:

Prioritise your financial commitments

Planning financial goals and weighing all credit options is essential to build a positive credit score. Most lenders evaluate your repayment capacity from your debt-to-income ratio. This ratio determines your monthly liabilities compared to the total income you earn. Simply put, it is the percentage of your entire income from which you have to pay your rent, credit card bills and loan EMIs. 

So, you must plan and prioritise your financial goals. If you are wondering how to increase your credit score, try keeping your debt obligations much lower than your income. Calculate your income to EMI ratio before borrowing and keep the ratio under 30%. Strategic financial planning like this is crucial to building a positive credit history.

Managing credit limits

Wondering how to increase CIBIL score? The answer is simple. Apply for credit only when you need it and have the repayment capacity. Be careful of how regularly you apply for credit cards. Applying for new credit too often will lower your score. In any case, a credit card with a considerable credit limit is excellent and you must maintain a low credit utilisation ratio. Utilising a large portion of the assigned credit not only adds to your responsibilities but may also affect your repayment capacity. 

If you are new to credit, your credit utilisation ratio is the percentage of credit you have utilised against the total available credit limit. For example, if you have a total credit limit of ₹5 Lacs and make purchases worth ₹75,000, your current credit utilisation ratio is 15%. In this case, it is a healthy ratio as it is recommended that you utilise only up to 30% of your total credit limit.

Always keep track of your credit transactions, especially your credit card activity. Alternatively, you can also opt for automatic payments to avoid delayed payments. Inform your lender about starting this service and have the money debited from your account on a set date every month. It will ensure timely payments that can help build a positive credit score. 

Simply put, anything indicating the non-performance of your credit accounts harms your credit score. So, if you are stressed thinking about how to improve CIBIL score, all you need to do is keep tabs on your credit card utilisation. If its low, it is easily manageable, as opposed to a higher outstanding, which may be a lot more challenging to repay.

Budget your spends

Budgeting monthly and annual expenses help you eliminate cash crunch situations. This will also help you stay on top of payments and show lenders that you are a responsible borrower.

Payment history is one of the most influential factors in CIBIL score improvement. The cardinal rule to follow is to try and put aside a sizable sum of money in a separate account as an emergency fund. This will help avoid defaults, repossessions, foreclosures, and third-party collections. 

This fund can also help you meet your credit obligations and unexpected expenses during a financial crisis. With proper budgeting, achieving a positive credit score is relatively easy.

Maintaining older accounts

The simplest way to learn how to increase CIBIL score is to understand the role of your credit accounts. Your accounts reflect usage, repayment patterns, and key markers of financial management, and help establish a history with credit. Naturally, it is better that you maintain your older credit accounts, as these showcase a longer history with credit. This is good for your CIBIL score. 

Similarly, maintaining an account for extended periods is a good credit habit, as your credit score also depends on the credit utilisation ratio. Hence, closing credit accounts may often lower your available credit and harm your credit profile. Instead, consider keeping accounts open if they have a good payment history and a low or zero balance.

Healthy credit mix

Maintaining a balanced credit mix of secured and unsecured loans is vital. A quick unsecured loan can help you bridge short-term credit needs, so try and balance by taking secured loans like car loans or home loans to balance the portfolio and build a positive credit score. 

However, avoid availing too much credit, as these instruments can increase your debt burden. Apply for different types of loans depending on your requirements and develop a good credit score. There’s no need to stress about how to increase CIBIL score, as with this option, you can gradually improve your credit profile.

Monitor your credit score

It is vital to keep a tab on your score with constant monitoring. Checking your credit report not only helps you assess the score but also helps detect any errors in the credit report. So, regular monitoring is an effective way to boost the credit score and understand your borrowing and repaying habits.

Bottomline

Once you avail a loan or get a credit card, your credit history forms. This history is critical in boosting your credit or CIBIL score. The CIBIL score is a 3-digit number that determines your credit profile. It ranges from 300-900. It also reflects your credit behaviour and borrowing habits across a timeline. It is important for you to showcase good credit habits as lenders evaluate credit profile, repayment habits and behaviour patterns. 

The best way to develop good long-term credit habits is through financial discipline. It is important to boost your credit score as this can provide you with umpteen benefits in other aspects of life too. Check out our beginner’s guide to borrowing and credit if you’re looking to get started.

Download the instant loan app here or simply log in to our website and be a part of the #OneSmallStep experience.

Is It Safe to Share Bank Details for a Loan Application?

Applying for a loan and wondering what bank details can I share when applying for a loan? It’s a very common doubt because your bank statement holds personal financial information. So it’s normal to feel unsure or even worry about misuse.  

The reassuring part is that sharing your bank statement is safe when it’s done through secure, encrypted channels and with an RBI-registered lender. Keep reading to understand why lenders ask for your statement, how it helps speed up loan approval and the safest ways to share your details without any risk. 

Is It Safe to Share Your Bank Statement for a Loan?

Sharing your bank details is a regular part of getting a loan approved. Lenders ask for your bank statement only to understand your income flow, financial stability and repayment capacity, nothing more.

The key is how and where you share it. Avoid unverified apps, random links or platforms that don’t look trustworthy. Always choose lenders who are RBI-compliant, use strong encryption and clearly explain how your data is stored or deleted.

When these safety checks are in place, sharing your bank statement becomes safe, simple and completely worry-free.

Importance of Bank Statements in a Loan

Your bank statements do more than just show transactions. They help in several key ways: 

1. For loans and credit cards: Lenders use them to check your income and verify your details before approving a loan or credit card. 

2. For tax filing: You or your CA might need them while filing income tax returns — they make things simpler at year-end. 

3. For money management: Statements help you track income, spending, savings and avoid overdraft penalties. 

4. For spotting fraud: They let you catch and report any unusual or suspicious transactions quickly. 

Since they contain sensitive info, always store them safely. Most are password-protected — a small but strong step toward keeping your data secure. 

Also Read: Best banks for savings accounts in India.  

Know how Your Data is Being Used by Financial Institutions

The next step in securing your bank statements is to know how this information is being utilised by the third party asking for it. To understand this, follow the suggestions below.  

  • Learn what data the service stores and for how long.  
  • Check to see if the data you are sharing can or will be shared with other third parties.  
  • Make sure you understand how to advise the service to stop accessing your accounts, as well as how to delete the data you have shared, if appropriate.  
  • Ask if the website or service you are using automatically keeps or stores your information or passwords.  

When you are satisfied with the above, sharing your bank statement is safe.  

Should a Loan Company Ask for Online Banking Details?  

Online banking details come under the category of sensitive information. If this information lands in the wrong hands, it can put you in a vulnerable position. Online banking details may include your customer identification number, net banking passwords, PIN, etc. Therefore, any legitimate loan company will never ask for online banking details. Instead, they rely on other methods, such as your submission of bank statements for loan applications.  

In some cases, you may need to share your password for opening the PDF with the lender. However, if the lender or loan app you are using is registered with the RBI and has other safety protocols in place, it is safe for you to do so.  

How to Share Bank Account Details? 

When sharing your bank details or bank statements, you should be cautious of a few things:

  • Use secure platforms: Always share your bank details only through encrypted channels like secure email or the lender’s official app. This keeps your information protected during transfer.
  • Send password-protected files: Convert your bank statements into a password-protected PDF or a zipped folder before sending them. It adds an extra layer of safety.
  • Use trusted lender apps: Upload documents only through the lender’s official app or website. This way, applying for a instant loan on bank statement verification becomes more secure.
  • Avoid public networks: Never share banking details over public Wi-Fi or unsecured messaging apps, as they increase the risk of misuse.

How to Share Your Bank Information on Fibe?  

At Fibe, we never auto-save your information or passwords. We encrypt your data and use a PCI DSS App-based journey to ensure your data is safe and secure. Fibe is also ISO/IEC 27001 certified.  

To share your bank statement for loan application and get instant cash, you can utilise any of the following ways: 

Option 1: Make Use of Online Banking 

  • Log in to your salary bank account through Fibe 
  • Ensure that your past 3 months’ pay has been credited 
  • Obtain fast loan approval from Fibe 

Option 2: Submit Bank Statements 

  • Check that the bank statement is for your salary account 
  • Ensure that your past 3 months’ pay has been credited 
  • Submit the original PDF format.  

Both alternatives are really simple, quick and secure!  

While new technology offers convenience, it can also give scammers more opportunities to access your hard-earned money or data. So, always be alert while you share bank details for loans. Use strong passwords and be on guard when giving access. To have a safe and convenient experience with sharing your bank statements and getting the funds you need, download the Fibe Personal Loan App.  

FAQs on Sharing Bank Statements 

Is it safe to send a PDF bank statement?  

Yes, it is safe to send your bank statement in PDF format to reliable individuals/services. However, most PDF statements require a password to open the document. Share these details only with trusted lenders or financial institutions.  

What bank details are safe to share?  

You can share your bank statement, account number and IFSC code. Keep the rest of the details safe with yourself. You can use your customer ID and password to log in to your account via a third-party app if it is safe to do so.  

What is the safest way to send bank statements?  

The safest way to share your bank statements is on the secure portal or app. Such portals have security measures that keep your data encrypted.  

Do lenders verify bank statements?  

Yes, lenders do verify your bank statements when you apply for a personal loan on bank statement. They check your income and make sure you are eligible for the loan. In this process, your name, account type, average balance history, salary credit, savings, etc., are verified by the lender.

Is it okay to share a bank statement for a loan?

Yes, it is completely okay as long as you are sharing it with a trusted lender or financial institution. Regulated lenders use your statement only to verify income and eligibility. They even store it securely.

What is the safest way to share bank details?

The safest way is through your lender’s official app or secure portal. These platforms use encrypted systems that keep your account number, IFSC and bank statements protected from misuse.

From GTA to Hitler, And Even Football: The Funny Side Of Coronavirus

Coronavirus has pretty much forced everyone out of their normal lifestyles and has created an air of uneasiness and gloominess across the world. As this duration of this pandemic increases, this tends to create mental health issues for many, which is just going to add on to an already bad situation. Plus, the internet is constantly flowing with bad news. 

It is absolutely essential to stay positive during these tough times. As an old, wise headmaster once said, “Happiness can be found even in the darkest of times if only one remembers to turn on the light” (who said Dumbledore isn’t quotable?)

While we love to help people in financial straits, and spread positivity through general mental peace tips, like the importance of Yoga, this time, we decided to spread some laughter and humor. Laughter, after all, is a very important weapon in our arsenal to help remain positive throughout even the worst of the times. 

In fact, the good folks at VeryWellMind have written a great piece on how humor can help relieve the stress caused by Coronavirus. They’ve explained how cortisol secreted when we laugh is a great stress buster, and how it can help improve our overall mental health.

With this in mind, we, at EarlySalary, decided to take a look at some of the funniest memes, jokes and trends shared across various platforms with the sole intention to spread some laughter and positivity.

Brace yourselves, the memes are coming

#1 Birthday meme, by u/omega4life in r/memes.

r/memes is one of our favorite destinations for our daily humor fix. This subreddit has some of the best and original memes to be shared across the internet. The community has plenty of great memes, but this particular meme, titled Maybe a corona meme, by u/omega4life is extremely funny. Take a look!

P.S. The best of Reddit is mostly in the comments section, so go check the meme out on Reddit!

#2 Mask meme, by Lumpysauce in Instagram

There have been a lot of people against wearing masks, claiming that it’s an infringement on their freedom and/or causing mild respiratory distress, with some claims even stating that masks are “killing us”. This is not a political forum though, but we’d kindly ask you that you wear your mask to help get over this pandemic as soon as possible. However, a wide majority of people are angry at people refusing to wear masks, leading to hilarious memes, such as the mask meme by @lumpysauce on Instagram.

#3 Wembley Meme, by Wembley Stadium’s twitter account

Plenty of us had great plans for the year 2020. 2020 had other ideas. This emotion was best expressed by Wembley Stadium’s official twitter account through this meme

Plenty of football fans were surely expecting to see a packed Wembley, but hey, maybe next year.

#4 Hitler has Coronavirus, and He’s Not Happy by YouTuber Puzzling games

If any of you folks have ever watched a movie called downfall, you know exactly what to expect from this meme. If you don’t, imagine an angry Hitler being ranting at the present scenario. It’s 4 minutes of complete frustration, which is subtitled beautifully to capture the emotions of the present scenario, go have a look!

#5 A dead meme returns by ultimate_uwu-master in memedroid

A lot of us know of the classic game by Rockstar Studios, Grand Theft Auto San Andreas, which sees the protagonist, Carl “CJ” Johnson thrown into the streets of his rival gangs with little cash when he utters a line which has become meme-worthy for years to come. This meme by ultimate_uwu-master brings attention to the fact that there has been some pandemic or the other in the 20th year of the last three centuries, go take a look!

This was our top 5 memes that we found the funniest during these dark times? What did you think of this list? Do you have more memes for us? Do share it with us through our socials with #MemeswithES and let’s spread some joy together, shall we?

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the personal loan app here, or simply log in to our website and be a part of the #OneInAMillion experience.

Extending Financial Wellness Into Retirement, With Technology

Financial Wellness is an integral part of everyone’s life. Essentially, financial wellness refers to effectively managing one’s economic life. It can include different aspects, such as spending while keeping one’s financial capacity in mind, being prepared for emergencies, having access to and making use of tools and information necessary for making sound financial decisions, and planning for the future. Even though it is an important concept, it is often overlooked and neglected. 

In fact, 69% of employees are stressed out about their finances, and up to 72% worry about their finances at work. Thus, the concept of financial wellness has become imperative to both employers and employees. 

When we talk about financial wellness, it’s best to not limit ourselves to the present scenario. Financial wellness extends well into the future, as it refers to a person’s overall financial health and the absence of money-related stress. 

Starting Early

One of the many concepts on which financial wellness is based upon is adopting healthy financial habits in the long run. Adequate savings and spending habits that employees learn during their professional careers can be carried well into retirement years. 

When we talk about retirement plans and saving for retirement, it’s not limited to people who will be retiring in a span of 5-10 years. Retirement plans have to be put into action as soon as one establishes their career, at a young age. A majority of young employees might see that, if they calculate, they are significantly unprepared for retirement, and need to save more. Financial wellness is primarily accumulation driven, which has now become an outdated approach, especially with the advent and rise of technology. 

Many current wellness programs, however, are ineffective. This is because they focus primarily on providing information or access to additional content or resources, such as: 

  • Personal financial management applications, 
  • Financial advisors, or financial coaches. 

The problem arises because these alternatives require significant time and effort. Hence, they are rarely accessed by employees and are rarely paired with concrete, actionable steps for extending financial wellness. 

When it comes to planning for one’s retirement, sooner is always better. 

  • New employees make a majority of important financial decisions during company on-boarding. As they tip-toe their way through the HR setup, they choose a retirement plan, set a paycheck direct deposit, and decide on health insurance. 
  • Another important area where financial wellness programs should be focussed on is promotions or job changes since these are key moments where finances are modified. 

Tech & Financial Wellness

Technology plays a crucial role in helping employees plan for financial wellness well into retirement:

  • With the development of apps that help employees with direct saving, emergency lending, and financial literacy, this assistance is becoming more digital, accessible, and less time consuming as compared to its conventional, outdated counterparts. 
  • Features such as chat and personal-goal settings available in these applications allow companies to not only educate but also communicate and engage. This is a revolutionary step because employees need more than just education. They need step-by-step guides that offer instructions on how to formulate and execute a plan.

It’s imperative to understand that these initiatives are not beneficial only for employees approaching the retirement age. According to a recent study, over 67% of millennials have some sort of retirement savings plan. This hints that the younger generation can benefit immensely from a technology-based financial wellness platform with a human touch. 

Financial wellness tools can help provide financial balance and adequate knowledge and guidance to set young employees up for success. It is only normal that currently, we see an increasing number of companies desire highly motivated employees with the greatest productivity, enhancing their benefits experience with these tools. 

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the personal loan app here, and be a part of the #OneInAMillion experience.

A Closer Look At The Tech Behind Instant Personal Loans for India

Compiled By: Anil Sinha
About Anil: He is the Head of Engineering at Fibe, with over 15 years of experience, Anil is passionate about technology and has strong Leadership skills driven by core human values. He has worked on various techno-functional leadership roles with hands-on code and delivered complex products in the space of distributed data processing, especially related to trade processing and risk analytics.

In the time of a pandemic that’s changing the way we live our lives, technology is bolstering ahead to cope up with the repercussions of the new normal. From cloud computing powering some of the biggest consumer tools and services to enabling working from home, it is constantly evolving to meet the needs of a world that has been forced to stay home. A financial crunch can be frequent in times of uncertainty and doubt, and the COVID-19 pandemic is no exception. This is where organizations like ours come into play and at the service of those who need fast and effective financial solutions. 

By offering instant personal loans with a minimum of basic requirements, we at Earlyalary are fortunate to be at the forefront of a fintech revolution. Financial Technology is a relatively new sector that combines technology and financial systems. With our technology adapted to be compatible with the ever-growing requirements of the fintech world, we have been able to develop an agile and more scalable system that is focussed on automation. This ensures smoothness of day to day operations. 

Automation testing and system monitoring

Investing in platforms that enhance and speed up processes is a crucial aspect of developing the tech behind instant personal loans. At Fibe, we have realized and acknowledged this from the very beginning. As a result, we have extensively invested in automation testing and system monitoring. This has helped us become more agile, respond to requests quickly, and effectively monitor all activities.

Utilizing data lakes

Instant Personal Loans

The concept of data lakes is gaining in importance, and rightly so. Data lakes help in managing large volumes of data – crucial to credit risk management – effectively and are honestly crucial to our success. By creating a data lake that is responsible for all types of our customer data, our overall system sees a marked enhancement in its strength and robustness. A data lake ensures the instant availability and high quality and reliability of the information so crucial to conducting our business and meeting our goals. At Fibe, our data lake has helped in making our analytics models far more capable and powerful, while strengthening overall processes.

Partner Management Platforms

A dedicated partner management platform is an excellent way to make partner integration smoother and easier. It brings many advantages as it automates operational tasks and recons. It also helps with auto failure detection and in some cases even auto-fixes. The EarlySalary team is fortunate to be involved in a variety of business partnerships with leading businesses, such as with aggregators from the marketing sector, and with lenders for co-lending. Our platforms are structured around a plug and play model that ensures that these integrations are seamless.

While the evolution of technology and its adoption and implementations are often at exponential rates, it’s reasonable to assume these metrics would see an even faster rate change in the light of the coronavirus pandemic. This would not be limited to just the fintech sector but will spread across all industries. Expect an increase in demand for cloud services and data analytics services, as well as for new avenues such as cybercrime security. Covid-19 has brought with it a wide range of changes that will have an impact on the way people think, work, and even spend. 

I believe that this data is crucial in need to identify the needs of the people, in order to serve them better. Customer centricity is of fundamental importance and priority, and we continue to work on areas that focus on improving customer experience through technology. We strive to increase the number of instant approvals for our loans, by reviewing our scorecard to provide better services to genuine customers. The tech behind instant personal loans continues to improve on a daily basis, as we race to ensure near-perfect optimization of processes and serve their customers better than ever before.

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the personal loan app here, and be a part of the #OneInAMillion experience.

How Did HR Teams in India Manage Covid-19?

During the tragic COVID-19 crisis, HR teams across the world were presented with a new set of challenges to keep employees motivated and safe. Organizations began building new work arrangements and are now restructuring HR processes and operations with a digital focus. HR departments are recalibrating priorities, changing focus towards the management of the workforce remotely, and reimagining workplace models. This blog explores how HR teams in India managed COVID-19 and how your organization can start to do just that.

Sprint Planning

From a recent survey by EY, the biggest concern for around 70% of organizations is decreased productivity as a result of remote working. The survey also highlights that 72% of organizations believe that COVID-19 will impact work beyond 6 months. This has led to several organizations digitizing operations, shifting to virtual recruitment methods, and leveraging emerging technologies like Artificial Intelligence, Robotic Process Automation, and Machine Learning. 

This change was led by the need for delineating key responsibilities, building work alignment, and work control. Organizations are now adopting structured work allocation and communication protocols to provide meaningful work to employees. Department heads and HR teams are rethinking workforce models and resource plans to keep employee engagement high. Performance management processes are being modified and benefits are being restructured. 

HR Teams

Many firms are now using collaborative dashboards for daily check-ins and relying on smaller teams, with clear ownership of tasks and accountability for execution. Teams are also asked to keep an eye on communication among members (to the extent appropriate). Teams are also maintaining daily and monthly calendars to organize daily huddles. Standard and structured templates are being used to update members within the team at specified intervals. Some firms are also keeping a moratorium on work hours, to maintain work-life balance and let employees have some downtime. 

Improving Work Control

Many firms are leveraging the gig economy for more agility and talent deployment. The EY survey also shows that nearly 55% of firms consider employee cost as an issue in the near future. The main steps taken to build work control are:

  • Articulation of key policies and procedures, providing greater autonomy to local leaders and managers with tools and information.
  • Quick, on-demand access to accurate information about task progress to frontline managers and supervisors. Local leaders have been given more autonomy, the authority to effectively address localized issues and needs.
  • Employee training to support each other through flexible work arrangements.

There is an increased focus on empathic and personalized communication. From on-call doctors and psychiatrists to virtual gyms, HR departments are working hard to keep employee morale high. Communication strategies based on daily check-ins, one-on-one calls, and team sync-ups for collaborative and integrated working are the backbone for ensuring productiveness among remote workforces. This also includes providing platforms to consult experts within and outside the organization, and raise questions, bugs, feature requests, etc. Video conferencing is aiding the mutual exchange of knowledge and reducing the sense of self-isolation. For example, the Mahindra group is using Cisco WebEx across all their locations. 

Leveraging Technology

Many companies are also setting up Virtual Private Networks (VPNs), virtual assistants, and chatbots for real-time information flow to promote instant and secure messaging for the smooth transfer of information among employees. Mobile-enabled individual messengers such as Slack, Salesforce, Zoom, Microsoft Teams, etc. are also being used for work allocation with simpler and less formal conversations in time-sensitive environments.

As per CP Gurnani, CEO of Tech Mahindra, the company may start “with 25% employees” working from home. “Most organizations will break away from large campuses to distribution centers. Work from home doesn’t mean work from home forever. There will be a Friday meeting, etc. But instead of my campus being 10,000 people in one place, it can be 500 people in a smaller town.”

To counter issues around data security and employee engagement, HR teams are setting up robust “rules of engagement”. This makes work from home more efficient as managers set expectations for the frequency, means, and ideal timing of communication for their teams. Bosch’s Chinese division had to instill a new understanding of trust and train its managers to work and manage remotely and emphasize a results-driven approach over the older presence-driven model.

Downside

There are some tough decisions being made as well. Some firms are revising compensation structure, halting recruitments, or delaying increments. As per a recent Layoff 2020 survey by MyHiringClub.com and Sarkari-Naukri.info, 68% of the employers surveyed have either started the layoff process or are planning to. 

Conclusion

Famous author, William Davies mentions that ‘to experience a crisis is to inhabit a world that is temporarily up for grabs’. While it may be difficult to stay positive for tomorrow amongst all the drastic changes, HR teams have prioritized communication, prompt reporting, and put remote working to test. The emphasis of HR teams throughout the crisis has been to reinvent business processes going with the grain of human behavior. This has helped to turn struggles and pain into new ways of thinking, better approaches, and innovations. After all, it’s important to prioritize mental health in times like these.

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Can we Claim Tax Benefits While Availing a Personal Loan

It is only when we start earning that the fuss about tax saving begins. The very moment we get our paycheque and see the taxed amount, we realize the importance of effective tax planning. While there are many ways to reduce your tax burden, most of us often fail to take advantage of all the tax-saving avenues available. More often, even the most experienced professionals lack awareness beyond Section 80C.

Take for example the case of tax benefits on a personal loan. Did you know that generally, personal loans are not at all taxable? This is because the loan amount is not accounted for as a part of your income while filing your income tax return. However, you must ensure that you avail the loan from a legal source such as a bank or other financial institutes or loan apps such as Fibe loan app. In this blog, we break down some myths and tell you how you can claim tax benefits while availing a personal loan. 

When Can I take Tax Deductions on Personal Loan?

A personal loan is a multipurpose loan that can be used to finance some of the most important milestones in your life, right from marriage to a new venture. One common myth about it is that the interest paid on personal loans is not tax-deductible. 

However, under some circumstances, you can avail of tax benefits even on a personal loan. The caveat here is the purpose towards which the personal loan is utilized. The IT Act allows tax benefits in these 3 cases:

  • Personal Loan for Purchase, Construction or Renovation of Residential Property

You can get tax deductions under Section 24 on personal loans if the amount is used to purchase, build, or renovate your home. Interest accrued from the borrowed capital is deductible from your net income or net annual value of the property for which the amount is used. 

You can also claim tax benefits up to Rs 2 lakh on personal loan taken for a self-owned property. The entire interest amount can be claimed as a deduction for a personal loan towards a rented home. The principal amount of personal loans for home improvement is also eligible for a tax deduction of up to Rs 1,50,000 under Section 80C.

  • Personal Loan for Investing in your Business

While there are dedicated debt funds available for growth financing of your business, you can also opt for a personal loan for your business requirements. You can claim tax benefits by deducting the interest paid from gross revenue i.e. the net taxable profit from the business. This is called a tax shield as this interest will be considered as a business expense and the exemption limit is not defined.

  • Personal Loan for Asset Acquisition

If you use the personal loan amount for incoming-producing assets such as shares or gold, then also you can get tax benefits. At the time of selling such assets, the interest amount included in asset acquisition lowers your capital gains, thereby reducing your capital gains tax liability on the sale transaction.

Bottomline

Yes, you can claim tax benefits while availing a personal loan. As you can see, there is more to tax savings. 

However, a word of caution here. Don’t take a personal loan just to claim tax benefits. You should also ensure that you have all the relevant documents such as the sanction letter, expense vouchers, authorized certificate from your bank, auditor’s report, and the lender certificate as proof to be able to claim your deduction on a personal loan. 

If you want an instant personal loan, opt for an online personal loan through the Fibe app to make sure you make the best possible use of all the options available. Attractive interest rate, instant approval, and hassle-free disbursement, Fibe instant personal loan app has it all and more. 
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Should you opt for the Personal Loan Moratorium? Read this before you decide

The COVID-19 pandemic and resulting initiatives such as lockdowns across the world have impacted the livelihood of millions globally as well as in India. As a result, many borrowers in India have witnessed a sharp decline in their income making it difficult if not impossible for them to keep making timely loan repayments. To provide relief to such borrowers, India’s Central Bank, the Reserve Bank of India (RBI) initially introduced a 3-month moratorium on term loan repayments for the March to May period. This was subsequently extended for a further 3 months in May for the June to August period. But this is a temporary relief, so to make an informed decision you should consider the following key aspects of RBI loan repayment moratorium.

Applicability of the Moratorium

RBI’s moratorium guidelines specify that it applies to borrowers of all term loans such as home loan, personal loan, car loan, etc. that were sanctioned before 1st April 2020. So if you have already applied for and been approved for the moratorium in March, you can potentially not make any EMI payments for up to 6 months starting on 1st March 2020 and ending on 31st August 2020. After the end of this period, you will, however, have to resume the normal monthly EMI payments once again.  

What’s more, you can apply for the moratorium even if you have multiple loans outstanding with the same lender or with different lenders. But do keep in mind that while you are free to apply for this facility, it is at the discretion of the lender to actually grant this request. For example, some lenders have put in place the criteria that an applicant’s loan account needs to be up to date i.e. no missed payments/defaults till 29th February 2020 to qualify for the moratorium.      

Moratorium Impact on Credit Score

RBI has specifically stated that any EMI payments missed during the moratorium period will have no impact on your credit score provided the lender has approved your moratorium request. Lenders too have confirmed that they will not be reporting missed payments as defaults during the moratorium to credit bureaus and also no late payment fees or penal interest on overdue amounts will be charged during the approved moratorium period.

The Interest Accrual Consideration

While not having to make EMI payments during a cash crunch is a good thing, there is an interest accrual cost that you need to consider. During the moratorium period, interest will continue to accrue on your outstanding personal loan principal at the start of your moratorium period. You can find your outstanding loan principal in your latest personal loan account statement. Alternately, you can use a free personal loan EMI calculator that shows your outstanding principal amount based on your originally sanctioned loan amount, loan start date, and interest rate. Let’s understand how the interest accrual calculation works with an example:

Let’s assume your loan principal outstanding at the start of the moratorium is Rs. 1 lakh and your loan interest rate is 12% p.a. Also, suppose you have availed the full 6-month moratorium.

Based on the above assumption, the monthly nominal rate of interest = 12%/12 months = 1% per month i.e. 1/100 per month Interest for the 1st month of moratorium
= 100,000 x 1/100 = Rs. 1000
Total Interest accrued for 2 months of moratorium = (100,000 + 1,000) x 1/100 + 1,000= Rs. 2010. The principal outstanding is increased by the interest accrued in the previous month, hence principal loan outstanding for the second month is Rs. 1 lakh + Rs. 1,000 (interest for the first month)

By using the same calculation, you will get the following figures:

Total Interest for 1 month of moratorium Rs. 1000
Total Interest for 2 months of moratorium Rs. 2010
Total Interest for 3 months of moratorium Rs. 3,030
Total Interest for 4 months of moratorium Rs. 4,060
Total Interest for 5 months of moratorium Rs. 5,101
Total Interest for 6 months of moratorium Rs. 6,152

Thus in our illustration, you will end up paying an extra Rs. 6,152 as interest accrued for the moratorium period of 6 months. Obviously, if your outstanding loan amount or interest rate is higher, the interest pay-out will also be higher. So, while the personal loan moratorium may not cost you in terms of late fees or penal interest charges, you will have to incur the extra interest cost as shown above.

The Best Course of Action

Many experts have already said this, but it does hold – “Apply for the personal loan moratorium only if you have no choice. If you do not have cash flow issues, stick to your repayment schedule like before”. This advice is practical as every borrower’s situation is unique. Some may be less impacted by the COVID-19 crisis than others and in such a case it does not make sense to pay the extra interest by opting for the moratorium. On the other hand, if you now lack the means to continue paying your loan EMI every month right now, the moratorium will give your much-needed relief as well as some time to try and sort your current financial issues, albeit at the cost of accrued interest.  

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